Italy and Hungary buck European power price falls amid wider regional gap

In the week to 20 September, wholesale electricity prices rose in Italy and Hungary while demand weakened across Southeast Europe and prices fell sharply in several western European markets. Italy posted the region’s highest weekly day-ahead average at €215.82/MWh, up 2.51% from the previous week. Hungary increased 2.69% to €182.08/MWh.

Day-ahead prices diverge across Europe

Germany recorded a weekly decline of 16.71% to €135.25/MWh. That left Hungarian power almost €47/MWh above the German average. The contrast in price movement contributed to a widening gap between Central and Southeast Europe and western markets.

Demand, renewables and cross-border flows

Regional electricity demand fell by 6.37%, but variable renewable generation declined by 8%. The reduction in renewable output lowered the availability of low-cost power. Cross-border positions shifted, with Hungary increasing net imports while Romania’s import requirement rose sharply.

Southeast Europe pricing spread

The price gap within Southeast Europe was uneven across markets. Serbia averaged €151.46/MWh, down 2.72%, while Bulgaria fell 2.93% to €162.07/MWh. Romania was little changed at €177.36/MWh.

Export signals for Hungary and Italy

The week left exporters facing different price signals on either side of the region. Hungary’s premium over Germany widened, while Italy remained the highest-priced destination among the markets covered.

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