Electricity prices in Greece are surging again, threatening to squeeze households and businesses as the country enters winter and exposing persistent weaknesses in Europe's efforts to shield consumers from volatile energy markets.
Greece's wholesale electricity price reached €202.22 ($235) per megawatt-hour on Nov. 15, according to figures cited from the Hellenic Energy Exchange. The average price during the first half of November stood at €206.77, up from €197.07 in October and €133.40 in August.
The increase has been even more dramatic since February, when wholesale electricity averaged €78.35 per megawatt-hour.
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Prices peaked on Nov. 9, when the daily average reached €349.98 per megawatt-hour, with intraday prices climbing as high as €547.74.
The sharp fluctuations underscore a broader challenge confronting Greece and other European economies: Renewable energy is expanding, but insufficient storage capacity and continued reliance on natural gas leave electricity markets vulnerable to weather conditions and fuel-price shocks.
On Nov. 9, renewable sources accounted for just 22.5% of Greece's electricity generation, while natural gas supplied 60.7%. Four days later, when renewables contributed 71.3% of generation, wholesale electricity prices had fallen to €144.83 per megawatt-hour.
The contrast illustrates how heavily electricity costs depend on the availability of wind and solar power.
European natural-gas prices have also risen sharply, adding pressure to electricity producers. Colder weather, weaker winds and reduced sunshine have compounded the problem by increasing demand while limiting renewable generation.
For Greek businesses, particularly energy-intensive industries, sustained price increases could erode competitiveness and raise operating costs. Households face the prospect of higher electricity bills, depending on how wholesale increases are passed through to retail tariffs.
The renewed price surge also raises questions about the effectiveness of European energy-market reforms introduced following the continent's earlier energy crisis.
