How the electricity market works in Spain


How the electricity market works in Spain

How the electricity market works in Spain

Energy Sector 0

At Lumisa we always focus on transparency and knowledge available to everyone. By being well informed, we are freer and more able to decide with judgment for ourselves. That is to say, we become more autonomous and it is more difficult for us to be deceived, therefore, we will make decisions with more security.

We know that a large part of the population does not know how the electric sector works, that is why today we want to explain it to you in detail. We will go step by step telling you every part of the process. The electricity market is made up of producers, the transport network, distributors and marketers.

The origin of everything: electrical production 

Electricity is a natural phenomenon. To be used, you first have to go through a long journey to be transformed. The producers are responsible for generating this electricity. Transforming raw materials into electricity. For this, production centers are needed and there are different types according to their energy source.

The main power plants in Spain are thermal, nuclear, and atmospheric and solar photovoltaic that produce electricity through different raw materials.

The energies that are currently used the most are nuclear and fossil fuels.

How do nuclear power plants work?

They use water that is heated at high pressure by the heat released from nuclear fission, which drives the movement of a turbine that, when turning, feeds the electrical generator to which it is connected.

This type of power plants produces radioactive waste that must be kept during the 10,000 years of its radioactivity.

In 1986 the Chernobyl nuclear power plant suffered the greatest atomic catastrophe in history. Currently, the fourth reactor is covered by a huge concrete sarcophagus, and will be protected for another 100 years, in which it will have to be revised and reconstructed again.

And the thermal power plants?

Fossil fuels

The process is the same. The heat that is generated has the consequence of heating the water at high pressure, which drives the turbine that is connected to a generator to obtain electricity. The difference is that the burning of fossil fuels such as coal, oil and gas is used to generate electricity from its combustion.

The problem they have is that they generate CO2 emissions and polluting gases harmful to health and to the planet.

That's why there are more and more alternatives and other types of renewable energies.

Renewable thermal power plants

There are renewable thermal power plants, such as, for example, biomass, thermoelectric solar, among others. That is, they take advantage of natural resources that do not degrade the environment to generate energy.


There are other types of thermal power plants, such as biomass power plants, which are designed to generate energy from biological resources, using renewable sources for the production of energy.

Solar thermoelectric

They use the energy of the solar rays to generate heat they are also renewable. Currently, renewable energy uses autochthonous fuels, free and inexhaustible for the generation of energy without producing negative effects on the planet.

Are there more renewable energy plants?

Atmospheric power stations

Alternative and clean energies are used. As, for example, the wind power plants that use the wind through the movement of large mills.

Photovoltaic power stations

They use photovoltaic panels that work with solar energy. The photovoltaic panels generate a type of direct current that is not ready to be incorporated into the transport network. That is why, once acquired, it has to go through a transformation process to convert direct current into alternating current and supply it to the electric grid.

First stop: the transport network

The Spanish Electricity Network (REE) is responsible for transporting the energy once generated, through the high voltage lines. It is also the operator of the electricity system, that is, the one that ensures the continuity of the supply, producing electricity balanced to the demand, since it is not possible to store it.

Once the energy has been generated and is ready, it will be transported from the production plants to the consumption centers scattered throughout the country.

Second stop: distribution networks

The electricity distributors are in charge of distributing electricity from the transport network to each supply point (your house, supermarket, shopping center, offices, etc.).

They are the ones that are in charge of keeping the supply in good condition, repairing faults and carrying out the meter readings. They are distributed according to the areas they cover, for that reason you can not decide which is your distributor, but it is assigned with the supply point.

Your closest contact: The electrical distributors like Lumisa.

Finally, we find the closest point that deals directly with the consumer, the electric companies. The best known are those of always, Gas Natural, Iberdrola, Endesa and Viesgo. S

Since the release of the market in 1997, marketers buy energy in the wholesale market and then sell it. They are the ones that act as intermediaries. When the energy market was liberalized, alternative companies entered the market that helped to expand it. Thanks to this, the marketers began to set their own rates, adding discounts and schedules adapted to their consumers, making them more competent.

There are many people who prefer "bad known, good to know" but the truth is that it is no longer necessary to stay in the usual companies, which have become obsolete and do not offer as many advantages as newer ones, which have been renewed and adapt to the needs and demands of the current consumer.

In Lumisa, every day we make comparisons of invoices with total transparency, explaining all the concepts that will appear in them, easily and simply. We do not only tell you the power and the rate to hire, but we clarify the other concepts such as VAT, meter rental among others. Every day more customers are betting on alternative companies, seeing the savings they can get, requesting the change of marketer.

Call us and we will inform you without any commitment, or if you prefer, send us a recent invoice and we will make a personalized comparison according to your needs.

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