“If you give me a piece of paper and a pen…” It has a reputation for tough, but overly explanatory business. Repeatedly faced with skeptical questions, Teresa Ribera grabs the marker and the only material she has on hand: her glass of water coaster. There he sketches out his solution to lower the cost of electricity, which still has to be approved by Brussels. After an attempt at bargaining and laughter – “To us, it’s like Laffer’s handkerchief”, the editor, ironically, envisions passing it on to the readers. It is reproduced with this text.
The fifth column on the right is fundamental: the price of gas. Higher, because it is more expensive and only one wants to interfere with this newly created mechanism. The other four to its left, among the rest of the technologies: solar, wind, nuclear, hydraulic… The grid of diagonal lines above the horizontal line “Gas” is the current cost: from the fifth column, which is the market; Of the other four, the surcharge due to “transition” of gas in the auction of pool By the nature of the marginal market. Those numbers should be gone. How are they replaced? Under the line that indicates the cap introduced for gas, the plot is the heaven-sent profit that gets the rest of the energy and with which the additional cost of that fuel will now be financed.
There are not many beaches with famous illustrations. Napkins have been more successful. Economist Arthur Laffer has a diagram he drew in 1973 for Republican leaders Dick Cheney and Donald Rumsfeld with his controversial theory that lowering taxes increased income. Ronald Reagan implemented it. It was unsuccessful, recovering the huge budget deficit. Pablo Picasso used to paint them. The portrait of a street woman serving him to pay a bill in a Parisian restaurant in 1945 is well known. Between the successes of Laffer Fiasco and Picasso, the result of ribera chart,
Although the figures on the graph are not accurate, according to the Vice President, in conversation she talks of a range between 100 and 140 euros per megawatt hour as a result of the cap. This would mean practically halving the price of electricity from its current level. “We got used to having between 230 and 250, with peaks of 500 and only sometimes, with luck, it drops to 150,” says Ribera. “It’s a horror. Our historical context for the unbearable was 180: no one thought it would even reach that.”
How did you get to that price? Two experts consulted by this newspaper, who prefer to remain anonymous, break down the figure step-by-step. First, the conversion from natural gas to electricity: to generate one megawatt of electricity you need two gasses, so the price automatically drops from 30 to 60. Second, you have to add the cost of CO₂ emissions: each cycle the plant has to jointly pay about 36 euros for these rights, leaving the figure at 96. But there is still more: the additional cost of gas (the difference from 30 to 120 is no less) must be passed on to each megawatt consumed. It depends, among other things, on how much gas it consumes per day to generate electricity.
He knows all the sides of the coin deeply.
With all the possible precautions, which are many, the result is as follows: about 125 euros per MWh in the wholesale market, which is more than 225 today. A shortfall that is in the hands of Brussels today, but has already begun to discount the futures market A remarkable decoupling between the price of electricity in Spain and Portugal compared to Germany, The Iberian Entente seems very close to its goal.
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