Albania has removed the zero-price floor from its day-ahead electricity market, enabling wholesale prices to drop to minus €50/MWh during periods of excess supply. The market ceiling remains at €900/MWh. The change is linked to the Energy Regulatory Authority’s decision on ALPEX.
Under the previous framework, bids could not clear below zero even when conditions would have supported negative settlement. The regulator’s move adjusts the operation of ALPEX and brings the Albanian bidding zone closer to pricing mechanics used across integrated European power markets.
Negative prices and solar-driven oversupply
Negative prices are gaining relevance as Albania and neighbouring countries add solar capacity. During high-generation and low-demand hours, producers may continue operating despite negative wholesale prices. This can occur when they benefit from support schemes, contractual obligations or avoided shutdown costs.
ALPEX said participants had already tried to submit negative bids under the earlier rules. Between January and 18 April 2026, the market reached the former €0/MWh floor on 13 occasions, but bids were not revised during the second auction phase.
The updated floor is intended to allow auctions to reflect the value of oversupplied hours rather than compressing them at zero. ALPEX’s description of the change focuses on how auction outcomes respond when negative pricing is permitted.
ALPEX trading volumes rise in 2025 and early 2026
Trading activity on ALPEX has increased alongside the market rule change. Volumes rose by approximately 39% in 2025, while traded electricity in the Albanian bidding zone exceeded 1 million MWh. That level was around 26% higher than a year earlier.
First-quarter 2026 volumes were almost double those recorded in the same period of 2025. The figures point to continued expansion in activity on the platform during the period following the removal of the zero-price floor.
Implications for storage, flexibility and cross-border trading
The reform provides storage operators, flexible consumers and cross-border traders with a clearer price signal. It also increases commercial pressure on inflexible generators and renewable projects that lack storage or reliable export capacity.
As Albania advances deeper regional integration, negative prices are expected to influence curtailment decisions, forecasting quality and intraday portfolio management for renewable-project economics. These operational areas are highlighted as becoming more important as negative pricing becomes part of market outcomes.
