The South East European (SEE) electricity markets exhibited notable resilience and integration in March, characterized by robust trading volumes and dynamic price fluctuations influenced by seasonal changes and fuel cost pressures. Hungary maintained its status as the regional pricing anchor, with exchanges in Slovenia, Croatia, Romania, Bulgaria, and Greece closely aligning their price movements, reflecting an ongoing trend of market coupling with Central Europe. Conversely, Serbia, Montenegro, North Macedonia, and Albania continued to experience structural discounts due to variations in generation mix, liquidity, and interconnection capacity.
March’s trading activities underscored the evolution of the SEE region into a more cohesive yet stratified power market. Increased liquidity and expanding intraday trading highlighted significant progress towards convergence with the broader European energy system. However, persistent price differentials in the Western Balkans reveal both challenges and opportunities that need to be addressed for full regional integration.
Hungary’s HUPX power exchange emerged as the dominant reference point for electricity trading within SEE in March, with total day-ahead traded volume reaching 2.79 TWh. This solidifies Hungary’s role as a liquidity hub connecting Central and South East Europe. The average baseload price was recorded at €117.4/MWh, marking a 3.6% increase from February. Additionally, the peak price averaged €103.52/MWh, reflecting seasonal demand moderation.
Intraday trading volumes also saw a notable increase of 11.5% month-on-month, totaling 1.085 TWh. This uptick signifies a growing sophistication in market operations as real-time balancing becomes increasingly vital due to rising renewable energy penetration. The influence of HUPX continues to shape pricing dynamics across neighboring markets such as Slovenia, Croatia, and Romania.
Croatia’s CROPEX reported 990 GWh of electricity traded in March, reinforcing its position as one of the most active markets outside Hungary. The exchange benefits from Croatia’s EU membership and its integration into European market-coupling frameworks, serving as a crucial link between Central Europe and the Adriatic region. Strong interconnections with Slovenia, Hungary, and Italy facilitate efficient cross-border arbitrage and enhance overall price transparency.
Electricity exchanges in Slovenia (BSP), Romania (OPCOM), Bulgaria (IBEX), and Greece (HENEX) demonstrated close alignment with Hungarian price movements throughout March. These markets represent the EU-integrated core of SEE power trading, characterized by robust cross-border interconnections and high liquidity levels. Romania’s OPCOM effectively connects Central and Eastern European markets while Bulgaria’s IBEX and Greece’s HENEX serve as strategic gateways to the Eastern Mediterranean.
Serbia’s SEEPEX remains pivotal among Western Balkan exchanges despite lower average prices compared to EU-integrated counterparts. The market’s structural discount is attributed to domestic generation dynamics reliant on coal and hydropower alongside evolving interconnection capacities. Serbia’s geographic positioning between Central Europe and the Balkans positions SEEPEX as a potential convergence hub in the future.
Emerging exchanges such as Montenegro’s BELEN, North Macedonia’s MEMO, and Albania’s ALPEX are gaining traction despite their smaller volumes and lower liquidity levels. These markets are increasingly important as regional integration accelerates; Montenegro relies heavily on hydropower while North Macedonia continues to align its MEMO platform with EU standards. Albania’s ALPEX is rapidly expanding its presence within the region.
In March, electricity prices across SEE remained firm due to several factors including seasonal demand shifts and rising fuel costs influenced by carbon pricing under the EU Emissions Trading System. Gas and coal continued to be critical price-setting fuels while renewable generation began playing a more significant role in market dynamics.
The interconnectedness of the SEE electricity market with the European internal energy market is becoming more pronounced. Hungary serves as a vital gateway linking the Balkans to Central Europe while Slovenia and Croatia provide essential connections to Italy and Austria. Romania and Bulgaria connect SEE to Eastern European energy corridors while Greece enhances links to Mediterranean routes.
Divergence remains evident between EU-integrated exchanges and those in the Western Balkans where lower liquidity often results in reduced prices due to structural factors such as generation mix and demand profiles. As renewable capacity expands in more mature European markets, negative pricing events are beginning to surface within parts of SEE, indicating a need for investments in energy storage solutions and grid flexibility.
The trends observed in March indicate an increasing attractiveness of SEE electricity markets for various stakeholders including utilities and traders as they gradually converge with EU pricing structures across multiple segments such as renewable energy generation and grid modernization efforts.
The developments throughout March signal that SEE power exchanges are entering a new phase characterized by enhanced maturity and integration within Europe’s evolving energy landscape. While Hungary continues to lead as the regional benchmark for pricing, Croatia’s growing liquidity alongside increasing convergence among EU-integrated exchanges highlights steady progress toward a unified electricity market.
