While steps are being taken towards decarbonization, we are witnessing the episode of the increase in the generation market price. If goods
a cyclical rise (due to CO2 emission rights and the high price of gas), the phenomenon invites us to reduce precisely these dependence on natural gas and our CO2 emissions. “We will still have years in which gas will continue to play a fundamental role in the electricity sector. If we want to reduce its impact on prices, we must opt for another market model. A structural reform of the electricity sector is needed, because we see how vulnerable we are to the rise in the price of gas, which is not in our power, but it affects us in many things, ”recalls Natalia Fabra, professor in the Department of Economics of the University Carlos III of Madrid. This expert values positively that Spain is leading the debate in Europe on what is the energy model that we need to really accompany the energy transition and not hinder it.
the price of electricity In the Spanish wholesale market it is in the lower average of the neighboring countries, the domestic bill is the fifth most expensive in the EU because the taxation of electricity in Spain, and the cost of support for renewable energies, are among the highest in the Old Continent. “In a normal year, taxes and pseudo-taxes represent 50% of the domestic bill”, indicates Jorge Sanz, associate director of Nera Economic Consulting. In his view, “for society to accept the energy transition it is essential that they stop giving subsidies to renewable energies (they are not necessary) and that the different public administrations stop using the electricity bill as a source of financing.”
It is worrying to know if this rise in light is going to accompany us for a long time. «In the medium term in the wholesale market it would only relax in spring, with a mild winter globally, which seems unlikely, “he says. Joaquín Giráldez, co-founding partner of Ingebau, a consulting firm specialized in the electricity market. He is not very optimistic about the drop in the price of electricity in the medium term because for this, among other things, a good electrical interconnection would be needed.
Remember that the European Union requires 15% of international interconnections by 2030 and Spain is still far from that number, which is a problem. What’s more, ‘Electricity cannot be stored on a large scale and when more renewable energy enters, it creates instability, in the system and in the price, ”he clarifies.
Effect of renewables
One of the recurring questions is to know when we are going to benefit from the bet that Spain has made in renewable energies. José María González Moya, CEO of APPA Renovables, recalls that “They are already competitive, we have a cost price for electricity production that is well below the traditional ones (nuclear and gas).These renewable energies are the solution that we have for the future to help the goals of climate change and they will make us save effectively on the receipt ».
Today, all the renewable energy that is produced is absorbed. “It is expected that 74% of our electricity in 2030 will be renewable and now we are below 50%,” says the head of APPA Renovables. Until relatively recently renewables were more expensive than conventional electricity. “To make them cheap now, a lot has been invested but it already means savings and we benefit directly from that investment,” says González Moya, aware of the premiums paid for renewables on the electricity bill. In addition, he believes it is important to underline that Spain “exports almost 5,000 million euros of renewables” thanks to the development of this sector.