Albanian Power Exchange

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Albanian Power Exchange

The Albanian Power Exchange (ALPEX) is a pivotal institution in the energy sector of Albania and Kosovo, established to operate the organized electricity market in both countries. As a joint venture company under Albanian law, ALPEX is co-owned by the Transmission System Operators of Albania (OST) and Kosovo (KOSTT). Its establishment marks a significant step towards the liberalization and integration of the electricity markets in the region, in line with European Union (EU) energy market rules and standards.


History[edit]

Albania and Kosovo are signatories and Contracting Parties of the Energy Community Treaty, signed in October 2005 in Athens, Greece. The treaty aims to extend the EU internal energy market rules to countries in South East Europe, the Black Sea region, and beyond. In adherence to this treaty, Albania adopted a new Power Sector Law in 2015, which introduced a multi-segmented liberal market model, including the day-ahead market (DAM), the intraday market (IDM), the balancing market, and the ancillary services’ market.[1]

Following the Power Sector Law, the Albanian Government adopted the Albanian Electricity Market Model in July 2016, defining the roles and responsibilities within an organized DAM and IDM market. Subsequently, the Albanian Energy Regulatory Authority (ERE) approved more specific rules for the functioning of the organized market in December 2017.

In July 2020, the ERE approved the Rules of Balancing Market, paving the way for the establishment of a competitive market for balancing services required by the Albanian TSO. Based on decisions by the Council of Ministers, ALPEX was established in October 2020, with the ambition of becoming the Nominated Electricity Market Operator (NEMO) for both Albania and Kosovo, subject to regulatory approval.

Regional Integration and Market Coupling[edit]

ALPEX's establishment is part of a broader initiative to strengthen regional cooperation and drive sustainable growth in the Western Balkans. The Western Balkan 6 (WB6) initiative, also known as the Berlin Process, aims to support Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia in developing the regional electricity market. In April 2016, these countries signed a memorandum of understanding (MoU) outlining the principles of cooperation and actions to develop the regional electricity market.

In June 2018, an MoU was signed between OST, KOSTT, ERE, and ERO for the coupling of the day-ahead and intraday electricity markets. On October 21, 2021, Albania and Kosovo, supported by USAID, signed the Framework Agreement on Market Coupling electricity markets between the two countries. This agreement is a crucial step towards market coupling between Albanian and Kosovo electricity markets and facilitates future coupling with other neighboring markets in accordance with EU electricity market regulations and the European Target Model.

Objectives and Future Directions[edit]

ALPEX is expected to operate the organized electricity market (day-ahead and intraday) in Albania and Kosovo, facilitating the integration of these markets with the broader European electricity market. By enabling market coupling and fostering regional cooperation, ALPEX plays a critical role in enhancing energy security, market efficiency, and the transition towards a more liberalized and integrated energy market in the region.

The establishment of ALPEX and its ongoing development efforts reflect the commitment of Albania and Kosovo to align with EU energy market standards and principles, contributing to the overall goal of creating a unified and competitive energy market in Europe.

Membership[edit]

List of Exchange Members
Transmission System Operator – OST sh.a Free Market Supplier – FTL sh.a Universal Service Supplier – FSHU sh.a
Albanian Power Corporation – KESH sh.a Distribution System Operator – OSSH sh.a Ener Trade sh.p.k
EZ-5 Energy sh.p.k GEN-I TIRANA sh.p.k ReNRGY Trading Group sh.p.k
Future Energy Trading and Exchange Dynamics sh.p.k Natyre Energy sh.p.k NOA Energy Trade sh.p.k
Danske Commodities Albania sh.p.k GSA sh.p.k Energy Financing Team Tirana sh.p.k
Devoll Hydropower Sh.A Transmission System and Market Operator - KOSTT j.s.c. Kosovo Energy Corporation – KEK j.s.c
Hydroeconomic Enterprise “Ibër-Lepenc” sh.a. Dragobia Energy sh.p.k. Kosovo Electricity Supply Company – KESCO j.s.c
Future Energy Trading and Exchange Dynamics sh.p.k - Kosovo ENERCO j.s.c.
Clearing Members and Their Locations
Raiffeisen Bank in the Role of General Clearing Member Tirana, Albania
ProCredit Bank in the Role of General Clearing Member Pristina, Kosovo
Tirana Bank in the Role of General Clearing Member Tirana, Albania

Key People[edit]

Members of General Assembly[edit]

Members of Supervisory Council of ALPEX Sh.a.[edit]

References[edit]

  1. HISTORY. ALPEX.