Research Detail
| 2024/10/30 / Erste Group Research |
CEE Special Report | Energy prices to remain high as CEE embraces renewables Following the energy price shocks of the past years, electricity and gas remain expensive for both households and businesses. While families in most countries could rely on price caps and subsidies, the high energy costs have impacted the industrial production price competitiveness, particularly in CEE where prices often exceed the EU average. The merit order pricing system, where natural gas power plants frequently set the price, continues to drive high electricity prices. Investments in electricity storage, international grid interconnections, and stable energy supplies are essential to decrease prices in the future. Some countries have significantly reduced their energy usage, while others have seen increases due to specific demands, such as EV battery plants in Hungary. The region has balanced its electricity imports and exports, with a larger proportion of power generation now coming from renewables. The variation in energy price increases for households is staggering, with some countries experiencing only modest rises while others have seen prices nearly double. However, in terms of energy supply diversification, CEE countries are relatively well positioned in comparison to the rest of the EU. Due to the need for stable and cheap electricity, more governments are looking into expanding their nuclear capacities. |
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General information
| Author | Erste Group Research |
| Date | 2024/10/30 |
| Language |  |
| Product name | CEE Economies Special Report |
| Topic in focus | FX, Macro/ Fixed income |
| Economy in focus | CEE |
| Currency in focus | - |
| Sector in focus | - |
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