Power prices remain high: Nuclearelectrica sells expensive — NRG-IA

Major transactions on the PCCB-LE Flex platform — Nuclearelectrica locks in high prices for the medium term Nuclearelectrica has sold electricity at a price of 630 RON/MWh with delivery until the end of 2027, according to market data. This major transaction, initially reported by Romanian publications e-nergia.ro and Economica.net, indicates that the Romanian wholesale market is bracing for a prolonged period of high power prices. The state-controlled operator of the Cernavodă nuclear power plant successfully placed significant baseload energy packages, covering a span of nearly a year and a half. In the transactions concluded on the bilateral contracts platform (PCCB-LE Flex) on June 10, 2026, Nucleaelectrica (SNN) put up for sale four large blocks of energy. High buyer interest at this price level, equivalent to approximately €120/MWh, demonstrates that major suppliers do not expect electricity prices to drop over the next two years. This commercial move reflects a clear hedging strategy by the state-owned producer, as well as buyer resignation in the face of high structural costs in the Romanian energy system. Medium-term bilateral contracts thus become the primary indicator of real price trends, moving past the daily fluctuations of the day-ahead market. The structural deficit of baseload generation and regional price pressures This price anchoring at the €120/MWh threshold for the next year and a half is driven by a structural deficit of stable, dispatchable power in the National Energy System. Although Romania's solar and wind capacities have grown rapidly, they produce intermittently and cannot secure constant consumption at night or during windless periods. This technical reality forces suppliers to seek baseload energy sources, such as nuclear or coal, paying a premium for stability. Furthermore, high prices are also fueled by tight integration with regional markets, particularly Central and Eastern Europe, where carbon certificate costs remain elevated. Romania's reliance on electricity imports during peak hours automatically transfers high prices from neighboring markets into domestic long-term transactions. Pressure on final tariffs and rising procurement costs for suppliers The direct consequence of these bilateral transactions will be reflected in the supply offers presented to final consumers, both household and industrial. Procuring energy at 630 RON/MWh on the long term establishes a new, rigid baseline cost for suppliers. To this value, transmission tariffs, distribution tariffs, system taxes, and the supplier's commercial margin are added, making a significant drop in final bills virtually impossible. For the industrial sector, these high and predictable medium-term costs present a major competitiveness challenge. Energy-intensive companies will have to absorb higher operational costs, which could translate into higher final product prices or decisions to scale back production activities. The 2027 transition and the risk of complete support scheme phase-outs The delivery horizon of these contracts, set for the end of 2027, coincides with a period of total reconfiguration of the free energy market in Romania. Suppliers are trying to secure large volumes of energy in a system facing the gradual retirement of coal-fired capacities and delays in commissioning new gas-fired plants at Mintia or Turceni. Nuclearelectrica's decision to lock in these prices now points to a strategy of mitigating commercial risk ahead of potential European regulatory changes regarding the energy market. In the absence of new major dispatchable generation units over the next two years, the €120/MWh price tag is set to become the new benchmark for the Romanian market.