Regional power spreads: identifying arbitrage opportunities across European markets
Regional electricity price differences are a key aspect of European power markets. Even in a more interconnected grid, prices can vary widely between neighbouring regions, creating opportunities for traders to benefit from cross-border arbitrage.
These spreads demonstrate the interaction between supply, demand, and transmission constraints across interconnected markets. While interconnector flows and market coupling help align prices, physical and structural differences mean divergence remains a persistent feature of the system.
