INTERVIEW - New Slovenia-based BSP Regional Energy Exchange Targets 4.0 TWh Trade Volume in 2009

BSP launched trading last month with day-ahead products for the Slovenian and Serbian markets. Total volume of trading reached 1,440 megawatt hours (MWh) in the period from November 11 to November 30.

One MW is equal to one million watts and one TW is equal to one trillion watts.

“We were satisfied with the beginning,” Stanek told SeeNews in a recent interview. The bourse’s priority until the end of the year is to raise liquidity, he said.

“I think that we will undoubtedly achieve our plan to have 30 members in January. Then we expect higher liquidity,” Stanek said.

He added that there were also plans to broaden BSP's ownership structure.

BSP currently has 12 members, among them Slovenian power conglomerate Holding Slovenske Elektrarne (HSE), Slovenian power trader GEN – I, Serbian electricity trading company Rudnap Group and EFT, a leading electricity trader in the region.

BSP Regional Energy Exchange LLC (www.southpool.com) is owned by Slovenian power market operator Borzen and Eurex, the international derivatives exchange, and aims to be the leading regional cross-border energy exchange in Southeast Europe with a spot and derivatives market for electricity, gas, and associated energy products.

At present, four other functional energy exchanges are relevant to the southeast European region: EEX in Germany, EXAA in Austria, OPCOM in Romania and Pool in Greece.

BSP is trying to attract as many as possible traders and power producers as high liquidity is conditional on their being on board, Stanek said.

“It is clear that we need also producers to come to the bourse […] We are in talks with them and we expect one or two of them to enter in January,” Stanek said, but declined to name companies.

BSP aims to include companies from all southeastern European countries. “We have addressed more or less all countries in the region […] On the separate geographic parts we move with different speed,” Stanek said.

“In some countries we can offer our services together with local partners. Elsewhere we can find other solutions,” he added.

Stanek said he expects new countries to be included and products to be launched on the bourse in January, but declined to elaborate.

BSP plans to implement a project for market coupling with Italian power market operator GME at the beginning of 2010. “There is will and support for this project,” Stanek said.

REGIONAL OWNERSHIP

BSP is trying to attract companies from the region into its ownership structure. “A regional institution like BSP needs a regional ownership and a regional team, and local presence as well,” Stanek said.

BSP has already started talks with traders to enter into its ownership structure.

“We plan to achieve formal decisions with those we have started talks with by the end of the year,” Stanek said. Two of the potential future shareholders are GEN - I and Rudnap Group.

“I expect BSP to have new owners at the beginning of next year,” Stanek added.