Increased demand, higher gas prices and the rising price of CO2 emissions are the main reasons why electricity prices are rising.


The rising cost of electricity is becoming the main concern of Spaniards according to the latest barometers of the CIS (Centre for Sociological Research): The year 2021 was the year with the most expensive price per megawatt-hour (MWH) in history (111.93 euros); In 2022 the cost of electricity in Spain exceeded the barrier of 500 euros per megawatt-hour (MWh), mainly due to the soaring price of gas caused by the war between Russia and Ukraine.

The rise in electricity prices is due to several factors, the most important of which are as follows:

  • The price of gas, which is one of the most widely used fossil fuels to generate energy, is rising. Since in Europe we depend on imported gas, we suffer directly from the increase in its price.
  • Due to temperature changes and the need to adapt to each season (keeping the home warm in winter and cold in summer), the use of electricity in appliances such as air conditioning or heating is increased, increasing consumption and leading to higher costs.
  • Combined cycle power generation is also associated with CO2 emission costs. In February this year the cost reached 90 euros per tonne, although the cost has fallen since then and the average for 2022 is 82 euros.
  • The price of renewables in the final price, since in Spain, it is not yet sufficiently developed and it is not possible to cover all demand with this type of energy alone.

The high electricity prices in Europe will remain at least until September, putting us in a doubtful long-term future and… What is the solution? One of them could be to consume and pay less through renewable energies, which, in addition, has a double advantage: economic and ecological.

This situation makes us think about how dependent we are on fossil fuels and how far we still have to go to increase the use of renewable energies in our country.