Week 23 underlined how fragmented power prices across Southeast Europe can affect industrial electricity procurement tied to EU carbon rules. Electricity averages varied by market, with Italy at €128.09/MWh, Hungary at €103.15/MWh, Romania at €102.23/MWh and Bulgaria at €100.83/MWh. Serbia averaged €99.63/MWh, Croatia €99.29/MWh and Greece €89.25/MWh, while Türkiye averaged €22.53/MWh.
The same week also coincided with changes in the regional generation mix. Thermal generation increased by 24.5% week on week, while variable renewable generation fell by 8.9%. In Türkiye, gas-fired generation rose by 278.1%, and Greece increased lignite output by 66.2%.
Dispatchable output and embedded emissions profiles
The shift toward dispatchable conventional generation has implications for embedded emissions used in industrial calculations. Electricity sourced from systems with higher fossil dispatch can carry a different carbon profile than electricity backed by renewable PPAs or documented green supply. This difference becomes relevant when embedded emissions are linked to the electricity basis applied in reporting.
CBAM requirements for electricity sourcing evidence
CBAM increases the importance of credible documentation for electricity used in embedded-emissions calculations where applicable. Exporters selling into the EU need to account for both direct emissions and the electricity basis used in those calculations. Annual procurement claims may not be sufficient if buyers, declarants or verifiers require stronger evidence of renewable sourcing, hourly matching or contract credibility.
Green PPAs and battery-backed procurement options
A renewable PPA can reduce price exposure and support decarbonisation claims while improving buyer confidence, provided it is structured with supporting information. The industrial buyer needs evidence covering generation source, grid connection, metering, guarantees of origin or equivalent certificates, balancing responsibility and delivery profile.
Battery-backed renewable procurement can also be used to improve alignment between renewable generation and industrial consumption. Storage can reduce reliance on fossil-heavy evening power and strengthen the credibility of green electricity claims. For large exporters, this approach may be incorporated into a broader procurement strategy intended to meet CBAM-related expectations.
Limits of spot exposure and portfolio approaches
Week 23 also highlighted risks from relying only on the spot market for day-ahead exposure. Industrial buyers facing volatile day-ahead prices may see sudden cost increases when gas prices rise, renewables fall or imports tighten.
A structured procurement portfolio can address both price and carbon risk by combining PPAs, hedges, guarantees of origin and flexible consumption arrangements. For SEE exporters, electricity strategy is increasingly connected to market access as EU buyers ask how electricity was sourced, how emissions were calculated and whether low-carbon claims are auditable.
In this context, electricity procurement is treated as part of a compliance architecture rather than only a purchasing function for CBAM-exposed sectors including steel, aluminium, cement, fertiliser and chemicals.
Elevated by energy.clarion.engineer
