ZAGREB, June 19 (Reuters) - Croatia’s spot power exchange CROPEX said on Tuesday it had merged its day-ahead market with Slovenian counterpart BSP SouthPool, linking it up to the wider European power market.
Croatia is now part of Multi-Regional Coupling (MRC) project which includes 19 countries that account for about 85 percent of European power demand.
Coupling aims to optimise allocation of cross-border power capacity by coordinating price calculations and flows between countries. This minimises price differentials between regions, spurs on competition and stabilises prices for consumers.
CROPEX Director Silvio Brkic said in a statement the initiative “provides significant support for further development of Croatian electricity market.”
The first market coupling session delivered a trading volume of 8,283 megawatt-hours (MWh), with the highest hourly volume of 619 MWh, the bourse said.
The coupling system involves so-called implicit auctions, in which players do not receive allocations of cross-border capacity although they bid for electricity on their exchange.
The exchanges can then use the available cross-border transmission capacity to minimise the price difference between two or more areas.
Brkic said CROPEX would also merge with other neighbouring markets, including coupling its intra-day market with neighbouring European Union intra-day markets planned for 2019.
Reporting by Maja Zuvela in Sarajevo Editing by Edmund Blair