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Türkiye’s low-cost power market remains detached from European price formation

Türkiye’s electricity market remained sharply detached from European price formation in Week 24. Its average wholesale price was €22.85/MWh, far below the rest of the SEE range. Serbia, the next-lowest market, averaged €78.22/MWh, while Italy stood at €123.17/MWh.

The Turkish discount was not a demand story. Demand rose 3.8% to 6.74 TWh, one of the largest absolute increases in the region. The explanation sits in the generation mix. Variable renewable output surged 67.1%, driven by a 105.9% increase in wind generation. That renewable rebound helped contain power prices even as consumption rose.

Hydro declined sharply, falling 229 GWh, or 8.6%, but Türkiye compensated with coal rather than gas. Coal-fired output increased 260.6 GWh, or 21.3%, while gas-fired generation dropped 20.8%. This kept gas out of the price-setting role more often and reinforced Türkiye’s low-cost position.

The market also strengthened its export balance, with net exports rising 53.1%. Stronger renewable production and low domestic prices improved export availability, although structural market separation and interconnection limits continue to prevent full convergence with European prices.

For Southeast Europe, Türkiye’s position is both an opportunity and a constraint. Cheap Turkish power can support regional supply when export routes are available, but the market does not behave like a fully integrated European bidding zone. Price divergence can persist even when neighbouring European markets are significantly more expensive.

The Week 24 data confirm Türkiye’s role as a structurally distinct electricity market. It has large demand, rising renewables, flexible coal dispatch and far lower wholesale prices. That combination keeps it commercially relevant but only partially connected to the price logic governing Italy, Hungary, Greece, Bulgaria, Romania, Croatia and Serbia.

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