Türkiye’s wholesale power market moved differently from other parts of Southeast Europe in May 2026, according to Electricity.Trade’s latest trading analysis. While most regional markets recorded higher prices, Türkiye’s monthly spot average fell to €11.17/MWh. The figure represented a 39.49% decline versus April and an 80.18% drop compared with May 2025.
At the same time, electricity prices in neighbouring markets were higher. Italy was at €119.35/MWh, Romania at €109.56/MWh, Hungary at €106.51/MWh, and Bulgaria at €101.07/MWh. Türkiye therefore stood out as the region’s most significant pricing outlier.
Price gaps across Southeast Europe in May 2026
The scale of the differential produced one of the widest spreads in Southeast Europe during the month. Türkiye traded nearly €90/MWh below Bulgaria, around €78/MWh below Greece, and more than €108/MWh below Italy. Such gaps would typically be associated with strong arbitrage conditions.
Electricity.Trade also noted that transferring value from Türkiye into neighbouring markets was limited by market and infrastructure constraints. These included limited interconnection capacity, transmission rights, market coupling arrangements and balancing requirements. As a result, Türkiye’s low prices translated into only a limited portion of tradable value for adjacent European systems.
Generation mix and demand changes in Türkiye
Türkiye’s generation profile in May contributed to the pricing outcome described in the analysis. Electricity production was led by 50.31% hydropower, followed by 19.68% renewables and 18.41% coal and lignite. Natural gas accounted for 11.35%, while oil made up 0.25%.
The analysis linked the price decline to demand and hydro output conditions during the month. Electricity demand fell by 5.09% compared with April, while renewable generation decreased by 6.70%. The combination of lower demand and abundant hydropower generation supported lower wholesale prices when reservoir conditions were favourable and dispatch aligned with domestic market dynamics.
Cross-border flows and limits on regional integration
Türkiye remained a net electricity exporter in May 2026, recording 255.00 GWh of net exports. Exports included 26.87 GWh to Greece, 44.01 GWh to Bulgaria, and 184.12 GWh to Georgia .
The report said these cross-border volumes supported regional trade but did not materially narrow the price gap with neighbouring Southeast European markets . It pointed to limited market integration as a factor behind the persistence of the spread between Türkiye and EU-linked pricing dynamics.
The overall assessment for May 2026 was that Türkiye’s exceptionally low electricity prices reflected both generation conditions and relatively limited integration with the broader European power market . The sharp decline highlighted the role of cross-border interconnection capacity, regional market integration and transmission infrastructure in determining how far price differences can be transferred across borders . Without stronger physical and regulatory links, even extreme spreads remained only partially tradable .
