The past year has been a time of significant price volatility in the CSEE energy markets.
There are market restrictions, political volatility, difficulties with limited availability of transmission capacity in some countries and uncertainty about nuclear and thermal availability in Western Europe.
Furthermore, the region is undergoing a process of change in terms of market coupling initiatives and new plans for national and regional exchanges.
The regional energy regulators play an important role in the development of efficient and liquid power and gas markets. All the more reason to talk to Mr. Ardian Berisha, Regulatory Specialist of ERRA, the Energy Regulators Regional Association, about what regulators are currently doing to help the CSEE wholesale markets.
ERRA will be actively involved in the preparations for this year's annual conference on Energy Trading in Central and South Eastern Europe (ETCSEE) as Partner Association of the event.
ERRA, the Energy Regulators Regional Association
- Could you give an overview about ERRA and on what you are currently working on?
The Energy Regulators Regional Association (ERRA) is an inter-institutional non-profit organisation comprising of independent energy regulatory bodies from Europe, Asia, Africa, Middle East and the United States of America. The Association’s main objective is to facilitate the exchange of information and experience, regulatory research and capacity building among members and other regulators around the world. In this respect, ERRA is currently working on developing its educational portfolio in order to reflect on recent issues of regulatory challenges. In addition, we are building an online library which is supposed to be a reference point of regulatory research materials on market developments, pricing, RES regulation, monitoring, etc.
- What key challenges do you see in terms of Energy regulation for Central and South Eastern Europe?
SEE countries are continuing to drive forward electricity market reforms however there is still insufficient progress in unbundling processes and ensuring third-party access. There is still much room for improvement in capacity allocation and calculation, improving the liquidity of the established spot markets and the development of balancing markets. Increasing the share of RES generating capacities to meet national commitments is also proving to be a challenge as it requires credible policymaking and a stable and predictable regulatory framework which provides sufficient incentives for new RES investments and supports the development of the necessary transmission and distribution infrastructure, necessary for the safe and reliable operation of our systems.
- What are regulators currently doing to help the CSEE wholesale energy markets?
Regulators are in a continuous process of adopting regulatory practice to meet national sustainable policy objectives as well as to develop an enabling environment for enhancing market integration and cross-border trade for more efficient and transparent energy markets. Power Exchanges are now functional in many SEE countries and, as their liquidity is increased, they will continue to contribute to more stable and transparent price formations. Significant emphasis is being placed on improving the stability of regulatory frameworks to boost investor confidence and enhance infrastructure development. Regulators are also paying particular attention to the increasingly important topic of cyber-security and their roles in supporting regulated companies to improve the resilience of energy infrastructure.
- What kind of activities do you organise to connect with the industry?
Our premier event with the clear aim of bridging regulators with the industry stakeholders is the Energy Investment and Regulation Conference, which is going to be organized for the 17th time this year in Antalya, Turkey. This Conference attracts 100+ regulators from the ERRA countries, while energy companies attend the event for its excellent networking opportunities. Besides energy market trends, every year the agenda has a strong focus on the host country’s energy industry. Additionally, industry representatives are welcome to attend our training courses, as we believe that widening their knowledge on the fundamentals of regulation, such as pricing principles, or understanding the dynamics of the electricity markets will result in a better functioning energy sector.
- Why is it important for ERRA to support the upcoming ETCSEE conference?
Since its establishment, ERRA has served as a discussion hub for strengthening and improving regulatory practice in its member organizations in a constantly evolving regulatory environment. By supporting ETCSEE, ERRA states that it continues communicating with its member regulators at very different stages of market development about the importance of promoting the development of efficient and liquid power and gas markets.Subscribe to our newsletter