Italy remained Southeast Europe’s highest-priced power market in the week to 20 September, preserving a strong price signal for imports even as its electricity consumption and net imports declined.
Italian day-ahead power averaged €215.82/MWh, up 2.51% on the week. That was about €60/MWh above Greece and €34/MWh above Hungary. Italy remained the largest net importer in the markets covered at 926.37 GWh, although its import volume fell 17.77%.
Demand dropped 9.21% to 5,391.13 GWh, the largest absolute reduction among the countries in the report. Italian gas-fired generation also fell 10.86%, contributing to an 8.87% decline in total thermal output.
The combination of a high price and lower imports shows why regional price comparisons need to be tested against physical flows. A neighbouring producer may see an attractive Italian price, but the volume it can deliver depends on interconnector availability, hourly market conditions and its own domestic needs.
Italy’s premium remained substantial through a week of weaker demand. For Southeast European exporters, that makes access to the Italian market commercially valuable, while leaving the realised trading margin to be settled at the border and hour of delivery.
By Virtu.Energy
