engleski

Influence of price coupling of regions on Croatian energy system – energy mix and price of electricity

This paper examines the integration of Croatian newly formed Power Market with the European Power market and the influence that this coupling has on the Croatian energy sector. The integration of the spot electricity markets in Europe, which is well on the way, will lead to multi-area power exchanges that will substitute the local markets, providing the opportunity to increase overall welfare in power trading through market coupling and price coupling of regions. In view of the “target model” that will be enforced in all European markets and the forthcoming coupling/integration of the Croatian and European power market through interconnections with Slovenia, a price coupling between a Power Exchange and a power pool is implemented in this paper. The benefits and issues of this approach are quantified, and the attained results are compared with the results of a single market approach, in terms of electricity prices, overall social welfare and renewable energy sources integration. Nett transport capacity that can be achieved between Croatia and Slovenia is about 1400/1500 MW, which provides for good channel for trading. Croatia is also well connected with Hungary (1000/1200 MW), as well as with Serbia and Bosnia & Herzegovina. Mentioned countries also have significant portfolio of hydro power plants (B&H 2120 MW, Croatia 2136 MW and Serbia 2910 MW) capable of flexible operation which can be of asset when operating within unified power market in Europe. With Croatian energy system mix in transition towards more sustainable solutions, this paper provides an insight on the influence that the price coupling of regions will have on development potential of Croatian energy sector and the measures that would be advisable for fully exploiting the opportunities that the transition towards post-carbon energy system in Europe provides.

Power Exchange; Market Coupling; Price Coupling of Regions

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