No single actor controls South East Europe’s power future. Instead, the region is being reshaped by a shifting balance of power between incumbent utilities, power exchanges, transmission system operators, private renewable developers, trading firms, financial institutions and EU-linked regulators.
The incumbents still play a dominant structural role. State-owned and formerly state-dominated utilities continue to control a large share of generation, retail supply, hydropower assets, thermal capacity and long-standing customer relationships. Companies such as PPC in Greece, Hidroelectrica in Romania, BEH and NEK in Bulgaria, HEP in Croatia, GEN and HSE in Slovenia, MVM in Hungary, EPS in Serbia, EPCG in Montenegro, KESH in Albania and ESM in North Macedonia remain core pillars of the physical electricity system. However, their position is increasingly being challenged by market liberalisation and cross-border integration.
The most visible structural shift is the growing importance of organised electricity markets. Power exchanges are now central to price formation, transparency and regional coupling. ADEX, created through the integration of BSP SouthPool, SEEPEX and HUPX, presents itself as the first regional power exchange for Central and South Eastern Europe, operating both day-ahead and intraday markets. This reflects a broader trend where trading is moving away from bilateral arrangements toward algorithm-driven market clearing mechanisms.
Alongside ADEX, national exchanges continue to define local and regional price signals. HEnEx in Greece, IBEX in Bulgaria, OPCOM in Romania, CROPEX in Croatia, BSP SouthPool in Slovenia and HUPX in Hungary all contribute to the increasingly interconnected European electricity trading system. These platforms are not only trading venues but also integration points between national systems and EU market coupling frameworks.
In the Western Balkans, exchange development is more recent but increasingly significant. SEEPEX in Serbia, ALPEX in Albania and Kosovo, MEMO in North Macedonia and MEPX in Montenegro are gradually building the foundation for transparent short-term electricity pricing. According to the Energy Community’s Q1 2026 CBAM analysis, exchange activity in the region is diverging: ALPEX, MEPX and MEMO have shown growth, while SEEPEX has experienced a decline, partly reflecting differences in hydro liquidity, market structure and transit-related trading dynamics.
Transmission system operators represent another powerful layer of influence. In a region where congestion frequently drives price differentials, TSOs are not passive infrastructure operators but active market shapers. Their decisions on capacity allocation, interconnector availability, outage coordination and cross-zonal flow limits directly affect whether low-cost electricity can move between bidding zones and reach high-price markets.
Trading participants are gaining structural importance as volatility increases. In a market defined by 15-minute pricing and renewable variability, value is created through forecasting accuracy, intraday optimisation, balancing strategies and cross-border positioning. Traditional annual or monthly trading strategies are no longer sufficient. Instead, algorithmic trading systems, automated bidding platforms and real-time analytics are becoming essential tools for capturing short-term price movements.
Private renewable developers are also becoming more influential across the region. They are bringing capital, project pipelines and international execution standards into markets historically dominated by state utilities. However, their success increasingly depends on grid connection capacity, permitting speed, curtailment exposure and long-term offtake arrangements. The most competitive developers are now integrating storage, PPAs, balancing participation and structured financing into their business models to reduce exposure to volatility.
Financial institutions complete the emerging power structure. Development banks such as the EBRD and EIB, alongside commercial lenders, green-bond investors and equity markets, are determining which projects are actually financed and built. The EBRD’s €175 million financing package for PPC’s regional renewable expansion illustrates how financial institutions are enabling cross-border utility strategies and system-wide transformation, not just isolated investments.
Ultimately, South East Europe’s power system is no longer shaped by a single dominant force. It is the outcome of continuous interaction between utilities, markets, grids and capital. Influence is distributed, conditional and increasingly competitive. In this environment, success depends not just on owning generation assets, but on understanding how all parts of the system interact to determine where value is created and where it is lost.
