Southeast European power markets entered the final part of September with lower electricity demand and sharply reduced gas-fired generation, but the region remained exposed to changes in gas supply and import costs.
Across the markets covered, gas-fired power output fell 13.60% in the week to 20 September. That reduced the immediate volume of gas needed for electricity generation. At the same time, the report identified Norwegian maintenance and LNG availability as factors affecting the wider European gas market.
The exposure differs by country. Italy remained the region’s highest-priced electricity market at €215.82/MWh while reducing gas-fired output. Greece increased net power exports as its own gas generation and demand fell. Hungary’s power price rose despite a broad decline in regional electricity consumption.
Those movements should not be read as a single gas-to-power price relationship. Renewable production, hydro output, thermal availability and cross-border capacity all changed during the week. Gas becomes more consequential when those other sources cannot meet demand at a lower cost.
The market question for autumn is how quickly gas-fired plants may be called back as demand rises. Week 38 offered some relief in generation volumes, but it also showed that lower demand does not guarantee lower prices in every Southeast European market.
By Virtu.Energy
