Final demand: IRE

Increase in consumption, more pronounced in the second and third quarters experienced a decline in November due to adverse weather conditions and rising energy and fuel prices.

The evolution of the IRE during 2024 was positive, with all sectors showing signs of recovery, despite geopolitical uncertainties and the negative impact of the DANA storm.

In 2024, the overall IRE was 2.2% higher than the previous year, marking the first positive increase since 2021. The index stands at a value of 111.2, higher than last year's 108.7, but still lower than in previous years.

This increase was driven by all components. The situation has developed as follows:

• Industrial activities recorded the largest increase, 3.1%, with a significant drop in November, possibly impacted by the effects of the DANA storm.
• The services sector showed a slower recovery, with only a 0.7% increase, experiencing declines in July, November, and December.
• The group comprising other activity sectors also recorded an increase, with a 0.9% variation compared to the previous year.

Breakdown of the General IRE

Annual evolution of the variation in gross IRE

Temperatures had a negative impact on the evolution of the index, reducing it by 1.8 percentage points. By major sector groups, industry and other sectors experienced the most significant impact. In these industries, temperatures reduced the evolution by 2.2 and 1.9 points, respectively.

In 2024, the composition of the calendar had a positive effect, while the evolution of temperatures had a negative impact on the IRE's development.

Temperatures negatively impacted the evolution of the index, reducing it by 1.8 percentage points. October was particularly affected, with temperatures reducing the index by 4.2 percentage points, while both June and September saw a reduction of 3.8 percentage points each. December is the only month where temperatures contributed positively, adding 0.9 percentage points to the index variation. By major group sector groups, the most significant impact concerned industry, where temperatures had a negative contribution of 2.2 points, followed by other sectors, where temperatures reduced the evolution of the index by 1.9 points, and services, where the contribution was a reduction of 0.8 points.

IRE: breakdown of the variation in 2024

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The monthly evolution of the adjusted index showed positive rates, except for November, although the highest growth rates began to be recorded from April, reaching the highest value in August. The only negative values were observed in November, possibly due to the effects of the DANA storm on various sectors.

The floods and damage caused by the DANA at the end of October 2024 severely affected several economic sectors, especially in the Valencian Community. The destruction of infrastructure and the disruption of commercial and agricultural activities contributed to a general decrease in energy consumption, which was reflected in the IRE.

The year 2024 was characterised by robust activity in the Spanish economy. This was particularly evident in the second and, especially, the third quarters. Despite the potential negative impact of the DANA storm, which affected several Spanish provinces at the end of October and particularly in November, the year ended with positive growth. The adjusted IRE showed positive rates since the beginning of the year, with the only exception being November. The most significant growth occurred in January, April, June, and from August to October.

Regarding the monthly evolution of the corrected index for the two main sector groups (industry and services), it is worth noting that both showed positive values almost every month, with the exception of November for both sectors, and July and December for services as well. Industry is the sector that recorded the highest growth this year.

Monthly evolution of the variation in adjusted IRE

At the peak hour of the day of year's maximum hourly demand, the residential sector accounted for 39% of consumption, while the industry sector of the IRE accounted for 21% of consumption, the large services sector (IRE) stood at 10% and small businesses and services stood at 16%.

At the peak hour of the day of the year's maximum hourly demand, the residential sector accounted for 39% of consumption, while the industry sector of the IRE accounted for 21% of consumption, the large services sector (IRE) stood at 10%, and small businesses and services stood at 16%. Throughout the peak day, the industrial sectors had the greatest share during the early hours of the morning, but especially between 4 and 5 AM, when they reached a total share of electricity demand at busbars of almost 33%. However, from 2 to 6 AM, the percentage was around 32%. On the other hand, for large services, the time period with the greatest share was between 13 and 17 hours, with shares of consumption around 13%.

Breakdown of maximum hourly electricity demand in winter, 11 January 2024

Breakdown of the maximum hourly electricity demand in summer, 1 August 2024