Hungary, Romania and Croatia formed the tightening cluster in the Southeast European electricity market during Week 25, with day-ahead prices rising across all three. Hungary’s day-ahead price increased by 10.6% to €109.16/MWh. Romania’s day-ahead price rose by 7.7% to €104.84/MWh, while Croatia climbed by 11.2% to €102.36/MWh. The changes were linked to regional market coupling, Central European price dynamics and higher pressure during evening peak hours.
Hungary as a transmission link between Central and Southeast Europe
Hungary’s market position is tied to its role as a key connection between Central Europe and Southeast Europe. As prices strengthened in major Western and Central European markets, including Germany, Austria, France, Slovakia, Belgium and the Netherlands, Hungary reflected part of that broader repricing. This placed the Hungarian market at the intersection of domestic Southeast European fundamentals and wider continental trends. The result was a stronger contribution from regional pricing conditions alongside local drivers.
Romania sees higher prices as hydropower flexibility declines
Romania’s price increase coincided with a more challenging domestic supply balance. Electricity demand declined slightly over the week, while hydropower generation fell by 9.8%. The reduction in hydro output removed operational flexibility that supports system balancing. Romania also reduced its net imports by 19.1%, but prices still moved higher.
The continued rise despite lower net imports pointed to tightening being transmitted through regional pricing mechanisms rather than import dependency alone. With consumption levels relatively stable, the shift in supply-side flexibility was a key factor behind the market outcome. Regional coupling effects remained part of the broader context for the week’s price moves.
Croatia faces demand growth and weaker wind output
Croatia’s conditions differed from those in Hungary and Romania. Electricity demand increased by 9.7%, one of the strongest consumption gains across Southeast Europe during the week. At the same time, renewable generation weakened due to lower wind output, reducing low-cost supply availability. Croatia responded by increasing net electricity imports by 26.0%.
The higher import requirement exposed Croatia more directly to higher-priced neighbouring systems during periods of tightness. Evening scarcity conditions became more pronounced as cross-border flows rose alongside weaker wind generation. The combination of demand growth and reduced renewable output shaped the direction of prices.
Regional coupling increasingly shapes price formation
A common element across the three markets was a gradual reduction in insulation from wider regional developments. Domestic supply and demand factors remained relevant, but prices were increasingly influenced by the cost of flexibility, cross-border flows and conditions in neighbouring systems. The expansion of solar generation alone did not stabilize prices without complementary investments in storage, dispatchable generation and interconnection management.
For market participants, Hungary, Romania and Croatia served as indicators of regional volatility rather than consistent low-price locations or structural premium markets comparable to Italy. Week 25 reinforced their role as a marginal volatility zone within Southeast Europe’s power market framework. As regional integration deepens and flexibility becomes more valuable, these markets were expected to remain sensitive to changing supply-demand balances across the wider European system.