DA spreads in Eastern Europe are often well correlated to NWE, however July saw a sharp increase in SEE due to:
- High Grid Stress: Eastern Europe faced severe power grid stress due to a heat wave and increased electricity consumption in July 2024.
- Interconnection Constraints: Regional interconnection limitations and the new flow-based market coupling approach caused significant price spreads between Eastern Europe and interconnected countries like Austria, particularly in the evening hours.
- Price Volatility: Electricity price volatility surged in Central and South-eastern Europe, driven by extreme fluctuations, especially during the central weeks of July.
Overall, the DA spread value more than doubled compared to Germany, highlighting significant opportunities in this high-volatility environment and emphasizing the growing impact of grid capacity constraints on Day-Ahead market volatility.