In the first week of 2023, a significant increase in day-ahead electricity prices in the region was recorded, due to higher demand and a decrease in wind energy production. In almost all markets in the region, a significant increase in prices was achieved, except in Greece, by about 120 percent on average. Croatia recorded the biggest weekly spot price jump of 160 percent, followed by Hungary and Bulgaria, with 155 and 104 percent, respectively, compared to the last week in 2022. Electricity prices in Serbia increased in the same period by 98 percent.
The average weekly spot prices of electricity in Southeast Europe ranged from 136 to 232 euros per MWh, and the lowest price was recorded in Croatia – 135.8 euros per MWh on average.
For the third week in a row, Greece is the most expensive market in the region, with an average price of 231.7 euros per MWh. It is, like the previous week, the only European country that was not affected by the significant drop in gas prices at the Dutch TTF hub. This is a consequence of the design of the Greek wholesale electricity market.
The significant price deviation compared to the rest of Europe is attributed to the natural gas pricing model in Greece which takes into account the average rate of the previous month, compared to the daily price determined at the TTF hub. This delay does not allow for the immediate impact of the drop in the price of gas on the wholesale price of electricity, which was the case in other European markets.
Another reason for high prices in Greece lies in the energy mix, in which natural gas has a dominant position with a share of over 40%. The share of lignite is low, while renewable sources allow to influence the price only for a few hours.
The average weekly electricity prices also increased in Central Europe, to a level of over 100 euros per MWh. The lowest price of electricity was recorded by Germany – 101.6 euros per MWh, thanks to relatively warm weather and strong wind production. Slovakia had the highest price in this part of Europe – 136.2 euros per MWh, which is almost 140 percent more than the previous week.
