During the first week of August, electricity prices in Southeast Europe (SEE) experienced a significant decline, with an average decrease of -15.6% compared to the previous week. This trend was primarily driven by reduced electricity demand as temperatures cooled, leading to lower use of air conditioning. Romania saw the most substantial drop in electricity prices, falling by -32.15%, followed by Croatia and Bulgaria with an average decline of -26.5%.
Total electricity demand in SEE decreased by -2.36% compared to the previous week, amounting to 18,069.37 GWh. This demand was met through a mix of electricity sources, including variable renewables (3,207.37 GWh), hydropower (2,867.24 GWh), thermal power generation (8,870.42 GWh), and net electricity imports (1,247.71 GWh).
In contrast, most European electricity markets experienced higher prices in early August, driven by rising gas and CO2 prices. Central Europe saw mixed results, with average wholesale prices ranging between €38-95/MWh, while the European weekly average was around €85.81/MWh.
In Southern Europe, electricity prices generally decreased, except in Italy, where prices rose by 6.12% compared to the previous week, reaching an average of €120.13/MWh.
However, as August progressed, electricity prices in SEE rebounded, showing high volatility. By mid-August, prices had increased significantly. On August 16, Romania’s average daily electricity price was €150.17/MWh, a 34.8% increase from the previous month. Similarly, Hungary and Greece saw daily prices rise by 35.0% and 38.5%, respectively.
This price surge is attributed to rising gas prices, which have increased by over 15% since August 5 and more than 35% since late May. Concerns about a potential shutdown of the Ukrainian gas corridor, following Ukraine’s actions in Russia’s Kursk region, have further exacerbated market instability, pushing gas prices at the TTF to trade between €39.300/MWh and €40.020/MWh on August 16.
