The cause of the decrease in prices is the great expectation of growth in installed capacity of wind and solar, forecast at 15 GW.
Standard & Poor’s has produced a report on the energy transition which states that Spain and Portugal are the only markets in which a fall in real terms in energy prices is expected between 2023 and 2025. The main cause? Growth in installed wind and solar capacity.
Standard & Poor’s have published a study stating that the Spanish and Portuguese markets will be the only ones to see a real drop in energy prices between 2023 and 2025.
Titled ‘What does the energy transition mean for European prices and producers’, the study predicts an average rise in energy prices in Europe of 30% due to the increase in the cost of gas and coal due to the nuclear blackout in Germany and the gradual decrease in coal use.
According to S&P, Spain will maintain an uneven trend in energy prices until 2023, with a fall expected for next year and a new rise expected for 2021, higher than the average for European markets.
On the other hand, the study explains that from 2023, the cause of the decrease in prices is the great expectation of growth in installed capacity of wind and solar, projected at 15 GW. Although not everything is optimistic, as S&P still sees barriers to this growth, such as the difficulty in obtaining financing for commercial projects.
Finally, the study also warns that the request for connection points for new installations to Red Eléctrica de España is at a very difficult point to achieve.