South East Europe (SEE) Electricity Market Analyses (Serbia, Montenegro and Albania)

Client: Pöyry Management Consulting Austria GmbH (funded by Private Client (International Trader) – Confidential)

Name of partner(s): NA

Start/Completion Date: January 2016 – February 2016

Project description: Together with Pöyry, SEEC was hired to conduct in-depth electricity market analyses insides in Serbia, Montenegro and Albania for an international client, in order to enter the SEE region electricity market in line with the electricity market opening development under Energy Community Treaty obligations and decision of six Western Balkan countries to set up a regional energy market by establishing power exchanges, a regional balancing market and making best use of the cross-border capacity allocation. SEEC was in charge for providing analyses and detailed information on Serbia, Montenegro and Albania electricity market for the following points:

• Bilateral trading and pricing structure/information of the major electricity suppliers and consumers (high-energy intensive companies, large companies, small and medium enterprises and households).
• Existence of other relevant provisions that might influence the value of electricity.
• Detail information on main distortionary rules on the market which distort the Energy Markets and reduce open economy in the relevant countries in general (e.g. on trading, production, entry, interconnection, distribution, retail, etc.) imposed by the country, regulator, other players or outside circumstances.
• Analyses of timeline for liberalization, analyses of degree of liberalization of the different segments of the market and the value chain, e.g.: fuel markets and retail market.
• Review of potential regulatory changes that might affect the evolution of the market.
• Identification of main players for each segment of the value chain with a focus on generation (distinguishing between incumbents, new entrants, IPPs) and on the wholesale market (all relevant information on producers and existing traders).
• Overview of existing interconnectors and analysis of the ownership of interconnectors.
• Analysis of cross border allocation methodologies and transfer capacities.
• Analysis of different countries plans for power exchanges and market coupling initiatives in the region.
• Analysis of ancillary service and balancing markets.
• Detail information on cross border trading.
• Grid losses - High level outline of technical and economic losses.
• Identification of market distortions that might influence electricity prices as compared to a fully functioning competitive market.
• Analysis are market entries/exits feasible by other players than the existing ones, are new players able to operate on the market freely, etc.