On 20 May 2026, the European Union Agency for the Cooperation of Energy Regulators (ACER) published a report calling for increased cross-zonal electricity capacity and system flexibility in Southeast Europe. The report identifies bottlenecks in the region's power grid and recommends measures to enhance market integration and accommodate growing renewable energy shares.

The report, titled "Increasing cross-zonal capacity and system flexibility in Southeast Europe," is a non-binding assessment aimed at national regulators, transmission system operators (TSOs), and the European Commission. It highlights that current cross-zonal capacities are insufficient to enable efficient electricity trading and to integrate variable renewable sources such as solar and wind. ACER recommends that TSOs in the region adopt coordinated capacity calculation methodologies and invest in grid reinforcements.

Key policy orientations include promoting demand-side flexibility, energy storage, and better use of interconnectors. The report also calls for harmonised rules for redispatching and countertrading to avoid market distortions. These measures would require closer cooperation among national regulatory authorities and TSOs in Southeast Europe, a region that includes EU member states like Bulgaria, Romania, Greece, Croatia, and Slovenia, as well as neighbouring countries.

The report's recommendations entail trade-offs. For EU consumers, increased cross-zonal capacity could lower electricity prices through greater competition and more efficient use of low-cost generation. However, grid investments may lead to higher network tariffs in the short term. For TSOs, the report implies additional coordination burdens and potential costs for upgrading infrastructure. Renewable energy producers stand to benefit from reduced curtailment and better access to markets, while conventional generators may face increased competition from imports.

ACER's report is advisory and does not impose binding obligations. The European Commission is expected to consider the findings in its ongoing work on the Electricity Market Design reform and the TEN-E regulation. National regulators in the region are likely to discuss the recommendations in the coming months, potentially leading to revised capacity calculation methodologies and investment plans.

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