Electricity Spot Market Development in Albania Dr Lorenc Gordani
Albanian legal framework needed for the establishment of the organised electricity market is under development. Based on the Power Sector Law, the Council of Ministers adopted in July 2016 the Market Model which paves the way towards creating the Albanian power exchange. The Market Model will be complemented by market rules that are being drafted by the transmission system operator. The Ministry is currently considering a need to amend the Power Sector Law in order to lay down legal requirements for the establishment of the power exchange.
A project for the establishment of a national organised dayahead market and a local power exchange, initiated in 2015, is ongoing. It aims at the establishment of the Albanian power exchange in line with the action plan defined by the Market Model. According to the action plan, the Minister shall decide on the legal entity and its structure before 31 March 2017, while the power exchange shall be fully operational as of 1 January 2018. The implementation of the project in line with the defined timeline is subject to the timely adoption of the amendments to the Power Sector Law.
The future market model includes a strategy for promoting liquidity based on so-called import/export zones and other liquidity promoting measures for an interim period until market coupling takes place. Another anticipated measure by the Council of Ministers foresees the mandatory participation of certain parts of the market in a phased approach.
It will also enable all market participants to enter the future organised market. The Council of Ministers’ decision imposing public service obligations contains provisions which are detrimental to market opening and its liquidity. Furthermore, the procedure for procuring electricity to cover losses by the transmission and distribution system operator violates Energy Community law as well as the Power Sector Law.
In last, the country forsee to reach the coupling of organised day-ahead electricity markets with at least one neighbouring country within the July 2017. In regard, it is under discussion the integration of the electricity market of Kosovo with the Albanian market, including participation of the transmission system operator of Kosovo in the shareholder structure of the Albanian power exchange. Upon a final agreement, a memorandum of understanding between the transmission system operators will be signed with the consent of the ministries.
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