Iberian mechanism generated 15.3% electricity savings

  • ECO News
  • 17 August 2022

Between June 15 and July 31, the Iberian mechanism generated savings of 15% in the average hourly price on the Iberian Electricity Market (MIBEL).

The Iberian natural gas price cap mechanism generated savings of €46.4 per megawatt hour (MWh) between June 15 and July 31, which was equivalent to a 15.3% reduction in the average hourly price on the Iberian Electricity Market (MIBEL).

According to the renewable electricity bulletin prepared by the Portuguese Renewable Energy Association, and released this Wednesday, the savings due to the natural gas price cap, correspond to the difference between the price without the mechanism and the price with compensation to be paid to natural gas power plants, reached a maximum value of 105.9 euros/MWh, and a minimum of 5.62 euros/MWh. In total, 20.5 of the 40.9 terawatt hours (TWh) produced were subject to the consumer adjustment mechanism in the Iberian Peninsula.

Looking at the European panorama, during the month of July 2022, APREN reveals that there was a minimum hourly price in the MIBEL in Portugal of 78.1 euros/MWh, for an hour when the market was closed by combined cycle thermal generation. The maximum hourly price reached 221.1 euros/MWh, where the market closed with hydroelectric power, due to the reversal of the flow from import to export in this hourly period.

More than half of the electricity generated in Portugal in the first six months of the year came from renewable sources.