The Treaty requirements in relation to implementation of acquis for renewables are formally fulfilled as all the Contracting Parties developed implementation plans that have been approved on the 2nd Ministerial Council, in June 2007. The targets stated in the plans have been adopted at the Ministerial Council meeting; hence have to be fulfilled by the Contracting Parties.
The achievement of an appropriate level of compliance with the European policy in promoting the renewable energy resources needs a strategic approach when shaping the energy policy of each Contracting Party. Some of the Contracting Parties developed already Energy Strategies taking into account the significant contribution of renewable energy sources might have in their energy balances using the great potential available but underutilised. The others consider the approval or development of such Energy Strategies in the near future. Considering the need to change the energy use pattern combined with energy efficiency measures could increase the reliability of the energy sectors and ensure sustainable development in an increasing competitive world.
From designing to implementation, the strategies to promote renewable energy sources require adequate administrative capacity in development of the legislative and regulatory framework. Capacity building of the relevant institutions is of significant importance to accomplish the envisaged results.
The status of implementation of the acquis for renewables has been reviewed by the Secretariat during October-November 2008 in the context of the missions to the Contracting Parties, or is based on operational communication and reports. The background of the review process was to identify:
• progress made along the developed national plans;
• available legislative and regulatory framework;
• key open issues and the next steps.
As presented in the IEA Report “Energy for Western Balkans – the Path to Reform and Reconstruction” the potential of the renewable energy sources is considerable in the Contracting Parties.
ELECTRICTY GENERATION
BIOFUELS
I. Electricity generation
It is worth to mention the existing share of electricity produced in hydropower plants that already exceed 20% in total electricity consumption in Albania, Bosnia and Herzegovina, Croatia, Montenegro and Serbia. Hydro potential, either in rehabilitation or upgrading the existing power plants or in unused potential might be as high as 65% in the case of Albania which already has 95% of its electricity production based on hydropower.
The second potential in the region is biomass that can be used with high efficiency to produce combined heat and power. Wind has high potential mostly in Croatia and Serbia while in Albania might be difficult to integrate it in the current stressed electricity system.
Solar energy is abundant in the region and can be mainly used for water heating while solar photovoltaic installations require adequate support measures as it is known as the most capital intensive per unit of delivered electricity.
Geothermal energy could be mostly use for heating as in Croatia, Former Yugoslav Republic of Macedonia or Serbia and support tariffs are already in place and, in the case of Serbia, are to be approved in 2009.
The recognition of the major benefits in promoting the renewable energy sources determined the Contracting Parties to start the implementation of Directives according to the deadlines approved within the plans, although the formal requirements of the Treaty are fulfilled.
The deadlines within the plans for the implementation of Directive 2001/77/EC are:< /p>
• Setting national indicative targets – by 1st of July 2008
• Support schemes – by 1st of July 2009
• Guarantee of origin – by 1st of July 2009
• Administrative procedures – by 1st of July 2009
• Grid system issues – by 1st of July 2009
In general, the implementation of Directive 2001/77/EC is more advanced in the Contracting Parties compared to the status of implementation of Directive 2003/30/EC. This was mainly facilitated by the increase of the administrative capacity at the Ministries level which has to continue also at the level of Energy Agencies or at the Regulatory Authorities to support furthermore the development of the implementation legislation.
However, it has to be noted that the first deadline for setting the national indicative targets has been missed by most of the Contracting Parties although notable progress is registered in the implementation of the other requirements of the Directive 2001/77/EC. Only Croatia and UNMIK have adopted indicative targets for the share of electricity produced from renewables while for Montenegro the targets are projected and will be submitted for approval.
The adoption of the support schemes, the system for guarantee of origin and grid system issues have significantly advanced in the process of implementation of Directive 2001/77/EC.
The feed-in tariff as support measure for renewables promotion is adopted or in process to be adopted by all Contracting Parties being recognised as the most supportive scheme that gives also sound investor confidence. As the electricity market develops some Contracting Parties envisages the replacement of feed-in tariff with tradable green certificate based on quota system as more appropriate for mature electricity markets. Albania has custom tax exemption for RES equipment used for power plants with less than 5 MW installed capacity as an additional support measure to promote energy produced from RES.
Most of the Contracting Parties have set up or plan to set up Energy Funds for promoting Renewable Energy Sources (and Energy Efficiency) to directly support investments in RES projects. Their role in increase the generation capacity based on renewable energy sources is a noteworthy support measure.
In relation to the system for guarantee of origin, most of the Contracting Parties still have to approve and implement the relevant legislation. The implementation involves the development of relevant legislation in relation to designation of the issuing body for issuing guarantees of origin and establishment of an accurate and reliable system including the preparation of documents and registries. The designated bodies for issuing guarantees of origin have to be set in most of the Contracting Parties. The role is, or is to be assigned to Energy Agencies or to Regulatory Authorities. In the case of nominating the Energy Agency as the issuing body for the guarantee of origin, strong cooperation and communication with Regulatory Authority, TSO and DSO is vital to ensure an efficient system. As announced by many of the Contracting Parties the adoption of the relevant legislation will be effective by end 2009.
The administrative procedures for RES integration are rather complicated in most of the Contracting Parties, where there are available. The authorisation procedures are still to be adopted in many Contracting Parties providing room to propose streamlined and expediting procedures at the appropriate administrative level to encourage investments in renewables. The overall procedures have to be simplified and streamlined to overcome the regulatory and non-regulatory barriers to increase production from renewable energy sources. Fast-track planning procedure for electricity producers from renewables, as well as, designation of the authorities to act as mediators in disputes between authorities and applicants are to be considered.
In relation to grid system issues, access to transmission or distribution networks is appropriate addressed in the legislation however bearing the total cost of network connection might prove be difficult for a small renewable electricity producer. The example of Montenegro that envisages sharing the cost of connection between RES producer and TSO or DSO could be followed by all Contracting Parties.
The summary presentation of the current status of implementation of Directives 2001/77/EC and 2003/30/EC is provided in Annex B.
II. Biofuels
The overall deadline for the implementation of Directive 2003/30/EC is 1st of July 2008 for all the actions in the plan:
• Setting national indicative targets
• Monitoring of effects
• Ensuring public information
• Reporting requirements
The indicative targets regarding the share of biofuels in the total diesel blend is set for most of Contracting Parties, however, Former Yugoslav Republic of Macedonia has adopted them as non-obligatory.
According to the Plans, 1st July 2008 has been set also as a deadline for monitoring the effect of the use of biofuels in diesel blends above 5% by non-adapted vehicles and for ensuring public information on the availability of biofuels and other renewable fuels.
In most of the Contracting Parties, the relevant provisions have been put “just” to a certain extend in place so far and need to be completed.
