Prices for electricity sold on the spot market in Romania (The Next Day Market) are higher than in other European countries. HotNews.ro analyzed last year’s data and noticed that energy is often sold cheaper in Western countries. For example, on Tuesday in the day-ahead market, the average price in Romania was 131 EUR/MWh, and in Germany it was 114 EUR/MWh.

We clarify that firm hourly electricity transactions are carried out on spot markets with next-day delivery.

What is the big difference between Romania and Hungary or Bulgaria

The spot market in Romania, managed by OPCOM, is linked to markets in Hungary, the Czech Republic and Slovakia, Austria, Poland and Germany. Under these conditions, in theory, there should not be very large differences between the European spot markets. However, energy prices in Romania are often higher than in Western countries.

According to the data, the prices in Romania on the day-ahead market generally correspond to the prices in Hungary and Bulgaria. However, the difference between these countries regarding the price of electricity is that Hungary and Bulgaria are the countries with the lowest prices in the EU for the final household consumer, according to Eurostat, which analyzed data for the first six months of the current year. Instead, Romania ranks 3rd after the Netherlands and Belgium.

We clarify that we are talking about contractual prices, not limited ones. With the restrictions, Romania would be somewhere in the middle of the ranking, not Hungary and Bulgaria, the countries with the cheapest energy in the EU at the household level.

What are the prices on the European spot markets

According to data analyzed by HotNews.ro, the price in Romania was 131 euros/MWh on December 5, the same as in Hungary and Bulgaria. It was 114 euros/MWh in France, 113 euros/MWh in Spain, 114 euros/MWh in Germany, 123 euros/MWh in Austria, and 124 euros/MWh in Poland.

A month ago, the price in Romania was 100 EUR/MWh, France – 74 EUR/MWh, Spain – 55 EUR/MWh, Germany – 72 EUR/MWh, Austria – 88 EUR/MWh, Poland – 64 euros/MWh.

Two months ago, it was 109 EUR/MWh in Romania, 83 EUR/MWh in France, 106 EUR/MWh in Spain, 72 EUR/MWh in Germany, 91 EUR/MWh in Austria and Poland – 96 euros/MWh.

At the beginning of the year, it was 139 euros/MWh in Romania, 127 euros/MWh in France, 109 euros/MWh in Spain, 107 euros/MWh in Germany, 121 euros/MWh in Austria, Poland – 111 euros/MWh. .

Prices in Romania leveled off with others only in the warm season.

Suppliers say that this situation is caused by insufficient investment

The main reason why prices on the spot market in Romania are higher than in the West is the lack of investment in new power generation capacities, representatives of the Romanian Association of Energy Suppliers AFEER said at a press conference. According to them, not enough production facilities are being built.

On the other hand, consumption has fallen significantly over the past year, by nearly 7% in the first nine months of the year compared to the same period in 2022, according to the INS. Much of this consumption was absorbed by prosumers, that is, those who installed photovoltaic panels on their homes. It will be recalled that in September the installed electric power at the level of prosumers was 1226 MW, almost as much as two nuclear reactors.

Romania also became a net exporter in 2023, unlike last year when imports were higher. However, exports are cheap and imports are expensive.

Romania does not have a functional free market where long-term contracts can be concluded at favorable prices, moreover, there are no price signals and exports are made when there is excess energy on the grid.

When there is too much capacity and demand is low, usually at night, the price goes down, and when demand is high, the price goes up. When demand increases and the need for imports increases, this explains why they are produced at higher prices.

Read also:

• Who are the businessmen and companies that benefited from the energy crisis in Romania / The supplier had a turnover of 18,346% and a profit of 3,298%

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