The wholesale electricity market in Serbia and the wider region experienced unprecedented price surges yesterday, highlighting significant challenges in energy supply and demand dynamics.
At 6 PM, the price of electricity in Serbia soared to 574.91 euros per megawatt hour, making it the most expensive in Europe at the time. This steep cost contrasted sharply with neighboring countries: Macedonia at 550 euros, Romania at 429.28 euros, Hungary at 414 euros, and Bulgaria and Greece at 351 euros.
By 7 PM, Serbia’s electricity price jumped further to 600 euros per megawatt hour, while surrounding regions saw prices ranging from 560 to 580 euros. The escalation continued at 8 PM, reaching a staggering 693 euros in Serbia, 801 euros in Romania, and 775 euros in Hungary.
The peak demand hours, typically from 7 PM to 9 PM, drove these spikes as solar energy production waned with the onset of evening darkness. Željko Marković, an energy expert, explained that these hours mark the highest electricity consumption, necessitating the use of base capacity sources like thermal power plants.
The scorching temperatures in the Balkans exacerbated demand, with supply struggling to meet these heightened needs. In contrast, cooler climates in countries like France and Germany kept their electricity prices significantly lower due to reduced cooling demand.
Serbia faced additional strain from scheduled maintenance of key power plants like “Nikola Tesla” and “Kostolac,” along with ongoing revitalization efforts at the “Bajina Bašta” hydroelectric plant. Despite record-high consumption — 103 gigawatt hours on Monday alone — Serbia had to import a substantial 1,800 megawatts to bridge the gap, nearly matching coal-generated production levels.
Interestingly, daytime electricity prices were lower, despite peak consumption, due to surplus solar energy production across Europe. Marković suggested that with smart metering, dynamic pricing could optimize consumption patterns, encouraging activities like laundry during cheaper daytime rates.
While Serbia’s Electricity Industry of Serbia (EPS) managed to mitigate costs through advance purchasing at lower rates, the volatility underscores the need for robust energy planning and infrastructure upgrades to sustainably meet rising demand amidst climate challenges.
The situation highlights the intricate balance between energy production, consumption patterns, and regional weather dynamics shaping Europe’s electricity landscape.
