The repricing of South-East Europe’s power markets is increasingly driven not by energy scarcity but by the erosion of system inertia and fast-response capability. As synchronous coal and lignite units retire or operate fewer hours, the physical properties that once stabilised frequency and dampened short-term volatility are disappearing. Markets are responding by repricing balancing risk, […]

In South-East Europe, transmission corridors have overtaken generation assets as the primary determinants of price formation. While installed capacity figures still dominate political discourse, trading outcomes increasingly hinge on whether electricity can physically traverse a handful of constrained interfaces at the precise hours when system stress materialises. This shift marks a fundamental change in how

South-East Europe has crossed a structural boundary where national supply–demand balances no longer determine market outcomes on their own. Power trading, price formation, and risk management are now governed primarily by cross-border interdependence—by whether electricity can move across constrained corridors at the hours when it is needed most. This shift has unfolded gradually, but its