Albania Progress toward PX Establishment

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

Lorenc Gordani | Saturday, August 08, 2015

The largest obstacle for the integration of electricity markets in 8th Region is its legal basis lacks harmonisation and implementation. Structural changes like a number of legislative previsions are necessary for promoting the creation of a regional market. A SEE RAP have been jointly developed by the ECRB and ENTSO-E Regional Group SEE. Its state that the establishment and existence of operational organised market structures are prerequisites for the RAP Targets for the day-ahead timeframe, implying the nomination and/or establishment of electricity market operators.

Regard the progress made, the SEE region’s TSOs are already running a coordinated capacity calculation process based on a rotational sharing of model merging responsibility. However now with the adoption of the CACM Network Code in the European Union, it is expected to enter into force subsequently in the entire Energy Community. Its sets in place harmonised of cross border markets in timeframes closer to real-time (spot markets) will lead to a more efficient matching of demand and supply, promote the long-term sustainability of the industry and consequently benefit customers.

For that, it is important to avoid the creation of barriers to the establishment of a Single European Price Coupling. The rules contained in the CACM Network Code will have to provide the basis for the implementation of a single energy market not only for the countries of the region but also to allow the EU Member State TSOs to follow their obligations in a reasonable manner with its interconnected partners. Then any delay in implementing its provisions due to a potentially staggered inclusion into the Energy Community acquis must be avoided.

Positive developments with regard to the establishment of organised market and the related governance structures come mainly from Croatia and Serbia. In more form February, the Italian Borders Market Coupling was launched, and with it the integration into the Multi-Regional Coupling (MRC) achieved. Another milestone was the integration of the Romanian bidding zone into the coupling initiative comprising Hungary, Slovakia and the Czech Republic, what become the so-called 4M Market Coupling.

In this regard, at the begin of July 2015 the Albanian Ministry of Energy announces the plans for the opening of a power exchange platform. Announcement that follow the enactment the new Law of the Electricity Sector no 43 on 30th April 2015. The new law 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”.

The part of the rules governing trading activity and market entry its framework is address in the “The Electricity Market” by the Law 43 / 2015 that in the article 98 “Market Rules” state that ERE, upon proposal of the TSO 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. In regard, the Market Rules shall be adopted by the ERE, within 1 (one) year from the date of entry into force of this law.

Then even the fully implementation of the above prevision of the Law 43 / 2015 will require a further time and efforts, it constitutes a decisive step forward in which lays a solid foundation. In regard, it can be conclude with the state that still, market participation requirements should provide for low market entry barriers and receive regulatory facilitation to be harmonised and gradually reduced where outdated, but it is in the interest of all parties to have functioning markets based on the best possible rules. Where these rules provide for all minimum requirements, no additional trading licenses should be required.

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