The European Fee has informally accredited the request of Portugal and Spain to increase the so-called “Iberian exemption” mechanism. The measure, which limits the worth of pure fuel for electrical energy manufacturing, was initially scheduled to run out in Might, however it’s going to final till the top of the yr.
The Portuguese authorities has revealed that the European Fee has informally accredited Spain’s joint request for the extension of the so-called “Iberian exception” till the top of 2023.
The mechanism of artificially lowering the wholesale worth of electrical energy within the Iberian Peninsula by capping the worth of pure fuel for the manufacturing of electrical energy. It was applied in June 2022 and is scheduled to run out in Might 2023. Nonetheless, the European Fee has now given the inexperienced gentle to proceed the mechanism till December 31, 2023.
The proposal in Portugal and Spain features a new enhance in fuel costs for electrical energy era, from €55 ($60)/MWh in March to a restrict worth of €65/MWh in December, with a month-to-month enhance of €1.10/MWh.
Initially, the Iberian exception was designed in order that the fuel worth could be set at €40/MWh till December 2022, after which topic to month-to-month will increase of €5/MWh till Might, when it might attain a worth of €65/ MWh. Nonetheless, the worth curve shall be smoother, with € 65 / MWh to be reached in December.
The brand new worth caps till the top of the yr are as follows:
April: €56.10/MWh
Might: €57.20/MWh
June: €58.30/MWh
July: €59.40/MWh
August: €60.60/MWh
September: €61.70/MWh
October: €62.80/MWh
November: €63.90/MWh
December: €65.00/MWh
“Presently, the mechanism lowers the worth of electrical energy by about € 43 / MWh, which interprets right into a profit for Portuguese clients uncovered to the wholesale electrical energy market of about € 570 million,” the Portuguese Ministry for Atmosphere and Local weather Motion mentioned on his LinkedIn account.
The unique Iberian exception required an funding of €8.4 billion – €6.3 billion for Spain and €2.1 billion for Portugal – in line with a press release by the European Fee. It’s financed by the earnings from the Spanish transmission system operator associated to the cross-border electrical energy commerce between France and Spain, and a charge imposed by Spain and Portugal on consumers who will profit from the measure.
The funding at the moment required for the extension of the Iberian exception has not but been introduced.
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