Electricity Prices Reach Third Costliest Autumn in Spain

Spain's wholesale electricity market has recorded its third-highest autumn average since 1998 on October 10, with prices rising to 147.6 euros per megawatt-hour due to higher gas use, weaker wind generation and increased demand, according to EFE data from OMIE.

The average wholesale price from September 1 to October 10 trails only the levels seen in 2021 and 2022, according to data compiled by EFE. The increase has pushed market prices above 200 euros/MWh for the first time since 2022.

According to aragonplay.es, the rise is linked to greater reliance on combined-cycle gas plants, a 17.7% decline in wind generation and a 14.46% annual increase in September electricity demand cited by analyst Juan Antonio Martínez from Grupo ASE.

Gas prices in Europe have remained above 70 euros/MWh, more than double last year's level, while tensions around the Strait of Hormuz have added uncertainty to energy supplies, according to aragonplay.es.

Photovoltaic generation provided 26.3% of Spain's electricity mix in September, making it the leading generation source for the sixth consecutive month, according to Xataka. However, solar output did not offset evening demand when more expensive technologies were needed.

The impact has reached households using the regulated PVPC tariff. FACUA-Consumidores en Acción reported through Xataka that the average September bill rose to 104.31 euros, up 28% from September 2025 and the highest level in four years.

For households seeking lower costs, David Alonso Reviriego, CEO and founder of Isla Solar, highlighted a residential solar project in Madrid described by Madridactual.es.

"The monthly bill dropped from 116.43 to 34.93 euros. The project cost 6,310 euros and the payback period was estimated at 6.5 years," said David Alonso Reviriego, CEO and founder of Isla Solar.

Madridactual.es reported that homeowners can also reduce expenses by reviewing tariffs, adjusting contracted power and shifting appliance use to lower-demand periods. It added that rooftop solar performance depends on factors including orientation, shading and available space.

The PVPC calculation in 2026 uses 55% reference from forward markets and 45% from daily and intraday markets, according to Xataka citing the National Commission of Markets and Competition. The government also approved temporary tax reductions intended to limit the impact of higher electricity costs.