The price of electricity is rising to a new level. Already increased by 115% with the war

The Russian invasion of Ukraine exacerbated the rise in energy prices. Electricity in the Iberian Peninsula will break all known records at the beginning of the week

The wholesale price of electricity will reach a historical value. On Monday, March 7, MEPLE – the reference on the Iberian Peninsula – will reach the 500-euro level per megawatt-hour (MWh) in Portugal and Spain during certain periods of the day. This never happened.

The average daily value will be 442.54 euros per megawatt-hour, which is a 17% increase compared to Sunday, according to data from Omie, the electricity operator of the Iberian market.

Since the value fluctuates frequently during the day, it will range from a minimum of €379.02 per MWh (recorded between 11pm and 12am) and a maximum of €500 per MWh (between 7pm and 8pm).

Russia’s invasion of Ukraine exacerbated the price hikes he had been feeling since last year, especially in the energy field. Since the beginning of the conflict alone, electricity prices in Portugal and Spain have increased by 115%. And compared to exactly last year, the difference is even greater: the average price on the Iberian market at that time was 47 euros per megawatt-hour.

The previous maximum recorded by the operator was recorded on December 23, when the average price was set at €283.67 per MWh.

Electricity prices are escalating in the wake of the escalation recorded in natural gas in global markets, whose price reached 192.55 euros per megawatt-hour on Friday, after it recorded 199 euros on Thursday.

Contrary to what happens to fuel or bottled gas, the electricity market is not fast in incorporating these trends. In the regulated market, in Portugal, the price is set by the Energy Services Regulatory Authority (ERSE) and can be updated every quarter in the event of strong fluctuations. In a liberalized market, the story is different, and may depend on the supplier.