Project Team Company in Charge of Establishing a SEE CAO was established on 13 June 2012 by 10 Transmission System Operators from the region of South East Europe and registered on the 4 July 2012 in Podgorica, Montenegro. The shareholders of the Company are TSOs from Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, Albania, Kosovo, North Macedonia, Greece, Türkiye and Romania.
Aim of the Project Team Company is to provide and ensure a complete technical, financial and legal framework for successful establishment of Coordinated Auction Office in South East Europe – SEE CAO and to to comply with the principles set forth in the Treaty establishing the Energy Community, concerning harmonization of congestion management methods in SEE, the common rules for the internal market in electricity (Directive 2009/72/EC) and where applicable, its implementation in the national legislation of concerned countries relating to each of them.
Due to the legal obligations of a regionally coordinated capacity allocation and congestion management set forth in Regulation (EC) 714/2209 which is part of Energy Community acquis communitaire and with a view to optimize allocation of cross-border transmission capacity, Transmission System Operators (TSOs) of the 8th Region agreed to work towards the establishment of a Coordinated Auction Office for South East Europe (SEE CAO). The seat of the Coordinated Auction Office in Podgorica is in line with the Energy Community Ministerial Council’s decision of 11 December 2008.
Coordinated Auction Office in South East Europe DOO Podgorica (hereinafter: SEE CAO) was registered on 1 April 2014 as a legal successor of PTC with following shareholding companies:
Transmission System Operator Country 1. Türkiye Elektrik İletim A.Ş. TEIAS Türkiye 2. Independent Power Transmission Operator S.A. IPTO Greece 3. Croatian Transmission System Operator Ltd. HOPS Croatia 4. Crnogorski elektroprenosni sistem AD CGES Montenegro 5. Nezavisni operator sistema u Bosni i Hercegovini NOSBiH Bosnia and Herzegovina 6. Operatori i Sistemit te Transmetimit OST Albania 7. Operator Sistemi, Transmisioni Dhe Tregu Sh.A. KOSTT Kosovo
Coordinated Auction Office in South East Europe (hereinafter: SEE CAO) was established in 2014, after few years of intensive preparation, by its shareholders – TSOs from the region of South East Europe with the objective to perform the explicit allocation of cross-border transmission capacity in both directions between Control Areas of the Participating TSOs, through NTC based Auction Processes in accordance with the requirements of Regulation (EC) 714/2009 of the European Parliament and of the Council on conditions for access to the network for cross border exchanges in electricity which also became a part of Energy Community acquis in line with the stipulations of Energy Community Treaty.
SEE CAO’s Go-Live was 27 November 2014 by launching the first yearly auctions for 2015 on two borders: Croatia – Bosnia and Herzegovina and Bosnia and Herzegovina – Montenegro. Yearly auction 2015 was followed by monthly auctions for January 2015 and daily auctions starting from delivery day 1 January 2015 on two mentioned borders. At the moment of conduction of the first auction, SEE CAO had 51 registered Auction Participants from all over the Europe.
In February 2015, Albanian OST declared its readiness to participate in SEE CAO, which commenced the coordinated auctions on Albania – Montenegro border as of May 2015. Likewise, the auctions on Türkiye – Greece border started from September 2015.
Commencing with yearly auctions for 2016 from 25 November 2015, SEE CAO is performing yearly, monthly and daily capacity allocation, by conduction of coordinated explicit auctions using NTC based method, on the entire flow from Croatia to Türkiye, with which it has shown its pivotal role in the deregulating and liberalising electricity market in South East Europe. The scope of borders serviced by SEE CAO is following:
1. Croatia – Bosnia and Herzegovina
2. Bosnia and Herzegovina – Montenegro
3. Montenegro – Albania
4. Albania – Greece
5. Greece – Türkiye
Upon receiving MEPSO’s Application for Service User, SEE CAO and MEPSO have started the preparation of all technical, financial and legal prerequisites needed in order to have MEPSO and border MK-GR in place for all auction processes in 2017. After successful preparation and based on the confirmation received by the relevant TSOs on 9 November, and the approval of SEE CAO Auction Rules v1.4 by MEPSO’s NRA on 31 October 2016, SEE CAO announced to all Auction participants the border IPTO <> MEPSO shall be included in the Auction process for 2017, starting with Yearly Auctions on 22 November 2016.
Following the ‘best European practice’ of early implementation of guidelines on Forward Capacity Allocation, SEE TSOs and Coordinated Auction Office in South East Europe (SEE CAO) have prepared a new set of rules in order to implement HAR in the region of SEE for Auction process 2018. Therefore, SEE CAO and SEE TSOs have prepared a set of rules with which they would transpose Harmonised allocation rules for long-term transmission rights in accordance with Article 51 of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a Guideline on Forward Capacity Allocation dating 2 October 2017 with the Specific Annex for Bidding Zone borders serviced by SEE CAO to perform long-term allocation of transmission rights (yearly and monthly auctions).
Since daily allocation is prescribed by the CACM guideline (Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management) which still has not been implemented on none of the Bidding Zone borders serviced by SEE CAO, SEE CAO continued to perform coordinated explicit daily auctions in line with Rules for explicit Daily Capacity Allocation on Bidding Zone borders serviced by SEE CAO v1.0.
With the application of EU Harmonised Allocation Rules, SEE CAO has induced an early implementation of the FCA guideline in the region of SEE.
Upon decision of Italian and Montenegrin national regulators, SEE CAO became the allocation office in charge for organization of capacity auctions on undersea power interconnector between Italy and Montenegro. This new bidding zone border became part of SEE CAO’s portfolio and increased the overall SEE energy transit.
In December 2019 first yearly auction on ME-IT border was successfully organized and followed by subsequent monthly and daily auctions and is our pleasure to share that this whole process was followed by great interest of energy traders and resulted in greatest number of participants so far.
During 2020 the number of participants registered with SEE CAO has continued to grow. Kosovar Transmission System Operator (KOSTT) became Service User of SEE CAO and thus 3 new borders were added to SEE CAO’s portfolio being Kosovo – North Macedonia, Kosovo – Albania and Kosovo – Montenegro. Due to significant increase of number of served borders and operations, during 2020 SEE CAO was engaged in upgrading of the Auction Tool, whose implementation will begin in early 2021.