Developing a Comprehensive model for Establishing ECO Regional Electricity Market by Adaptation of the EU Integrated Electricity Market Model

The purpose of this study is to present a proposed model for developing ECO regional electricity market. For this purpose, the European Union s successful experience in this context is modeled. In the European Union, firstly, the necessary infrastructure was created to form the electricity market in each member states, such as unbundling various sectors, including production, transmission, distribution and supply, and third party access to these sectors. In the next steps, in order to complete the integrated electricity market, some measures was done such as increasing the connection of European countries with each other in order to increase the security of energy supply, establishing national regulators for regulating the domestic market, coordinating institutions between member states, providing efficient solutions for managing congestion and increasing the swap capacity between countries. The first required measure to create ECO regional electricity market is to set up regional committee. Initially, The main objective of the committee is establishing the basic necessary infrastructure to create a regional electricity market, including the existence of a network operator, independent transmission system and an independent regulator in each country, also assessment of legal, technical and financial terms of electricity transmission taking into account social and economic issues, transmission networks planning and improvement of infrastructure, and definition of common interests projects and execution priorities in the region. In addition to the above executive committee, the evolution of the regional electricity market also requires a legal prestige Therefore, a council consisting of legal and political personalities is necessary.

Keywords:

ECO Regional Electricity Market , EU Integrated Electricity Market , unbundling , Third party access , Regulators , Network operators.