Kosovo’s transmission system and market operator KOSTT announced on Tuesday (14 November) that heads of regulatory authorities, transmission system operators and power exchanges from Kosovo, Albania, Greece and North Macedonia have signed a memorandum of understanding (MoU) for Day-Ahead Electricity Market Coupling in southeastern Europe.
The memorandum’s signatories have pledged to work together in strengthening the security of electricity supply for all participating countries and utilising cross-border transmission and generation capacities to ensure a stable and efficient market.
“This moment is clear evidence of our joint commitment to building an integrated, competitive and transparent market for all participating countries and another important step towards sustainable and coordinated cooperation of the energy sector in South East Europe. This initiative represents the largest expansion of European electricity systems with non-member countries of the European Union,” said Evetar Zeqiri, KOSTT’s Chief Executive Officer.
Another key aim of the agreement is to improve competition and transparency in the electricity market. As part of this, the signatories have set plans to establish new pricing mechanisms. Moreover, they plan to establish harmonised and integrated mechanisms for managing electricity flows and increasing cross-border trade, which is expected to enable coordination and optimal use of energy resources throughout the region.
The signatories have also pledged to work together to implement the EU’s Targeted Model for the wholesale electricity market.
“This Memorandum of Understanding is the result of over 20 years of work on reforms in the energy sector of these countries and marks a historic step towards increasing regional cooperation in the energy sector, promoting stability and promoting efficient operations of the electricity market in South-Eastern Europe,” added Mr Zeqiri.
The memorandum was signed under the initiative of the American Agency for International Development (USAID) and supported by the National Association of Regulatory Utility Commissioners (NARUC), the US Energy Association (USEA) and RTI International.