High RES production and low consumption dragged electricity prices down – Romania, 06 June 2023

The average price of electricity on Romania’s spot electricity market was around 120 euros/MWh in the first four months of the year, well below the average of 206 euros/MWh in 2022.

However, in the past few weeks, it frequently happens that the price for some hours in the day is negative, particularly during the weekends when consumption is lower.

The wind farms in Romania were disconnected from the electricity network a couple of weeks ago amid negative prices in the spot market and very high prices in the balancing market. Otherwise, the wind farms would have been required to pay 400 euros/MWh of excess produced electricity.

At the moment, Romania has about 3,000 MW in operational wind capacity that last year provided 12 % of its electricity production. Not much wind has been added over the past ten years, but a large number of solar power plants is currently being developed, likely to add more pressure on the network in terms of volatility, which is why the development of energy storage projects is urgently needed.

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