CSN News reports that electricity prices in Spain have dropped due to storms. However, they are still 151% more costly than one year ago.

Thursday, 27 March 20, 25 at 17:55

Jana, Konrad Laurence, and Martinho. In March, the electricity price rollercoaster was caused by a series of storms which hit Spain over recent weeks. The rain and clouds were particularly heavy. The absence of wind, and in particular sun in the first half was notable. In March, photovoltaic renewable energies produced nearly three points less energy than in February. And gas prices were higher at 42 euros per megawatt-hour (euros/MWh).

This cocktail of weather conditions led to a turning point on 13 March with the average price for electricity at 111.73 euro/MWh. From the 14th March, with still heavy rains, but more wind, prices have been stabilising at an average of 51 euros/MWh. This is a 53.7 percent decrease.

It has led to low prices and even negative ones during the day. This was seen on Wednesday 26th of March. But these aren’t really free intervals for consumers, because fixed costs such as tolls and charges, and system adjustment are added to final bills.

After five days, we will have the wettest March in Spain since 1961. With Spanish reservoirs at 70% of their capacity, this final stretch in the quarter should bring relief on electricity bills.

The prices for this year are higher than in 2024, because there was no winter last year. Gas, which sets the price for electricity in Spain, was priced at around 26 or 27 euro/MWh. This year there has been what in German is called a ‘dunkelflaute’, little wind and little sun,” explained Antonio Aceituno, general manager of Tempos Energía.

This optimism is however tempered by the reality that, despite the drop, the electricity price in March remained 155 per cent more expensive than the 20,28 euros/MWh for the same period of last year.

Temporary Relief

Does this downward trend look set to continue in the future? “It seems that the push from hydro and solar is going to continue to be important during the last week of March and the first part of April, and we will continue to see quite low prices, around 50 euros on average,” pointed out Juan Antonio Martínez, energy market analyst at Grupo ASE.

However, according to Martínez it is likely that from the end of May or June prices will be higher than this time last year, once hydro output falls – in the first three months of 2025 it has remained the third largest source of generation behind wind and nuclear – and if gas prices continue on the current upward path. “It is possible that once this maelstrom of hydro and wind generation has passed, gas prices will once again prevail,” concluded Martínez.