Albania has opened its day-ahead electricity market to negative pricing by removing the zero-price floor. Wholesale prices can now fall as low as minus €50/MWh during periods of excess supply. The market ceiling remains at €900/MWh.
The change was approved by the Energy Regulatory Authority, affecting how the ALPEX market clears bids. It brings the Albanian bidding zone closer to pricing mechanics used across integrated European power markets. Under the previous framework, bids could not clear below zero even when negative settlement would have been justified.
Negative prices and solar-driven oversupply hours
Negative prices are expected to become more relevant as Albania and neighbouring countries add solar capacity. During high-generation and low-demand hours, producers may continue operating despite negative wholesale prices. The source cites commercial reasons including support schemes, contractual obligations and avoided shutdown costs.
ALPEX said participants had already attempted to submit negative bids under the prior rules. Between January and 18 April 2026, the market reached the former €0/MWh floor on 13 occasions. During the second auction phase, participants did not revise their bids.
The regulator’s adjustment is intended to enable auctions to reflect the value of oversupplied hours rather than compressing outcomes at zero. This change applies to how bids clear in the day-ahead process under ALPEX.
ALPEX volumes rise as trading expands
Trading activity on ALPEX has increased alongside the market rule change. Volumes rose by approximately 39% in 2025. Traded electricity in the Albanian bidding zone exceeded 1 million MWh, about 26% higher than a year earlier.
First-quarter 2026 volumes were almost double those recorded in the same period of 2025. The reform also affects how market participants interpret price signals across different roles. Storage operators, flexible consumers and cross-border traders are described as receiving a clearer signal.
The source also notes increased commercial pressure on inflexible generators and renewable projects without storage or reliable export capacity. As Albania moves toward deeper regional integration, negative prices are expected to influence curtailment, forecasting quality and intraday portfolio management for renewable-project economics.
