Serbia: How real is the Serbian-regional SEE spot exchange?

6. March 2014. / News Serbia Energy

Idea of regional power exchange has a history in the South East Europe. Slovenian BSP Southpool tried to connect Balkans electricity actors but the bourse was not too successful. Latest initiative comes from Serbian TSO grid operator company EMS which negotiated a JV project with French EPEX to start SEEPEX exchange in 2014 with day ahead power trading while intraday trading will be introduced in 2015. Traders to see the region as perspective but its potentials might be finally explored with this idea and ongoing power market liberalization process.

Serbia agreed with French EPEX to launch a regional spot power bourse in the third quarter this year to introduce competition, develop reliable prices and security of supply in the region, stated grid operator EMS.

Paris-based EPEX will hold a 25 percent stake in the SEEPEX exchange, with EMS owning the remaining share, EMS general manager Nikola Petrovic stated.

The Belgrade-based bourse would become fully operational in the first quarter of 2015, providing the Balkan country’s efforts to liberalise its energy market with a view to joining the European Union go ahead as planned.

In the initial phase neighbouring Montenegro, Macedonia and Bosnia will join SEEPEX, Petrovic said. There are also plans to link the regional market with that of Hungary, which has already linked day ahead trading with the Czech Republic and Slovakia.

The bourse will first start trading day ahead power, while intraday trading will be introduced in 2015.

While many traders see the region as potentially lucrative, they cite barriers limiting market growth that include a lack of transparency, difficulties in getting trading licenses and the need to win numerous auctions to move around power.

Almost 10 percent of Serbia’s electricity market was opened up in 2013 and 27 of the country’s biggest industrial consumers were required to buy power on the open market.

Smaller commercial users have been able to buy on the free market since the start of 2014. Households may also follow suit in July, six months ahead of initial plans, officials have said.

Source; Serbia Energy

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