Spain just became one of Europe's cheapest power markets. Here is how

(janrosenow.substack.com)

52 points | by marc__1 2 hours ago

3 comments

  • pyrale 6 minutes ago
    The author's point is that Spain's electricity is very cheap compared to other European countries thanks to its great electricity mix, etc.

    The reality is that Spain's electricity is cheap because it is relatively insulated from Europe's core network, because its interconnections with other countries are limited. In financial words, there is a spread with the rest of Europe because the ways to arbitrage that spread are extremely limited. If Spain was located near Germany and well interconnected, their prices would look like Germany's. And while cheap energy is pictured as good op, Spain understands very well that higher prices are good for its renewables industry, and is pressing for more interconnections[1].

    The overall tone of the article feels like the author is here to extoll the virtues of renewables.

    [1]: https://www.ft.com/content/8e94079c-585f-11e4-b331-00144feab...

  • PaulKeeble 55 minutes ago
    The past few years has also had Solar continuing to decrease in price so its increasingly going to be the primary choice. On top of that battery prices have been plummeting too so that now Solar + battery is cheaper than other options like Nuclear and especially Gas. Most of the EU will be running on Wind and Solar in the coming years, its a change that is now rapidly occuring based entirely on the rare economics. Solar and Wind are half the price of anything else.
    • happosai 50 minutes ago
      Not most of EU but geographically large and diverse and low-latitude countries will. Spain has winds from three different sea areas and is known sunny, so they are in a good position.
      • joe_mamba 19 minutes ago
        Well that' doesn't always scan. Austria has a lot of wind, sun and hydro so its energy prices should be in line with Sweden, Norway, Denmark amongst the cheapest in Europe, and yet it's routinely amongst the more expensive in the EU.
        • ZeroGravitas 14 minutes ago
          Trading across borders seems to be a part of this story.

          If your local price is high you can import, if it's low you can export.

          If you're at the end of a grid and/or your transmission cap it is limited your price has the possibility to go higher or lower without that damping mechanism.

          Electricitymaps has a pricing layer which seems to show central Europe moving in sync when I randomly check it:

          https://app.electricitymaps.com/map/live/fifteen_minutes?sig...

          • tonfa 5 minutes ago
            And the counter intuitive thing is that people in countries with lots of renewables and not so many external links (e.g. Scandinavia with hydro) might be against adding more links since it will increase electricity prices.
          • joe_mamba 8 minutes ago
            So energy in Spain is cheap because they produce a lot but can't sell a lot easily, and Austria/Central Europe is expensive because they sell their domestic energy too easily?

            If this is what you meant, then it sounds like an argument against free trade, if it means you keep ending up with the short stick.

    • pydry 41 minutes ago
      1/5th the price of nuclear.

      Probably when combined with batteries it is half the price.

      There are some colder areas in northern europe especially where solar doesnt work as well but they also tend to be better served for hydro (which can also store power).

      • distances 33 minutes ago
        Solar works also in the north, except in the winter of course, and it complements wind pretty well. So solar does make economic sense and is actively built in the north too.
      • empiricus 11 minutes ago
        So sad we could not apply economy of scale for nuclear... The main reason solar and batteries are so cheap is economy of scale.
      • badpun 19 minutes ago
        How much would it cost to build out batteries which cover entire continent's electricy needs for say three weeks (as there can be 2-3 week lulls of no wind and no sun in Europe in the winter)? Cause that sounds like a lot of batteries. Not to mention, if a freak 4 week lull occurs, we'll go back to Middle Ages for a week.
        • ricardobayes 7 minutes ago
          Solar still produces even in overcast conditions, during the day. If it's light/medium overcast, most of which Germany usually is it still produces 50-80% of nominal. It only really doesn't produce anything at night or when it snows.
        • energy123 13 minutes ago
          Australia's CSIRO studied this for Australia, renewables were half the cost of nuclear, factoring in storage and transmission for both renewables and nuclear (yes, nuclear also needs storage because energy demand varies with time). Australia is uniquely endowed with sun and land, so other countries/regions may arrive at different results.
        • gpm 18 minutes ago
          > (as there can be 2-3 week lulls of no wind and no sun in Europe in the winter)

          This is simply entirely untrue. Europe's a big place, there's not a single day ever where there is no sun in it.

        • pydry 13 minutes ago
          You would likely get to 97% green energy first with 5-8 hours of storage: https://reneweconomy.com.au/a-near-100-per-cent-renewables-g...

          (for Australia it is 5, for other countries it might be 8)

          Once you get to that "nice to have" problem of what to do about the remaining 3% of power needs it would probably make most sense to synthesize and store gas (methane/hydrogen) from electricity when solar and wind is overproducing. Gas can be stored cheaply for long durations. The roundtrip efficiency is poor but it's still cheaper than nuclear power on the windiest sunniest day.

          The nuclear + carbon lobbies would of course prefer to model green energy transitions by pretending that the wind and sun simultaneously turn off for 2 weeks at a time every year and that electricity can only be stored in very expensive batteries. This is not realistic.

  • alecco 1 hour ago
    > Damian Cortinas, chair of ENTSO-E’s board, told the Financial Times that “the issue is not about renewables” but about the grid’s ability to manage “fast voltage variations” that can destabilise the system. Unusual oscillations triggered a cascade of plant disconnections, and grid managers lost control. The real lesson is not that Spain has gone too far on wind and solar,

    YES THEY DID, they went as far as making nuclear power plants shut down due to negative prices so their reliable stable power wasn't a pacemaker anymore and it blew up in their faces. And this was a topic on TV shows with several experts alerting of this FOR MONTHS before the blackout.

    Sure, there are new technologies to stabilize solar and wind's fluctuating outputs but they are no just plug and play. Those are very, very complex systems that take years to set up properly. While there are nuclear power plants are just there collecting dust because the EU pressured Spain to make them unprofitable to maintain so they would be shut down.

    Luckily, the US-Israel-Iran war made the EU leadership turn and now they want nuclear. I hope it's not too late.

    • aftbit 1 hour ago
      I agree with you on a few points:

      1. Stable power grids are much easier with a mix of generation sources that includes substantial rotating mass and baseload generators.

      2. Nuclear is awesome from a climate change and energy security point of view, and it would be amazing if it were cheaper or more valued.

      When power was primarily generated by thermal plants with big rotating masses, we got frequency control implicitly from the inertia of those generators. When there was a demand spike, the generators handled the millisecond to few seconds regime just by their inertia, while the seconds to minutes regime was handled by plant control systems increasing throttles or starting more peaker plants.

      I disagree that renewables themselves are the problem. Cheap solar energy does not have to mean that we shut down all the uneconomical generation sources, nor does it mean that we cannot do FCAS with modern technology.

      Battery electric storage systems have actually eaten much of the FCAS market in the USA, where they can respond way more effectively and efficiently than other systems in the 1 to 10 second regime. By and large, we don't store solar energy for use overnight - we store it (or really any energy) for use in smoothing short demand spikes.

      I would love to see more nuclear, and more advanced nuclear. Modern designs are safe, effective, and amazingly capable. They just aren't as cheap as paving the world with solar cells or burning natural gas left over as a fracking byproduct.

    • fundatus 6 minutes ago
      [delayed]
    • ndr42 59 minutes ago
      No that's not the case:

        However, several officials and energy experts have rejected the idea that renewables are to blame. EU energy commissioner, Dan Jørgensen, stated that there was "nothing unusual" about the electricity mix at the time of the blackout, and that the outage was not due to a "specific source energy". [1]
      
      [1] https://en.wikipedia.org/wiki/2025_Iberian_Peninsula_blackou...
    • jfernandezr 1 hour ago
      Spain's blackout was exactly 1 year ago, no other blackouts since. And the mix of nuclear stayed almost the same.

      That was not a stabilization problem per-se, but the companies that had to do the stabilization just didn't although the were being paid for that. Please read the final report.

      • m101 56 minutes ago
        No blackout for a year: nothing to see here.

        People didn’t do what they said they’d do: No problem with the system it’s the people that didn’t do what they said they would do.