The Slovenian power exchange Borzen, and the international derivatives exchange Eurex, announced yesterday that they will jointly create a spot power market for the broader south eastern European region named South Pool.
The new company will be launched in January 2008. Initially, Borzen will hold a stake of 51 per cent in the joint venture, with Eurex taking the remaining 49 percent. Peter Reitz, member of the Eurex board said that both companies hope "to join forces with further partners and stakeholders from all countries in the region.”
The idea of South Pool was first mooted in 2004 and originally the aim was to include "all energy elements such as gas and oil," Damjan Stanek, CEO of Borzen told Montel Power News earlier this year. From January next year South Pool will offer power and gas spot trading.
Borzen will manage the new exchange, whilst Eurex will contribute its expertise in trading and clearing infrastructure. The aim is to contribute “to higher liquidity, as well as enhanced efficiency and transparency in the Balkan market”. Morover, Stanek added that "the vision is to unify fragmented markets and to create a neutral, regional cross-border energy exchange with one electronic platform, structure and operations”.
South East Europe power market executives welcomed this latest development for the creation of a regional power exchange. “There is no doubt that this is a move towards to the right direction. South Pool will help towards improving market liquidity and exposure”, noted a senior electricity executive in Athens.