Greece is emerging as a notable outlier in Europe’s wholesale electricity market, with recent data showing a sharp improvement in its price position compared with much larger and traditionally cheaper markets. In January, average wholesale electricity prices in Greece were close to €109 per megawatt-hour, marginally below those recorded in Germany. In several Central and Northern European countries, prices climbed well above €140–150/MWh over the same period.
This shift is striking given Greece’s long-standing reputation as one of Europe’s more expensive power markets. High dependence on natural gas, limited interconnections and structural inefficiencies had historically kept prices elevated. The latest figures, however, point to a clear reversal, with Greece now cheaper not only than parts of Eastern and Baltic Europe, but also than the euro area’s largest economy.
A central factor behind this change is the improvement in Greece’s electricity balance. Over the past two years, the country has moved from a heavily negative position to a surplus, with the overall swing estimated at nearly €800 million. This reflects lower net electricity imports and stronger domestic generation, reducing exposure to higher-priced cross-border electricity flows and improving the market’s internal dynamics.
By contrast, persistently high wholesale prices in Germany and other Northern European markets are closely linked to rising natural gas costs and increasing prices for CO₂ emission allowances. These two factors significantly raise the operating costs of thermal power plants and are passed through to wholesale electricity prices, keeping them elevated despite the strong presence of renewable energy sources.
Additional relief is evident in Greece’s system-related surcharges, which are added on top of wholesale prices. According to data from the country’s transmission system operator, ADMIE, surcharge costs in December were among the lowest seen in the past 18 months. On an annual basis, average surcharges are running at around €20/MWh, while in December they fell to approximately €15/MWh.
Particular attention is paid to the most volatile surcharge component, commonly referred to as LP3. This element declined from roughly €17/MWh at the beginning of the year to around €10/MWh, following technical and operational adjustments in market design and changes in how specific loads, such as district heating, are integrated into the system. These measures helped reduce distortions and improve overall efficiency.
