The average price on the Stock Exchange in March, so far, is below 110 euros per megawatt while in February exceeding 150 euros
At 30 % under February the price of electricity On the first 20 days of March, discharging the pressures both for suppliers for increased discounts and to the Ministry of Environment and Energy to subsidize accounts in order to contain the costs for home consumers as much as possible.
The average price on the Stock Exchange in March, so far, is below 110 euros per megawatt hour while in February, it exceeded 150 euros. Price decline is mainly due to the combination of increased production from renewable energy sources with reduced demand. It is about seasonal phenomenon Repeated in spring and autumn as there is sunshine but also strong winds that increase green production at a time when temperatures (with the exception of bad weather early in the week) do not impose the use of heating or air conditioning.
The overproduction of RES However, it creates “side losses” on the “front” of the stability of the network, as when production exceeds demand, fluctuations in voltage and frequency can be caused, affecting the stability of the network. The problems are further intensified in holidays such as the current (in view of the March 25 holiday) and Easter so demand is even lower.
For this reason, the administrators of the transport and distribution networks (ADMIE and HEDNO) are taking extraordinary measures to limit the “green” production with forced cuts of the units.
This image is repeated every year, but grid pressures increase as the production potential of RES develops without a corresponding increase in demand.
Even in 2024, when RES growth was slowed, 580 megawatts were added to the interconnected system, raising the total power – according to RES manager, DEPEPEP – to 12.08 gigavat. By comparison, the peak of demand last Sunday was about 7 gigavats.
A response to the problem of RES production cuts can give energy storage to both pumping hydroelectric power and high -power batteries that are gradually starting to be installed this year on the system. Also, electricity exports when there is demand from neighboring systems. However, in conditions of high penetration of RES, according to competent sources, it is difficult to eliminate cuts.
