May 5, 2017
Elektroprivreda Crne Gore (EPCG), national power utility company of Montenegro is currently preparing paper work to become member of SEEPEX, licensed Serbian power market operator. CEO of SEEPEX Miloš Mladenović sees this move as mutually beneficial, one which will provide EPCG with safe and stable energy trading platform, along with increased regional presence and improved portfolio.
Mladenović said: “I think both sides will gain, and SEEPEX will get one reliable and important participant. Merger of Serbian and Montenegrin energy market areas will be the best way to achieve long-term liquidity”.
He also underlined that Western Balkans energy markets are relatively small, and it is therefore important to assess how to make them economically profitable. “This merger also sends important political signal that in this region, where divisions happen quite often, we can have energy market integration that is beneficial for all participants”.
SEEPEX’s future plans
SEEPEX has ambitious plans: according to Mladenović, first phase will hopefully be creation of Serbian-Montenegrin strategic partnership, while second phase will be planned merger with energy markets of Hungary, Czech Republic, Slovakia and Romania (4MMC). “We sent the letter of intent in May 2016, and we expect their answer in second quarter of this year. It would be a giant step forward, because it would add liquidity to both 4MMC and SEEPEX”. SEEPEX is already technically prepared to launch that project.
“Third phase would include merger of Serbian-Montenegrin market with Italian organized market, and that will be possible when high-voltage cable between Montenegro and Italy is put to work, which is planned to happen next year”, said Mladenović. Fourth phase would be merger with organized markets of Croatia, Bulgaria and Albania.
SEEPEX COO Dejan Stojčevski said that formation of this market is very important for citizens and companies, but also for prospective investors because they will be able to see and learn about the price of electricity, which is essential for their future plans. Currently, SEEPEX members are national power utility companies of Serbia, Croatia, Republic of Srpska and Hungary. It is expected that they will be joined by FYR of Macedonia.
SEEPEX was formed as joint investment of Serbian transmission system operator Elektromreža Srbije (EMS), and European energy market operator EPEX SPOT. Its mission is to provide transparent and reliable mechanism to form wholesale price of electricity by pairing supply and demand with fair and transparent price, along with assurance that all transactions on this market will be realized and paid for.