In the latest developments from Southeast Europe (SEE), electricity prices have dropped sharply during Week 05, attributed to a combination of reduced demand and enhanced renewable energy generation. All monitored markets reported week-on-week price declines, indicating a significant shift in market fundamentals. The most substantial decreases were noted in Serbia, Bulgaria, Romania, and Greece, where prices fell by 29.9%, 25.5%, 22.7%, and 21.3% respectively. This decline is largely due to increased wind and hydropower availability coupled with lower system loads that alleviated pricing pressures from gas and coal-fired generation.
Countries such as Hungary and Croatia also recorded notable price reductions of 18.1% and 14.1%. These changes reflect improved regional supply conditions and heightened export capabilities stemming from neighboring systems with robust renewable energy sources. Meanwhile, Türkiye saw a further decrease of 12.4% in electricity prices, supported by strong wind and hydro generation alongside diminished gas consumption. In contrast, Italy demonstrated greater resilience with a modest decline of 4.7%, as its reliance on imports and sustained demand mitigated the impact of increased renewable generation.
Turning to Central Europe, price movements were mixed with Slovakia, Slovenia, and Austria experiencing declines of 5.7%, 11.9%, and 14.0% respectively. Switzerland saw a slight easing of 3.6%. Conversely, the Czech Republic and Germany reported small increases of 1.4% and 2.4%, reflecting tighter system conditions in those markets.
The European wholesale electricity market averaged €120.48/MWh during Week 05, with prices ranging from €17.25/MWh in Portugal to €154.85/MWh in Poland. Notably, Spain and Portugal faced exceptional price collapses of 63.8% and 72.8% respectively due to exceedingly strong renewable generation paired with weak demand.
In Southern Europe, most SEE countries maintained prices above €100/MWh except for Serbia and Türkiye, which reported averages of €97.63/MWh and €52.84/MWh respectively following significant declines in their pricing structures. Hungary recorded the highest weekly average at €145.51/MWh while Croatia and Romania were also among the more expensive markets at €141.17/MWh and €140.76/MWh respectively.
The region’s total electricity demand fell sharply by 5.1% week-on-week, amounting to a reduction of approximately 992 GWh as milder weather led to decreased heating loads across SEE countries. Greece experienced the most pronounced decline at 8.9% while Bulgaria and Hungary followed suit with reductions of 11.7% and 8.3%. Türkiye’s demand decreased by 6.1%, contributing significantly to the overall regional reduction.
Electricity generation from variable renewables surged during Week 05, with total wind and solar output rising by an impressive 20.2%. Wind generation alone jumped by 35%, primarily driven by favorable wind conditions despite a regional decline in solar output by about 15%. Greece exhibited the largest relative increase in wind generation at 176%, while Türkiye added the most absolute megawatt-hours to its supply chain.
Hydropower output also strengthened across SEE regions with an increase of approximately 22.7%. Türkiye led this growth in absolute terms while Croatia achieved remarkable relative gains exceeding 700%. However, localized hydrological weaknesses were evident in Bulgaria and Serbia where both countries recorded declines in hydropower production.
Thermal generation faced marked reductions as well; overall thermal output decreased by about 15.6%. Gas-fired generation saw the largest drop at nearly 20%, particularly impacted by reductions in Türkiye (40%) and Italy (11.6%). Coal/lignite production also fell moderately across several countries.
Cross-border electricity balances reflected these shifts with net imports declining by nearly 13.9%. Romania and Bulgaria experienced significant drops in net imports while Serbia increased its import levels significantly alongside Italy which rose to over 900 GWh due to strengthened exports towards Greece which expanded its net exports considerably.
