Wind energy is the electricity generation technology with the most installed capacity in mainland Spain and the second that has contributed the most to the generation mix in recent years, exerting a downward influence on market prices.
Its multiple advantages have led it to increase its position in the electricity generation mix in Spain, occupying second place since 2016, behind nuclear power.
Therefore, wind energy allows the price per KWh of electricity to be cheaper. This is so because producing this energy has a low cost, and therefore, its sale price can be cheaper.
The prices of wind power offers to participate in the electricity market are lower than those of other technologies, such as thermal ones. When wind energy production is high, prices tend to fall, reaching values very close to or equal to zero in a few hours, especially when the “electricity demand” is lower. In the case of low wind production, prices tend to increase because it is necessary to resort to “thermal power plants” to cover the demand for electricity.
As far as international electricity exchanges are concerned, the European electricity markets are physically interconnected and coupled with each other in the?internal electricity market. This allows energy to flow from markets with lower prices to markets with higher prices, thus obtaining more balanced prices and prioritizing production with the least expensive and most efficient technologies. Therefore, when wind energy production is high, electricity exports from Spain increase.
Source: Prepared by AleaSoft Energy Forecasting with data from OMIE and REE.
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