Last month, IENE completed a major study on “The Integrated Electricity Markets in Greece and SE Europe, the Role of the International Electricity Interconnections and the Impact on Industry”. The main objective of this multi-client study was to analyze the framework within which energy-intensive industries in Greece and SE Europe will perform in the years ahead in view of the implementation of the Target Model in Greece, now slated for fall this year. This study was undertaken by IENE upon the request of a group of energy intensive industries in the region which wanted to ascertain how wholesale and retail electricity prices are to shape in the years ahead, following full market coupling in the region.
Last month, IENE completed a major study on "The Integrated Electricity Markets in Greece and SE Europe, the Role of the International Electricity Interconnections and the Impact on Industry”. The main objective of this multi-client study was to analyze the framework within which energy-intensive industries in Greece and SE Europe will perform in the years ahead in view of the implementation of the Target Model in Greece, now slated for fall this year. This study was undertaken by IENE upon the request of a group of energy intensive industries in the region which wanted to ascertain how wholesale and retail electricity prices are to shape in the years ahead, following full market coupling in the region.
More specifically, the study focused on two main areas: (a) an understanding of the functioning of regional electricity markets through the imminent changes, and (b) an examination of the prospects and the repercussions of the electricity market integration among the SEE countries. Regarding part (b), the integration refers to the market coupling and the increase of electricity flows, through the related interconnections, and the implementation of the Target Model in many countries of SE Europe. In this context, the study focused on the quantitative evaluation of the regional electricity market with specific focus on electricity market prices on retail and wholesale level and the opportunities risen for industrial consumers and electricity market participants. The evaluation was made for different sets of assumptions with the development of the costs of carbon emissions being a common parameter. For this specific issue, IENE cooperated closely with Professor Pantelis Capros, Scientific Coordinator of E3 Modelling, and his team, who used PRIMES model and two specially developed mathematical sub-models deployed to perform system and market simulation and retail price estimation respectively. The analysis was held under various plausible scenarios developed by E3 Modelling.
A broad summary of the study and its main findings will be published by IENE sometime later in the year in the form of a Working Paper. A separate announcement will be made by IENE once the WP become available.
IENE would like to thank its external senior consultants, who participated in the study, and provided valuable data and their insights on SE Europe’s electricity markets and infrastructure. These included Mr. Shkelqim Bozgo and Mr. Abaz Aliko from Albania, Mr. Stefan Borozan and Prof. Vesna Borozan from North Macedonia, Mr. Aleksandar Mijušković from Montenegro, Mr. Mihailo Mihailovic and Mr. Nenad Stefanovic from Serbia, Mr. Mirsad Sabanovic from Bosnia and Herzegovina, Mr. Fadil Ismajli from Kosovo and Dr. Vasilis Rallis from Greece who contributed in the introductory Chapters of the Study.
Last but not least, IENE would like to thank the companies which contributed financially, but also provided essential information that enabled it to carry out the aforementioned study. More specifically, the IENE wishes to thank ElvalHalcor SA, Elpedison SA, Mytilineos SA, Heracles Group of Companies, the TITAN Cement Group, as well as the Hellenic Union of Industrial Consumers of Energy (UNICEN). Without the financial support and encouragement of the aforementioned companies, undertaking this project would have been extremely difficult if not impossible.
