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Spain’s Electricity Market Swings From €65/MWh Peak to Free Midday Hours

Midday free electricity on Saturday highlights the impact of renewables oversupply on market volatility

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Overview

  • On August 1 the average wholesale price reached €64.79/MWh with no zero-cost hours and only five hours below €30/MWh
  • On August 2 the average plunged 42.5% to €37.24/MWh, including five consecutive zero-euro hours from 11:00 to 16:00
  • Renewable oversupply during midday drove prices to zero even as evening rates climbed toward €100/MWh
  • The PVPC regulated tariff now links 40% of consumer prices to futures markets alongside spot pool rates to smooth extreme swings
  • Hourly pricing windows offer consumers cost-saving opportunities under PVPC but final bills remain shaped by fixed network charges and limited demand-response uptake