Iberian Energy Day 2022: Previewing Spain's Energy Future

For this year's Iberian Energy Day on Thursday 20th January we'll be hosting five individual webinars, covering a range of topics including: state intervention, the future of power prices and whether carbon could reach EUR 100/t this winter. Rounding off with a panel discussion, this is the event to stay up to date with all things energy in Iberia.

After Spain announced a windfall tax to curb utility company profits, a new baseload auction and a tax cut on energy bills last year, uncertainty surrounds operations in the Spanish energy market. Will the state intervene further? What form could that take? Could the State row back these measures?

As the region, along with the rest of the world continues to progress through the green transition, forms of electricity generation are changing. How will intermittent power sources affect prices in the Iberian region? Could this be offset by a lack of fuel costs? How long will it take for real change to occur?

Rising gas prices have changed the European energy landscape beyond recognition over the past six months. European hubs are going to need to keep pricing gas much higher than in recent years to trigger industrial demand curtailment and to outbid the more flexible Asian LNG buyers, so where could gas prices go? Can LNG cargoes counteract the current weak levels of Russian imports? And how does Iberia's balance look in the context of the Maghreb-Europe pipeline?

Electricity market volatility is intrinsically high due to the nature of the commodity and both the technical difficulties and costs of storing it. 2021’s market volatility and price hikes can largely be explained by the scarcity of gas supplies and the impact of that on marginalistic market design. So, can PPAs insulate consumers from such risks? Which kinds of PPAs? And what are the common stumbling blocks in agreeing such deals?

In 2021, the price of European carbon allowances jumped by almost 150%. Price ranged from 33.00 euros to a new historical maximum above 90.00 euros per ton of CO2 in December. Compliance with the EU ETS became therefore expensive and challenging for many companies in the system, particularly in a year when many still tried to recover from the pandemic and had to cope with high gas and power prices at the same time. What were the forces behind the carbon price rally last year and how probable is it that these factors continue impacting the carbon market this year as well? Is there a risk that companies must pay 100 euro per ton of CO2 emitted this compliance season?

The Iberian Energy Day is made possible thanks to the support of our partners ABN-AMRO Clearing, Axpo, ion Commodities, Fenics Market Data, Nasdaq, Nord Pool and StormGeo.