The electricity pool averaged €69.59/MWh in June, 28.32% more than in May, although it was 4.1% lower than in June 2025. Sunless hours pushed the price above €100/MWh.
The price of electricity in the Spanish wholesale market exceeded €100/MWh during hours without solar generation in June, according to the latest report from Grupo ASE. The electricity pool averaged €69.59/MWh, 28.32% more than in May, although it remained 4.1% below the same month in 2025.
The monthly increase is common due to the rise in demand associated with high temperatures. In June, electricity demand surged by 10% compared to May, which pushed the average price upwards. However, the price was slightly more moderate than last year, even in a context of tension in international gas prices due to the crisis in Iran.
The hourly volatility reinforces the value of flexibility
Grupo ASE's analysis indicates that the differentials between the cheapest and most expensive hours of the day are gaining importance in companies' energy management. In this context, batteries and other flexibility solutions are emerging as increasingly relevant tools to adapt consumption, reduce exposure to price spikes, and gain control over electricity costs.
For companies, the key is to shift consumption to hours of higher renewable generation when the price is lower. Those who cannot do so face spikes that in June exceeded €100/MWh.
Renewables and nuclear mitigate the impact of gas
The increase in nuclear generation and variable renewable generation, mainly wind and solar, reduced the need for electricity generation with gas (combined cycles) by 17.9% and prevented prices from soaring like in the rest of Europe.
In Germany, the price of electricity skyrocketed to €106.83/MWh, 54% more than in Spain. In Italy, it exceeded €132/MWh, while France, at €66.07/MWh, remained at levels similar to the Spanish market.
This containment of daily prices did not translate with the same intensity to the futures markets, which maintained a high risk premium for the coming quarters due to geopolitical uncertainty, low gas reserves in Europe, and the rising cost of emission rights.
System costs: down from May but still high
System costs set the provisional average final price of electricity in June at €87.40/MWh. During the month, these costs moderated to €17.81/MWh, compared to €21.97/MWh in May. Despite this reduction, they remain at very high levels, with a clear upward trend and an increase of 10.8% compared to June 2025.
In the last ten years, system costs averaged €6.53/MWh. In 2025, they were at €17.12/MWh, and so far in 2026, they have already reached €22.22/MWh, representing 45% of the final energy price. For consumers, this means that the bill does not reflect the drop in the pool, as fixed costs continue to rise.
Photovoltaics set a new production record
In June, photovoltaic generation exceeded 7,000 GWh and led the electricity mix with 29.5% of generation, followed by nuclear at 18.5%. Installed photovoltaic capacity reached 45,262 MW and, during hours of solar radiation, covered up to 45% of the system's generation.
In the last five years, photovoltaic production has tripled, displacing gas and coal thermal plants and putting downward pressure on prices during solar hours due to oversupply. Nuclear generation increased by 8.6% in June, supported by an operation equivalent to 87% of its capacity. Wind generation was also high for a June, with 3,800 GWh, 18% more than in the same month last year and 7.1% above the average for June over the last five years.
Heat demand drives consumption and changes generation use
The increase in temperatures raised electricity demand by 10% compared to May, a typical behaviour in June due to increased cooling use. Year-on-year, demand barely grew by 0.5%, but the monthly figure explains much of the pool's rebound compared to May.
Generation in Spain increased by 4% despite the low year-on-year growth in demand. This increase is explained by the surge in exports to Portugal, which reached 1,436 GWh, and by consumption for pumping, large-scale hydraulic storage.
Futures maintain risk premium
The Spanish electricity futures market (OMIP) recorded slight declines in June despite the start of talks for a lasting peace agreement between Iran and the U.S. Prices on the curve for the second half of 2026 are trading around €86.50/MWh, while the annual product for 2027 (Yr-27) is at €82.50/MWh. For companies that contract electricity in advance, this risk premium translates into additional costs that need to be monitored, especially if geopolitical uncertainty persists.
The next milestone for the sector will be the evolution of temperatures in July and August, which will determine whether demand continues to rise and if prices exceed €100/MWh again during solar valley hours.
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