Published: December 08 2023
Hungary, Serbia, and Slovenia are set to launch a regional electricity market in 2024, according to the energy ministry. This collaboration aims to boost the enterprise value of the Hungarian Power Exchange (HUPX), where the majority of domestic consumption transactions take place.
Establishment of a Budapest-based holding company
By the end of 2024, a Budapest-based holding company will be established for the regional electricity market. The company will be owned by the transmission system operators of Hungary, Serbia, and Slovenia. Additionally, European power exchange EPEX SPOT will hold a stake in the company and provide the necessary technology.
Coverage of Central Europe and the Northern Balkans
The new regional electricity market will cover the regions of Central Europe and the Northern Balkans. This expansion will facilitate greater cooperation and coordination between the participating countries in the energy sector.
Benefits of regional cooperation
The collaboration between Hungary, Serbia, and Slovenia in the regional electricity market is expected to bring several advantages. These include increased efficiency in electricity trading, better resource allocation, and more stable electricity prices for consumers.
Implications for the Hungarian Power Exchange (HUPX)
The establishment of the regional electricity market will have a significant impact on the Hungarian Power Exchange (HUPX). As the primary platform for electricity transactions in the region, HUPX's enterprise value is expected to be bolstered. This development reinforces its position as a crucial player in the energy market.
Questions & Answers
What is the regional electricity market launching in 2024? Hungary, Serbia, and Slovenia will start operating a regional electricity market in 2024.
What type of company will be established for the regional electricity market? A Budapest-based holding company will be established for the regional electricity market.
Who will own the holding company for the regional electricity market? The holding company will be owned by the transmission system operators of Hungary, Serbia, and Slovenia.
Which power exchange will provide technology for the new bourse? The European power exchange EPEX SPOT will provide the technology for the new bourse.
Which regions will the new bourse cover? The new bourse will cover the regions of Central Europe and the Northern Balkans.
How will the regional cooperation boost the enterprise value of the Hungarian Power Exchange (HUPX)? The regional cooperation is expected to boost the enterprise value of the Hungarian Power Exchange (HUPX), which currently handles transactions affecting 60-70 percent of domestic consumption.
