State of implementation 2023
Once again, the passing year saw the Energy Community entering new territory while staying true to its mission. The three key words defining 2023 were solidarity, integration and transition.
- Solidarity, because the Energy Community continues to firmly stand behind its largest member, Ukraine, whose energy system remains under constant attack by the Russian invaders.
- Integration, because the Energy Community finally lives up to its original promise: to create a true energy market with the EU based on reciprocity and a level playing field.
- Transition, because the Energy Community delivers on the goals
enshrined in the 2021 Decarbonisation Roadmap.
This year’s Implementation Report features a number of changes, most notably a clustering of the areas which matter for the Energy Community: Markets and Integration, Decarbonising the Energy Sector, Ensuring Energy Security, Improving the Environment and Performance of the Authorities.
No Contracting Party was able to improve its overall implementation score during the reporting period. Among other factors, the relative changes in the Contracting Parties’ implementation performance compared to last year are due to the entry into force of parts of the Clean Energy Package at the end of 2022, namely in the areas of governance, renewable anergy and energy efficiency. The upcoming challenge of transposing and implementing the Electricity Integration Package, due by the end of 2023, is not yet reflected in the weighting.
In 2023, Serbia emerged as the top performer, followed by Montenegro and Ukraine. In the most difficult circumstances, Ukraine and Moldova have advanced their impressive track-record on electricity and gas market reforms. For all Contracting Parties, the expectations to catch up during 2024 are high.
This page provides an overview of the 2023 implementation performance at the Energy Community level. For information on the nine Contracting Parties, resort to the separate country pages.
Contracting Parties' implementation performance
Overview of Implementation Performance
* Due to the lack of a gas market, implementation of the gas acquis is not taken into account in the overall score of Kosovo* and Montenegro.
status: 1 November 2023
source: compiled by the Energy Community Secretariat
Markets and Integration
status: 1 November 2023
source: compiled by the Energy Community Secretariat
2023 Highlights and next steps
| Markets and integration | |
|---|---|
| Albania | A day-ahead electricity market was launched by the power exchange ALPEX in April 2023. Albania should proceed with the opening of the intraday electricity market along with the transposition and implementation of the Electricity Integration Package as a precondition for market coupling. Albania should implement the certification conditions for Albgaz to make it an operational gas transmission system operator. |
| Bosnia and Herzegovina | The Law on Electricity adopted in the Federation of Bosnia and Herzegovina in August 2023 defined the missing legal framework for unbundling of distribution system operators, however with a two-year implementation period. The virtual interconnection point introduced by Gas Promet Pale increases opportunities for gas trading. |
| Georgia | The Government postponed the opening of the electricity day-ahead, intraday balancing and ancillary services markets for 1 July 2024. The implementation of natural gas market concept design, gas market rules, gas distribution rules, unbundling of gas distribution system operator has also been postponed. Georgia should strive to open the wholesale electricity and gas markets and urgently finish the unbundling and certification of the electricity and gas transmission system operators, along with the transposition and implementation of the Electricity Integration Package. |
| Kosovo* | Opening of the day-ahead electricity market and its coupling with Albania is delayed. Kosovo* should proceed with the market coupling of Albania – Kosovo*, as well as with the adoption of the laws transposing the Electricity Integration Package. |
| Moldova | The transmission system operator Moldelectrica was certified on 11 July 2023 as an independent system operator. ANRE provisionally designated Vestmoldtransgaz as a natural gas transmission operator of the Moldovatransgaz network, the basis for the unbundling of the country’s gas infrastructure operators. Moldova should accelerate the transposition and implementation of the Electricity Integration Package, prioritizing short-term electricity markets and their integration. The certification of Vestmoldtransgaz should be finalized, followed by the removal of barriers to create a genuine free gas market. |
| Montenegro | A day-ahead electricity market was launched by the Montenegrin power exchange MEPX in April 2023. Montenegro should focus on the transposition and implementation of the Electricity Integration Package as a precondition for the coupling of its day-ahead market. |
| North Macedonia | A day-ahead electricity market was launched in May 2023 by the market operator MEMO. North Macedonia should focus on the transposition and implementation of the Electricity Integration Package as a precondition for the coupling of its day-ahead market. North Macedonia merged two gas companies into one functional transmission system operator and prepared its unbundling. The gas transmission system operator signed an interconnection agreement with Bulgaria, unlocking a part of hoarded gas capacities. The certification of Nomagas should be finalized. |
| Serbia | Amendments to the Serbian Energy Law as of July 2023 allow for the compliant unbundling of the electricity and gas transmission system operators. The intraday electricity market was launched in July 2023. Serbia should focus on the transposition and implementation of the Electricity Integration Package as a precondition for the coupling of its short-term markets. Serbia should certify the gas transmission and storage operators, grant third party access at the interconnection points, and remove any other obstacles to new market entrants. |
| Ukraine | The Law on REMIT was adopted in June 2023 and its implementation started. Ukraine certified its gas storage operator. Ukraine should accelerate transposition and implementation of the Electricity Integration Package as a precondition for the coupling of its short-term markets. Ukraine should re-establish the gas market fundamentals and further strengthen the unbundling status of GTSOU. |
Decarbonising the Energy Sector
status: 1 November 2023
source: compiled by the Energy Community Secretariat
2023 Highlights and next steps
| Decarbonising the energy sector | |
|---|---|
| Albania | Albania revised the Renewables Law and established an operational registry for guarantees of origin for electricity. Albania should adopt the long-term building renovation strategy and complete the implementation of the Energy Efficiency Law. |
| Bosnia and Herzegovina | Bosnia and Herzegovina submitted to the Secretariat its draft NECP within the prescribed deadline. Also its long-term low-emission development strategy was sent to UNFCCC. The Federation of Bosnia and Herzegovina adopted a renewable energy law and an energy labelling regulation, while Republika Srpska established an operational registry for guarantees of origin. Bosnia and Herzegovina should adopt the final NECP in line with the Recommendations provided by the Secretariat. |
| Georgia | Georgia has submitted its draft NECP to the Secretariat. The country has also conducted its inaugural auction for renewable energy and established an operational registry for guarantees of origin for electricity by signing an agreement with a service provider. Georgia should adopt the Renewable Energy Law and adopt amendments to the Energy Efficiency Law in line with the acquis. |
| Kosovo* | During the reporting period, Kosovo* submitted to the Secretariat its draft NECP and launched its inaugural solar PV auctions. Kosovo* should adopt the long-term building renovation strategy and adopt of the Renewable Energy Law in line with the acquis. |
| Moldova | Moldova keeps expanding its renewable energy capacities through a self-consumption scheme. It has made significant progress with the Clean Energy Package alignment by adopting the Energy Efficiency Law. To have the final version adopted within the deadlines set by the Governance Regulation, Moldova should submit the draft NECP to the Secretariat. |
| Montenegro | Montenegro progressed with amendments of the Energy Efficiency Law and new labelling regulations. Montenegro should submit the draft NECP to the Secretariat with a targeted approach to coal phase-out. |
| North Macedonia | North Macedonia has considerably expanded its renewable energy capacities through a self-consumption scheme and has progressed on energy efficiency with a focus on finalising the amendments of the Energy Efficiency Law. North Macedonia should adopt the Renewable Energy Law and the amending the Energy Efficiency Law. |
| Serbia | Serbia submitted its draft NECP within the prescribed deadline and adopted its long-term strategies on low-emission development and building renovation strategy. Serbia revised its Renewable Energy Law and conducted an inaugural auction for renewable energy. Serbia should adopt the final NECP in line with the Recommendations provided by the Secretariat. |
| Ukraine | Ukraine adopted a law which provides the legal framework for implementing a guarantees of origin registry, introduces a net billing scheme for self-consumption and provides directions for future renewable energy auctions. Ukraine should submit the draft NECP to the Secretariat. |
Ensuring Energy Security
status: 1 November 2023
source: compiled by the Energy Community Secretariat
2023 Highlights and next steps
| Ensuring energy security | |
|---|---|
| Albania | Emergency state continues to be in force with the latest prolongation until 31 December 2023. Albania should transpose Regulation (EU) 2019/941 on Risk-preparedness in the Electricity Sector and start its implementation with the designation of a competent authority. |
| Bosnia and Herzegovina | No progress has been made in establishing a compliant legal framework governing the security of supply in electricity, gas and oil sectors. |
| Georgia | The Ministry has been appointed as the competent authority in line with the Risk-preparedness Regulation. The Government is postponing the adoption of gas security of supply rules which would transpose the Security of Supply Regulation. Parallel to the need to transpose the Regulation, Georgia should perform a risk assessment for the gas market and complete the risk-preparedness plan for the electricity sector. |
| Kosovo* | Significant unintentional deviations of the control area of Kosovo* and delayed payment for the costs incurred continue to represent a risk to the operational security in the synchronous area. The Law on Security of Networks and Information systems was adopted in February 2023. Kosovo* should transpose Regulation (EU) 2019/941 on Risk-preparedness in the Electricity Sector and start its implementation with the designation of a competent authority. |
| Moldova | The emergency state is in force until 30 November 2023. The electricity supply contract with MGRES was extended until the end of 2024. The Law on Cybersecurity was approved in 2023. Moldova is independent of Russian gas supplies. It achieved the gas storage targets without formally implementing them. As a matter of priority within the regional context, the Government should transpose Regulation (EU) 2019/941 on Risk-preparedness in the Electricity Sector and update its sectoral risk-preparedness plan. Moldova needs to speed up the transposition of the Security of Gas Supply Regulation. |
| Montenegro | A draft Law on Information Security transposing the NIS2 Directive was drafted in 2023. It should be adopted in the next reporting period. Regulation (EU) 2019/941 on Risk-preparedness in the Electricity Sector should be transposed and its implementation should start with the designation of a competent authority. |
| North Macedonia | The regulatory authority adopted cybersecurity rules in June 2023. Regulation (EU) 2019/941 on Risk-preparedness in the Electricity Sector should be transposed and its implementation should start with the designation of a competent authority. North Macedonia should transpose the Security of Gas Supply and the Storage Regulations. |
| Serbia | Although the Gas Storage Regulation is yet to be transposed, Serbia fulfilled its storage targets. Serbia should transpose the Security of Gas Supply and the Storage Regulations. Regulation (EU) 2019/941 on Risk-preparedness in the Electricity Sector should be transposed and its implementation should start with the designation of a competent authority. |
| Ukraine | The operation of the electricity system was preserved despite severe energy infrastructure damages caused by the Russian military aggression. Ukraine fulfilled the gas storage targets. Ukraine should improve the risk-preparedness planning starting with the transposition of the Regulation (EU) 2019/941 on Risk-preparedness in the Electricity Sector and the designation of a competent authority. Ukraine should adopt a risk assessment for the gas market and transpose the Security of Gas Supply Regulation. |
Improving the Environment
* in the case of Albania, the "Large combustions plants and industrial emissions" indicator is omitted from the final result as the Contracting Party does not have any plants in operation
2023 Highlights and next steps
| Improving the environment | |
|---|---|
| Albania | Albania progressed further in the field of nature protection, with the designation of the Vjosa national park, a development that should be expanded to other areas. |
| Bosnia and Herzegovina | Environmental compliance remains low and the pressing issue of large combustion plants is still far from being resolved. The situation was worsened by the extended use of opted-out plants. Emission abatement measures must be taken immediately to address this. |
| Georgia | Georgia stepped up its legislative efforts with the adoption of the Industrial Emissions Law and achieved good progress in the area of environment. Secondary legislation for combustion plants should be adopted. |
| Kosovo* | The implementation status in the area of environment remains at a low level. The long-standing breach of non-compliance with the National Emission Reduction Plan ceilings remains unaddressed. Emission abatement measures must be taken immediately to address this. |
| Moldova | Due to fuel supply switches, the good compliance record of Moldova with emission regulations was broken. Compliance should be re-established without delay. |
| Montenegro | Montenegro’s good track record in the area of environment is overshadowed by the long-standing non-compliance of TPP Pljevlja with the rules on limited lifetime derogation under the Large Combustion Plants Directive. The plant is expected to comply with the Industrial Emissions Directive's limit values after its rehabilitation. |
| North Macedonia | North Macedonia achieved limited progress in the area of environment. The long-standing non-compliance with the National Emission Reduction Plan ceilings remains unaddressed. Emission abatement measures must be taken immediately to address this. |
| Serbia | Serbia made moderate progress in the area of environment. Environmental impact assessments are still not regulated in a compliant manner, which should be addressed without further delay. |
| Ukraine | In Ukraine, implementation of the environmental acquis is overshadowed by the ongoing military aggression. Nevertheless, compliance is still high. |
Performance of the Authorities
status: 1 November 2023
source: compiled by the Energy Community Secretariat
2023 Highlights and next steps
| Performance of authorities | |
|---|---|
| Albania | By approving the electricity market rules and appointing the NEMO, ERE created one of the prerequisites for further market integration in line with the Electricity Integration Package. Following up on REMIT transposition, ERE should closely monitor the electricity market and take enforcement actions, if needed. |
| Bosnia and Herzegovina | The energy regulator’s institutional framework does not comply with the acquis. Within its limited legal competences, SERC continues to fulfill its regulatory tasks. The state aid authority rendered three decisions on illegal State aid. |
| Georgia | GNERC adopted the electricity market rules as well as dispute resolution rules in 2023. GNERC is yet again not investigating any anti-competitive conduct nor reviewing State aid measures in the energy sector. |
| Kosovo* | By approving a set of rules governing the power exchange operation and appointing the NEMO, ERO created one of the prerequisites for further market integration in line with the Electricity Integration Package. The State Aid Commission remains inoperational due to the failure to appoint its members. The establishment of an operational State aid authority constitutes a priority. |
| Moldova | ANRE exercised its competences regarding the unbundling of the gas transmission system operator and withdrew the license of Moldovatransgaz. Competences on REMIT in the electricity sector should be established. |
| Montenegro | The Agency for Competition Protection adopted its first two decisions regarding State aid in the energy sectors. |
| North Macedonia | The regulatory authority completed the transposition of REMIT by adopting three secondary legal acts. |
| Serbia | No progress was made with regard to the enforcement by AERS of unbundling of gas transmission operators or third party gas access to gas interconnection points. |
| Ukraine | The regulator certified the gas storage system operator in line with the Energy Community gas regulation and adopted a set of secondary legislation acts enabling REMIT implementation. NEURC should adopt the remaining REMIT legislation and launch the relevant investigatory and enforcement actions. |
Market and integration