First effects of the undersea cable are already visible, said in the interview for Dnevne novine director of the Coordinated Auction Office in South East Europe (SEE CAO), Mr Ivan Bulatović.
He said at the annual auction that Montenegrin Electricity Transmission System had generated around €2,9 million of profit. Mr Bulatović pointed out that the undersea cable had attracted the interest for allocation on other Montenegrin borders.
SEE CAO has celebrated the fifth anniversary of business. What is its greatest achievement?
Mr Bulatović: We have gone a long way from the perspective idea over credible international project team to becoming successful company offering services to eight transmission system operators and with over 120 registered tradesmen from 20 European countries.
So far, we have organized over 70 long-term and more than 1.800 daily auctions, at mutual satisfaction. We have formed a team of professionals capable of dealing with challenges we face and we’ve created an international environment where companies and employees from eight countries actively cooperate.
Since the beginning of operation until now, the company has been on an upward trend. In 2018, we made over €80 million of profit. Last year profit exceeded €100 million. We expect that growth trend to continue.
New border between Italy and Montenegro has recently been introduced in the portfolio of SEE CAO. How important is that?
Mr Bulatović: That’s a very important step and we’re glad we’ve been given this opportunity to demonstrate that we are ready to respond to all challenges that might come our way. As you know, the first annual, monthly and daily auctions were successfully finished on the new Italy-Montenegro border. We expect that the beginning of allocation on the new border will increase energy transit in the region and increase profit from the congestion of transmission systems operators, which will improve their investment plans and contribute to the development of network infrastructure. Meanwhile, SEE CAO will do its best to justify the trust and maintain the quality of the service.
What are the benefits of the cable?
Mr Bulatović: The first effects are already visible. At the annual auction for 2020, Montenegrin Electricity Transmission System made around €2,9 million of profit. And that’s not all. With cable being put into operational use, interest in the allocation on other Montenegrin borders has increased. A 50% increase has been recorded on Montenegro-Albania border. Congestion profits on Montenegro-Bosnia and Herzegovina border have doubled.
How settling Kosovo issue will impact your work in the future?
Mr Bulatović: For SEE CAO, settling that issue would increase number of borders where we provide our services, as it would open up possibilities for the introduction of two new service users, transmission system operators from Kosovo and Serbia. This issue is currently being addressed through ENTOSE mediation and we expect it to be settled in the middle of 2020. Introduction of their borders in our portfolio would circle the process of coordinated allocation in the region.
How do you see development of regional electrical energy market in the next decade?
Mr Bulatović: Changes taking place in that domain are numerous and very fast. Therefore, it is necessary to constantly be sensitive to the needs of the market participants in order to provide them the best service possible. The fact is that our region is lagging behind Europe regarding the adoption of regulations in this domain. On the other side, the greatest progress has been made on the long-term market and the current focus is on the development of daily, inter-daily and balance market.
I believe that establishment of national stock exchanges of electricity is the key step to further development.
