Albania Intraday and Balance Energy Market
Part of Report: Third Energy Package and Organise Market in Albania
Lorenc Gordani | Sunday, August 09, 2015
Albania Intraday and Balance Energy Market
Part of Report: Third Energy Package and Organise Market in Albania
Lorenc Gordani | Sunday, August 09, 2015
Albania Intraday and Balance Energy Market
Part of Report: Third Energy Package and Organise Market in Albania
Lorenc Gordani | Sunday, August 09, 2015
Albania Intraday and Balance Energy Market
Part of Report: Third Energy Package and Organise Market in Albania
Lorenc Gordani | Sunday, August 09, 2015
Albania Intraday and Balance Energy Market
Part of Report: Third Energy Package and Organise Market in Albania
Lorenc Gordani | Sunday, August 09, 20155
Albania Intraday and Balance Energy Market
Part of Report: Third Energy Package and Organise Market in Albania
Lorenc Gordani | Sunday, August 09, 2015
Albania Intraday and Balance Energy Market
Part of Report: Third Energy Package and Organise Market in Albania
Lorenc Gordani | Sunday, August 09, 20155
Albania Intraday and Balance Energy Market
Part of Report: Third Energy Package and Organise Market in Albania
Lorenc Gordani | Sunday, August 09, 2015

Albania Intraday and Balance Energy Market

Part of Report: Third Energy Package  and Organise Market in Albania

Lorenc Gordani | Sunday, August 09, 2015

The  SEE RAP foresee the establishment and existence of operational organised market structures as prerequisites for the day-ahead timeframe power exchanges. Nerveless, the SEE region’s TSOs are still running a coordinated capacity calculation process based on a rotational sharing of model merging responsibility. In more, it is still in the early begin – mainly the Croatia and Serbia to which has join at the begin of July 2015 the Albanian – of the consideration in the establishment of organised market.

Then the Cross-Border Intraday Trading are largely of bilateral nature and based on a first-come-first-serve allocation principle. In more, actually it is possible in the SEE Regions’ interconnectors between the bidding zones operated by the following TSOs: CGES, HOPS, EMS/KOSTT, NOSBIH.

In same time, the development of the electricity balancing market in the SEE Region - but also in some EU Member States - is characterised by the nationally oriented approach to balancing. The implementation of the 2nd Energy Package requirements for market-based, non-discriminatory and transparent system balancing and imbalance settlement so far has been the exception rather than the rule.

In additional, the obligation of establishing a well-functioning balancing markets and their regional integration is strengthened by the 3rd Package which was to be implemented in the Contracting Parties as of 1 January 2015. Nevertheless, until now, only Albania and Serbia has adopted in the WBs a new law based on the 3rd package. Besides that, negotiations between the TSOs of the Control Blocks comprising the SEE Region are ongoing regarding the common procurement and sharing of balancing reserves.

Focusing here to Albania, the requirements of Article 11 of Directive 2003/54/EC in the context of balancing were not transposed in the Power Sector Law. Balancing groups, the mechanism of netting out of positive and negative imbalances, balance responsibility of KESH and OSHEE and reference price for imbalances and incentive conditions for accurate nominations have not been defined. In practice, KESH is balancing the entire system.

The cost for positive imbalances corresponds to its (regulated) price, whereas the price for negative imbalances are calculated by adding a surcharge on the import price of KESH (either 10% or the average price of independent power producers + 20% when KESH did not import). The principle of cost-reflectivity applies only for traders and eligible customers. The large hydro power plants connected to the transmission network do not bear balance responsibility nor are they subject to individual costs of imbalance.

The enactment the new Law of the Electricity Sector no 43 on 30th April 2015 which aim a fully aligned with Directive 2009/72/EC of the European Parliament and the Council, dated 13 July 2009 "On common rules for the internal market in electricity”, on the part of Market Rules establish that ERE, upon proposal of the Transmission System Operator and in collaboration with all participants of the electricity sector, shall adopt the Electricity Market Rules, in accordance with this law and the Electricity Market Model, including the rules for planning, dispatching, balancing, settlement of disputes and requests for reserve management. The Market Rules shall be adopted by the ERE, within 1 (one) year from the date of entry into force of this law.

In regard, the balance responsibility of electricity market participants, each participant of the electricity market will be responsible for the electricity balance. Electricity market participants may arrange their balance responsibility by concluding a balance responsibility contract with the Transmission System Operator, thus acquiring the status of a balance responsible party, or by signing a contract on transferring the balance responsibility to another balance responsible party, thus becoming a member of the balancing group of this balance responsible party, in accordance with the market rules.

In last for what here in consideration, the Market Operator is responsible for preparing financial statements for payment of the reciprocal obligations for the imbalances caused by market participants. The way of imbalances’ treatment caused from the priority producers of electricity and respective costs for their coverage are subject of Council of Ministers’ approval.

Then, with a fully implementation of the above prevision of the Law 43 / 2015, all actions and processes through which the transmission system operator operates and maintains the system frequency within predefined stability range have to came through market-based management of the functions of balancing of the power system operated by the Transmission System Operator. The obligation of market participants “Balancing responsibility” to balance generation, consumption, and electricity purchase or selling processes have to came in accordance with the accepted schedule being financially responsible to the Transmission System Operator for the settlement of imbalances. The all through the definition in the “Market Rules” means the rules developed by the Market Operator with the approval by ERE.

Back to top ↑