Serbia recorded the most significant weekly price correction among the analysed Southeast European electricity markets in Week 24. The country’s average day-ahead power price declined by 21.5% to €78.22/MWh, making Serbia the second-cheapest market in the regional comparison, behind only Türkiye. For a market that is often influenced by regional pricing dynamics and lignite-based generation, the scale of the decline represented a notable shift in market conditions.
Electricity demand increased only moderately during the week. Serbian consumption rose by 2.0% to 554.08 GWh, considerably below the demand growth observed in larger markets such as Italy and Türkiye. The more important development came from the supply side, where variable renewable generation surged by 76.8% week on week. Although renewables still account for a relatively limited share of the overall generation mix, the strong increase in wind and solar output provided additional low-cost electricity that contributed to downward pressure on wholesale prices.
Despite lower market prices, Serbia’s generation structure remained heavily dependent on conventional sources. Coal-fired generation increased by 66.0 GWh, while hydropower production declined by 4.2%. This indicates that lignite and coal continued to play a central role in balancing the power system, even as renewable output expanded. For industrial consumers, energy traders and investors, this highlights an important market characteristic: lower electricity prices do not necessarily imply lower carbon intensity, particularly when thermal generation remains the marginal source of supply.
Serbia’s net import position showed little change during the week, suggesting that the price decline was driven primarily by the domestic generation mix and broader regional market convergence rather than a major shift in cross-border electricity flows. On 17 June, Serbia recorded a day-ahead price of €83.87/MWh, the lowest level among the Southeast European markets included in the daily comparison.
At the same time, market liquidity remains one of Serbia’s structural challenges. Weekly traded volume reached only 120 GWh, significantly below the levels recorded in larger regional exchanges, including Italy (22,300 GWh), Greece (4,030 GWh), Bulgaria (2,320 GWh) and Hungary (2,090 GWh). While Serbia can produce strong short-term price movements, its relatively limited trading depth continues to create challenges for market participants seeking to hedge exposure, optimize scheduling strategies or secure long-term physical supply arrangements.
