Konstantin Konstantinov: We are technically ready for the market union with Greece on May 11. There is no delay mechanism

If Bulgaria takes any steps towards postponement, it would cost the IBEX license and a procedure against the country for violating European regulations

Energy / Bulgaria
3E news
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There is no mechanism to postpone the market reunification with Greece in the "day ahead" segment. The unification of the European electricity markets is not ours, but a European initiative. It is in full compliance with European regulations.

In addition, if we take any steps in this direction, we risk being attacked and losing the license of the Bulgarian Independent Electricity Exchange (IBEX), and against our country to be prosecuted for violating European Union regulations. This was commented to 3eNews by the executive director of the Bulgarian Independent Electricity Exchange Konstantin Konstantinov in response to a question about the demands indicated by AOBR for postponing the market unification of the Bulgarian-Greek border in the "day ahead" segment.

According to Konstantinov, there are no fears of drastic changes. He reminded that on the stock exchange the price levels are achieved as a result of the offers submitted by the trade participants. In this sense, it would not matter whether the market union in this segment is on the Bulgarian-Romanian or Bulgarian-Greek border.

Technically, everything is fine, we expect the unification to take place within May 11, and after a few months, this procedure will be repeated with Romania, Konstantinov said.

Bulgaria's accession to the European Day Market "Day Forward" (SDAC) is scheduled for May 11, 2021 (with the first day of delivery May 12) with positive confirmation after completion of all tests and relevant approvals by the Bulgarian and Greek regulators.

The launch of the market integration project between Bulgaria and Greece is another step towards achieving a Single European Electricity Market in the "day ahead" segment.

The project is planned to start within the framework of the Multi-Regional Market Connection (MRC) and is implemented within the framework of the Unification of Italian Borders (IBWT). It is defined as the first opportunity in history for the Electricity System Operator (ESO), IBEX, local producers, consumers and traders of electricity to join the common EU market in the time segment "day ahead". Its implementation will provide all market participants with access to the single market.

It is expected that through the integration of the border with Greece to reduce market concentration, especially supply in Bulgaria, which in turn will increase competition and prevent doubts about the exercise of market power in calculating prices.

In this sense, the forecast is for strengthening the positive effect of the unification with Greece. Thus, the Bulgarian electricity market will become fully integrated with the European one, and Bulgarian consumers, producers and traders of electricity will be able to take advantage of this connectivity, gaining automatic real-time access to offers - buy and offers - sell to market participants from all member states of the European Union.

The European day-ahead market target model is expected to be completed in 2021 with the connection of the 4M MC borders with the MRC, through the Intermediate Connection (ISP) project and immediately thereafter, through the implementation of the market integration project between Bulgaria and Romania. .

The project for connecting the markets of Bulgaria and Greece started with an official decision of the Steering Committee on March 1, 2020 as part of the regional project for unification of the Italian borders - IBWT. All participating countries follow the pre-agreed timeframe, and preparations for testing in the previous April have been successfully completed.

SDAC allocates limited cross-border transmission capacity in the most efficient way, connecting wholesale electricity markets from different market areas, through a common algorithm, while taking into account cross-border capacity limits, thus maximizing social well-being.

The SDAC aims to create a pan-European “day ahead” market. An integrated “day ahead” market increases overall trade efficiency by promoting effective competition, increasing liquidity and enabling more efficient use of production resources across Europe.

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