Price of Iberian electricity is 3rd most expensive autumn

O the price of electricity in the Iberian wholesale market is recording, this autumn, one of the most expensive periods in its history, according to calculations by the EFE agency, at a time of increased use of gas plants.

According to these data, which are based on information from the Iberian market OMIE, this early autumn weather, which began on 1 September, has an average price of EUR 147.6 per megawatt-hour (MWh) to date, only surpassed on two occasions since this market began to operate in 1998.

In order to find higher values it is necessary to go back to the 168,1 and the 238,2 EUR/MWh that this wholesale market recorded on average in the same period — between 1 September and 10 October — of 2021 and 2022 respectively.

These figures were recorded in a context of energy crisis motivated by increased international demand following the covid-19 pandemic, aggravated months later by the Russian invasion of Ukraine, which caused prices never seen before and led to the adoption of extraordinary measures such as the gas price limitation mechanism.

Without this measure, authorised by Brussels for Spain and Portugal due to its condition as an energy island, resulting from the scarce interconnections with the rest of the continent, the wholesale market would have started the 2022 weather fall at a price of around EUR 280/MWh, more 15% than the actual amount paid.

Today, the context is marked by another conflict, the war in Iran and tensions in the Strait of Ormuz, considered a global energy corridor. This scenario, coupled with an increasing demand for electricity and a lower contribution from renewable energy than in previous years, has led to a widespread increase in prices.

On Tuesday, the wholesale market first exceeded EUR 200/MWh since 2022, a year when this threshold was often exceeded and the price even reached EUR 544.98, a value that remains the most historic in a session.

In order to understand why the wholesale market is currently at these levels, it is necessary to take into account that European gas remains above EUR 70/MWh.

In October, daily data from the Spanish Red Electric Peninsular electrical system show a decrease in the contribution of renewable energies, which represent about 50% of the energy mix, below 53% recorded in the same days of 2025 and 59% of 2024. Nuclear energy leads production, with 22.7%.

Generally speaking, the slightest need for cooling, due to milder temperatures, and the recovery of the wind usually give some relief to the wholesale market in the fall.

This year, however, gas supply remains conditioned by restrictions in the Strait of Ormuz and Europe ended September with gas reserves at 71.54% of capacity, almost 11 percentage points below the level recorded a year ago.

Historical data show that wind production usually recovers in October, so if this pattern is repeated and the demand slows down, there may be room for a fall in prices during the month.