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Market Research Report
Product code 
1083027

The Iberian Price Cap: Suppressing the Rising Cost of Power

Published: | Wood Mackenzie - Power & Renewables | Delivery time: 1-2 business days

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The Iberian Price Cap: Suppressing the Rising Cost of Power
Published: June 3, 2022
Wood Mackenzie - Power & Renewables
Delivery time: 1-2 business days
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Report Summary:

On 14 May 2022, the Spanish government approved an Iberian temporary price cap mechanism for certain fuels used in power generation to mitigate high energy price-induced inflation, but the cap has been deferred and is awaiting final authorization from the European Commission. Gas price caps could lower Spain's power prices by 32% to 130 EUR/MWh, but wind and solar capture prices still remain attractive at over 125 EUR/MWh in 2022-23. This insight evaluates the impacts and implications of the price cap.