Send an email

Macedonia got a model to form an organized electricity market

The Republic of Macedonia received a draft model for an organized electricity market which includes trading according to the principle of electricity purchase or sell one day before delivery or popularly called "day ahead" electricity market. The model of an organized electricity market was developed by the consultants from Slovenia: Borzen (the Slovenian electricity market operator) and BSP (the Slovenian power exchange) who have great experience in the field of organized electricity trading.

According to the new Energy Law, which was recently adopted, MEPSO is to be the founder of the company with authority to organize, operate and couple the day-ahead and intra-day electricity market while allowing fair and transparent access of all participants.
At the presentation before fifty representatives of companies for trade, supply, electricity production in Republic of Macedonia addressed Dr. Kocho Angjushev, Deputy Prime Minister in charge of economic affairs, Sasho Vasilevski, MEPSO General Director, Simon Shutinoski, Director of the Electricity Market Operator of MEPSO and Simon Uzunov, representative of the Secretariat of the Energy Community who financially supported the preparation of the Study on an organized electricity market.
Angjushev stressed that for this purpose it is necessary to organize special software, but added that the supply is not only a technical operation but also a financial one and that is why it is important for the entire process who will perform the clearing, ie will guarantee the payment and charging of the traded electricity energy.

MEPSO, with the support of the Secretariat of the Energy Community, is involved in two projects, which provide technical support to the Republic of Macedonia for establishing an organized electricity market and ccoupling with its neighbors based on the European target model.
General Manager of MEPSO Saso Vasilevski emphasized that the organized and technically supported market is very important for the financial security of retailers, producers, suppliers and consumers.
"Transparency of the prices, the competitiveness of the bidders and a set of other characteristics that form the final product are the necessary initiation, which inevitably leads to new investments in energy sector, which is most important for all countries in the region," he added.

Director Shutinoski emphasized that establishing a centralized place where market participants can sell and purchase electricity close to real time is a challenge for their operations.
- The market in Macedonia is perhaps small, but is very well connected with the neighboring ones with the help of MEPSO interconnection ties. Our energy system is connected with Bulgaria, Greece, Kosovo and Serbia, while the interconnection with Albania will follow in the next period, added Shutinovski.

Simon Uzunov from the Secretariat of the Energy Community added that the day-ahead market trading opens the doors for multilateral trading, which requires new technology.
The organized electricity market offers equal conditions for all market participants and at the same time transparency in the formation of electricity prices. In doing so, having the role of a central contracting party offers financial security for traders, suppliers, manufacturers and consumers, guaranteeing that the selling entity will certainly receive funding, and the purchasing entity will securely receive electricity.

This project is part of the efforts of the countries of the Western Balkans to integrate the electricity markets within the single European electricity market. The establishment of an organized market is the first phase and at the same time a prerequisite for regional connection of the electricity markets, which is the subject of the signed Memorandum between Macedonia and Bulgaria on the margins of the EU-Western Balkans summit in Sofia.

Presentation about establishing the Institutional Set-up for the Organised Day-ahead Market