European power market series: Iberia

Liquidity in the Iberian power market has been on the rise thanks to market coupling and a move away from fixed tariffs, but uncertainty around government intervention and a lack of interconnection with the rest of Europe remain huge obstacles to achieving a fully mature market, finds Gillian Carr

The Triana Bridge in Seville

Trading volumes in the Iberian market – incorporating the Spanish and Portuguese electricity markets – have been growing steadily over the past five years, but a number of hurdles still stand in the way of a fully functioning market and could stymie future progress, some participants fear.

Since 2006 the market has attracted increasing numbers of participants and a rise in both over-the-counter and exchange-traded volumes as end-users move away from fixed tariffs. This move has been driven by