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In terms of long-term and insufficiently effective socio-economic transition in countries of Energy Community of South-East Europe (EC SEE), characterized by significant decline of economic activities and lack of investment in new modern production technologies, the global financial and economic crisis at the end of 2008, imposed additional slowdown in the economic activity, redevelopment and operation of the energy sector and in particular of the electric power companies in most EC SEE countries. Qualitative view of the current status and possibility of redevelopment of the energy industry is accompanied by key economic and industrial quantitative indicators, followed by trends of the expected electricity demand, production, and its balance, derived on the basis of the pre-crisis known electricity intensity and GDP and/or VA growth rate, for two scenarios of introduction of new generation capacities.

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The allocation of cross-border transmission capacities is a basic precondition for cross-border electricity trade. Insufficient transmission capacities are the factor that limits this trade and therefore they must be allocated in the economically efficient manner in order to alleviate its negative influence on the trade but along with the preservation of electric power system stability. The flow-based coordinated auctioning method introduces economic criteria for selection of requests for transmission capacities use when those requests exceed available amounts (congestion), along with a better representation of cross-border electricity transactions influence on transmission network. With the use of internet development tools, web simulator has been created, which allowed practical implementation and testing of coordinated auctioning method, especially a possibility to apply netting of counter-flows. Several sensitivity analyses and case studies have been conducted and the results that show the advantages of application of netting principle are elaborated.