The Impact of COVID ‐19 on the Electricity Sector in Spain: an Econometric Approach Based on Prices

SummaryAccording to the World Health Organization (WHO), the COVID‐19 pandemic has been the greatest challenge to humanity since World War II. Spain is one of the countries experiencing severe consequences from the COVID‐19 pandemic outbreak. In such a situation, when the population is quarantined, hospitals are crowded, and industries are shutting down; energy supply becomes a critical and “hard to predict” service. In this way, the study of the impact of COVID‐19 on the selling price of electricity in Spain is highlighted more comprehensively. Given the high level of uncertainty in global energy markets, there is a research gap that needs to be filled, that is, the creation of new decision support mechanisms that can reduce risks and ensure more significant forecasting for investments and energy management to deal with seemingly unprecedented effects experienced through the current pandemic. This study examines and develops econometric models to determine the impact of COVID‐19 on the Spanish electricity market. This article's main result is a framework that predicts the dynamic electricity market's behavior during shifting periods, that is, the COVID‐19 pandemic period. Noteworthy that the result of this article is useful in electricity market management and strategic developments.