Demand and generation trends into late September
Southeast European power markets moved through the final part of September with lower electricity demand and sharply reduced gas-fired generation. Despite the weaker gas-to-power requirement, the region stayed exposed to shifts in gas supply and import costs. The week also saw changes across multiple fuel and power sources affecting how gas influenced prices.
Weekly fall in gas-fired output across covered markets
Across the markets covered, gas-fired power output fell 13.60% in the week to 20 September. The reduction lowered the immediate volume of gas needed for electricity generation. The report also pointed to Norwegian maintenance and LNG availability as factors influencing the wider European gas market.
Country-level price and trade movements
The exposure differed by country. Italy remained the region’s highest-priced electricity market at €215.82/MWh while reducing gas-fired output. Greece increased net power exports as its own gas generation and demand fell.
In Hungary, the power price rose even as regional electricity consumption declined broadly. These country moves reflected different balances between generation, demand, and market flows during the same period. The week’s outcomes therefore varied across Southeast European trading hubs.
Drivers beyond gas-to-power pricing
The reported movements should not be treated as a single gas-to-power price relationship. Renewable production, hydro output, thermal availability, and cross-border capacity all changed during the week. Gas becomes more consequential when those other sources cannot meet demand at a lower cost.
Autumn focus on how quickly plants return with demand
The market question for autumn is how quickly gas-fired plants may be called back as demand rises. Week 38 offered some relief in generation volumes. It also indicated that lower demand does not automatically translate into lower prices in every Southeast European market.
By Virtu.Energy
