In the Southeast European (SEE) region, electricity prices experienced a notable decline in the first week of 2026, influenced by reduced demand during the New Year holidays and an increase in renewable energy generation. The regional average price fell from €94.82/MWh in Week 52 of 2025 to €89.73/MWh in Week 01 of 2026, marking an 8.40% decrease. This trend was evident across most markets, with all but Italy reporting week-on-week price reductions, many of which were in the high single-digit to low double-digit range. Daily prices remained below €100/MWh for all markets except Italy, which saw prices stabilize after initially opening above this threshold.
Serbia and Romania recorded the largest price drops at -12.80% and -11.53%, respectively. Bulgaria and Croatia also saw significant declines of 10.07% and 9.04%. In contrast, Central European markets reported average prices around €83/MWh, with variations driven by local demand fluctuations. Switzerland had the highest average price at €106.17/MWh, while the Netherlands recorded the lowest at €80.63/MWh.
Across the broader European wholesale electricity market, the average price settled at €89.70/MWh, with regional disparities evident. Prices ranged from €80.50/MWh in Poland to €107.84/MWh in Italy. Notably, the Iberian markets diverged from this trend, with Spain and Portugal experiencing sharp increases averaging approximately 28.62%. Within SEE, Türkiye recorded the lowest weekly average at €55.70/MWh, while Bulgaria (€94.74/MWh) and Greece (€93.24/MWh) were among the more expensive markets.
Electricity demand across SEE fell significantly from 17,818.56 GWh in Week 52 to 16,332.11 GWh in Week 01 of 2026, a decrease of 1,486.45 GWh. This decline was observed across most markets except Greece, which saw a week-on-week increase of 6.10% due to colder weather conditions. Italy experienced the largest drop in demand, falling sharply to 4,679.84 GWh.
Renewable energy generation surged during this period, primarily driven by strong wind output that increased variable renewable electricity generation by 89.2% week-on-week. Wind generation rose from 1,151.08 GWh to 2,594.68 GWh, with Türkiye contributing significantly to this increase with an additional 725.10 GWh. Solar generation also improved modestly from 614.09 GWh to 744.74 GWh.
Conversely, hydropower generation faced challenges due to deteriorating hydrological conditions, dropping from 1,793.06 GWh to 1,447.20 GWh—a decline of nearly 19%. Türkiye and Italy were major contributors to this downturn, while Greece and Serbia reported steep relative declines of -45.72% and -50.41%, respectively.
Thermal generation across SEE decreased significantly during this period as well, totaling 8,396.11 GWh—a reduction of -18.43% week-on-week—largely due to lower gas-fired output which fell by -26.73%. Country-specific trends varied; for example, Bulgaria’s coal generation dropped by -27.28%, while Greece saw a modest decrease in both coal and gas-fired production.
Cross-border electricity flows also declined sharply in Week 01 of 2026, with net imports falling by -45.80% week-on-week to reach 968.89 GWh. Serbia, Croatia, and Italy showed substantial decreases in net imports while Türkiye continued to export more electricity than it imported.
The operational implications of these developments suggest a shifting landscape for power trading in Southeast Europe as increased renewable generation continues to influence market dynamics alongside fluctuating demand patterns.
