If you prefer to always view the website in English, please click here.

Demand for electricity: Everything you need to know

Economic indicators are data or indexes that are used to analyse the productive status of a company, and even of a country, and then to take measures or make adjustments as required. Some of the best known indicators are Gross Domestic Product (GDP), Consumer Price Index (CPI) and the unemployment rate.

Indicators such as demand for electricity are also applied to electricity consumption, and this in turn can be used as a source for measurement data. There are several types of studies and Endesa would like to explain what they are and how to interpret them.

The economy tends to be cyclical, alternating between growth phases and recession phases, so it is important to review your company's economic behaviour by means of statistics, data that will help you determine patterns or signals to study the economic situation that exists at all times. This is what economic indicators are used for.

But there are not only indicators that show us the past or the present, there are also those that enable us to detect certain changes in economic growth in advance. This type of indicators are called "leading indicators" and are usually linked to electricity consumption.

Some of the most common indicators used in Spain for the "future" analysis of the economic situation are the Synthetic Indicator of Industrial Activity (ISI in Spanish) and the Synthetic Indicator of Economic Activity (ISA in Spanish).

 

The electricity consumption indicator as a leading economic indicator

Even though the synthetic indicators that we spoke about before take a number of factors into account in their elaboration (sales figures for large companies, etc.) and which include the indicator for electricity consumption, we will study it as a leading indicator "per se" and its use in "predicting" the economy and knowing what the price of electricity depends on.

For electricity consumption to be used as an analysis tool, we have the following two sets of public data:

  • The Electricity Demand statistical series
  • The IRE or "Índice Red Eléctrica" (Electricity Grid Index)

Both are provided by the Red Eléctrica de España research team, and they are very interesting.

 

How can electricity demand be used as a leading economic indicator?

When there is an increasing trend for electricity demand in a country, this is a sign that, more goods and services are possibly being generated in the economy because to produce, developed societies usually require energy (mainly electricity). This also leads us to deduce that entrepreneurs and industrialists have greater demand from their end customers, a global panorama that anticipates economic growth.

When demand for electricity falls, this can be interpreted as a clear warning of the possible approach of a stage of recession or a decrease in economic activity. That is why it is important to always be aware of what is happening in the energy markets.

With the above interpretation, the total demand for electricity in Megawatts (MWh) published monthly in a graph by the Red Eléctrica de España (REE), the company that holds the monopoly in Spain for transporting electricity and the management of the electricity system, will be the leading economic indicator.

When analysing the REE graph it is important to take the season of the year into account:

  • Climate: Because an increase or decrease in temperatures will result in higher energy consumption than in the same previous period.
  • Working days: Because in accordance with the administrative work calendar, it should be taken into account whether there are more or fewer working days for the comparison to be correct.

 

What is the IRE or Índice Red Eléctrica (Electricity Grid Index)?

The analysis tools mentioned above to obtain electricity measurement data include the Red Eléctrica Index (IRE in Spanish), indicators and calculations also provided by the REE study team that are useful to know what the electricity demand is.

The IRE records the development of electricity consumption in medium and large companies in Spain (factories, warehouses, industrial plants, etc.), connected to the Grid with a contracted power of more than 450 kW for each supply point of those that make up the IRE.

According to REE, 47% of total electricity demand in Spain corresponds to consumers with supplies of more than 450 kW of power, so this index makes up half of demand in Spain. It is this segment of demand by large consumers that includes the companies that directly influence Spain's general economic behaviour.

This is why the IRE is "more precise" as a leading economic indicator than the Total Demand that we analysed above because the data obtained here come exclusively from the productive economic segment (the remaining demand corresponds to households, shops and businesses). 

In addition to what the study of these statistical series tells us at any given time, Endesa would like to help you understand how these indicators related to electricity consumption work so that can calculate the electricity consumption of your home and that can be very useful when it comes to making an economic analysis of the situation in Spain as a whole.

Andrés Muñoz Barrios

Product Manager – Energía

Call us!

We are here to support you and help you make the best decisions for your business. 

We advise your company with a totally flexible electricity tariff

Choose the times at which your consumption is highest and benefit from a discount on the energy term for one year.

Spend a minute to find the product which best adapts to you:

{{firstStep.title}}

We are finding the right energy for you...

We are finding the right energy for you...

advise icon go to the advise Facebook icon go to Facebook Twitter icon go to Twitter Youtube icon go to Youtube Messenger icon go to Messenger Linkedin icon go to Linkedin Instagram icon go to Instagram Shared Link icon Go to the shared link Checkmark Success icon Checkmark Success down arrow icon down arrow Previous Go to previous Next Go to the next close icon close add icon add up arrow icon up arrow oblique arrow icon look obliquely Arrow down icon Arrow down search engine icon search search engine icon search share icon share filter icon filter email icon send mail email icon email phone icon phone fax icon fac print icon print play icon play user icon go to the user section error icon an error has occurred info icon information thumb up icon like thumb up icon like thumb down icon don't like thumb down icon don't like clock icon Clock Lamp icon Lamp List icon List Map icon Go to the map Phone icon Phone Emergency icon Emergency Pause icon Pause Play icon Play Logout icon Sign off Phone icon Phone
go back icon go back in navigation number 50 icon go to product Tempo Happy 50 Horas calendar icon go to product Tempo Happy Día companies icon go to the business segment gas icon go to gas product catalog rising sun icon go to Tempo Verde-Renewable Energy product home icon go to the household segment 24 hours icon go to One Luz product electricity icon go to Luz's product catalog electricity and gas icon go to the Luz + Gas product catalog moon icon go to product One night light monkey wrench icon go to breakdowns and repairs sun icon go to Tempo Solar product clock icon go to Tempo Happy products 2 hour clock icon go to Tempo Happy 2 Hours product 24 hours icon go to product One Luz number 50 icon go to product Tempo Happy 50 Hours Medium Voltage power line See product catalog with electricity consumption from € 36,000 to € 360,000 / year High Voltage power line See catalog of products with electricity consumption more than € 360,000 / year company icon go to the business segment calendar icon go to product Tempo Happy Day Property management firms icon go to the Property management firms DarkSite icon DarkSite icon light bulb icon See product catalog with electricity consumption less than € 6,000 / year electricity and gas icon go to the Electricity+ Gas Products catalog electricity icon go to the electrical products catalog email icon email contact fax icon fax contact Low Pressure gas icon see catalog of gas products with consumption of less than € 6,000 / year High Pressure gas icon see catalog of gas products with consumption from € 6,000 to € 240,000 / year Medium Pressure gas icon see catalog of gas products with consumption of more than € 240,000 / year gas icon go to gas product catalog Enel icon go to the enel website heater icon heater maintenance service heater maintenance icon go to maintenance service OKGas Heater home icon go to the household segment pressure cooker icon pressure cooker monkey wrench icon go to breakdowns and repairs Medium Voltage power line icon see catalog of electricity products with consumption from € 6,000 to € 36,000 / year moon icon go to product One Night Light sphere icon go to personal website phone icon telephone contact rising sun icon go to Tempo Verde-Renewable Energy product solar panel icon go to photovoltaic solar energy clock icon go to Tempo Happy products black handyman icon with thumb down selected the reaction "I don't like it" little hand icon with thumb down select the reaction "I don't like it" black hand icon with thumb up selected the "like" reaction little hand icon with thumb up select the "like" reaction
Añadir otro equipo eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Eliminar equipo eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Aspiradora Lorem ipsum dolor sit amet, consectetur adipisicing elit. Horno Lorem ipsum dolor sit amet, consectetur adipisicing elit. Lavadora Lorem ipsum dolor sit amet, consectetur adipisicing elit. Lavavajillas Lorem ipsum dolor sit amet, consectetur adipisicing elit. Microondas Lorem ipsum dolor sit amet, consectetur adipisicing elit. Plancha Lorem ipsum dolor sit amet, consectetur adipisicing elit. Punto de recarga vehículo eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Radiador eléctrico Lorem ipsum dolor sit amet, consectetur adipisicing elit. Secadora Lorem ipsum dolor sit amet, consectetur adipisicing elit. Split Aire Acondicionado Lorem ipsum dolor sit amet, consectetur adipisicing elit. Termo Lorem ipsum dolor sit amet, consectetur adipisicing elit. Tostador Lorem ipsum dolor sit amet, consectetur adipisicing elit. Vitrocerámica Lorem ipsum dolor sit amet, consectetur adipisicing elit. Power edit Lorem ipsum dolor sit amet, consectetur adipisicing elit. Map marker Lorem ipsum dolor sit amet, consectetur adipisicing elit.