Cheap hydropower and weak wind energy push up Iberian spot prices

Iberian spot power prices rose to their second 33-month high on 21 September as supplies of cheap hydro and weak wind power remained tight.

The OMIE spot exchange fixed the day-ahead pool price at EUR63.43 (US$86.97)/MWh, its highest since setting a rate of EUR64.43 for 12 December 2008.

Dry summer weather has lowered hydro-electric reserves, although they have remained comfortably above average, while the country’s wind farms supplied 4.3% of power demand, compared to the 15.9% average for the year to August.

Meanwhile, its eight nuclear power stations were operating normally, generating 7158MW or 19.3% of domestic demand, according to watchdog CSN and REE.