Energy Market Integration

Integrating Regional Energy Markets

The central development challenge for the Europe and Eurasia clean energy transition is that its small, fragmented, and shallow electricity markets are unable to attract the scale of clean energy investment required to make the transition. The wind and solar energy potential in this region is among the highest in Europe. JSET is supporting transmission system operators and their national regulatory authorities to establish wholesale energy markets in countries in this region, and to couple them with markets in Europe to unlock billions of dollars of clean energy investment, reduce the cost of cross border trade, and optimize the use of network assets.

Market Coupling Projects in Southeast Europe
“Market coupling” optimizes regional transmission network activity by reducing the complexity and cost of cross-border electricity trade. Market coupling attracts investment by providing price transparency, and advances the clean energy transition. With USAID support, the USEA JSET program is helping electricity transmission system operators, market operators, and national regulatory authorities to couple the markets in Greece, Albania, Kosovo, and North Macedonia.

“USEA Supports Electricity Market Integration Project in Southeast Europe” (July 19, 2024)

Market Coupling Project in Moldova and Romania
The USEA JSET program is supporting a market coupling project between Moldova and Romania. The team is conducting a network study, as well as a gap analysis to determine what steps are still needed to achieve market coupling readiness, and providing training to close that gap.

To improve Moldova’s energy security, the JSET program is supporting a USAID-funded Moldovan and Romanian electricity network pre-feasibility study to identify cross-border interconnection points for a third transmission line connecting the two countries. The results of this technical study will leverage millions of dollars of network investment in Moldova and Romania needed to establish a third robust and secure interconnection between the two countries that will further integrate Moldova into the European transmission grid and wholesale electricity markets.

“Romania’s 30-Year Journey to Become a Regional Energy Powerhouse” (May 8, 2024)

Black Sea Energy Security Initiative
In a project under the USAID U.S.-Europe Energy Bridge, the USEA JSET program is helping Ukraine, Moldova, and Romania to integrate their electricity markets through an additional market coupling effort, which will allow Ukraine and Moldova to benefit from a secure supply of electricity from Romania and Europe, and to reduce their dependence on Russian-supplied energy.

Reflecting on Ukraine and Moldova’s European Network Synchronization One Year Later(March 6, 2023)

Exploring Market Coupling in Montenegro
The USEA JSET program is working with USAID to determine how the United States might assist Montenegro’s energy regulator to provide oversight of a market coupling project between Montenegro and Italy.