February 17 (SeeNews) - Montenegro's power exchange BELEN is in the final stage of talks with its potential strategic partner - Norwegian power market operator Nord Pool - for establishing the first day-ahead power market in the small Adriatic state, which should start operating by the end of 2020, local media reported.
The negotiations with Nord Pool should be wrapped up soon, paving the way for the launch of the power exchange market in Montenegro by the end of this year, news daily Pobjeda reported on Friday, quoting BELEN spokesperson Dragana Radulovic as saying.
As the local electricity market is small, the power exchange is expected to reach full liquidity only after it connects with the regional markets, Radulovic added.
"And this is just the beginning. The real exchange market will be enabled with the merger of the Montegrin market with the Italian one," Radulovic told Pobjeda.
In November, Italian electricity transmission system operator Terna and Montenegrin power transmission system operator Crnogorski Elektroprenosni Sistem (CGES) officially put into operation an undersea power cable linking Montenegro to Italy. The interconnection will allow a bi-directional exchange of electricity between the two countries of 600 MW of power initially, which will become 1,200 MW when a second cable is laid within the next few years.
The undersea cable represents the first "electrical bridge" between Europe and the Balkans, a crucial connection which will enable Italy to reinforce its role as European and Mediterranean electricity transmission hub, Terna has said.
In March 2019, BELEN chose Nord Pool in an open competition to become its partner in the development of a transparent and efficient power market that would enable Montenegro to couple with neighbouring countries in line with the European Internal Energy Market (IEM) standards.
BELEN is a limited liability company founded by CGES, Montenegrin power utility EPCG and the domestic power market operator COTEE in June 2017 under a Montenegrin government decision with the purpose of establishing and operating an organised day-ahead electricity market in Montenegro.