Concerns about an energy crisis – prices in Southeast Europe for electricity send warning signals
Energy invoices. Photo: Marian Vejcik | Dreamstime.com
Concerning signals of potential energy instability have been recorded in the last two days on the wholesale electricity markets in Southeast Europe. From Poland and Austria and to Romania and Greece, the markets remain extremely vulnerable, because the deficiencies in the electricity interconnect networks have remained unresolved since last year, writes the Greek press.
According to the Greek daily Kathimerini, in June 2023, an extended wave of heat has led to a sudden increase in energy demand. But instead of cheap imports from Austria and Hungary, they reach Greece through Romania and Bulgaria, it happened exactly: Greece has come to export energy. The cause was the blockage in the Austrian network, where the tasks from the French nuclear power plants and the renewable energy sources in the North Sea were blocked.
The increased consumption in Hungary and Romania, from where Ukraine's energy is provided, has generated some deficits. Thus, the prices in the extended region increased vertiginously, reaching up to 1,000 euros on the megawatt-time, and under these conditions the Greek Prime Minister Kyriakos Mitsotakis sent a letter to Ursula von der Leyen, emphasizing the need for better electrical interconnections.
Similar distortions have been observed again last Tuesday. The imports of energy from Western Europe to Romania through Hungary have been reduced, causing tension in the South-East European market. This, combined with the fact that a unit from the Kozlodui nuclear power plant has been closed since May 5, has increased prices in the region.
The price on the Serbian market in the peak hours of the evening reached 400 euros/megawatt-time, and on the interconnected markets in Greece, Bulgaria and Romania, for 355 euros/megawatt-hour. The average price in Germany was 61.22 euros/MWh, in France 20.74 euros, in Spain only 3.35 euros and in Portugal of 6.92 euros. These differences show the imbalances in the “single” European market.
Experts estimate that, with the increase in temperatures and the amplification of the demand, the pressure on the market will intensify. There are also concerns about the reliability of the Balkan networks, due to insufficient investments and unstable production from renewable energy sources. In addition to the high prices, there is also the fear of producing some feathers (material made with the support of Rador Radio Romania)
