The Electric Power Company of Serbia (EPS) is facing a challenging time as electricity prices on the European stock exchanges soar amid a heat wave and ongoing maintenance in its facilities, reports Danas.
Milоš Mladenović, the director of the Serbian Electricity Exchange (SEEPEX), confirmed the price surge, attributing it to the heat wave which has increased demand. He noted that prices have escalated significantly: from an average of 65 euros per megawatt-hour in March-April to 98 euros in June, and now ranging between 120 and 125 euros. Mladenović highlighted a shift where base electricity prices are now higher than peak prices due to increased solar power impact, a departure from previous trends.
Looking ahead, Mladenović projected continued high prices through the summer, with forecasts indicating around 90 euros per megawatt-hour in the third quarter and a rise to 110 euros in the fourth quarter on the futures market. This shift is driven by sustained high demand and solar energy dynamics.
An anonymous source close to EPS revealed that the company currently imports 10 to 15 percent of daily electricity needs due to ongoing repairs that limit local production capacity. This shortfall necessitates imports regardless of market prices, exacerbated by increased consumption during warmer weather and renovation season, which further drives up market rates.
Despite the rising stock market prices, the source clarified that EPS may still benefit from previously secured lower-priced contracts. This strategic procurement shields EPS from the full impact of current market rates, reflecting prudent planning amid operational challenges.
In Serbia, approximately 20 percent of electricity transactions occur on the stock exchange, with the majority conducted through undisclosed bilateral agreements.
Meanwhile, Danas reported a reduction in domestic coal production for thermal power plants not due to local supply limitations in Kolubara and Kostolac basins, but rather due to excessive imports from countries like Indonesia. This surplus has led to a deliberate scaling back of domestic mining operations, creating storage challenges despite ample local coal availability.
Overall, while EPS navigates market fluctuations and operational constraints, strategic procurement measures and ongoing adjustments in coal production aim to stabilize electricity supply amid dynamic market conditions.
