electricity flows

Southeast European day-ahead electricity prices remained elevated at around €300/MWh on November 4, although widening differences between individual markets pointed to increasing regional fragmentation....

Renewable electricity producers in Serbia, Montenegro and other Western Balkan markets may not qualify for actual-emissions treatment on EU exports based on low-carbon generation alone. An illustrative scenario puts the six-month opportunity cost for a 130 MW onshore wind project at €8.9 million if it sells locally instead of accessing higher-priced EU markets.

CBAM requirements could affect the revenue and financing of renewable projects in Serbia, Montenegro and the wider Western Balkans. The Energy Community Secretariat’s Q2 2026 assessment highlights verification, power purchase agreement eligibility and access to EU market prices as challenges.

The Energy Community Secretariat warned that carbon-related costs on electricity exports to the EU could take effect before Western Balkan markets are fully integrated. An exemption for electricity is conditional, and proposed changes to the CBAM framework had not been enacted by early November 2026.

Scheduled electricity exchanges between the Western Balkans Six and neighbouring EU markets remained below 2025 levels in the third quarter of 2026, while day-ahead volumes on regional exchanges increased. The Energy Community Secretariat’s assessment highlights how carbon-related costs are becoming part of cross-border trading decisions.