Croatia logs more negative prices as solar output rises
Croatia recorded 257 hours of negative electricity prices in 2025, compared with 196 hours in 2024. The negative periods were concentrated in spring and on sunny Sundays, when solar generation was high and demand was comparatively low. Croatian battery capacity was only about 11 MW in March 2026.
The pattern reflects a mismatch between additional solar output and system flexibility. More solar plants increase low-cost midday generation, but without storage or flexible demand they deepen price cannibalisation. Generators may produce more electricity while earning less per megawatt-hour. Negative prices indicate that flexibility is valued more than additional uncontrolled daytime production.
Cyprus faces evening supply risk after sunset
Cyprus has more than 1,000 MW of conventional generation and more than 1,000 MW of solar capacity. The combination supports adequate supply during daylight hours. The risk appears in the early evening, when temperatures and air-conditioning demand remain high while photovoltaic output falls rapidly.
The government expects 120 MW of storage to be installed by January 2027. The planned capacity is intended to address the gap between sustained evening demand and declining solar generation.
Romania advances utility-scale battery financing for grid services
Romania is moving from operational need to projects that can be financed at utility scale. Aukera secured a €48.5 million financing package for the second phase of its Gura Ialomiței battery. The package includes €40 million of CAPEX financing and an €8.5 million VAT facility.
The expansion adds 100 MW/200 MWh, taking the full project to 250 MW/500 MWh. The disclosed CAPEX debt for the second phase equates to approximately €200 per kWh. PPC Renewables Romania is developing a 45.72 MW/91.44 MWh battery at the Fântânele-Vest wind farm for €18.8 million, or about €206 per kWh.
The EU Modernisation Fund is contributing roughly 8.3% of the project cost for the PPC Renewables battery. The disclosed unit-cost figures are similar across the two projects, supporting an emerging benchmark for two-hour storage.
Batteries support multiple revenue streams beyond arbitrage
Batteries can provide balancing services, frequency response, congestion management, intraday optimisation and reduced imbalance costs. A solar-linked battery shifts midday output toward the evening peak. A wind-linked system performs a different function by smoothing forecast deviations, capturing curtailed generation and improving delivery against scheduled market positions.
The revenue profile differs between solar- and wind-linked assets due to wind’s higher capacity factor and less concentrated generation profile. Bankability depends on how many revenue streams can be contracted rather than relying solely on merchant trading.
Treatment of grid access and market rules shapes project financeability
Croatia’s approach to market premiums is already affecting incentives for storage. The country decided to suspend market premiums during negative-price periods. Regulatory treatment can determine whether a technically sound battery becomes financeable through connection rights, charging rules and double taxation of imported and exported electricity.
Access to balancing markets and treatment under renewable support schemes also influence financing outcomes. The region is shifting from a generation shortage toward a flexibility shortage as renewable build-out progresses.
The next stage of deployment will depend not only on installed megawatts but also on how effectively electricity can be moved from production hours to the hours when the system values it.
