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Renewable energies are the solution to the high prices of fossil fuels: in January they generated 59.4% of electricity and lowered the market price by 65% in Spain

  • A new monthly renewable generation record has been set with 13.5 TWh (59.4% of the total).
  • Mainly driven by the large contribution of wind (32.4%), and also of hydro (17.7%) and photovoltaic (7.1%) in electricity generation, the spot price of the electricity market was reduced by 65% compared to January 2022. This is the cheapest monthly price since May 2021.
  • Thanks to the replacement of fossil fuel generation with indigenous renewable generation, the price of the PVPC tariff has been reduced by 54%, also contributing to reduce inflation.
  • In January, Spain had the cheapest electricity of the major European markets.

January has brought a favorable weather situation for renewable electricity generation with abundant wind and rain. This energy has been harnessed thanks to investments made mainly in wind and hydroelectric installations, which has been reflected in the price of electricity, both in the spot market, with a year-on-year reduction of 65%, and in the price of the PVPC residential tariff (-54%). Not only does this help Spanish consumers to face the “January slope” but also the whole Spanish economy as it brings down industry costs as well as inflation. Moreover, as shown in the graph, the Spanish electricity market has been the cheapest among the main European markets.

Wind generation has been the leading player this month, being the main generation technology of the system with 32.4% of the system’s total (7.4 TWh), and also during 23 of the 31 days of the month.

(Information written by AEE)