Recent developments in electricity trading across South-East Europe indicate a significant evolution in market structures, driven by the maturation of regional power exchanges and improved cross-border integration. Despite these advancements, liquidity levels in these markets remain considerably lower compared to their Western and Central European counterparts. As of early 2026, trading data reveals both progress and persistent challenges that shape electricity trading behaviors across the Balkans.
Power exchanges serve as critical platforms for transparent electricity trading in day-ahead and intraday markets. The measurement of liquidity is primarily based on the volume of electricity traded alongside the number of active market participants. High liquidity typically results in more accurate price reflection of market conditions, while low liquidity can lead to increased price volatility, as individual trades may disproportionately affect market outcomes.
In February 2026, the Croatian power exchange reported a trading volume of approximately 905,983.6 MWh, with the day-ahead market contributing around 673,794.7 MWh and intraday trading accounting for approximately 232,188.9 MWh. This data underscores the Croatian exchange’s role as one of the most established markets in the region. However, a year-on-year comparison shows a decline of about 15.4 percent in trading volumes, indicating that many market participants still favor bilateral contracts and long-term agreements over exchange-based transactions.
Similarly, the Serbian power exchange demonstrated a day-ahead market activity of approximately 414,520.1 MWh in February 2026, reflecting an average daily volume of about 14,804.3 MWh. This figure marks a modest increase of 2.4 percent from the previous month but reveals a 12.4 percent decrease compared to February 2025. Such fluctuations highlight the ongoing reliance on bilateral trading arrangements among major utilities within Serbia’s electricity sector.
Price dynamics within these exchanges further illustrate regional trading structures. In Croatia, the average day-ahead base price reached approximately €107.49 per megawatt-hour, with peak-hour prices averaging around €113.69 per megawatt-hour during February 2026. These figures represent a decline from previous months and reflect seasonal demand variations and renewable generation fluctuations across the region.
In Serbia, average base prices in the day-ahead market fell to about €68.61 per megawatt-hour, while peak prices averaged roughly €74.05 per megawatt-hour in February 2026. These values indicate substantial month-on-month declines—approximately 41.9 percent for base prices and around 45.7 percent for peak prices—demonstrating sensitivity to seasonal demand shifts and hydrological conditions impacting hydroelectric generation.
The modest trading volumes observed across South-East European exchanges mirror the broader structural characteristics of the regional electricity sector, where state-owned utilities dominate both generation and retail supply chains. These entities often rely on internal trading mechanisms or long-term bilateral contracts rather than engaging actively in exchange-based markets, resulting in a significant portion of electricity generation remaining outside public platforms where transparent price discovery occurs.
Transmission infrastructure also plays a crucial role in shaping liquidity within these markets. Limited interconnection capacities hinder cross-border trading opportunities, restricting access to certain exchanges for potential market participants. The ability to arbitrage price differences becomes constrained when electricity flows cannot move freely across borders; thus, enhancing cross-border transmission capacity is vital for increasing liquidity within regional exchanges.
Despite these challenges, ongoing efforts towards integrating European electricity markets are beginning to bolster the role of exchanges throughout South-East Europe. Market coupling initiatives have linked several regional exchanges with larger European platforms, facilitating automatic electricity flow towards higher-priced markets and enhancing overall efficiency in electricity allocation.
The presence of international trading companies has also risen as regional markets become more accessible. These global energy firms contribute significant liquidity by operating across multiple markets simultaneously and connecting price signals from Western Europe with opportunities present in South-East European markets.
Intraday trading is emerging as another growth area within regional exchanges due to increasing volatility from renewable generation sources like solar and wind power. The Croatian exchange recorded about 232,188.9 MWh of intraday trading during February 2026, indicating that market participants are increasingly utilizing real-time mechanisms to manage supply-demand fluctuations effectively.
The evolution of electricity trading within South-East Europe must be contextualized against broader trends in European energy market integration. While current liquidity levels may lag behind those found in Western Europe, regional exchanges are gradually becoming more sophisticated as participants adapt to changing regulatory frameworks and evolving generation portfolios. Factors such as expanding renewable generation capacity, enhancements in cross-border transmission infrastructure, and increased participation from international traders are likely to strengthen liquidity over time.
The data from early 2026 illustrates a transitional phase for South-East European power markets, with exchanges like those in Croatia and Serbia evolving into increasingly important platforms for price discovery and electricity allocation. Although liquidity remains below that seen in more mature European markets, consistent growth in trading volumes suggests that these regional exchanges are progressively assuming a central role within the broader landscape of electricity trading.
As integration continues across European electricity markets, it is anticipated that both depth and liquidity will further improve within South-East European exchanges. Enhanced transparency in pricing mechanisms, better transmission connections among countries, and ongoing expansion of renewable energy sources will all contribute positively to the development of exchange-based trading systems over time.
