A new segment of the electricity market in Montenegro, called Day Ahead Market, will start operating on April 26, announced the Chamber of Commerce (PKCG). As they said, within the session of the Committee of the Energy and Mining Association PKCG, a well-attended workshop on that market was organized today.
In addition to numerous representatives of Montenegrin and regional energy companies and stock exchanges, the State Secretary of the Ministry of Capital Investments (MKI) Admir Šahmanović, Vice President of PKCG Nikola Vujović, Executive Director of Elektroprivreda (EPCG) Nikola Rovčanin, Executive and Technical Directors of the Electricity Exchange (BELEN) participated in the work. ), Matija Medojević and Dejan Drašković.
Šahmanović pointed out that the establishment of the day-ahead electricity market represents a significant step in the development of the energy sector of Montenegro. “MKI highly appreciates the efforts and perseverance of BELEN in creating the conditions for the establishment of a functional stock market”, said Šahmanović.
He said that they expect that the opening of that market will have a positive effect, both on the number of participants in the wholesale market, and on the cross-border exchange of electricity. Šahmanović emphasized that the team is also creating preconditions for connecting the Montenegrin electricity markets in the region and Europe.
According to him, considering that one of the recommendations of the European Commission (EC) in the field of energy is the connection of the Montenegrin electricity market with the markets of the region, including Italy, the creation of the Day Ahead stock market at the same time also means a big step forward in the process of European integration.
“Recognizing the importance of the development of the Montenegrin day-ahead electricity market, the EC is providing us with support in this demanding process, to which I would like to express my gratitude for its very significant support,” said Šahmanović.
Rovčanin said that the goal is to encourage transparency and competitiveness of the wholesale market. “BELEN has had the financial and strategic support of EPCG from the very beginning, and we will strive, in accordance with all the guidelines and expectations from our foreign partners, to work on maintaining and establishing liquidity,” Rovčanin pointed out.
According to him, it is in the great interest that certain amounts of electricity are bought and sold on this market, and it also goes to other markets. “Through improving the market and improving the investment climate, the goal is for all partners who invest in our country to recognize the numerous benefits in this area,” said Rovčanin.
He pointed out that EPCG is currently investing around EUR 150 million in existing energy facilities, and new, renewable energy sources are being developed with the same amount. “It is very important that we improve the electricity market, especially with the aim of reducing CO2 and rapid green transition, from the production plant to further development,” Rovčanin said.
He added that EPCG, as one of the founders and owners of BELEN, will continue to be a pillar and support in this process, which represents a step towards the European Union. Medojević said that the Stock Exchange already has 13 registered members. He added that he hopes that after today’s workshop that number will be even higher.
Medojević said that the Stock Exchange was founded in 2017 with the task formalized through the negotiation chapter 15, in order to be the main link towards the establishment of the day-ahead electricity market in Montenegro. “And then to integrate with some of the neighboring markets, which is prescribed by the European agenda as an obligation, as well as the Energy Act,” stated Medojević.
According to him, Montenegro has significant potential when it comes to the production and trade of electricity, as well as for the establishment of a transparent and functional market according to the criteria and standards of positive European law, especially through the valorization of already announced investments in this area.
“This is extremely important, especially in the spirit of the green transition that has already taken off, and a market like the one we are talking about today has an exceptional advantage, because the current electricity prices are particularly attractive for all those involved in the production of electricity through renewable sources.”, Medjović said.
He added that due to the price advantage, they can now find themselves in an excellent situation to enter the market and generate income. Medojević pointed out that the next steps will include connecting the market with some of the neighboring ones, with the possibility of launching additional segments in the future that will include the Intraday market, OTC and futures platforms.
PKCG stated that the Day Ahead market will be implemented and launched based on the best practices of renowned European companies EPEX-SPOT and BSP SouthPool, which were presented at the meeting. As they stated, during the workshop BELEN presented the initial steps in establishing the stock exchange in Montenegro, as well as their expectations for the future and further development.
“A demonstration of the EPEX SPOT platform, which will provide service for the Day-ahead market, and the BSP SouthPool clearing platform, which will support the Electricity Exchange in this endeavor, was provided,” the statement said.
Those platforms, as PKCG said, demonstrated their functionalities based on the best practices and EU standards, showing the commitment of the Electricity Exchange in providing a professional and reliable service at the highest level.
PKCG said that EPEX SPOT is a European electricity exchange, which operates on the short-term electricity market in various European countries. As they added, it was founded in 2008 as a joint venture between the French electricity exchange Powernext and the German energy exchange EEX.
“The stock exchange covers a wide range of European countries, including Germany, France, Austria, Switzerland, Belgium, the Netherlands, Hungary, Serbia and Great Britain,” the statement said.
The Chamber stated that BSP SouthPool is a regional electricity exchange that operates in the countries of Southeast Europe. BSP SouthPool, they added, was founded in 2008 as a joint venture between ELES, the Slovenian electricity transmission operator, and EPEX SPOT, the European electricity exchange.
“Both companies provide a platform for electricity trading in the day-ahead and intraday markets, allowing market participants to buy and sell electricity for next-day or even same-day delivery,” the statement said.
PKCG said that their common goal is to promote the integration of European electricity markets by providing transparent, efficient and reliable price signals.“It also plays a key role in supporting the transition to a more sustainable energy system by facilitating the integration of renewable energy sources into the grid,” the statement said.
As stated, the platforms are fully electronic and accessible to a wide range of market participants, including energy producers, electricity traders and consumers. “The partnership of the Electricity Exchange with EPEX SPOT and BSP SouthPool will unequivocally ensure the success and professionalism of these upcoming initiatives,” the statement said.
PKCG said that the meeting ended with a discussion between representatives of energy companies and electricity traders with representatives of stock exchanges about the details of the new Day Ahead market.