On the Spanish wholesale market, electricity costs zero euros per megawatt-hour for eight hours a day. This phenomenon, driven by overproduction from renewable sources, particularly wind and sun, is however almost invisible on end-consumer bills. The main reasons are rigid, regulated network charges and taxes, which constitute the lion's share of the final price. Spanish media publish daily hourly tariffs to help consumers plan their usage during the cheapest time slots, which typically occur at night and early morning.
Zero energy cost for eight hours
The price of electricity on the Spanish wholesale exchange regularly drops to zero, and even takes negative values. This phenomenon persists for a significant part of the day, especially during night and morning hours, when production from renewables exceeds demand.
Bills without proportional drops
Despite zero wholesale prices, end consumers do not experience significant reductions on their bills. The cost of the energy itself is only about 25-35% of the final invoice. The dominant part consists of fixed charges for transmission and distribution and taxes, which do not depend on exchange fluctuations.
Tips for households
Spanish dailies, such as 'El Mundo' or 'La Razón', publish detailed hourly price forecasts for the next day daily. Experts advise shifting energy-intensive activities, like laundry or car charging, to hours with the lowest price, typically between 3:00 AM and 6:00 AM.
Challenge for the energy system
Frequent price drops to zero and below signal challenges related to integrating large amounts of unstable renewable sources. Energy oversupply forces temporary shutdowns of conventional power plants and, in extreme cases, paying consumers to draw power.
The Spanish energy system is grappling with a paradoxical phenomenon: wholesale electricity costs nothing, and even has a negative price, for a significant part of the day, while end-consumer bills remain high. This phenomenon, particularly visible at night and early morning, is a direct result of the rapid increase in the share of wind and solar energy in the country's energy mix. When weather conditions are favorable, generation from these sources significantly exceeds current demand, leading to oversupply in the market. The key to understanding this discrepancy lies in the structure of the electricity bill. As experts explain, the cost of the energy itself purchased on the exchange is just one component, constituting about 25-35% of the final price for the consumer. A much larger, fixed part of the invoice consists of regulated charges: the fee for energy transmission and distribution, various taxes (including the electricity tax and VAT), and subsidies for the renewable energy support system (Renewable Energy Support System). These costs are fixed and do not decrease, even when the wholesale energy price drops to zero. The grid infrastructure must be maintained and developed regardless of the momentary price of the commodity flowing through it. Spain's energy transition, seriously initiated in the first decade of the 21st century, has made the country one of Europe's leaders in solar and wind energy production. In 2024, the share of renewables in national power generation exceeded 50% for the first time, marking a milestone in achieving decarbonization goals. Such a production structure, while beneficial for the environment, however introduces significant instability into the system, making it dependent on weather whims. The daily lives of Spanish consumers are shaped by detailed tables with hourly price forecasts for the upcoming day, published by media outlets such as "El Mundo" and "La Razón". This data aims to increase awareness and enable consumption planning. Analysis of tariffs from February 25 and 26, 2026 confirms an established pattern: the lowest prices, often equal to zero euros per megawatt-hour, persist around 3:00-6:00 AM. Conversely, the afternoon-evening peak, between 8:00 PM and 10:00 PM, generates the highest costs, reaching up to 100 €/MWh. „Es el momento ideal para poner el lavavajillas, la lavadora o cargar el coche eléctrico. El ahorro puede ser notable, sobre todo en hogares con un consumo alto.” (It's the ideal time to run the dishwasher, washing machine, or charge the electric car. The savings can be significant, especially in households with high consumption.) — Energy market analyst Example electricity price in Spain 25-26.02.2026: 2026-02-25T03:00: 0, 2026-02-25T06:00: 0, 2026-02-25T12:00: 60, 2026-02-25T18:00: 70, 2026-02-25T21:00: 95, 2026-02-26T03:00: 0, 2026-02-26T12:00: 50, 2026-02-26T21:00: 90 The phenomenon of negative prices, although known in other European countries, is intensifying in Spain. It represents a clear signal of the technical and market challenges facing a system dominated by renewables. Grid operators, to prevent overload during periods of overproduction, must make costly decisions, such as temporarily shutting down conventional power plants or even paying industrial consumers to increase power consumption. For the average consumer, this situation appears as a paradox: the country produces cheap, green energy, but the costs of its distribution, grid maintenance, and support for the entire system continue to burden the household budget.