The new electricity interconnector between Greece and Bulgaria, which is expected to be operational by the end of the year, is expected to eliminate the widening gap between the two countries’ spot markets and optimize flow.
The new project will increase electricity transmission capacity between the two countries by 1.1 GW, from 600 MW to 1,700 MW, the Greek Ministry of Energy announced recently.
Local electricity traders expect that the increased transmission capacity will reduce the gap between the two spotted spot markets at the beginning of 2023.
A Bulgarian source expects that the Bulgarian and Greek spot markets will equalize and that a maximum capacity of 1,700 MW will not be achieved initially.
Another Bulgarian participant says that the Bulgarian spot market will grow slightly and will often be matched with the Greek one.
Greece is a traditional market with higher prices, but that will depend a lot on gas prices and emissions in January 2023, said the Greek trader.
The new gas unit of the Greek company Mytilineos should start operating in the next few months, but it is not known whether it will replace the block with lignite or the most expensive gas unit. At the moment, with the current high prices of TTF, some gas units are more expensive than lignite blocks, which affects production costs and spot prices in Greece.
Another Greek trader said the increased transmission capacity would optimize flows between the two countries and make a big difference to Greek prices in 2023.
It is expected that the Greek spot market will be able to follow the Bulgarian one, which will result in lower levels. The Bulgarian and Greek spot markets should be the main drivers for Hungary and Romania, especially in days with high renewable energy production.
