SEE CAO Announces Yearly Auctions for 2016

Podgorica, Montenegro, 23rd of October, 2015

SEE CAO is glad to inform that, after first year of successful operation, it will launch the Yearly Auctions for 2016 on November 23rd 2015 with the scope of borders as indicated in the table below.

¹ Subject to the commencement of the operation of KOSTT as Control Area/Block based on signed Connection Agreement of KOSTT with ENTSO-E

Accordingly, Yearly Auctions shall be followed with Monthly Auctions for January 2016 and with Daily Auctions, starting from 31st of December 2015 for delivery day of 01st January 2016. Auctions shall be performed in accordance with the Auction Rules v1.3 published at SEE CAO web site, subject to approval from all respective National Regulators Authorities. Yearly and Monthly Auctions shall be performed according to following Auction Calendar for 2016, also published on SEE CAO website.

BACKGROUND

Coordinated Auction Office in South East Europe, with its registered office in Podgorica, Montenegro, established by 7 SEE Transmission system Operators: Croatia – HOPS, Bosnia and Herzegovina- NOSBiH, Montenegro – CGES, Albania – OST, Kosovo – KOSST, Greece – IPTO and Turkey – TEIAS, became operational in November 2014 by successful performance of first joint auctions in SEE on borders between Croatia – BiH and BiH – Montenegro.

Auction process started with Yearly Auctions for 2015, followed by Monthly and Daily Auctions completely following the regulation (EC) No 714/2009 concerning the cross-border exchanges in electricity: setting of harmonised principles on cross-border transmission charges and the allocation of available capacities of interconnections between national transmission systems.

After settling all necessary legal preconditions, Albanian OST declared its readiness to join the auction process, which resulted in successfully introduction of joint auctions on border Montenegro – Albania during the April 2015.

Moreover, during August 2015, Greece’s IPTO and Turkey’s TEIAS announced that there are no more obstacles in integrating their border in SEE CAO Auction Process in September 2015. Therefore, the first joint Monthly Auction on Greece-Turkey border was successfully conducted on 17th September by SEE CAO, and was followed by first Daily Auction on 30th September 2015 for delivery Day 01st October 2015. Introduction of daily auctions on GR-TR border represented the biggest step forward in SEE electricity market, since this process has been performed for the first time and the new product within electricity market has been launched.

On October 01st 2015, Connection Agreement between KOSTT and the continental Europe synchronous area power systems has been signed. Based on signed Connection Agreement and  the supply licence for Serbian company “Elektrosever” that still needs to be granted, the start of new Control Block KOSTT is scheduled for 30th November 2015., which is last precondition for the capacity allocation process on borders with Kosovo to be perfomed by SEE CAO for borders with shareholding CGES and OST. Although we need to emphasise its conditional nature due to missing supply licence for Serbian company „Elektrosever“, the information will be published on SEE CAO website in timely manner.

SEE CAO will further increase its scope for the Yearly Auction 2016, with the border between Greece and Albania which is firmed for Yearly, Monthly and Daily Auction Processes as of 2016.