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Regional Electricity Market Strengthened by Slovenia, Serbia and Hungary

Serbia, Slovenia, and Hungary have signed an agreement to merge their electric power exchanges, enhancing regional energy cooperation

Slovenia, Serbia and Hungary have combined their electric power exchanges in a partnership energy project, as announced by the government. The agreement to merge the three exchanges was signed in Budapest by the directors of the transmission systems of Serbia, Hungary, and Slovenia, and the European exchange EPEX SPOT, as a shareholder in the company ADEX.

Minister of Mining and Energy of Serbia Dubravka Đedović Handanović commented that this merger is significant for the further development of our electric power system, noting that Hungary has joined the regional exchange founded by Serbia and Slovenia. Elektromreža Srbije (EMS) will own 25% of the electric power exchanges in Slovenia and Hungary.

The Minister stated that a joint trading platform across all three exchanges will further stimulate the development of the regional electricity market, provide a reliable market environment necessary for new investments, and positively impact the development and integration of renewable energy sources in the region.

Jelena Matejić, the General Director of Elektromreža Srbije (EMS), emphasized that this merger establishes a strong joint business infrastructure and achieves full synergy between the three exchanges, on a project initiated in 2018.

Matejić noted that this integration brings multiple benefits, moves us closer to a unified European market, and facilitates access to a singular service for trading for all participants.

“Furthermore, the realization of this merger creates conditions for EMS to continue cooperating with the Hungarian transmission system operator, MAVIR, in the process of integrating the day-ahead market with the single European market, fulfilling one of the prerequisites for Serbia to abolish the CBAM tax,” Matejić stated.

Under the BlueSky project agreement signed in Budapest, the Hungarian electric power exchange HUPX joined the first regional electric power exchange for Central and Southeast Europe – ADEX, founded in 2022 by the Serbian and Slovenian transmission system operators and the European electric power exchange, EPEX SPOT.

The headquarters of ADEX, which will manage the Serbian, Slovenian, and Hungarian exchanges, will be located in Budapest.

The signing was attended by Veljko Kovačević, State Secretary of the Ministry of Mining and Energy of the Government of Serbia, Hungarian Minister of Foreign Affairs and Trade Peter Szijjártó, and Slovenian Minister of the Environment, Climate, and Energy Bojan Kumer.

Kumer highlighted that the BlueSky project would become a cornerstone for a more connected and efficient energy market in the region. He pointed out the achievement symbolizes the persistence and dedication of all involved, with a special emphasis on regional and cross-border integration beneficial to all of Europe.

“By joining forces, we can more effectively address the energy challenges common to all. I am particularly pleased that this project demonstrates how the energy sector can serve as an example of cross-border integration, even beyond the EU borders. The connection in the field of electric power has been a precursor to the European Union’s enlargement process for many years,” concluded the Slovenian minister.

The joint electricity exchange of Hungary, Serbia, and Slovenia is expected to commence operations in the second half of 2024, which will increase the supply security of all participating countries, stated Hungarian Minister of Foreign Affairs and Trade Peter Szijjártó after the representatives of the three countries signed the agreement in Budapest.

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