The heatwave moving from the Pyrenees and Apennines to southeastern Europe is indeed expected to have a significant impact on the region’s electricity market. With the anticipated rise in temperatures, there is a surge in demand for air conditioning across the Balkans, which is straining electricity supplies. This has led to a notable increase in electricity prices on day-ahead trading exchanges, with prices in southeastern Europe ranging from 126 to 171 euros/MWh, and even reaching as high as 443 euros/MWh in Slovenia.
In contrast, electricity prices in Western Europe, such as in Germany, are comparatively lower at around 108 euros/MWh. The disparity is partly due to the higher demand in the Balkans caused by the heatwave, which is pushing prices up further.
Serbia’s National Meteorological Service has forecasted temperatures exceeding 40 degrees Celsius this week, which, combined with potential supply restrictions, is likely to continue driving up electricity prices in the region. Additionally, network operators and energy traders are bracing for further price hikes due to the heatwave and its possible impacts, including wildfires in Greece.
