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SEE power markets retreat on 2 June as solar rebounds and gas ramps up to cover evening demand

Southeast European day-ahead electricity markets moved sharply lower for delivery on 2 June, with prices across Hungary, Romania, Bulgaria, Serbia, Croatia and Slovenia converging around the €121/MWh level after the previous session’s strong rally.

Hungary’s HUPX day-ahead contract settled at €121.92/MWh, down almost €29/MWh day on day, while Romania’s OPCOM and Bulgaria’s IBEX both cleared at €121.21/MWh. Serbia’s SEEPEX closed at €120.90/MWh, Croatia’s CROPEX at €121.66/MWh, and Slovenia’s BSP at €121.75/MWh, highlighting a highly synchronized regional pricing structure.

The market remained strongly coupled, with minimal divergence between Central and Southeast European bidding zones. In contrast, Greece continued to trade at a notable discount, with HENEX settling at €96.31/MWh, supported by strong renewable output and recurring solar oversupply during daytime hours.

Fundamentals indicate a system that remained adequately supplied despite rising weekday demand. Total electricity consumption across the SEE region increased to 28.2 GW, up around 1.4 GW compared with the previous session as industrial load returned after the weekend.

Regional generation rose by approximately 1.33 GW, allowing the system to absorb higher demand without significant import reliance. Net imports across monitored markets fell sharply to just 84 MW, compared with nearly 1.2 GW a day earlier, reflecting improved domestic generation coverage across the region.

The generation mix shifted noticeably during the session. Solar output declined by around 684 MW, while gas-fired generation increased by 753 MW and coal rose by 314 MW, compensating for reduced renewable supply. Hydro generation also increased by 254 MW, reinforcing its role as a balancing resource.

As a result, gas-fired plants became the primary marginal technology across much of the region, particularly during morning and evening peak hours when solar production was unavailable.

Hydropower accounted for approximately 25% of total generation, remaining the largest single source in the mix. Solar contributed around 20%, gas 17%, while coal and nuclear each represented roughly 14%.

Cross-border flows continued to reflect established regional dynamics. Greece remained the largest importing market with around 1.66 GW of net inflows from neighboring systems. Romania and Bulgaria maintained net export positions, while Serbia and Croatia continued to rely on imports during parts of the day.

The relatively low Greek price continued to support attractive export opportunities toward neighboring Balkan markets and Italy, although rising renewable penetration in Greece is increasingly leading to midday oversupply and occasional price compression events.

Forward markets showed limited reaction to the spot correction. Hungarian Week 24 contracts traded near €114/MWh, while Week 25 was assessed around €118/MWh. July baseload remained firm at approximately €125.50/MWh, suggesting traders still expect tighter conditions over the summer despite softer spot prices.

Commodity signals were mixed. Austrian gas futures traded near €48.5/MWh, EU carbon allowances remained around €79/t, and coal prices strengthened above $130/t, maintaining cost pressure on thermal generation across Central and Southeast Europe.

In Serbia, SEEPEX remained closely aligned with regional benchmarks in Romania, Bulgaria and Hungary, confirming continued integration of the Serbian wholesale market into broader SEE price formation dynamics.

Market attention is also focused on Serbia’s planned gas-fired power plant in Niš, developed jointly by EPS and SOCAR, which could add up to 500 MW of dispatchable capacity and strengthen system flexibility amid rising renewable penetration.

At the same time, concerns persist over grid connection rules for renewable projects, with more than 1.15 GW of planned wind and solar capacity potentially facing delays under current procedures, which could slow the next wave of investment.

Weather forecasts point to relatively stable temperatures across the region in early June, limiting immediate demand volatility. However, traders are closely monitoring the scheduled TurkStream maintenance window (2–7 June), alongside hydrological conditions and gas storage injection trends as potential short-term price drivers.

Overall, Southeast European power markets entered June in a balanced state, with strong interconnection, adequate generation availability and declining import needs. While gas and coal regained some marginal importance due to weaker solar output, system fundamentals remain stable heading into the early summer period.

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