Renewables help Greece maintain low wholesale electricity prices

According to data from European energy exchanges, the day-ahead electricity price in the Greek market is expected to stand at €95.81 per megawatt-hour (MWh), significantly below the levels recorded across most European markets.

Indicatively, prices are expected to reach €138.29/MWh in Bulgaria, €163.54/MWh in Romania, €161.55/MWh in Austria, and €163.69/MWh in Hungary. In Germany, the price is set at €147.07/MWh, while in France it stands at €154.68/MWh. Meanwhile, prices in Spain and Portugal are expected to reach €141.70/MWh and €144.16/MWh, respectively.

Renewables to Cover Nearly 70% of Electricity Demand

A key factor contributing to Greece’s relatively low wholesale electricity price is the exceptionally high contribution of renewable energy sources (RES) to meeting demand.

According to forecasts, RES are expected to cover approximately 70% of the following day’s electricity load, a level close to historical highs and projected to represent the second-highest share ever recorded.

Wind and solar generation alone are expected to account for a combined 63.2% of total demand. Hydropower is forecast to contribute a further 5%, RES generation in Crete 1.5%, and battery storage 0.6%.

The strong output from solar and wind installations is therefore expected to substantially reduce the need for electricity generation from higher-cost conventional power plants, offsetting the upward pressure on demand caused by the prevailing heatwave.

The market outlook for Thursday once again underscores the growing influence of renewable energy on wholesale electricity prices. When solar and wind generation reach high levels, Greece can maintain competitive wholesale electricity prices even during periods of elevated electricity demand.