A sharp increase in electricity prices across southeastern Europe during the summer of 2024 revealed significant structural weaknesses within the regional power market. The situation pushed European regulators to consider new measures aimed at reducing the likelihood of similar market disruptions in the future.
Following growing concerns over prolonged price volatility, the European Commission asked ACER to investigate the causes of the instability and propose possible solutions. In response, the agency prepared a detailed report for the Energy Union Task Force, presenting recommendations focused on strengthening electricity infrastructure, improving market integration and increasing system flexibility.
The analysis examined the countries most affected by the price spikes, including Slovenia, Croatia, Hungary, Romania, Bulgaria and Greece, while Austria and Slovakia were included as comparison markets representing central European electricity dynamics.
According to ACER’s findings, one of the main reasons behind the electricity price surge was the lack of flexibility in regional energy systems during evening peak-demand periods, especially after solar power production declined. The report also pointed to limited transmission capacity between countries, which restricted the region’s ability to import lower-cost electricity from other parts of Europe. Planned maintenance works on transmission networks created additional pressure by reducing cross-border electricity flows.
Although electricity prices became more stable in 2025 compared with the previous summer, ACER emphasized that noticeable price differences between southeastern Europe and central Europe continued into early 2026. This suggested that the region faces long-term market challenges rather than only temporary disruptions.
The agency concluded that more efficient use of existing infrastructure could have helped reduce pressure on regional electricity systems during the crisis. However, ACER stressed that simply expanding interconnection capacity would not be enough without simultaneous investments in flexible energy resources and modern balancing technologies.
To improve market resilience, ACER recommended the faster introduction of network-enhancing technologies such as advanced transmission equipment and dynamic line rating systems. The agency also called for stronger regional cooperation in managing electricity networks, better coordination of maintenance schedules and broader use of corrective operational measures.
Additional recommendations included accelerating strategic network investments across southeastern Europe, removing barriers that prevent smaller market participants from entering the sector and supporting technologies designed to increase system flexibility and efficiency.
The report further highlighted the importance of continuing European electricity market integration efforts. ACER underlined the need to maintain cross-border transmission requirements, expand flow-based market mechanisms and strengthen electricity market coupling with neighboring non-EU countries in order to create a more stable and interconnected regional energy system.
