Electricity

Yearly power transmission border capacity auction for Kosovo* coming up

Yearly border power transmission capacity auction Kosovo

Photo: Anil Kumar Shrestha on Unsplash

Published

December 9, 2020

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Published:

December 9, 2020

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SEE CAO started the process for the yearly capacity allocation for 2021 for Kosovo’s borders with three countries. The physical transmission rights for electricity will be auctioned on December 15.

The Transmission, System and Market Operator of Kosovo* (KOSTT) started using the services of the Coordinated Auction Office in South East Europe – SEE CAO, which led to the announcement of an upcoming yearly auction for electricity transmission rights. SEE CAO manages the coordinated explicit allocation of cross-border transmission capacities in the Balkans.

Total available capacity is two times 400 MW

After recently auctioning physical transmission rights, PTRs, for six borders and, separately, the Italy-Montenegro undersea interconnection, the company said the first yearly auction for Kosovo’s borders would be held on December 15.

Users pay for physical transmission rights in monthly instalments

Participants can bid for 200 MW in both ways for bilateral transmission with Albania and 100 MW with Montenegro as a basic product. The capacity for the border with North Macedonia is two times 100 MW, but the winners will reserve it with a pro rata reduction during maintenance. Final results are scheduled to be published on December 17.

Maximum winning bid in last auction was EUR 15.38 per MWh

Almost the entire capacity has been reserved in the auction for Bosnia and Herzegovina’s borders with Croatia and Montenegro, Albania’s borders with Montenegro and Greece and Greece’s borders with North Macedonia and Turkey. The auction was several times oversubscribed in all cases and the accepted prices ranged from EUR 0.05 per MWh to EUR 15.38 per MWh.

The final results for 140 MW in both ways between Montenegro and Italy haven’t been published yet. Users pay for PTRs in monthly instalments.

KOSTT and Albania’s transmission system operator OST recently established an independent regulatory zone within the Kosovo-Albania Regulatory Block (AK block) and signed an agreement on launching the Albanian Power Exchange – ALPEX.

* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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