The price of electricity in the first 20 days of March is 30% below February levels, relieving pressure on suppliers for increased discounts and on the Environment and Energy Ministry for subsidizing bills, in order to contain costs for household consumers as much as possible.
The average price on the Stock Exchange in March, so far, is below 110 euros per megawatt-hour, while it exceeded 150 euros in February. The decline in prices is mainly due to the combination of increased production from renewable energy sources with reduced demand. This is a seasonal phenomenon that is repeated in spring and autumn as there is sunshine but also strong winds that increase green production in a period when temperatures (with the exception of bad weather at the beginning of the week) do not require the use of heating or air conditioning.
The overproduction of RES, however, creates "collateral losses" to the grid stability, as when production exceeds demand, fluctuations in voltage and frequency can be caused, affecting stability. The problems are further intensified during holiday periods when demand is even lower.
For this reason, the competent authorities are taking emergency measures to limit "green" generation by forcing unit cuts.