Romania: Electricity net imports increased after market coupling with Hungary, SEE Energy News
The companies in Hungary are buying cheap electricity from solar or wind power plants in Romania, and then they are selling the same energy at higher prices to local companies.
The coupling of day ahead markets in Hungary, Romania, Slovakia and the Czech Republic on 19th November 2014 has brought an unexpected result on the energy market in Romania, it is emphasized in the report of the Romanian Regulatory Agency ANRE – the energy import from Hungary has risen, whereas the export has remained relatively constant. Practically, from the moment of coupling of day ahead markets, Romania has become a net importer of energy, whereas it has been a net exporter until 19th November.
Such result is unexpected considering that, after Romania joined the market coupling project, it was expected that the quantity of energy traded by large producers on the day ahead market would grow, justifying the increase in the reserve capacities of these producers. Accordingly, it would be possible that the quantities of energy exported from Romania to Hungary be increased, it is stated in the ANRE report.
Seemingly, the large quantities of cheap energy available on the Romanian market had to find their place in Hungary, but the things have not been going as expected.
“Market coupling has been carried out according to the principle that the cheapest energy is on the market that offers the best price. However, in the countries with which we have connected, the market price of energy is lower than in our country, so that the Hungarians have an interested scheme, through long-term contracts, they provide cheap energy from wind or photovoltaic plants through bilateral agreements on the electricity market, and they sell it on the day ahead market in Romania at a good price. This explains the deficit achieved in the trade with Hungary“, Octavian Lohan, Deputy Director of the company Transelectrica, explains. , transmits Serbia-energy.eu