The transmission system operators (TSOs) of Bulgaria – ESO, North Macedonia – MEPSO, and Albania – OST have signed a memorandum of understanding (MoU) which envisages the day-ahead market (DAM) coupling.
The MoU was signed by ESO CEO Angelin Tsachev, MEPSO CEO Sasho Vasilevski, and OST CEO Skerdi Drenova in Sofia.
According to ESO’s press release, the three parties have signed the Memorandum of Understanding on the development of the electricity market and the strengthening of regional cooperation in the South-East Europe (SEE) region through mutual assistance.
The initiative is expected to enhance the security of supply in the region
The three sides declare their willingness to cooperate closely and contribute to the development of the electricity market by bringing together their national DAMs and integrating them into the functioning coupled European energy market, ESO said.
The initiative is expected to contribute to creating better opportunities for market participants and enhancing the security of supply in the region.
The Memorandum also envisages an implicit allocation of interconnection capacities in line with the EU target model
The Memorandum also envisages the coupling of the DAMs to be accompanied by an implicit allocation of interconnection capacities in line with the European target model.
With the signing of the document, the three TSOs also state their determination to develop regional cooperation by the establishment of a Regional Security Coordination Center set up in a SEE EU member state.
North Macedonia and Albania do not have a power exchange or DAM. Bulgaria has an operating power exchange, IBEX, which was established in January 2014.
North Macedonia and Bulgaria have already signed a memorandum of understanding (MoU) on the DAM coupling.
Launch of the North Macedonia’s DAM is scheduled for the end of November
According to the latest Western Balkans 6 (WB6), Electricity Monitoring Report the launch of the North Macedonia’s DAM is scheduled for the end of November 2019, while the go-live of Bulgaria and North Macedonia market coupling will follow in January 2020.
After a major crisis on the Bulgarian power market in January 2019, when DAM prices increased 50% to 200%, IBEX CEO Konstantin Konstantinov said that talks on coupling were being conducted with all neighboring countries, with most progress achieved with Macedonia and Romania.
A month ago, Croatia, Serbia, and Bulgaria launched the initiation of a trilateral power market coupling project between the three countries.