Italy remained the premium electricity pricing benchmark in Southeast Europe during May 2026, according to Electricity.Trade’s latest regional trading review. The Italian day-ahead average price fell by 0.10% from April to €119.35/MWh. It was also 27.54% higher than in May 2025. Price stability amid notable moves in neighbouring markets supported Italy’s role as a structural reference point for regional electricity spreads.
Liquidity and trading activity on IPEX
Italy also retained its position as the region’s largest and most liquid electricity market. Trading volumes on the IPEX exchange reached 22,994.12 GWh in May. That represented a 4.54% increase month on month and an 8.30% rise year on year. High liquidity continued to influence forward market expectations and cross-border trading strategies, supporting Italy’s role in valuing electricity flows across neighbouring countries.
Generation mix, demand growth and net imports
Italy’s generation fundamentals remained central to market conditions. Its electricity mix comprised 41.61% renewables, 34.07% natural gas, 16.24% hydropower and 17.97% net electricity imports. Renewable generation increased by 9.22%, while hydropower output rose by 12.45%. Electricity demand expanded by 3.29% during the month.
Despite higher renewable and hydro output, Italy remained a major net importer of electricity. Imports totaled 3,706.01 GWh. Net imports declined by 16.41% compared with April as stronger domestic production reduced reliance on external supply.
Cross-border flows with Central Europe and the Balkans
Cross-border trade continued to shape the Italian market throughout May 2026 . Italy imported electricity mainly from France, Switzerland, Austria and Montenegro. Exports went to Greece, Malta and Slovenia. The pattern reflected integration with both Central European and Balkan power systems.
The improved renewable generation helped ease import requirements, while gas-dependent generation maintained exposure of prices to fuel market fluctuations . Interconnector capacity and cross-border trading strategies were therefore highlighted as key factors for market outcomes.
Sustained premium range across regional markets
The May 2026 price picture showed Italy’s premium status without a new surge . Stable prices at a high level reinforced Italy as the region’s key pricing benchmark for electricity spreads. Neighbouring Southeast European markets also traded above €100/MWh, while Italy retained the highest price range . This supported its role as a reference market for regional arbitrage opportunities.
