The joint electricity exchange of Slovenia, Serbia and Hungary could start operating in the first half of 2024, according to Hungarian Minister of Foreign Affairs and Trade Peter Szijjártó. Closer energy relations between the three neighboring countries will increase trading efficiency and profitability, provide a basis for the provision of high-tech market services, and strengthen Hungary’s energy sovereignty, Szijjártó wrote on his Facebook page.

He added that the Slovenian, Serbian and Hungarian companies have made the technical and business decisions while government approvals are still pending. The power exchange will greatly improve the energy security of the entire region.

Energy security has become one of the most serious challenges in Europe in the last one and a half to two years, and close energy cooperation between countries has perhaps never been more important.

The politician noted that this was particularly the case in Central Europe, where there are no major oil or gas fields, making the interdependence of countries even greater.

It is therefore great news that we are closer than ever to creating the largest ever integrated power exchange in Central Europe, Szijjártó emphasized.

The Hungarian power exchange is operated by HUPX, a subsidiary of the transmission system operator MAVIR. Since its launch in 2010, the Hungarian HUPX has become the leading power exchange in the region and a prominent price signal operator in Central Europe and the Northern Balkans.

The platform, also of key importance for domestic supply, is used for electricity trading, accounting for 60-70% of domestic consumption. In view of international developments, in particular EU regulatory plans and market consolidation, strategic progress is needed to consolidate the position of the Hungarian power exchange.

To this end, the government has set up a regional exchange cooperation team covering the Central European and Northern Balkan regions. Minister of Energy Csaba Lantos has been authorized to take the necessary measures to establish a holding company based in Budapest with a deadline of end of 2024.

The company will be jointly owned by the Hungarian, Serbian, Slovenian electricity system operators and EPEX SPOT, which will provide the technological backbone for the settlements.

The regional cooperation will ensure further growth of business value in HUPX.