As August progresses, electricity prices in Bulgaria remain the highest in the region, according to recent reports from “Capital.”
Despite the end of the summer heat waves, which typically drive up energy consumption, Bulgaria continues to experience record-high electricity prices.
On August 26, the “Day Ahead” market prices surged to 322 leva per megawatt-hour (MWh), while the average price for the month stands at approximately 240 leva/MWh. This marks a significant increase from the 267 leva/MWh average recorded in July.
The persistent high prices in Bulgaria are notably double those seen in May and are attributed to ongoing issues within Southeast Europe, which includes Bulgaria, Romania, Serbia, Greece, and Hungary.
This regional challenge contrasts sharply with significantly lower electricity prices in the rest of Europe.
Although the summer’s extended heat waves, which had amplified regional electricity consumption, have subsided, the elevated prices remain a concern. One potential factor is the export of electricity to Ukraine, although this has not been officially confirmed.
In Romania, the Cernavodă nuclear power plant has faced recent difficulties, including an accident affecting one of its units. This issue has further contributed to the regional energy crisis, impacting the stability of electricity prices across neighboring countries.
In response to the soaring electricity costs, Bulgarian lawmakers have approved an extension of the compensation scheme for businesses.
This measure, initially introduced during the energy crisis of 2022 and 2023—when reduced gas supplies from Russia led to skyrocketing energy costs—will continue through the end of 2024.
The scheme covers all electricity costs exceeding 180 leva/MWh and is funded by the “Security of the Electricity System” Fund, which sources its revenue from income caps imposed on Bulgarian electricity producers.
Market analysts foresee that the high electricity prices are likely to persist into the fall. This trend is expected to be mirrored in the natural gas market, which has recently seen a 12% price increase.
The rise in natural gas prices could have a significant impact on the Greek market, especially in areas where steam-gas plants play a major role in electricity generation.
Additionally, the elevated electricity prices may drive up demand for Bulgarian coal-fired power plants.
As these plants become more competitive in the energy market due to the high prices of alternative energy sources, they may play a more prominent role in the regional energy mix.
Overall, the continued high electricity prices in Bulgaria reflect broader regional energy challenges and underscore the need for ongoing measures to stabilize the energy market.
With the winter months approaching, both businesses and consumers are bracing for potentially continued high costs and their implications for the broader economy.
The situation highlights the complex interplay between regional energy markets and underscores the critical importance of effective energy policies and crisis management strategies.
As Bulgaria navigates these challenges, the impact on both domestic and regional energy stability remains a key concern for policymakers and stakeholders alike.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members