In the period from December 25, 2022 to January 1, 2023, a drop in electricity prices was recorded on the spot market in the region of Southeast Europe, fueled by a significant drop in consumption and significantly lower spot prices of natural gas. Wholesale electricity prices in Europe fell to their lowest point in 2022 in the region, except for Greece and Italy.
This reduction in prices can also be attributed to the increase in wind energy production, as well as the closing of many businesses for the Christmas holidays. Also, the weather remained relatively warm throughout the month.
All markets saw significant price declines, with the exception of Greece, with an average price decline of 75% compared to the previous week. Croatia recorded the biggest weekly price drop, by 70.7%, followed by Hungary and Bulgaria, which recorded a drop of 68.8% and 60.4%, respectively, compared to the previous week.
The average weekly spot prices of electricity in Central Europe fell in almost all markets, except for Switzerland and the Netherlands, to below 50 euros per MWh. Germany recorded the lowest price – 31.5 euros per MWh, boosted by strong wind production and mild weather conditions. The Netherlands recorded the highest price in Central Europe – 56.47 euros per MWh.
The average weekly spot electricity prices in SEE recorded a significant drop during the last week of the year. Electricity was traded in the range from 52 to 241 euros per MWh, with the wholesale prices of electricity being the lowest in Croatia – 52.2 euros per MWh.
The Greek market was the most expensive in the region for the third week in a row, with an average price of 240.5 euros per MWh, with an increase of 3.4% on a weekly basis. The price on the Greek market was the highest not only in the SEE region but also in the whole of Europe, which is a consequence of the absence of a spot gas market in the country, which would follow wholesale price fluctuations at the reference European hub TTF, and the different price model that is applied.