During Week 26 (22–28 June 2026), rising temperatures and stronger electricity demand increased reliance on conventional power plants across Southeast Europe. Regional thermal generation rose 24.7% week on week to 6.52 TWh. Gas-fired output increased 25.5% by +803 GWh, while coal and lignite generation climbed 23.6% by +490 GWh. The changes coincided with peak summer demand conditions.
Market data also show that thermal plants remained central to wholesale price formation during periods of stress, even as renewables expanded across the region. Wind generation strengthened in several countries, solar maintained strong daytime output, and hydropower supported balancing where available. As hydroelectric output declined and cooling demand accelerated, gas, coal and lignite units became the main sources of flexible generation, setting marginal prices across much of Southeast Europe.
Italy sees sharp jump in gas and coal output alongside high prices
Italy illustrated the broader shift in thermal dispatch during the week. Gas-fired generation rose 47.5% versus the previous week, while coal-fired production more than tripled. Total thermal generation increased 50.8%. The Italian market averaged €144.67/MWh for wholesale electricity during Week 26.
With Italy acting as a link between European gas and electricity markets, changes in its thermal fleet were reflected in regional price formation patterns referenced for the Adriatic and Southern European trading area . The week’s combination of higher gas and coal generation aligned with the reported level of wholesale prices.
Greece, Serbia, Hungary, Croatia and Bulgaria increase thermal production
Other Southeast European markets recorded similar movements in thermal output during Week 26. Greece increased gas-fired generation by 12.6%, while lignite-fired power returned after recording no output during Week 25. Serbia expanded lignite generation by 17.9%, supporting coal’s role amid higher cooling demand.
Hungary, Croatia and Bulgaria also raised thermal electricity production as regional demand strengthened . Romania was reported as an exception, with overall thermal generation slightly lower because reduced gas-fired output offset higher coal generation.
Türkiye records modest increase driven by coal
Türkiye recorded a modest increase in thermal production during the week. The change was attributed to stronger coal generation despite lower gas-fired output . Overall, the reported pattern across markets pointed to greater use of dispatchable fuel-based plants during summer conditions.
The increased contribution from thermal power plants was described as not indicating a slowdown in the region’s energy transition. Instead, it was linked to a shortage of flexible low-carbon capacity able to replace conventional generation during peak electricity demand periods . The source cited ongoing gaps until wider deployment of battery energy storage systems (BESS), demand response, transmission interconnections and dispatchable renewable technologies.
Implications for renewable revenues and corporate PPAs during peak hours
The market dynamics were also presented with implications for electricity consumers and renewable developers. Renewable projects producing mainly during periods of abundant solar output may face greater price cannibalisation when those hours coincide with lower marginal prices . Assets able to deliver electricity during high-value evening peak hours were described as positioned for stronger revenues.
The same data set highlighted considerations for corporate power purchase agreements (PPAs). PPAs focused only on annual energy volumes without accounting for hourly balancing requirements and peak-period costs may be less cost-effective during periods of elevated summer demand . Week 26 was used to show that the transition challenge extends beyond adding renewable capacity.
The reported focus for Southeast Europe was on replacing the price-setting role of thermal generation with flexible low-carbon resources that can maintain system reliability during hours when electricity demand—and market value—are highest . This framing was tied to the observed dispatch patterns across Week 26 rather than changes in renewable capacity additions alone.
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