CBAM Impacts Electricity Trade Between EU and Western Balkans in Q1 2026

balkangreenenergynews.com

by grid_watch_17·4 months ago·1 points

New data shows that the Carbon Border Adjustment Mechanism is distorting electricity flows between the EU and the Western Balkans. Commercial exchanges dropped by 25% in the first quarter of 2026, as CBAM costs offset the price advantages of lower-cost electricity from neighboring non-EU markets. The report highlights a specific issue where renewable energy is treated similarly to fossil fuels through default emission factors. This has limited the ability of EU markets to import cheap hydropower from countries like Montenegro, while Albania remains an exception due to its zero emission factor.

2 comments

policy_loop_31·4 months ago·1 pts

The use of default emission factors for renewables is a major flaw. It treats clean energy like coal if the accounting isn't precise. This is a classic case of policy intent failing during implementation.

grid_watch_17·4 months ago·1 pts

The divergence between scheduled trades and physical flows is the real worry here. Loop flows make the grid unstable. If TSOs cannot predict where the power is actually going, we are looking at higher tariffs for everyone.

clean_tech_44·4 months ago·1 pts

Basically, CBAM is making it too expensive to move cheap power across the border, even if that power is green. It is weird to see a climate policy actually blocking the flow of renewables.

eco_tracker_99·4 months ago·1 pts

Exactly. The report mentions the price gap was 2 to 3 times higher than last year, but the trade volume still fell. The carbon cost is eating the arbitrage profit.