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Wind shortfall emerges as key renewable driver of SEE power price rally

A sharp decline in wind generation emerged as one of the key electricity-market developments in Southeast Europe during Week 34, highlighting the growing influence of renewable production patterns on regional wholesale prices.

Variable renewable generation across the monitored markets fell from 3,934.85 GWh in Week 30 to 3,502.73 GWh in Week 34, representing an 11.0% decline. The reduction was driven almost entirely by wind generation, which dropped 26.4%, from 1,554.06 GWh to 1,143.82 GWh. Solar generation remained comparatively stable, declining by just 0.9% over the same period.

The difference between the two technologies is increasingly important for market dynamics. Stable solar generation can provide substantial supply during daylight hours and contribute to lower midday prices, but wind generation is spread across a much wider range of hours. A sharp reduction in wind output therefore increases the residual electricity requirement for hydropower, thermal generation and imports, with the impact becoming particularly pronounced during the evening as solar production declines.

Greece provided the clearest example of this dynamic during Week 34. Greek wind generation fell 48.2% compared with Week 30, despite a 4.3% increase in solar output. At the same time, the country recorded a 41.2% increase in its weekly electricity price compared with Week 33, reaching €144.41/MWh and marking the strongest price increase among the monitored markets. Türkiye also recorded a significant decline in variable renewable generation, down 27.0%, as wind output fell by 36.5%.

The regional picture, however, remained uneven. Variable renewable generation increased by 37.8% in Romania, 48.9% in Serbia and 21.1% in Bulgaria compared with Week 30. Differences in renewable availability help explain why price movements varied between individual markets, even as wholesale electricity prices generally moved higher across Southeast Europe.

The Week 34 data also challenge the idea that summer renewable-market risk is primarily associated with solar generation. Solar output proved relatively resilient during the period, while a substantial decline in wind availability contributed to tighter market conditions. This made wind generation the more significant renewable variable influencing the regional supply balance.

For traders, generators and renewable asset owners, the developments underline the importance of hourly generation forecasts rather than installed capacity alone. A market can have a large renewable generation fleet and still experience elevated wholesale prices when renewable assets are unable to deliver sufficient output during critical hours.

The situation becomes more significant in an increasingly interconnected regional market. When wind production declines simultaneously across several Southeast European countries, neighbouring markets may have less surplus electricity available for exports. Cross-border imports therefore provide less protection against price spikes when the underlying renewable deficit is regional rather than national.

Under such conditions, the market becomes increasingly dependent on dispatchable generation and available interconnection capacity to cover the remaining demand. This can give gas-fired, coal-fired and hydro generation a greater role in price formation during periods of weak renewable output, particularly during evening hours.

Week 34 offers a clear example of this changing market dynamic. The regional system did not tighten because solar generation collapsed; instead, it came under pressure as wind output fell significantly while solar generation remained relatively stable. As renewable availability becomes more variable, the ability of dispatchable generation, storage and cross-border markets to respond during critical hours will become increasingly important for Southeast European power prices.

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