Electricity

Montenegro to couple day-ahead electricity market with Italy

Montenegro to couple day-ahead electricity market with Italy

Photo: Government of Montenegro/Flickr

Published

March 11, 2024

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Published:

March 11, 2024

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Montenegro plans to couple its day-ahead electricity market with Italy, linking it to the single European market. It earlier considered two options for the first coupling: with Serbia and with Albania, Kosovo*, North Macedonia and Greece.

In its report on activities aimed at connecting the Montenegrin day-ahead electricity market to the single European energy market, the Ministry of Energy and Mining proposed market coupling with Italy. The Government of Montenegro adopted the document. The country launched its day-ahead electricity market on Montenegrin Power Exchange (MEPX or BELEN) in April 2023.

The cabinet said the best solution is to directly connect with the European electricity market through Italy, a European Union member state that has implemented EU legislation.

The coupling is planned for 2026

In line with its obligations towards the Energy Community, the ministry has started activities related to coupling and established a working group.

According to the document, it expects coupling to be finished in early 2026.

The initial idea was to couple the day-ahead market with Serbia, which planned to merge its market with Hungarian power exchange HUPX.

However, it was abandoned following the 2022 decision of the Ministerial Council of the Energy Community on the transposition of EU regulation. It included obligating contracting parties to adopt EU laws and connect to the single European electricity market.

The document also reads that it made coupling with Serbia meaningless, as well as with Albania, Kosovo*, North Macedonia, and Greece.

Going through Italy accelerates market coupling with the EU

Having that in mind, it adds that the logical solution is to connect the domestic market with the EU directly via Italy.

The report adds that the biggest challenge with market coupling with Italy is harmonizing Montenegro’s legislation with European regulations.

According to the ministry, coupling with Italy would speed up the overall process as it would avoid going through Serbia, which is not part of the EU.

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