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VOL 7 | NUM 27 | 4 March 2025
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IBERIA | 24 February - 2 March 2025
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Power Markets Weekly
is a brief weekly review of the electric market operation in Chile, Mexico, Iberia, France and Italy. If you are not a subscriber, please feel free to subscribe
here
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DNV offers tools for Wholesale Market analysis and operation:
- DNV Power Analytics (DNV-PA) is our web-based platform that provides access to constantly updated long-term energy price forecasts.
- With a refined design and an improved user experience we are upgrading our digital services for our customers.
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Day-Ahead Market weekly average price increased, although it remained below the EUR 100/MWh mark |
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The average price of Day-Ahead Market in Spain reached EUR 91.7/MWh last week, registering a 5% increase compared to the previous week's average (EUR 87.7/MWh). This weekly price was 1,938% higher than in 2024 (EUR 4.5/MWh) and 33% lower than in 2023 (EUR 137.6/MWh).
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YTD average is EUR 102.2/MWh, 90% higher than YTD value in 2024 (EUR 53.8/MWh) and 2% lower than YTD value in 2023 (EUR 104.8/MWh).
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Annual evolution of the average weekly price of the Spanish Daily Market
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Generation plus imports in Iberia increased by 3.2%, reaching 6.09 TWh, compared to the 5.9 TWh recorded the previous week.
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The main changes observed in the energy mix, compared to the previous week, were:
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- Increase of wind generation by 7.3 pp
- Decrease of hydro generation by 3.5 pp, followed by solar PV (-2.1 pp)
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Global renewable energy share slightly increased from 60% to 61.3% since the previous week.
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Generation Mix Iberia
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Variation Iberia
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Nuclear
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Cogeneration
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Renewable thermal
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Coal
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Combined cycle
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Hydraulic
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Wind
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Solar PV
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Solar thermal
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Imports
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Power range by energy sources vs demand Iberia
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Spanish DAM presented significant volatility, with pronounced peaks and valleys and daily spreads over EUR 100/MWh at the start of the week. Notably, extreme price spikes were observed on Wednesday and Thursday due to the lower wind generation. During the weekend, hourly prices showed sharper drops due to the lower demand.
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The maximum price was EUR 225/MWh, reached on Wednesday at 8 p.m. set by gas, while the minimum price was EUR 27.5/MWh, set on Sunday at noon by renewables, cogeneration as waste.
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The technologies setting the price in the Spanish DAM were:
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- Hydraulic (including pumping): 69% at EUR 97.1/MWh on average (week before: 58% at EUR 100.4/MWh)
- Renewables, cogeneration and waste: 29% at EUR 72/MWh on average (week before: 38% at EUR 60/MWh )
- Gas CC: 2% at EUR 173/MWh on average (week before: 4% at EUR 173/MWh)
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The SWE grid coupling was 39%, lower to the value recorded the previous week, 47%:
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- Spain-Portugal: 100%
- Spain-France: 39%
- SWE (ES-PT-FR): 39%
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Weekly evolution of the hourly price of the Day-ahead and Intraday Market (DAM and IM)
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Spanish DAM
EUR 91.7/MWh
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Spanish IM
EUR 90.8/MWh
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Portugal DAM
EUR 91.7/MWh
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France DAM
EUR 101.1/MWh
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Hourly detail of the generation & interconnections in Iberia
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The highlights from last week
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- The hourly average output of nuclear generation was 7.1 GW, with all the available fleet in normal operation
- Hydraulic generation provided basic flexibility needs throughout the week with more relevant generation when wind generation was lower. The hourly average production was 7.1 GW
- Gas generation provided an hourly average output of 3.9 GW, with weekly maximum values of around 11.5 GW and minimum values of around 1.4 GW
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- Wind was the first source of electricity during 48% of the week, followed by hydro (34%) and solar PV (18%)
- Hourly renewable share fluctuated between 39% and 73% of total generation, with lower values compared to the ones observed in the previous week (43% and 74%). Wind's maximum share reached 57% of hourly generation, while solar PV's maximum share reached 53%
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Solar and wind generation
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- Wind generation was 1.64 TWh, 37% higher than the previous week
- Solar generation was 0.74 TWh, 12% lower than the previous week
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Generation by technology Iberia
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Interconnections by country, from Spain
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Hourly wind & solar generation
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Solar PV Price
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Wind Price
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Spain
EUR 73.2/MWh
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Portugal
EUR 66.9/MWh
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Spain
EUR 83/MWh
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Portugal
EUR 83.9/MWh
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*The solar / wind price has been calculated as the MD price weighted by the solar / wind generation of the peninsula.
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Futures Market & Commodities
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On the oil market, the front-month contract for Brent last traded at USD 72.81/bbl. The contract has shed around 4% since the end of January. Earlier on the week, the United States imposed additional sanctions on Iran, an OPEC member, and announced tariffs on China, Canada, and Mexico. On Wednesday, it was announced that a license granted to Chevron to operate in Venezuela would be reversed, initially given by the previous administration over two years ago. Consequently, the week was characterized by uncertainty regarding U.S. policies and actions.
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European gas prices were last seen at EUR 44.32/MWh, after dropping as low as EUR 41.09/MWh on Wednesday. Expectations for milder temperatures over the next two weeks contributed to a decrease in heating demand. The European Commission also presented its clean industrial deal, with some market participants anticipating adjustments to gas storage targets. Although the document mentioned “more flexible filling trajectories” for gas storage, it did not specify any changes for this year. Currently, EU gas storage facilities are 39.5% full, down 0.4 pp from the previous day, and lower than the 63.4% level recorded at the same time last year.
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European carbon prices started on Monday at EUR 74.99/t, its highest traded level of the week. However, it was unable to hold on to this level, settling on Friday at EUR 71/t. EUAs traded at an eight-week low of EUR 70.69/t on Wednesday. Investment funds’ net long position in EUAs decreased for the second consecutive week to 50.3m tons, down 8.3m tons from the previous week. More than 11.3m EUAs were auctioned at an average price of EUR 70.64/t and an average cover ratio of 1.95, demonstrating continued interest, according to EEX exchange data.
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To conclude, futures had a mixed performance. Q2 25 remained stable, slightly rising by 0.9% to close at EUR 46.95/MWh. Q3 25 took the largest drop (-3.3%), ending at EUR 81.3/MWh. Q4 25 followed a similar path, sliding by 1.7% and closing at EUR 84.65/MWh. On the yearly front, cal 26 dropped by 0.7% and cal 27 showed no changes, with a close value at EUR 61/MWh and EUR 57.25/MWh respectively.
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