Blistering heat pushes up power prices in Spain
The Peninsula
A heat wave in Spain is boosting demand for air conditioning leading to higher power prices as gas plants fire up. Hot air from Africa is pushing m...
A heat wave in Spain is boosting demand for air conditioning leading to higher power prices as gas plants fire up.
Hot air from Africa is pushing maximum temperatures to 44C in parts of Spain causing average day-ahead power prices to rise above equivalent contracts in Germany and France.
Average prices in the Iberian nation have increased more than four-fold since April.
Spain gets more than half of its power from solar panels and in spring, before the heat cranked up, high volumes pushed prices down to an 11-year low. So far in July, the day-ahead contract has averaged €67 a megawatt-hour, according to auction data from the OMIE exchange.
The share of total renewable generation meeting power demand dropped to 58% in July from around 70% in March, Sabrina Kernbichler, lead power analyst at Energy Aspects Ltd. said.
