However, electricity in March remains 30% more expensive than in January and February
European spot electricity prices began to fall slightly after a few weeks during which record highs were recorded. On the day before, Bulgaria’s price on Wednesday is 161 euros per MWh, which is the lowest price for a working day from February 22 – two days before the start of the war in Ukraine.
It is also the lowest price in Europe, excluding the northernmost parts of the continent. Poland follows, with 167.5 euros per MWh, while on the other hand the price in France is almost twice as high – 301.3 euros per MWh.
Despite the fall, the shocking jump in the first days of March can hardly be compensated – then prices reached over 400 euros per MWh.
At the moment, the average Bulgarian price for March is about 250 euros per MWh, which is about 30% above the average for January and February.
The fall in spot prices can be explained mainly by the high temperatures in Europe at this time of year, which reduces the demand for heating. Also, natural gas prices have stabilized after the initial shocks caused by the conflict in Ukraine, given that in many European countries, gas is the main raw material for electricity production.
However, there are other factors, especially in Bulgaria. Energy stock charts show that, unlike traditional price jumps in the morning and evening (when consumption is highest), there is now no evening peak.
This can be explained by the activity of hydroelectric power plants – most likely there was an increase in the supply of electricity from these power plants, which enabled the restraint of price growth.
Bulgaria is still an exporter of electricity, and when the export capacities are filled, the supply on the local market starts to exceed the demand, which brings a drop in prices.