ACER flags structural weaknesses in southeastern Europe’s power market after 2024 price spike

The sharp rise in electricity prices across southeastern Europe during the summer of 2024 did more than rattle households and businesses—it highlighted structural vulnerabilities in how the regional power market manages peak demand and cross-border supply. European regulators have since moved to examine what drove the instability and how to reduce the risk of similar disruptions.

European Commission asks ACER to diagnose instability

As concerns grew about prolonged price volatility, the European Commission asked ACER to investigate the causes of the instability and propose solutions. ACER prepared a detailed report for the Energy Union Task Force, outlining recommendations aimed at strengthening electricity infrastructure, improving market integration and increasing system flexibility.

Where the spikes hit hardest—and why it matters

ACER’s analysis focused on countries most affected by the price surges: Slovenia, Croatia, Hungary, Romania, Bulgaria and Greece. Austria and Slovakia were included as comparison markets to reflect central European electricity dynamics.

One key driver identified by ACER was insufficient flexibility in regional energy systems during evening peak-demand periods—particularly after solar generation fell off. The report also pointed to limited transmission capacity between countries, which constrained the region’s ability to import lower-cost electricity from elsewhere in Europe. Planned maintenance on transmission networks compounded the problem by further reducing cross-border flows when demand pressures were highest.

Stability improved in 2025, but gaps persist into 2026

While electricity prices became more stable in 2025 compared with the previous summer, ACER found that meaningful price differences between southeastern Europe and central Europe persisted into early 2026. That pattern suggests longer-term market challenges rather than a purely temporary disruption.

Resilience needs flexibility—not interconnectors alone

ACER concluded that more efficient use of existing infrastructure could have eased pressure during the crisis. However, it cautioned that simply expanding interconnection capacity would not be sufficient without parallel investments in flexible energy resources and modern balancing technologies.

To improve resilience, ACER recommended accelerating network-enhancing technologies such as advanced transmission equipment and dynamic line rating systems. It also called for stronger regional cooperation on grid operations—especially better coordination of maintenance schedules—and wider use of corrective operational measures.

Broader reforms: investment pace, market access and integration

The agency further urged faster strategic network investment across southeastern Europe and measures to remove barriers that limit entry for smaller market participants. It also highlighted technologies intended to increase system flexibility and efficiency.

Finally, ACER emphasized that ongoing efforts to integrate European electricity markets remain central to reducing future volatility. It said regulators should maintain cross-border transmission requirements, expand flow-based market mechanisms and strengthen electricity market coupling with neighboring non-EU countries—steps designed to support a more stable and interconnected regional system.