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The evening block premium index: Measuring the new value of flexibility in SEE power markets

The SEE power market is reaching a stage where a dedicated Evening Block Premium Index may become one of the most valuable indicators for understanding price formation and commercial risk. Week 25 demonstrated that the most important pricing signal is no longer the average daily baseload price, but the widening spread between solar-supported midday hours and the increasingly scarce evening delivery period. The critical trading window is becoming 18:00–23:00, when solar generation rapidly declines while cooling demand remains elevated.

The underlying market dynamics are becoming increasingly clear. Solar generation increased by 8.1% during the week, helping to moderate prices during daylight hours. However, wind generation declined by 4.4%, hydropower output weakened across several markets, and thermal generation had to increase significantly to maintain system balance. As a result, midday power prices remained relatively comfortable, while evening prices strengthened as the market placed a higher value on flexibility and dispatchable generation.

An Evening Block Premium Index would provide a real-time measure of this evolving market structure. By tracking the price differential between midday and evening hours across Serbia, Hungary, Romania, Croatia, Greece, Bulgaria, and Italy, the index would highlight where flexibility commands the greatest value and where scarcity risks are emerging. It would also offer a clearer picture of the commercial opportunities available to batteries, flexible hydropower assets, gas-fired generation, and structured power purchase agreements (PPAs).

Such an index would be particularly relevant for renewable energy developers. The profitability of solar projects is becoming increasingly dependent on the gap between the prices captured during production hours and the higher prices that often emerge after sunset. At the same time, battery storage economics are largely driven by the same relationship, with operators charging during lower-priced daytime periods and discharging into stronger evening markets.

For industrial consumers and corporate power buyers, the index would reveal risks that are often hidden within flat-price supply contracts. While annual energy volumes may be secured, exposure to the most expensive hours of the day can remain significant unless contracts include adequate shaping, balancing, or flexibility provisions. As the regional market evolves, electricity is no longer simply a daily commodity. It is becoming an increasingly hourly market, where the evening premium is emerging as the clearest indicator of system stress and the true value of flexibility.

Virtu.Energy

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