Southeast European countries could set up an integrated electricity market in six to ten years with unharmonised congestion management schemes remaining the main challenge.
"There are political issues to be tackled yet but, on the other side, market opening in the SEE countries is at a more advanced stage than it was in the EU some ten years ago," electricity expert at Vienna-based Energy Community Regulatory Board (ECRB) Roland Matous said.
Unharmonised congestion management schemes remain the main barrier for cross border electricity trading both in Central and Southeastern Europe, Matous said.
Within the eight regions of the European electricity market, Southeast Europe (SEE) has the highest number of borders and the highest number of different allocation schemes. Coupled with the relatively small size of the countries and unrealistic low electricity prices for tariff consumers, this diversity makes electricity trading difficult and drives investors away, said Matous.
"To overcome these hurdles the ECRB is actively working with regulators from the region to achieve common regulatory positions, open the markets and harmonize congestion management schemes."
Great improvements have been made in Montenegro, Croatia, FYROM and Albania, Matous added.
According to the latest report of European energy trading & investment group EFT Group, the average electricity deficit of SEE in the period 2005-2008 is 10.4 terawatthours (TWh) and only Bosnia and Herzegovina, Bulgaria, and Romania have been net exporters of electricity during this period.
"There are political issues to be tackled yet but, on the other side, market opening in the SEE countries is at a more advanced stage than it was in the EU some ten years ago," electricity expert at Vienna-based Energy Community Regulatory Board (ECRB) Roland Matous said.
Unharmonised congestion management schemes remain the main barrier for cross border electricity trading both in Central and Southeastern Europe, Matous said.
Within the eight regions of the European electricity market, Southeast Europe (SEE) has the highest number of borders and the highest number of different allocation schemes. Coupled with the relatively small size of the countries and unrealistic low electricity prices for tariff consumers, this diversity makes electricity trading difficult and drives investors away, said Matous.
"To overcome these hurdles the ECRB is actively working with regulators from the region to achieve common regulatory positions, open the markets and harmonize congestion management schemes."
Great improvements have been made in Montenegro, Croatia, FYROM and Albania, Matous added.
According to the latest report of European energy trading & investment group EFT Group, the average electricity deficit of SEE in the period 2005-2008 is 10.4 terawatthours (TWh) and only Bosnia and Herzegovina, Bulgaria, and Romania have been net exporters of electricity during this period.
Source: ADP News- 04/06/2010
