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Trading the gas–power interface: Where South-East Europe’s volatility is actually made

In South-East Europe, most of the meaningful volatility is not created in outright gas markets or in flat power positions. It is created at the interface between gas and electricity, in the narrow set of hours when fuel deliverability, power system constraints, and market design collide. Traders and industrial buyers who focus on average prices or […]

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Industrial gas contracting in a power-dominated risk environment

Industrial gas contracting in South-East Europe has entered a regime where electricity risk, not gas price risk, is the dominant cost driver, even for buyers whose core exposure appears to be fuel. Gas contracts that optimise average €/MWh outcomes increasingly fail to protect budgets because gas now transmits risk into power markets through marginality, deliverability limits,

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Gas-fired capacity as regional system insurance and its chronic underpayment problem

Gas-fired generation in South-East Europe no longer earns its keep by running often. It earns it by being there when nothing else works. In market terms, these plants function as regional system insurance: they suppress tail risk, stabilise frequency, and prevent cascading failures during rare but severe stress events. Yet remuneration frameworks still pay them as if

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When power prices decouple from gas and why it happens in South-East Europe first

In mature power systems, electricity prices tend to track gas costs with reasonable consistency. Gas may not always be marginal, but when it is, price relationships behave predictably. South-East Europe increasingly breaks that rule. The region is where gas–power decoupling appears first, most violently, and most persistently, even in periods when gas prices are stable. This

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Gas as a volatility multiplier in congested power systems

In South-East Europe, gas does not merely influence electricity prices through marginal cost. It multiplies volatility by interacting with structural congestion in the power grid. When gas tightness coincides with constrained transmission, the price impact is no longer incremental; it becomes discontinuous. This interaction explains why electricity markets across the region experience abrupt price separations and extreme

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Gas storage as regional insurance, not seasonal inventory

Gas storage in South-East Europe is still widely discussed as a question of how much gas is in the ground. Markets, however, increasingly price storage based on how fast that gas can be mobilised when power systems lose flexibility. The distinction is critical. In this region, storage does not function primarily as a seasonal arbitrage tool; it functions as regional

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When LNG stops being a safety valve in South-East Europe

Liquefied natural gas is widely perceived as the ultimate backstop for gas-constrained power systems: flexible, global, and theoretically unconstrained by pipeline politics. In South-East Europe, that perception is increasingly at odds with market outcomes. LNG does provide strategic diversification, but it fails as an operational safety valve during the exact moments when power prices break away from

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The gas–power elasticity gap between South-East Europe and Central Europe

The same gas shock produces very different electricity outcomes depending on where it lands. In Central Europe, gas price movements tend to pass through into power prices in a measured, relatively predictable way. In South-East Europe, identical gas signals often translate into outsized, abrupt electricity price responses. This elasticity gap—the difference in how gas tightness converts

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Gas tightness versus gas price: Why deliverability matters more than TTF in South-East Europe

In South-East Europe, the most disruptive electricity price events are rarely explained by movements in the Dutch TTF benchmark alone. They are explained by gas tightness—the moment when physical gas cannot be delivered quickly enough to where power systems need it most. This distinction between price and deliverability has become decisive for both power traders and industrial electricity buyers across

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Gas as the marginal shock transmitter in South-East European power prices

Gas has become the most misunderstood variable in South-East Europe’s electricity markets. It no longer needs to dominate generation volumes, fuel mixes, or annual averages to dominate outcomes. Its true role today is that of a marginal shock transmitter: the mechanism through which system stress is converted into abrupt price escalation, spread dislocation, and cost overruns.

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