cross border flows

Serbia’s Electricity Market Enters New Phase Amid Structural Changes

The Serbian electricity market has transitioned into a significantly altered phase as of the first quarter of 2026. This transformation is driven by the emergence of negative pricing, increased renewable energy volatility, cross-border balancing pressures, and the expansion of battery storage. These factors are reshaping the dynamics of electricity trading, pricing, and financing in the country. Historically, Serbia's power system relied on a predictable structure characterized by lignite-fired generation and hydropower balancing, with regulated market conditions influencing electricity prices. However,…