Bulgarian electricity transmission system operator ESO and its Macedonian peer MEPSO have signed an agreement to conduct joint auctions for capacity allocation, the Bulgarian transmission system operator (TSO) said in a statement.
The document was signed by ESO CEO Ivan Yotov and MEPSO General Director Sašo Vasilevski during a joint session of the governments of the Republic of Macedonia and the Republic of Bulgaria, which took place yesterday in Strumica.
The agreement has been signed based on agreed general rules for the allocation of transmission capacities at the Bulgarian-Macedonian border, which have been approved by the national regulators of Bulgaria and Macedonia.
“The document regulates the conditions for conducting joint tendering procedures to be applied during 2018. At present, ESO and MEPSO allocate 50% of transmission capacities at the Bulgarian-Macedonian border, according to separate auction rules. The new auction rules will make it easier for traders to use one platform,” ESO said in a statement.
Macedonian market participants will be able to participate jointly with their Bulgarian partners in the daily auctions that ESO will hold on behalf of the two operators.
Annual and monthly auctions of available capacities will be organized and conducted by MEPSO.
“Conducting joint auctions at the Bulgarian-Macedonian border will help boost the offered transmission capacity, allocated on a daily basis. Transmission capacities distributed in annual and monthly auctions not used by commercial participants will be further redistributed by ESO in daily auctions. A larger daily supply will increase the liquidity of the national power exchanges in the region and lead to a rise in traded electricity,” ESO said in the statement.
Common procurement procedures are a necessary first step on the road to creating a single market and linking power exchanges in Southeast Europe.