All set for intraday electricity market in Serbia – next step is to join single European market

The launch of the intraday electricity market on the Serbian SEEPEX power exchange in June will bring Serbia closer to joining the single European market, creates conditions for easier integration of variable renewable energy sources and accelerates the energy transition, according to the speakers at a workshop organized by SEEPEX, BSP SouthPool and the Chamber of Commerce and Industry of Serbia.

The intraday electricity market will be the first result of the cooperation between Serbia SEEPEX and Slovenia’s exchange BSP SouthPool, which in December jointly established the Alpine-Adriatic Danube Power Exchange – ADEX, the first regional power exchange for Central and South-Eastern Europe (CSEE).

The opportunities for electricity buyers and sellers were presented by SEEPEX CEO Miloš Mladenović and COO Dejan Stojčevski, followed by BSP SouthPool’s General Manager Anže Predovnik and sales manager Matej Godec and representatives of European Commodity Clearing.

SEEPEX will organize two more workshops for market participants.

Mladenović: The future is here

The intraday market, according to Miloš Mladenović, represents the last segment in the establishment of the market framework for electricity, which began in 2004, and the completion of the first phase of market development.

“SEEPEX has provided the best European practice for the intraday market, similar to the introduction of the day-ahead market, which will allow us to access the single European market,” he pointed out.

Mladenović said the go-live of the intraday market is a done deal, and highlighted novelties that he claims would become mainstream on the market.

CfD and PPA contracts are the future of renewable energy development

First, there are financial contracts, primarily contracts for difference (CfD), which are part of the official market design reform presented by the European Commission. Another major change are flexibility services, including power purchase agreements (PPAs).

Serbia, as he said, already has two such PPA contracts. One is for a large project, the Krivača wind farm, and the other for a smaller solar power plant, with a domestic aggregator and placement on SEEPEX.

“The future is here,” Mladenović said and added that the next step is to merge the Serbian market with the European one. The prerequisite is the transposition of EU rules, including network codes. He expressed hope Serbia would complete the process this year.

ADEX will provide services to power exchanges in Montenegro and North Macedonia

The idea is for ADEX to be a one-stop shop for clients, he said and asserted it was agreed it would provide services to power exchanges in Montenegro and North Macedonia.

“ADEX is the vision of a regional trading platform, and we are open to cooperation with the power exchanges of Central and Southeastern European countries,” Mladenović said.

Mrdak: The ministry started drafting the amendments to the Law on Energy

Rade Mrdak, renewable energy sources advisor to Minister of Energy and Mining Dubravka Đedović, said that eight years after the introduction of the day-ahead market, Serbia is taking a logical and expected step in the development of an organized electricity market.

He noted it is a significant step for the energy transition and for the integration of variable renewables.

The intraday market is one of the key tools to reduce errors in forecasting the operation of power plants running on variable renewable energy sources, which will contribute to reducing the reserve and balancing costs and ultimately enable the integration of more renewable energy, Mrdak pointed out.

The intraday market will also, in his words, provide an important price signal for investors and pave the way for the development of flexibility services.

Mrdak also said the ministry has started drafting the amendments to the Law on Energy to transpose a total of nine EU electricity directives and regulations by the end of the year, necessary for joining the European electricity market and the harmonization with the EU.

Stojčevski: Serbia is an ideal place for electricity trade

Dejan Stojčevski, SEEPEX COO and one of the speakers at the upcoming Belgrade Energy Forum 2023, presented the implementation of the intraday market and the expected benefits.

He said the intraday market would enable balancing of net positions of buyers and sellers within the day, explaining it reduces the need to activate balancing energy, facilitates the integration of renewables, enables covering deviations that occur with unexpected changes in consumption and production and with outages.

Serbia expects additional benefits from the day-ahead and intraday markets coupling with the EU market, for instance a single regional benchmark wholesale price and the establishment of a regional transmission hub, he said.

Coupling with the European market brings additional benefits

“Out of the 53 balance responsible parties in the country, 45 are traders, and there will be more when the intraday market is introduced, because we have enough transmission capacity and eight borders, so we are an ideal place for trade,” said Stojčevski.

Intraday market operation will be based on the M7 trading system, while European Commodity Clearing (ECC) will be in charge of clearing and financial settlement.