In the first week of 2026, electricity prices across the Southeast European (SEE) region experienced notable declines, primarily attributed to decreased demand during the New Year holidays and an increase in renewable energy generation. The regional average price fell from €94.82/MWh in Week 52 of 2025 to €89.73/MWh in Week 01 of 2026, marking an 8.40% decrease. All markets except Italy reported week-on-week price drops, with Serbia and Romania experiencing the largest reductions at -12.80% and -11.53%, respectively.
Central European markets mirrored this trend, with weekly electricity prices averaging around €83/MWh. The decline was largely due to lower electricity demand compared to the previous week, although a cold snap in France, Belgium, the Czech Republic, and Switzerland caused prices to rise in those areas. Prices ranged from €81/MWh to €106/MWh, with Switzerland recording the highest average price at €106.17/MWh.
Across the broader European wholesale electricity market, the average price stood at €89.70/MWh, varying significantly by region. In stark contrast to the SEE region’s trends, Spain and Portugal saw sharp increases of approximately 28.62%, averaging €88.04/MWh. Meanwhile, Türkiye reported the lowest weekly average price at €55.70/MWh, while Italy’s average reached €107.84/MWh.
Electricity demand within the SEE region fell significantly from 17,818.56 GWh in Week 52 to 16,332.11 GWh in Week 01 of 2026—a decrease of 1,486.45 GWh. All markets experienced reduced consumption except Greece, which saw a week-on-week increase of 6.10%. Italy’s consumption dropped sharply to 4,679.84 GWh, contributing heavily to the overall regional decline.
The surge in variable renewable generation was a key factor influencing market dynamics during this period. Total renewable electricity generation increased by 89.2% week-on-week due mainly to heightened wind output, which rose from 1,151.08 GWh in Week 52 to 2,594.68 GWh in Week 01—an impressive increase of 125.4%. Solar generation also improved modestly from 614.09 GWh to 744.74 GWh.
Conversely, hydropower generation faced significant challenges as output fell sharply from 1,793.06 GWh to 1,447.20 GWh—representing a decrease of nearly 19%. This decline was particularly pronounced in Türkiye and Italy while Greece and Serbia recorded some of the steepest relative contractions at -45.72% and -50.41%, respectively.
Thermal generation also saw a significant reduction during this period; total thermal output dropped by -18.43% week-on-week to reach approximately 8,396.11 GWh due largely to decreased gas-fired generation which plunged by -26.73%. Notably, coal-fired production fell modestly by -3.97%.
Cross-border electricity flows within SEE markets declined sharply as well; net imports decreased by -45.80% week-on-week down to about 968.89 GWh with Serbia and Croatia seeing substantial drops in their net imports at -86.49% and -68.97%, respectively.
