HUPX merges into regional power exchange ADEX

ADEX Group completed the merger with Hungarian Power Exchange (HUPX), becoming its sole shareholder. HUPX is joining the Slovenian BSP bourse and Serbia’s SEEPEX, forming a Central and Eastern, and South-Eastern European hub.

Facilitating spot power market liquidity, price transparency, efficiency and integration through market coupling, ADEX Group brought HUPX under its ownership. The company said the transaction positions it as the premier power trading hub for Central and Eastern Europe and South-Eastern Europe.

It is a milestone in the development of the region’s power trading landscape, according to ADEX Group, which is the sole shareholder of Slovenian exchange BSP and Serbia’s SEEPEX as well. The first regional energy exchange was established in December 2022 in Ljubljana.

Transmission system operators MAVIR, EMS and ELES, and EPEX Spot signed a partnership deal in April of this year in Budapest, paving the way for the integration. The group moved to Hungary’s capital city in October 2024.

Combined trading volume to top 50 TWh in 2024

Over 120 members trade electricity at the BSP, HUPX and SEEPEX spot markets, ADEX Group pointed out. The combined trading volume will exceed 50 TWh this year, the update adds.

The structure with the three said subsidiaries was designed for streamlined, efficient trading and clearing services, benefiting both current and future members of the exchanges. While maintaining stable operations for the spot power exchanges, ADEX Group said it would gradually embark on integration efforts to improve customer experience and establish a comprehensive one-stop-shop for regional trading and clearing.

Completing pan-European market coupling to foster energy transition

Continuous updates and customer engagement will be core elements of the process, the announcement reads. ADEX, also known as the Alpine-Adriatic Danube Power Exchange, is working on a unified platform for power market participants. The group said its four shareholders are convinced that completing the pan-European market coupling would foster the energy transition.

“It is our privilege to say to the world that Hungarian Power Exchange, HUPX, has become part of ADEX Holding. This step marks another significant milestone in the company’s business development and sets firm that ADEX is a leading exchange hub for trading with electricity in the region. ADEX is committed to connect the fragmented markets in the Central and South-Eastern Europe into a single European electricity market. It is our responsibility that we share our European vision and knowledge about positive effects of integration for the benefit of our community,” says Chairman of the Management Board of ADEX Group Anže Predovnik.

HUPX had successful path

The full Hungarian market opened in 2008, with several questions and challenges raised amid the early unknowns, according to MAVIR’s acting Chief Executive Officer and Chairman of ADEX’s Supervisory Board Gergő Batta.

“Whether the path we have taken so far has been successful is not a question, as we can now report not only on the operation of a liquid domestic power exchange, but also on a regional cooperation operating under joint ownership,” he said.

Slovenia’s ELES, also the country’s distribution system operator, has a network of 400 kV, 220 kV and 110 kV lines of 3,113 kilometers in total.

Joint stock company Elektromreža Srbije (EMS) is Serbia’s TSO. It operates a network of 400 kV, 220 kV, and 110 kV transmission lines with nearly 10,000 kilometers overall and manages eight cross-zonal capacities with the neighbouring TSOs. For more information, please visit www.ems.rs.

The European Power Exchange (EPEX SPOT) operates physical electricity markets for the largest trading community in Europe, with over 400 companies connected to its platforms. The company’s market solutions include day-ahead, intraday and after-market power trading as well as capacity and guarantees of origin auctions, local flexibility and data services. It is part of EEX Group and 49% of its equity is held by a holding of major European TSOs.

MAVIR operates the Hungarian electricity system. It has a TSO license. The company ensures adequate reserve capacities for generation and transmission.