Greece, Romania and Bulgaria unite to tackle energy prices

Greece, Romania and Bulgaria are working together to develop a regional mechanism to mitigate electricity price fluctuations, believing that the EU's single market is ill-suited to South-East Europe.

Share:

Interconnexion entre la Grèce et la Bulgarie

The Energy Ministers of Greece, Romania and Bulgaria have decided to take concerted action to address the shortcomings of the single electricity market in South-East Europe.
These countries, although connected to the central European electricity grids, are experiencing regular price rises due to a lack of transmission capacity and increased demand during the summer months.
This situation highlights the limits of energy integration as currently conceived by the European Union (EU).
Theodore Skylakakis, Greek Minister of Energy, argues that the EU’s unified market model is not adapted to the realities of the region.
He announces that Greece, along with Romania and Bulgaria, is working on a plan to establish a permanent intervention mechanism.
This mechanism would be triggered automatically in the event of extreme prices, when supplies from Central European networks to the South-East are insufficient to meet demand.

Transmission infrastructure challenges

Electricity interconnections in South-East Europe are insufficient to efficiently transport energy from major European markets to the region.
This structural weakness creates price imbalances that have a direct impact on businesses and consumers alike.
Although these countries have invested heavily in renewable energies to reduce their dependence on imported fossil fuels, this does not compensate for the lack of transmission capacity and the inefficiency of regional markets.
Greece, for example, despite a significant proportion of its electricity coming from solar and wind farms, suffers from price volatility due to its limited connection with other European markets.
Dependence on current interconnections and favorable climatic conditions highlights the challenges of regional energy integration.

Strategic positioning and policy implications

This tripartite initiative could not only stabilize prices in the region, but also set a precedent for other EU member states seeking to address the failings of the single market.
Indeed, by proposing a regional solution, Greece, Romania and Bulgaria are sending a strong message to European decision-makers about the need for a more flexible approach tailored to local realities.
Greek Prime Minister Kyriakos Mitsotakis plans to send a letter to the European Commission this week, stressing the importance of reforming the current electricity market framework.
This political move is part of a wider strategy to strengthen the region’s energy resilience and reduce the economic impact of price fluctuations.
Greece has already extended a windfall profits tax on energy companies to support consumers, a measure that remains temporary in the absence of a structural solution at European level.

Nearly USD92bn will be invested by major American and international groups in new data centres and energy infrastructure, responding to the surge in electricity demand linked to the rise of artificial intelligence.
Nouakchott has endured lengthy power interruptions for several weeks, highlighting the financial and technical limits of the Mauritanian Electricity Company as Mauritania aims to widen access and green its mix by 2030.
Between 2015 and 2024, four multilateral climate funds committed nearly eight bn USD to clean energy, attracting private capital through concessional terms while Africa and Asia absorbed more than half of the volume.
The Global Energy Policies Hub shows that strategic reserves, gas obligations, cybersecurity and critical-mineral policies are expanding rapidly, lifting oil coverage to 98 % of world imports.
According to a report by Ember, the Chinese government’s appliance trade-in campaign could double residential air-conditioner efficiency gains in 2025 and trim up to USD943mn from household electricity spending this year.
Washington is examining sectoral taxes on polysilicon and drones, two supply chains dominated by China, after triggering Section 232 to measure industrial dependency risks.
The 2025-2034 development plan presented by Terna includes strengthening Sicily’s grid, new interconnections, and major projects to support the region’s growing renewable energy capacity.
Terna and NPC Ukrenergo have concluded a three-year partnership in Rome aimed at strengthening the integration of the Ukrainian grid into the pan-European system, with an in-depth exchange of technological and regulatory expertise.
GE Vernova has secured a major contract to modernise the Kühmoos substation in Germany, enhancing grid reliability and integration capacity for power flows between Germany, France and Switzerland.
The National Energy System Operator forecasts electricity demand to rise to 785 TWh by 2050, underlining the need to modernise grids and integrate more clean energy to support the UK’s energy transition.
Terna has signed a guarantee agreement with SACE and the European Investment Bank to finance the Adriatic Link project, totalling approximately €1bn ($1.08bn) and validated as a major transaction under Italian regulations.
India unveils a series of reforms on oil and gas contracts, introducing a fiscal stability clause to enhance the sector’s attractiveness for foreign companies and boost its growth ambitions in upstream energy.
The European Commission is launching a special fund of EUR2.3bn ($2.5bn) to boost Ukraine’s reconstruction and attract private capital to the energy and infrastructure sectors.
Asia dominated global new renewable energy capacity in 2024 with 71% of installations, while Africa recorded limited growth of only 7.2%, according to the latest annual report from IRENA.
US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.