Romania electricity spot prices surge amid nuclear and hydro shortages

Electricity spot prices in Europe have reached alarming levels, with Romania experiencing significant impacts. In September, the average market price for the next day (PZU) in Romania was 927 lei/MWh, representing a 17% increase from August and nearly double the price recorded in September of the previous year.

Several structural and environmental factors are driving this volatility. Low water levels in the Danube have prevented the cooling of reactors at the Cernavoda nuclear plant, rendering them unavailable throughout September. Additionally, hydroelectric production has dropped to extremely low levels. To compensate for the lack of nuclear and hydro output, energy must be purchased on the spot market, further driving up costs.

While solar energy helps cover consumption during daylight hours—often driving prices near zero—prices spike significantly during evening peaks when solar production ceases and battery storage capacity remains limited. Experts suggest that accelerating investments in green energy infrastructure, such as solar and wind, could help stabilize the Romanian market and provide energy independence.