Integration of National Energy Markets Leads to Safer Future

Foto: Miloš Mladenović

SEEPEX represents an organised electricity market in the Republic of Serbia. In its complexity and applied concept, it is a unique market in the South East Europe (SEE) region, and it brings many benefits to both direct participants and the entire Serbian economy.

The implemented trading platform EPEX SPOT (the so-called ETS trading platform) offers proven reliability, security, and a recognisable environment to all SEEPEX participants. On the other hand, the achieved prices give a reliable price signal, not only to the participants in the electricity market but also to all potential investors in the Serbian economy.

Executive Director of SEEPEX, Milos Mladenovic, says that Europe’s largest clearing house European Commodity Clearing AG (ECC AG) is responsible for the centralised clearing model (financial settlement and payment) with more than 20 European banks participating and which, besides for SEEPEX, performs this function for another 10 European energy markets. It is one of the best and most efficient solutions for financial settlement and physical delivery of electricity implemented in the European Union. The director explained to us that legal and financial legislation was completed as well, as an example of the best European practice applied for the first time in this extent in the region of Southeast Europe. This framework also enabled foreign companies to participate under completely equal Milos Mladenovic conditions in the organised electricity market in Serbia, as well as in all other far more developed markets in Western Europe. It is one of the most important factors of the SEEPEX spot market’s success thus far (short-term delivery in Serbia).

EP: What is the strategic goal of SEEPEX and which countries in Southeastern Europe are currently included?

Milos Mladenovic: The main strategic goal of SEEPEX is to create a strong, stable and liquid market in Southeastern Europe. Of course, our ambitions include connecting with the neighbouring electricity markets (market coupling) as well as joining the MRC project and actively participating in the creation of a day-ahead and intraday market throughout Europe. In other respects, SEEPEX is currently organising the spot market for Serbia. Aside from the most essential local market members, all the most important companies from the region and the EU that are active in the region of Southeast Europe will also participate in the trading platform. We plan to extend the operation of SEEPEX to some of the neighbouring countries in the region.

EP: Partner EPEX SPOT covers the power spot market in France, Germany, Austria, and Switzerland. What kind of experience and knowledge did this partner bring to our market?

Milos Mladenovic: EPEX SPOT is the biggest electricity exchange in Europe. As a strategic partner of SEEPEX, it has enabled the implementation of the best European practice in this field, when it comes to the trading platform itself, but also the single European clearing. The ETS trading system mentioned above is entirely the same as in all other markets incorporated in EPEX SPOT, which makes trading more comfortable and provides full security for potential participants. The experience and know-how that SEEPEX gains from EPEX SPOT, contribute to the compliance of the organised market in Serbia with the highest market standards of the most developed countries in EU. Consequently the market becomes attractive to all European companies present in the SEE region.

Foto: Unsplash

EP: Will the members of the market also be suppliers of electricity from renewable energy sources (RES)?

Milos Mladenovic: It is early for precise assumptions and predictions when it comes to RES producers’ participation on the market. This is especially true if we consider that the traditional feed-in model is still in effect in our country and that the EPS is the only binding buyer from RES at incentive prices. Also, the installed capacity from the RES in the electric power system of Serbia is now relatively small. It will change with the construction of 500 MW planned wind farms and with putting into operation most of this capacity by the end of 2019. When some significant changes occur in this field, and announcements are that everything will be going towards the establishment of the incentive model of the market, SEEPEX will undoubtedly be one of the most reliable options for secure and transparent placement of this energy on the market. These changes primarily include the planned transition from the “feed-in” to the “premium feed-in” incentive model, which will undoubtedly contribute to the additional liquidity of the Serbian spot market along with the projected growth of the installed capacity of RES. Currently, 18 companies are involved on SEEPEX, and the list can be seen at the following link.

Prepered by: Tamara Zjačić

Read the whole interview in the new issue of the Energy portal Magazine on CLEAN ENERGY, December 2018. – February 2019.