Wholesale electricity prices in Spain decreased in 2023, with the average price for contracts dropping significantly compared to the previous year. The liquidity of electricity futures markets also saw a gradual increase throughout the year.

The volume of traded futures contracts with Spanish underlying assets increased by 12.1% in 2023, with over-the-counter markets continuing to dominate liquidity.

Market liquidity in Spain started to recover, particularly in organized markets and shorter-term contracts, from May 2023 onwards. Liquidity also improved in the German and French electricity futures markets during the year.

In 2023, Spanish spot prices decreased significantly compared to 2022, although they became more volatile due to higher renewable energy production. The average price for Spanish futures contracts was also notably lower than in the previous year.

Despite lower prices and volatility in 2023, the trading of shorter-term electricity contracts increased in the Spanish market, while quarterly and annual contracts remained popular.

Forecasts for 2024 annual contracts in Spain indicated lower daily market prices compared to 2023, reinforcing the expectation of price spreads with German and French markets due to Spain's renewable energy focus.

Congestion revenues on the Spain-Portugal interconnection decreased in 2023, while congestion revenues on the Spain-France interconnection increased, influenced by capacity allocation auctions and spot price differentials.