ACER and CEER published their annual report with an additional focus on the history of the development of the Baltic-Finnish gas exchange
Over the last few years, the Baltic States and Finland have made significant progress in diversifying their gas supplies. Since 2012, the GET Baltic gas exchange has been instrumental in these efforts, contributing to enhancing competition in the region. This is the conclusion of the EU Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER) in their annual Market Monitoring Report (MMR).
In the review of the wholesale gas and electricity markets, special attention has been given to the case study on the development of the Baltic-Finnish gas exchange GET Baltic. The analysis describes the historical development of the Baltic-Finland region, provides insight into infrastructure development, and outlines the main events that appeared up to the first half of 2022. The report also analyses the development, trading performance, challenges, and future plans of GET Baltic, a regional exchange based in Lithuania.
The MMR highlighted the key drivers that contributed to the rapid growth of the hub trading activity, increased competition, liquidity levels, and price convergence: market liberalization and establishment of the Regional gas exchange for the Baltics and Finland opened up even greater opportunities for suppliers to compete across the region, the implementation of Implicit Capacity Allocation (ICA) model has made it possible to allocate cross-border capacities in response to price spreads, and the introduction of the Baltic Gas Spot Index (BGSI) for the region as a whole and for the separate market areas, which became the main price indicator in the region, is still used to reference the prices of various bilateral supply contracts.
Furthermore, the ACER consulted local experts and the stakeholders to present their opinion on considerations expressed in the case study. Please find the detailed version of the case study and the full MMR here: Annual Report on the Results of Monitoring the Internal Electricity and Natural Gas Markets in 2021 (Case study: Lithuanian gas hub recent developments, page 74).