The North Macedonian power exchange will be launched on May 10 and operated by the National Electricity Market Operator MEMO. The bourse will initially cover only the national day-ahead market, until the first market coupling with an exchange in a neighboring country.
The upcoming start of operations of the electricity exchange will bring North Macedonia an hourly price of electricity that will be relevant for its industry, citizens, production and demand, unlike the current benchmark, which depends on the Hungarian Power Exchange – HUPX, the head of the nominated electricity market operator said in an interview. Chief Executive Officer of the National Electricity Market Operator MEMO Simon Shutinoski revealed to the MIA news agency that the introduction of a day-ahead market has been scheduled for May 10.
The bourse is expected to be liquid from the first day, he pointed out. MEMO, the nominated electricity market operator or NEMO in short, is responsible for the rollout and operation of the exchange.
At first, trading will be conducted only within North Macedonia, until the first market coupling with an exchange in a neighboring country. When it determines that supply and demand are balanced every hour, the firm will establish an intraday market, too, Shutinoski stressed, declining to speculate on a deadline.
Five-year creation process
The exchange has been in the making since the amendments to the Law on Energy in 2018. MEMO is waiting for the Energy and Water Services Regulatory Commission of North Macedonia (ERC) to approve the trading rules. Shutinoski expressed belief it would be done in mid-March.
BSP SouthPool will be responsible for clearing and settlement while EPEX Spot provided the trading platform
Slovenian exchange operator BSP SouthPool was selected for clearing and settlement while EPEX Spot provided the trading platform, the CEO noted. Asked about the future of bilateral contracts, the current model for the wholesale of electricity, he said the plan is to create an over-the-counter (OTC) market where they would be registered.
MEMO also has the role of the guarantor and intermediary at the exchange, Shutinoski explained.
Project underway to link market with Greece, Albania, Kosovo*
The company has been working for four years on the market coupling project with Bulgaria. A year ago the two countries’ transmission system operators ESO and MEPSO and exchange operators IBEX and MEMO signed a memorandum of understanding.
A new endeavor, with the support from the United States, is envisaged to enable market coupling between North Macedonia, Greece, Albania and Kosovo* and regional integration, according to Shutinoski.
Albania and Kosovo* are expecting to launch the Albanian Power Exchange – ALPEX in the second half of 2023, following delays. Similarly, the Montenegrin Power Exchange (MEPX) is set to start operating in April.
SEEPEX in Serbia, the only electricity exchange in the Western Balkans, is preparing to introduce the intraday market in June. Neighboring Bulgaria’s IBEX is working on opening a market for guarantees of origin.