Country expects to hook back up with Spanish grid “in next few days”
The downside of pulling Portugal’s link to the Spanish grid (for security reasons) has been explained today: it is costing the country dearly: the price of electricity has quadrupled, explains Expresso.
“A week after the largest blackout on the Iberian Peninsula in decades, the specific causes of the incident that left Portugal and Spain in the dark on April 28 remain unclear”, says the paper, recalling that since then, Portugal has suspended electricity imports from Spain (…) This restriction is having a major economic impact, as Portuguese consumers are unable to benefit from the low prices currently being charged on the Spanish market.
According to data from the Omie platform on Monday, the average price of electricity in Spain will be €10.89 per megawatt hour (MWh), while in Portugal the average price is €43.94 per MWh – more than four times as much.
The difference of more than €33 per MWh represents one of the biggest disparities ever between the two countries since the creation of the Iberian Electricity Market (Mibel) in 2007.
The reason for this disparity has to do with market splitting, a phenomenon that occurs when the interconnections between the two markets reach their limit and no longer allow trade. The lack of wind in Portugal today has exacerbated the situation, drastically reducing wind production and forcing greater dependence on more expensive sources such as natural gas and hydroelectricity.
The estimated extra cost for Portuguese consumers this Monday alone is €4.2 million euros, says Expresso, considering the price differential and the volume of electricity transacted (128 GWh).
If the scenario continues, an average family could pay up to €7.5 euros more per month, just because of the increase in wholesale prices.
In the meantime, both the Portuguese and Spanish governments and the European authorities (ENTSOE and ACER) have announced investigations into the exact causes of the blackout and an assessment of the operators’ efforts to recover the system.
“«With the stabilisation of the network, electricity interconnections between the two countries are expected to resume in the next few days. ND
Source material: Expresso
