Renewable energies and the price of light

Light is a fundamental element in our lives. No one conceives to get home and that the light cannot be turned on or the refrigerator has stopped working for a few hours. Therefore, it is important that Throughout the electricity grid there is enough energy to meet the demand. As it is impossible to store so much energy, the electricity that is needed must be generated at the time.

The Electricity of Spain, through complex algorithms and its long experience, is able to predict with great accuracy the amount of energy to be needed hourly. This estimated demand is shared with the Iberian market operator of Spain (OMIE), who is responsible for regulating the sale of energy.

Energy generators, such as hydraulic plants, nuclear centrals or thermal plants, put a price on the energy they will produce at every hour and the OMIE is in charge of buying those energies, starting with the cheapest, until the demand is covered. The market is of the marginalist type, that is, the price at which all energy is sold is the price that marks the most expensive energy that is needed.

Example of how the price of light is marked today by time

To better understand how the price of light is determined, we will use a very simplified example. Suppose it is estimated that 100 MWh is needed for 8 in the morning.

• The wind energy supplies 30 MWh at € 10/MWh
• The Hydraulic energy You can give 25 MWh at € 20/MWh
• The solar energy contributes another 25 MWh at € 25/MWh
• With the nuclear power 20 MWh is generated at € 35/MWh
• The Combined cycle plants They could produce 10 MWh at € 50/MWh

As only 100MWh are needed, we are buying energy starting with wind, which is the cheapest, until we reach the nuclear, which is the one that allows us to reach 100MWH. As the price of nuclear energy is € 35/MWh, the price of all the light for 8 in the morning is € 35/MWh.

You can consult the price of light today to real time.

Renewable energies are winning more and more prominence In the energy mix. In recent years, the energy generated by renewable sources has been around 45 % of all the energy produced, even reaching 50.4 % in 2023.

Spain has a highly developed renewable energy industry, especially with regard to wind and solar energy. Not for nothing, Spain is the country of Europe that receives more hours of sun And it is in A privileged position to also take advantage of Atlantic storms.

Renewable energies allow generating energy very cheapwhat has an impact on the invoices of many homes. However, They are also very variable. Climatic conditions They can give high production peaksin which the price of light can reach € 0/MWh, or also go through periods in which it barely occurs and have to resort to other energy sources.

The future of renewable energies

Throughout this decade it is expected that renewable energy sources have a greater weight. Spain has sent a draft of the new Integrated National Plan for Energy and Climate, with which the objective of continuing to invest in these technologies Until 81 % of the country’s electricity is generated with renewable energy.

We already know what is the price of light today by time, but what really matters to us is to know How to impact our light bill At the end of the month. It all depends on the type of contract you have with the marketer. In some of them, The price of light affects directly In what we will pay at the end of the month, while that in others the ups and downs will have no effect. These are the types of contract:

Regulated market rates

The regulated market rate is called the small consumer and it is what It offers the same price of light time by time as in the electricity market. It is, therefore, a rate quite volatile and with which It is impossible to determine how much will be paid in light at the end of the month. They can only offer this rate the reference marketers and you will find the same price in all of them.

Indexed rates

If we enter the free market, there is a type of rate that is very similar to PVPC. These are indexed rates to the market. In them, companies also use the price that light has every hour. On the invoice an average of all the prices that the light has had in that strip will appear so that it is easier to calculate it. In addition, a monthly fixed fee will also be charged, which is the marketing margin of the company.

The main doubt is if it is worth hiring an indexed rate instead of a PVPC. Free market companies can Offer discounts and other additional servicesas maintenance, which make their offers more attractive than those of the regulated market. They can even lower the price of power to try to be more competitive. Not all companies offer this type of rates, only some as totalenergies.

Rates with time discrimination

Rates with time discrimination became very popular since energy prices were fired. It is a rate that offers three fixed prices for energy According to the time of the day (Punta, Llano and Valle section), as well as two prices for the power (Punta and Valle). With this type of rates, households can try to take advantage of the hours in which the light is cheaper to lower costs. Some of the best rates with time discrimination are:

Fixed price rates

The last type of rate is what offers a fixed price whatever time of day. With these rates you will not notice at all the ups and downt goals in the price of light and you can calculate approximately how much you will pay at the end of the month. Some of the best rates with a fixed price at this time are:

If you want to read more articles similar to Renewable energies and the price of lightwe recommend that you enter our category of renewable energy.