Electricity closes 2020 with the cheapest price in 17 years

The light closes 2020 with the cheapest price in 17 years.

The daily wholesale market price for December stood at 41.97 euros per megawatt hour, 0.7% above November and 24.1% more than last year, although the average annual price of the pool has closed 2020 to 33.97 euros, 28.8% cheaper than in 2019 and the lowest since 2004, according to data provided by Grupo Ase.

Ase analysts point out that the fall in annual demand of 5.1% due to the effect of Covid-19 has been one of the most important factors, but they point to other aspects unrelated to the pandemic with high repercussions, such as the growth of the renewable generation (+ 13.1%), low gas prices for much of 2020 and an increasingly energy efficient society.

Although the gas has risen, renewable production has gained positions in Spain throughout 2020, covering 55% of the demand in December and limiting the influence of the CCGs, avoiding the increase in the price of electricity.

Grupo Ase analysts estimate that the increase in the price of gas by more than 15% would have risen more than 10 euros per megawatt hour, if not for the December wind generation was 42% higher than average.

National electricity generation increased by 6.5% in December, but closed the year with a decrease of 3.1%. By technologies, renewable energy grew 7% per month and 13.1% per year, while fossil fuels decreased 6.5% per month and accumulate an annual decrease of 25%.

He December mix It is led by wind, with 32.6% and a slight annual increase of 1%. It is followed by nuclear, with 23.3%, unchanged compared to 2019. Hydraulics represents 14% of the mix and ends the year with a growth of 24% and hydroelectric reservoirs 8% below last year, but 18.4% above the average of the last 5 years.

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The fourth position is occupied by combined gas cycles (11.2%), which closed the year with a decrease of 25%, while the technology that has grown the most in 2020 is photovoltaics, 68% annually. However, the low solar radiation in winter relegates it to only 3.1% of the December mix. Grupo Ase analysts point out that its concentration at peak times and in certain months is modifying the price curve.


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