Russia’s invasion of Ukraine is exacerbating energy price increases. Electricity in the Iberian Peninsula will break all known records at the start of the week
The wholesale price of electricity will reach a historic value. This Monday, March 7, Mibel – the benchmark for the Iberian Peninsula – will reach the 500 euro per megawatt hour (MWh) level in Portugal and Spain at certain times of the day. This had never happened.
The average daily value will be 442.54 euros per MWh, which represents an increase of 17% compared to this Sunday, according to data published by Omie, the electricity operator in the Iberian market.
As the value fluctuates frequently during the day, it will vary between a minimum of 379.02 euros per MWh (recorded between 11 p.m. and midnight) and a maximum of 500 euros per MWh (between 7 p.m. and 8 p.m.).
The invasion of Ukraine by Russia has exacerbated the rise in prices that had been felt since last year, particularly in energy. Since the start of the conflict alone, electricity prices in Portugal and Spain have risen by 115%. And compared to exactly a year ago, the difference is even greater: the average price on the Iberian market was then 47 euros per MWh.
The previous maximum recorded by the operator was recorded on December 23, when the average price was set at 283.67 euros per MWh.
Electricity prices are rising in the wake of the escalation recorded for natural gas on international markets, the price of which was 192.55 euros per MWh on Friday, after reaching a record of 199 euros on Thursday.
Contrary to what happens with fuels or bottled gas, the electricity market does not integrate these trends so quickly. On the regulated market, in Portugal, the price is set by the Energy Services Regulatory Authority (ERSE) and can be updated quarterly in the event of strong fluctuations. In the liberalized market, the story is different, and it may depend on the supplier.
