Renewable energies leave decreases of up to 23% in the price of electricity
With a decrease of 23%, mainly due to the increasing rate maintained by the production of renewables, the daily price of electricity on the wholesale market (POOL) marked a historic October 2020, standing at €36.5/MWh. It is worth highlighting the setbacks of the 13% experienced in relation to the previous month, where it reached €41.96/MWh and which has made this price the lowest since at least 2010, placing 33% lower than the average for October the last five years.
Renewable production reaches 56%
The analysts of ASE Group They attribute to renewables the 'responsibility' for this reduction in the price of electricity in October. In fact, these technologies have set a double record by growing production by 56%, covering 50% of the internal demand for electricity.
Added to this is the green energy reduces space for combined cycles and prevents the rise in gas prices from impacting the POOL. Wind power, with a generation 45% higher than the average for the month of October, is at the top of the mix, with 29%, followed by far by nuclear power, with 22.5%.
The other renewable technologies also experienced a significant increase, since the heavy rains in October raised the hydraulic production up to 70% per year, with some hydraulic reservoirs that have 23% more water than last year on these dates. In addition, photovoltaics has grown by 66% and already represents 6.4% of the mix.
The second wave of COVID-19 causes a reduction in the price of electricity
Two other factors that have influenced the evolution of the price of electricity are the national electricity demand and the recovery of nuclear production in France. Although a downward trend is detected in the first of these variables, the drop is less than in the harshest months of the pandemic. Thus, in October it was 2.5% lower than that of a year ago and the cumulative cut since January stood at 4.9%.
For his part, the recovery of French nuclear production removed the strong pressure that exercised the French market last September. In October the balance with France was practically zero due to the growth in imports, which have doubled compared to last month.
It should also be noted that the second wave of Covid-19 has an impact on futures and commodities, since As the situation has worsened, the European electricity futures markets have experienced a reduction in their prices.
In Spain, the price of Yr-21 fell by 4% and stood at €43.60/MWh. Also noteworthy is the reduction of the 10% in the price of CO2 emissions.