Electricity prices on European stock exchanges have surged, posing challenges for Serbia’s Electric Power Company (EPS), which is currently producing less electricity than usual due to maintenance in its facilities, according to reports from Danas.
Miloš Mladenović, Director of the Serbian Electricity Exchange (SEEPEX), confirmed the rise in electricity prices, attributing it to a heatwave impacting supply. He noted that prices have escalated sharply, 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 per megawatt hour.
Mladenović highlighted a shift in the electricity pricing dynamics, where base prices now exceed peak prices due to increased solar power influence. He anticipated similar high prices throughout the summer, with futures markets indicating around 90 euros per megawatt hour in the third quarter and up to 110 euros in the fourth quarter.
An anonymous source close to Elektroprivreda Srbije (EPS) disclosed that the company is currently importing 10 to 15 percent of daily electricity needs due to ongoing facility maintenance. This shortfall, attributed to increased summer demand and seasonal maintenance, necessitates costly imports, despite prevailing market prices.
Regarding coal production, it was noted that while domestic reserves are adequate, excessive imports have led to a deliberate reduction in domestic mining activities. This surplus of imported coal, primarily from Indonesia, has filled storage capacities, resulting in reduced local mining operations despite sufficient reserves in Kolubara and Kostolac basins.
In conclusion, while EPS manages current electricity needs through imports and existing contracts, challenges persist due to rising market prices and strategic decisions regarding coal imports and domestic production.
