State of implementation 2019

In the East, the Energy Community’s largest electricity market in Ukraine made a quantum leap in moving from a non-transparent single-buyer model to a governance corresponding broadly to the European target model. Ukraine’s neighbour Moldova seems committed to follow suit with unbundling. And even Georgia, the youngest member of the Energy Community and furthest away from its geographical core, is currently engaged in implementing the acquis communautaire. That many of these reforms may be implemented with a safety brake on, and not every measure has imminent success, is bearable when considering the Communist legacy and the huge social-economic as well as geopolitical challenges of these countries.

In the Western Balkans, several power exchanges are finally expected to go live in the near future, and 2020 may indeed see the first cases of market coupling. Montenegro seems well prepared for that. In 2019, the country again made it to the top of the performance list. North Macedonia, which had fallen behind under the previous Government, made an impressive return and established itself as reform champion in all energy sectors, a performance which unfortunately was not recognized by everybody.

Against these efforts, the slower pace or even stagnation in other Contracting Parties in the region stands out. In the electricity sector, we may see a regional tipping point coming rather soon, which hopefully will drag the latecomers along. That, after all, is the spirit of a Community. However, in the gas sector, which is not as dynamic and interdependent as the electricity sector, it is still common to protect the national market against competition as if it were a contagious disease.

Finally, the arguably most overlooked event in the Energy Community - the entry into force of the Large Combustion Plants Directive on 1 January 2018 – starts to show results, at least in terms of transparency. This year’s Implementation Report for the first time provides a tracker to monitor for how long so-called opted-out coal-fired power plants can still be legally operated.

Based on the indicators compiled by the Secretariat, the graphics below allow an easier identification of overall frontrunners or problems. For Contracting Party specific indicator charts, including those on emissions, please, refer to the Parties' Overview-pages within this section.