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SEE forward curve narrative for traders

The forward narrative for SEE power is shifting toward upside summer risk with sharp downside pockets. Week 25 provides the template. Demand rose 3.1%, hydro declined 4.7%, wind fell 4.4%, thermal generation increased 19.4%, and most electricity markets rose even as gas weakened.

That combination supports a Q3 curve that should remain sensitive to weather and residual load. Hot weeks with weak wind and low hydro should lift forward expectations, especially in Italy, Hungary, Romania and Croatia. Serbia should track a hybrid path, influenced by domestic hydro-coal balance and spreads against Hungary and Romania.

The downside risk is concentrated in high-solar periods, weekends, stronger hydro recovery and softer demand. Greece and Bulgaria demonstrated that prices can fall when renewable output and export positioning improve. Türkiye remains structurally detached and cannot be used as a simple benchmark for EU-linked SEE pricing.

The forward curve should not be read as a single regional signal. Italy is the premium import sink. Hungary is the Central European bridge. Romania is the volatility hub. Croatia is the import-exposed Adriatic market. Serbia is the regional pivot. Greece and Bulgaria are potential export moderators.

For traders, the main forward question is whether the market prices average fuel cost or scarcity-hour flexibility. Week 25 suggests the latter is gaining influence. TTF can fall while power rises, because dispatchable capacity, hydro and interconnectors determine the marginal hour.

A useful forward narrative should therefore combine gas, weather, hydro, wind, solar, flows and evening premiums. The market is no longer explained by one variable. It is priced by the interaction of all of them.

Virtu.Energy

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