The electricity market in southeastern Europe experienced a significant upheaval during the summer of 2024, marked by a sharp rise in electricity prices. This surge has exposed critical structural weaknesses within the regional power sector, prompting European regulators to explore new strategies to mitigate future disruptions. The European Commission has tasked the Agency for the Cooperation of Energy Regulators (ACER) with investigating the underlying causes of this instability and proposing actionable solutions.
ACER’s comprehensive report, prepared for the Energy Union Task Force, highlights several key recommendations aimed at enhancing electricity infrastructure, fostering market integration, and boosting system flexibility. The analysis specifically focused on countries most impacted by the price spikes, including Slovenia, Croatia, Hungary, Romania, Bulgaria, and Greece. Austria and Slovakia were included as benchmarks to illustrate central European electricity dynamics.
One of the primary drivers behind the electricity price surge identified by ACER was the inadequate flexibility within regional energy systems during peak-demand periods in the evenings, particularly after solar power generation diminished. The report also noted that limited transmission capacity among countries hampered the ability to import cheaper electricity from other regions in Europe. Additionally, scheduled maintenance on transmission networks exacerbated the situation by restricting cross-border electricity flows.
Despite a stabilization of electricity prices in 2025 compared to 2024, ACER pointed out that significant price disparities between southeastern Europe and central Europe persisted into early 2026. This indicates that the region is grappling with long-term market challenges rather than merely temporary fluctuations.
In its findings, ACER suggested that more efficient utilization of existing infrastructure could have alleviated some of the pressure on regional electricity systems during the crisis. However, simply increasing interconnection capacity would be insufficient without concurrent investments in flexible energy resources and advanced balancing technologies.
To bolster market resilience, ACER advocated for a quicker rollout of network-enhancing technologies such as advanced transmission equipment and dynamic line rating systems. The agency also emphasized the necessity for enhanced regional collaboration in managing electricity networks, improved coordination of maintenance schedules, and broader implementation of corrective operational measures.
Further recommendations included expediting strategic network investments throughout southeastern Europe, eliminating barriers that hinder smaller market participants from entering the sector, and supporting technologies aimed at enhancing system flexibility and efficiency.
The report underscored the ongoing importance of European electricity market integration efforts. ACER stressed that maintaining cross-border transmission requirements, expanding flow-based market mechanisms, and strengthening electricity market coupling with neighboring non-EU countries are essential steps toward establishing a more stable and interconnected regional energy system.
