In Southeast Europe, Week 24 showed changes in both generation patterns and day-ahead pricing as renewable output rose alongside higher electricity demand. Combined wind and solar generation increased by 518.6 GWh, or 16.6%, to 3.64 TWh. The increase was sufficient to offset rising demand and contributed to lower day-ahead power prices across most regional markets.
Wind and solar growth across regional markets
Wind generation led the expansion, rising 28.1% to 1.40 TWh. Solar output also increased, up 10.4% to 2.23 TWh. Türkiye recorded the strongest performance, with variable renewable generation up 67.1%, supported by higher wind production.
Renewable gains were also reported in Serbia, Hungary, Bulgaria, Romania, and Italy. The week’s data reflected a broader increase in wind and solar contribution across the region.
Day-ahead price movements tied to renewable output
The pricing impact appeared quickly following the rise in renewables. Serbia saw the largest decline, with average prices falling to €78.22/MWh. Bulgaria, Croatia, Romania, and Hungary also recorded notable reductions in average day-ahead prices.
This shift aligned with a growing role for renewables in wholesale price formation within Southeast Europe’s electricity market.
Hydropower drop and higher thermal output for balance
Alongside renewable growth, hydropower generation declined by 7.5%. The decrease reduced flexible low-cost supply by more than 300 GWh. Thermal plants increased output to support system reliability.
Total thermal generation rose 8.7% to 4.52 TWh. Coal and lignite-fired production increased by 24.4%, while gas-fired generation eased slightly; coal and lignite remained key sources of balancing capacity during periods of lower hydro availability.
Flexibility focus for a more variable generation mix
The combination of higher renewable penetration and hydropower variability is shaping investment priorities across the region. Market attention is shifting from adding renewable capacity alone toward developing flexibility solutions for a more variable generation mix. Battery energy storage systems (BESS), pumped-storage hydropower, demand response programs, portfolio optimization, and cross-border transmission capacity are increasingly highlighted as valuable options.
Southeast Europe’s market also reflects operational needs as solar output can reduce midday prices and wind can lower overall market averages. Both effects depend on complementary flexibility resources to maintain reliability and manage price volatility.
Forecasting, balancing and trading capabilities
As renewable output expands, forecasting accuracy, balancing capabilities, and trading expertise are becoming more important for market participation. Projects that pair clean generation with storage, grid access, flexible offtake arrangements, and advanced trading strategies are positioned differently from projects focused only on installed capacity.
