Infrastructure is destiny: How grids, pipelines and bottlenecks create price signals

Energy markets are often analysed as abstractions: prices, curves, spreads, marginal costs. Infrastructure appears in these models as a constraint, a background condition that occasionally matters during outages or extreme events. In Europe’s integrated energy system, this framing is no longer sufficient. Infrastructure is not a passive backdrop. It is an active force that shapes […]

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South-East Europe as Europe’s stress test: What the region reveals about the energy transition

South-East Europe does not sit on the periphery of Europe’s energy system. It sits at its edge in a different sense: the edge where constraints bind first, where volatility appears earliest, and where systemic assumptions are tested under real operating conditions rather than in models. The region is not an exception to Europe’s energy transition.

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Trading energy in a system under stress: Portfolios, hedging, and survival in a multi-fuel market

Energy trading was once about exploiting inefficiencies. Price differences across regions, fuels, or time horizons were treated as opportunities for arbitrage. Volatility was episodic, correlations were imperfect, and diversification across markets offered protection. In that world, successful trading meant predicting price direction more accurately than competitors and executing efficiently. In Europe’s current energy system, that

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Flexibility as the new currency: Why speed, storage, and response matter more than capacity

For decades, energy economics was built around capacity. Installed megawatts, pipeline diameters, storage volumes, and reserve margins were treated as the primary indicators of system strength. If capacity exceeded peak demand with an adequate buffer, stability was assumed. Prices might fluctuate, but the system was fundamentally secure. That logic no longer holds. In today’s European

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The invisible hand of oil: Logistics, refineries, and the hidden drivers of power and gas prices

For much of the past two decades, oil was treated as a declining force in Europe’s electricity story. As power generation moved away from fuel oil and toward gas, nuclear, and renewables, oil was conceptually pushed to the margins of energy analysis. It remained central to transport and geopolitics, but increasingly absent from discussions about

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Gas at the centre: How balancing, LNG, and spark spreads now define power prices

For most of Europe’s electricity-market history, natural gas played a supporting role. It was a reliable, dispatchable fuel that complemented baseload generation and provided peak capacity when needed. Its pricing mattered, but it rarely dominated the narrative. Power markets were analysed primarily through generation mix, demand patterns, and network constraints. Gas was a fuel input,

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Volatility is no longer cyclical: How shocks now propagate across Europe’s energy system

For much of Europe’s post-liberalisation energy history, volatility was understood as a cyclical phenomenon. Prices rose and fell in response to identifiable triggers: cold winters, supply outages, geopolitical events, or demand surges. These episodes were disruptive but temporary. Once the shock passed, markets reverted to a familiar equilibrium, and volatility receded. Risk management, regulation, and

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One energy system, three fuels: Why Europe no longer has separate power, gas, and oil markets

For most of the modern history of European energy policy, electricity, natural gas, and oil were treated as adjacent but fundamentally separate domains. They were regulated through different frameworks, traded on different venues, analysed by different expert communities, and governed by distinct political narratives. Electricity was a question of grids, generators, and marginal pricing. Gas

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From power flows to industrial costs: How EU electricity volatility reshapes competitiveness in southeast Europe

For decades, electricity was treated by industry as a predictable input. Prices fluctuated within narrow bands, supply security was largely taken for granted, and energy strategy focused on efficiency rather than exposure. In southeast Europe, this assumption underpinned the region’s industrial model. Competitive labour, proximity to EU markets and relatively stable power costs supported metals,

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Flexibility without reward: Why southeast Europe balances Europe’s power system but captures none of the value

In the emerging architecture of Europe’s electricity system, flexibility has become the most valuable attribute a power asset can possess. The ability to ramp output quickly, absorb surplus generation, stabilise frequency, or respond to sudden imbalances now matters more than raw installed capacity. Yet while flexibility has become scarce, it has not become fairly priced.

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