Montenegro: Submarine cable increased electricity transit and profit, SEE Energy News
Director of the Coordinated Auction Office in South East Europe (SEECAO) Ivan Bulatovic said that the first effects of the commissioning of electricity cable to Italy are already tangible, both in increased transit of electricity and profit.
Bulatovic said that at the annual auction for 2020, which was held in late 2019, Montenegrin electricity transmission system operator CGES generated revenues of some 2.9 million euros, while at the monthly auctions for January and February, it generated additional revenues of around 850,000 euros. He also noted that since the cable commissioning, there is greater interest in allocation to other Montenegrin borders. Therefore, at the border with Albania, capacity allocation increased by 50 %, while at the border with Bosnia and Herzegovina, congestion revenues have doubled.
He said that the establishment of electricity link between Montenegro and Italy is an important step for SEECAO, adding that the start of allocation at the new border will increase energy transit in the region and increase congestion revenues for transmission system operators, which will consequently enhance their investment plans and contribute to the development of network infrastructure.
The changes that are happening in the development of electricity markets are numerous, but also very fast. Therefore, it is necessary to constantly listen to needs of market participants in order to provide them with the best service. The fact is that Balkan region is late in relation to Europe, first of all, with the adoption of regulations in this field, which is why there will be a lot of legal changes in the coming period to allow the conditions for the creation of a single market. On the other hand, it should be noted that in the process of development of the electricity market, the greatest progress has been made in the long-term market, while the current focus is on the development of daily, intraday and balance markets. The establishment of national electricity exchanges is a crucial step in further development, necessary to achieve the ultimate goal of market integration, Bulatovic concluded.