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SEE Power Prices Drop as Imports Decline and Solar Generation Increases

On April 23, 2023, power prices across South-East Europe experienced a significant decline, with most markets reporting a drop of between EUR 18/MWh and EUR 32/MWh day-on-day. This shift is attributed to a reduction in import requirements and a more balanced regional energy system, despite ongoing tightness during evening hours.

In detail, Hungary’s HUPX market cleared at EUR 93.14/MWh, down EUR 18.2/MWh, while Romania’s OPCOM decreased to EUR 88.31/MWh (a drop of EUR 27.9/MWh). Bulgaria’s IBEX registered at EUR 87.71/MWh, down EUR 24.6/MWh. Greece’s HENEX fell to EUR 88.12/MWh, Slovenia’s BSP declined to EUR 74.61/MWh, and Croatia’s CROPEX settled at EUR 77.35/MWh. In the Western Balkans, Serbia’s SEEPEX was recorded at EUR 65.99/MWh, Montenegro’s BELEN at EUR 73.75/MWh, North Macedonia’s MEMO at EUR 69.60/MWh, and Albania’s ALPEX at EUR 70.95/MWh.

The overall decrease in prices reflects a significant easing in system tightness, with net imports into the region falling to 1,662 MW, a reduction of 869 MW from the previous day. Key imports from Austria and Slovakia into Hungary and Slovenia also decreased to 2,760 MW, down by 497 MW. This trend indicates a reduced dependency on external sources for meeting energy demand.

The spread between Hungary and Germany’s day-ahead prices narrowed to EUR 28.9/MWh, reflecting a decrease of approximately EUR 4/MWh. While Hungary still maintains higher pricing relative to Western Europe, this narrowing suggests an improvement in regional market fundamentals.

Total electricity consumption across the region remained stable at around 30,640 MW, slightly lower than the previous day, while total generation was reported at 28,265 MW. The generation mix was adequate, with contributions from hydro at 7,067 MW, coal at 4,954 MW, gas at 3,579 MW, nuclear at 5,811 MW, solar at 3,715 MW, and wind at 1,883 MW.

The observed price reductions did not eliminate intraday volatility; for instance, Hungary recorded price fluctuations ranging from a minimum of EUR -64.2 / MWh to a maximum of EUR 277.0 / MWh due to high solar generation during midday followed by steep ramping requirements in the evening hours.

This volatility was similarly reflected in neighboring markets: Slovenia saw prices fluctuate between EUR -44.3 / MWh and EUR 152.0 / MWh ; Romania’s prices ranged from EUR -3.2 / MWh to EUR 196.5 / MWh . In contrast, Serbia and Montenegro avoided negative pricing altogether but experienced peak prices exceeding EUR 150 / MWh due to ongoing scarcity during peak demand periods.

<pMarket analysts attribute these developments to improving weather conditions coupled with reduced system stress across the region. With temperatures expected to rise in the coming days across SEE and Hungary, demand pressure is likely to decrease further while increased solar output continues influencing midday pricing dynamics.

The flow of electricity within the region indicates a more balanced system overall; Hungary and Greece continue as major net importers while Romania and Bulgaria focus on exporting electricity into adjacent markets. Systems within Serbia and other Western Balkan countries are operating closer to balance, contributing further to diminished regional price pressures.

Austrian gas prices remained stable at around EUR 44.89 / MWh, while EU carbon allowances were assessed at EUR 74.41 / t.This stability suggests that recent declines in spot power prices are primarily driven by short-term market conditions rather than shifts in underlying fuel costs.

Looming ahead are expectations for continued downward pressure on daytime prices as solar generation remains robust alongside rising temperatures; however, persistent evening ramping needs may sustain significant price spikes during peak hours—keeping intraday volatility elevated across SEE markets.

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