The South East European (SEE) electricity markets demonstrated resilience and increasing integration in March, as trading volumes remained robust and price dynamics reflected seasonal transitions, fuel cost pressures and cross-border interdependence. While Hungary continued to anchor regional pricing, exchanges across Slovenia, Croatia, Romania, Bulgaria and Greece moved in close alignment, underscoring deepening market coupling with Central Europe. At the same time, Serbia, Montenegro, North Macedonia and Albania retained structural discounts, reflecting differences in generation mix, liquidity and interconnection capacity.
March trading activity confirmed that the SEE region is evolving into a cohesive yet stratified power market. Increasing liquidity, expanding intraday trading and narrowing spreads between EU-integrated exchanges indicate progress toward convergence with the broader European energy system. However, persistent price differentials across the western Balkans highlight both the challenges and opportunities that remain in achieving full regional integration.
Hungary’s HUPX: The regional benchmark
Hungary’s power exchange, HUPX, remained the dominant reference market for SEE electricity trading in March. Total day-ahead traded volume reached 2.79 TWh, reinforcing Hungary’s role as the liquidity hub linking Central and South East Europe. The average baseload price stood at €117.4/MWh, representing a 3.6% increase compared with February, while the peak price averaged €103.52/MWh, reflecting seasonal moderation in demand.
Intraday trading volumes reached 1.085 TWh, rising 11.5% month-on-month, a clear indication of growing market sophistication. This increase highlights the rising importance of real-time balancing as renewable penetration expands and traders adjust positions in response to fluctuating wind and solar output. The strength of HUPX as a regional benchmark continues to shape price formation across neighbouring SEE markets, particularly Slovenia, Croatia and Romania.
Croatia’s CROPEX: Expanding regional relevance
Croatia’s power exchange, CROPEX, recorded 990 GWh of electricity traded in March, consolidating its position as one of the most active markets in South East Europe outside Hungary. Supported by its EU membership and integration into European market-coupling frameworks, CROPEX serves as a vital bridge between Central Europe and the Adriatic region.
Croatia’s strong interconnections with Slovenia, Hungary and Italy enable efficient cross-border arbitrage and enhance price transparency. As regional energy transitions accelerate, CROPEX is expected to play an increasingly strategic role in facilitating renewable integration and supporting liquidity across the Adriatic energy corridor.
Slovenia, Romania, Bulgaria and Greece: The EU-integrated core
Electricity exchanges in Slovenia (BSP), Romania (OPCOM), Bulgaria (IBEX) and Greece (HENEX) continued to track closely with Hungarian price movements during March. These markets form the EU-integrated core of SEE power trading, characterized by strong cross-border interconnections, high liquidity and alignment with European regulatory frameworks.
Romania’s OPCOM benefits from its connection to both Central and Eastern European markets, while Bulgaria’s IBEX and Greece’s HENEX provide strategic gateways linking continental Europe to the Eastern Mediterranean. Slovenia’s BSP, meanwhile, plays a pivotal role in coupling the Adriatic and Alpine energy systems. The close alignment of prices across these exchanges underscores the effectiveness of market coupling mechanisms and highlights the growing interconnectedness of the region’s electricity markets.
Serbia’s SEEPEX: A key Western Balkan hub
Serbia’s SEEPEX remains the most influential exchange among the Western Balkan markets. Despite maintaining lower average prices compared to EU-integrated exchanges, SEEPEX plays a critical role in regional energy trade. The market’s structural discount reflects a combination of domestic generation dynamics, including coal and hydropower reliance, as well as evolving interconnection capacities.
Serbia’s strategic position between Central Europe and the Balkans positions SEEPEX as a future convergence hub. Continued grid modernization, regulatory alignment with the European Union and expansion of renewable energy capacity are expected to strengthen its role in the regional power landscape.
Montenegro, North Macedonia and Albania: Emerging markets
Montenegro’s BELEN, North Macedonia’s MEMO and Albania’s ALPEX represent the emerging tier of SEE electricity exchanges. These markets are characterized by smaller volumes and lower liquidity but are gaining importance as regional integration accelerates.
Montenegro’s market reflects its heavy reliance on hydropower and imports, while North Macedonia’s MEMO continues to develop as a wholesale trading platform aligned with EU standards. Albania’s ALPEX, the newest exchange in the region, is rapidly expanding its footprint and plays a strategic role in integrating the Albanian and Kosovan electricity markets.
These exchanges often trade at a discount relative to Central European benchmarks, creating opportunities for cross-border arbitrage and investment in transmission infrastructure. As interconnection capacity improves and renewable projects expand, their convergence with EU markets is expected to accelerate.
Price trends and market dynamics
March saw broadly firm electricity prices across SEE, driven by several key factors. Seasonal transitions from winter to spring moderated demand, but higher fuel costs and carbon prices continued to influence marginal generation costs. Gas and coal remained critical price-setting fuels, while emissions allowances under the EU Emissions Trading System contributed to elevated power prices.
Renewable generation played an increasingly prominent role in shaping market dynamics. Solar output began to rise with improving weather conditions, while hydropower production fluctuated depending on water inflows. These factors contributed to greater volatility and strengthened the importance of intraday and balancing markets.
Price convergence was most pronounced among EU-integrated exchanges, where efficient market coupling facilitated cross-border flows. However, persistent disparities between these markets and the Western Balkans underscored the importance of continued infrastructure investment and regulatory harmonization.
Cross-border integration and regional coupling
The SEE electricity market is progressively aligning with the European internal energy market. Hungary’s central geographic position makes it a crucial gateway connecting the Balkans to Central Europe. Slovenia and Croatia provide essential links to Italy and Austria, while Romania and Bulgaria connect SEE to Eastern European and Black Sea energy corridors. Greece serves as a strategic southern hub with growing connections to Mediterranean energy routes.
This interconnected network enables price convergence, enhances security of supply and supports renewable energy integration. As new interconnectors and market coupling initiatives come online, the SEE region is expected to experience further harmonization with European energy markets.
Market structure and volatility
The divergence between EU-integrated exchanges and Western Balkan markets remains a defining feature of the SEE power landscape. Exchanges in Hungary, Slovenia, Croatia, Romania, Bulgaria and Greece typically exhibit higher liquidity and stronger price correlation. In contrast, Serbia, Montenegro, North Macedonia and Albania often experience lower prices due to structural factors such as generation mix, demand profiles and interconnection constraints.
Negative pricing events, increasingly observed in more mature European markets, are gradually emerging within parts of SEE as renewable capacity expands. This trend underscores the need for investments in energy storage, grid flexibility and demand-response mechanisms to ensure system stability and maximize the value of renewable energy.
Investment Implications
March market trends highlight the growing attractiveness of SEE electricity markets for investors, utilities and traders. The region’s gradual convergence with EU pricing structures offers opportunities across multiple segments, including renewable energy generation, grid modernization, battery storage and cross-border trading.
Hungary’s HUPX continues to serve as the primary liquidity hub, while CROPEX, BSP, OPCOM, IBEX and HENEX represent increasingly integrated EU-aligned markets. Meanwhile, SEEPEX, BELEN, MEMO and ALPEX provide high-growth potential as Western Balkan economies advance toward European market standards.
The continued expansion of intraday markets reflects rising demand for flexibility solutions, particularly as renewable penetration increases. Investments in transmission infrastructure and energy storage are expected to play a pivotal role in enhancing market efficiency and supporting the region’s energy transition.
Outlook
March confirmed that SEE power exchanges are entering a new phase of maturity and integration. Strong trading volumes, resilient prices and expanding cross-border cooperation illustrate the region’s strategic importance within Europe’s evolving energy landscape. Hungary’s continued leadership as the regional pricing benchmark, combined with Croatia’s growing liquidity and the increasing convergence of EU-integrated exchanges, signals steady progress toward a unified electricity market.
At the same time, the structural discounts observed in Western Balkan exchanges highlight both the challenges and opportunities ahead. As regulatory alignment, infrastructure investment and renewable deployment accelerate, the SEE region is poised to play an increasingly central role in Europe’s energy transition, offering compelling prospects for market participants across the power value chain.