Energy Community News

The Energy Community Secretariat held its next Energy Efficiency Coordination Group (EECG) on March 29, with representatives from ministries of the Energy Community Contracting Parties, the European Commission, and donors such as the EBRD and KfW in attendance.

The Energy Community Secretariat regrets the delay in the opening of Georgia's day-ahead, balancing, and ancillary services markets, which was originally scheduled for March 31, 2023, but has been postponed until July 1, 2023, according to a resolution adopted by the Government of Georgia.

The Energy Community Secretariat and NAK Naftogaz, the national gas company of Ukraine, held a meeting to discuss the current status of the Ukrainian gas market. The Director of the Secretariat, Mr. Lorkowski, and the CEO of Naftogaz, Mr. Chernyshov, focused on the security of supplies for the upcoming winter and the need to re-establish a competitive Ukrainian gas market.

Aggregate EU, the demand aggregation and joint purchasing mechanism, is excited to announce the launch of the subscription process for joint gas. Gas companies and industrial actors operating in all EU Member States and the Energy Community Contracting Parties can now subscribe.  

Following up on a meeting with the participants of the 2020 mediation in the Ukrainian renewables sector on 16 March 2023 in Kyiv, the Secretariat yesterday launched a process meant to settle the current problems faced by the sector. 

Director Artur Lorkowski met with Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina, Staša Košarac, entity ministers for energy, Petar Đokić and Nermin Džindić to discuss the state of energy and climate reforms during his country mission on 27 March 2023.

Under the patronage of Secretary of State Blinken and Minister of Foreign Affairs Hayashi, the Energy Community Secretariat hosted an online conference ‘Assistance for the energy sector of Ukraine - Mobilizing the private sector’ on 23 March 2023. The aim of the information session was to demonstrate how effortlessly businesses around the world can provide support for Ukraine’s energy infrastructure via existing structures.  

As part of a country mission to Serbia, Director Lorkowski discussed today the state of energy market reforms and plans for decarbonization with the Minister of Mining and Energy, Ms. Dubravka Djedović, and other key stakeholders on 24. March. The discussions focused on the transposition of the new electricity package, developments in the process of preparation of National Energy and Climate Plan (NECP) and progress in facilitating security of gas supply.

The Serbian Government terminated the ban on natural gas which was introduced last autumn. Earlier, the Secretariat had communicated to the Serbian authorities that such ban constituted a violation of the Energy Community Treaty’s provisions and required termination.

The Ukraine Energy Support Fund, created at the Energy Community Secretariat in cooperation with the Ministry of Energy of Ukraine, will provide support to the Ukrainian Gas TSO (GTSOU) in completing the renovation of  a piece of critical gas infrastructure. The project is financed by a dedicated grant of EUR 2 million by the Foreign Office of Germany. 

At a visit to Ukraine on 14-16 March, Director Lorkowski and Deputy Director Buschle together with key stakeholders took stock of the state of energy sector reforms amidst the full-scale war by Russia. Director Lorkowski discussed with Prime Minister of Ukraine Denys Shmyhal steps to further integrate the energy markets of Ukraine and the EU under the Energy Community Treaty as well as the state of play of unbundling of the transmission system operators. The Prime Minister,  the Director and Energy Minister German Galushchenko also discussed the international support for the repairment of the damages affecting to the energy sector of Ukraine, coordinated by the Secretariat under the Ukraine Energy Support Fund and the Ukraine Support Task Force. 

On 16 March the Energy Community Secretariat held a Policy Dialogue Event in Kyiv, cohosted with Ministry of Energy of Ukraine, with participation of a number of collaborating international partners.
Following a keynote address, delivered by Director Lorkowski and Mr.Yaroslav Demchenkov, Deputy Minister of Energy, Government of Ukraine, speakers considered how to frame Ukraine’s decarbonisation strategy in the context of green rebuilding, in line with climate neutrality commitments, the EU accession process and the role of the key instruments for strategic policy planning, such as integrated National energy and climate plans (NECPs). 

During a mission to Skopje on 9 and 10 March, Deputy Director Dirk Buschle discussed the state of reforms in the sphere of energy and climate with the Minister for Economy, Mr. Kreshnik Bekteshi and the Minister for Environment, Ms. Kaja Shukova. The discussions focused on the launch of the organized electricity market in May and North Macedonia’s regional integration, unbundling of the gas transmission system operator Nomagas, the state of the revision of the National Energy and Climate Plan (NECP) and compliance with the Energy Community’s environmental norms.

At the 30^th edition of the Kopaonik Business Forum in Serbia, a high-level panel discussed the country’s options and challenges on the path towards the transition of its energy sectors. Alongside participants including Minister Dubravka Dedovic, the CEO of Srbijagas and the World Bank’s country manager, Deputy Director Dirk Buschle advocated for the usage of an open and integrated electricity market in pursuing Serbia’s ambitious policy towards investments in renewable energy.

In course of February 2023, Energy Community Secretariat’s Ukraine Support Task Force assisted GasNet, the largest gas distributor in Czech Republic, and the Czech authorities to deliver seven vehicles and special gas equipment from GasNet’s inventory to Ukraine. The shipment was the first donation from an EU gas distributor to its counterpart in Ukraine.

During a mission to Kosovo* Director Lorkowski and Deputy Director Buschle discussed energy market reform needs with the Minister of Economy, Artane Rizvanolli, the Assembly Committee on Economy, Industry, Entrepreneurship and Trade, the Energy Regulatory Office ERO and the electricity TSO KOSTT.

Today, the Secretariat sent a Reasoned Opinion addressing non-compliance with the Energy Community electricity rules to Serbia. In 2022, the Secretariat had opened a dispute settlement procedure addressing the failure by Serbia’s TSO (EMS) to agree with Kosovo*’s TSO (KOSTT) on coordinated cross-border capacity allocation at the interconnection lines between Niš and Kosova B and between Kruševac and Podujeva.

On 24 February 2023 Director Lorkowski held meetings with key energy stakeholders and government representatives during his visit to Tbilisi. Addressing the state of energy and climate reforms in Georgia, the Director met Vice Prime Minister and Minister of Economy and Sustainable Development Levan Davitashvili. He also took part to a high-level roundtable with First Deputy Minister Romeo Mikautadze, and six director generals representing GNERC, GSE, GGTC, GOGC, ESCO and GENEX.

Yesterday, the Secretariat sent an Opening Letter to Georgia to address its failure to unbundle and certify its electricity transmission system operator Georgian State Electrosystem (GSE) and its gas transmission system operator Georgian Gas Transportation Company (GGTC). The initiation of infringement procedures comes after two failed attempts to certify each of the two transmission system operator under the Ownership Unbundling model and the Independent System Operator model.

Marking one year of Russian invasion in Ukraine, director Lorkowski issued a special statement. 'Particularly today our thoughts are with Ukraine', he declared, and 'when reflecting the first days, the Secretariat was quick to put the disbelief aside and convened an emergency meeting on 1 March 2022. Three days later, a formal assistance agreement between the Secretariat and the Ministry of Energy of Ukraine on the coordination of emergency supplies to Ukraine was signed. This decision gained unprecedented dynamics, shaping the Secretariat's operations in the months to come'.

The Energy Community Secretariat, in its role as the fiduciary of the Ukraine Energy Support Fund, is pleased to announce the signing of a grant agreement with LeasePlan Corporation N.V.  Headquartered in the Netherlands, LeasePlan is the first private company to provide support for Ukrainian energy companies and its citizens via the Ukraine Energy Support Fund. 

On February 15, 2023 Energy Community Secretariat held an online event introducing the Ukraine Energy Market Observatory (UEMO). The meeting was co-chaired by Director Lorkowski, Mechthild Wörsdörfer, the Deputy Director General for the European Commission Directoral General for Energy (DG ENER) and Konstantyn Uschapovskiy, the Chairman of the National Commission for State Regulation in the Spheres of Energy and Communal Services of Ukraine (NEURC).

On 9 February 2023, the Secretariat sent a Reasoned Opinion to Montenegro related to the  non-compliance with the Large Combustion Plants Directive. The domestic thermal power plant Pljevlja continues to operate despite the expiry of its limited lifetime derogation under that Directive (also known as opt-out).

On 14 February, Director Lorkowski met with Ervin Ibrahimović, Deputy Prime Minister and Minister of Capital Investments of Montenegro and Branislav Prelević, President of the Board at the Energy and Water Regulatory Agency of Montenegro. He also addressed the Montenegrin Parliament’s Committee responsible for energy issues.

The Ukraine Energy Support Fund’s procurement activity is operating at full steam. The Fund recently reported full utilisation of the grant by Denmark, through the Danish Energy Agency, and two donations by private donors. With these grants 21 different kinds of items requested by eight different Ukrainian companies (mostly active in electricity and gas distribution) were financed. The Secretariat is the fiduciary for the Fund.

On February 9, 2023, the Energy Community Secretariat launched the EU4Energy Governance Activity on supporting NEURC in finalizing the derogation criteria in line with the Connection Network Codes applicable in Ukraine.

On February 8, 2023, the representatives of the National Energy and Utilities Regulatory Commission (NEURC) and experts from Energy Community Secretariat met under umbrella of EU4Energy Governance Project to discuss joint activities in course of improving the preparation of NEURC’s Annual Report in line with the best EU practices.

The Energy Community Secretariat, in its roles as the fiduciary of the Ukraine Energy Support Fund, is pleased to announce the signing of a fiduciary agreement between the Ministry for Foreign Affairs of Iceland and the Energy Community Secretariat. With its signature, Iceland grants EUR 1.5 million to the benefit of Ukrainian energy companies and its citizens exposed to the impact of the Russian war.

On 1st February 2023, EU4Energy Governance Project, co-financed by the EU, brought together key stakeholders of the electricity market in Georgia (the national regulatory authority GNERC and the Georgian transmission system operator GSE) and Energy Community Secretariat experts for an online meeting to kick off technical assistance to Georgia in the adjustment of the imbalance settlement process in the balancing market.

Marking the beginning of Albania’s 2023 Energy Community Presidency, Director Artur Lorkowski travelled to Tirana to meet with the country’s political leadership. During his visit on 31 January and 1 February, the Director met with Belinda Balluku, Deputy Prime Minister and Minister of Infrastructure and Energy. He also addressed the Committee on Productive Activity, Trade and Environment at the Parliament of Albania.

In an effort to streamline and consolidate its monitoring functions under the Energy Community Treaty with regard to Ukraine, the Energy Community’s largest member currently suffering from a war of aggression by the Russian Federation, the Secretariat created the Ukraine Energy Market Observatory. The Observatory will closely follow and review all developments related to the energy market and corporate governance in Ukraine.

The procurement of the equipment necessary to conduct emergency repairs of the Ukrainian energy system has now started. Earlier in January, the Ministry of Energy of Ukraine approved support requests by 30 energy companies under the Ukraine Energy Support Fund for the procurement of essential energy equipment at an estimated value of over EUR 107 million.

On 25 January, the Energy Community Secretariat held a coordination meeting on joint gas purchasing, gathering high-level representatives of the European Commission, the Contracting Parties, gas companies, and industrial consumers. Co-Chaired by Director Lorkowski and Vice-President of European the Commission, Mr. Šefčovič, the meeting participants were engaged in discussing aspects of the Energy Community’s involvement in the EU-based initiative.

Under a memorandum of understanding signed today, the Energy Community Secretariat and the Ukrainian energy regulator, NEURC, agreed on a procedure defining the roles and responsibilities in cooperating on so-called public service obligations. Public service obligations are state interventions in the energy market and individual companies’ conduct on such markets. In order to be compliant with the Energy Community framework, they need to satisfy certain standards. Energy Community and Ukrainian legislation require that NEURC and the Secretariat cooperate in designing public service obligations.

On 25 January, the Energy Community Secretariat will convene a coordination meeting on joint gas purchasing, gathering high level representatives of the European Commission, the Contracting Parties, gas companies and industrial consumers. The meeting will serve to identify potential gas demand for joint procurement via the EU Energy Platform.

The Energy Community Secretariat is organizing an information session on the upcoming procurement of the equipment necessary to conduct emergency repairs of the Ukrainian energy system under the Energy Community Ukraine Energy Support Fund.

Applications are now open to join our 2023 Energy Community Summer School. The Summer School offers a unique opportunity for up to 48 postgraduate students and young professionals to gain an in-depth knowledge of the energy transition in its full complexity and provide them with a platform for exchange and shaping the sector’s future. The Summer School will take place from 19 to 26 August 2023 at the Faculty of Political Science of the University of Belgrade, Serbia.

The Ukraine Energy Support Fund will receive a financial donation of EUR five million from the European Commission to help Ukrenergo, the Ukrainian electricity transmission system operator, to deal with the terrible impact of the Russian war against Ukraine’s energy infrastructure. With this support, Ukrenergo will receive the needed equipment to make emergency repairs to the electricity infrastructure damaged by Russian bombing and ensure stable functioning of the power system. The grant agreement between the European Commission and the Energy Community Secretariat was signed on 4 January.

Last week, the Ministry of Energy of Ukraine approved support requests by 30 energy companies under the Ukraine Energy Support Fund for the procurement of essential energy equipment at an estimated value of over EUR 107 million. The Ministry’s decision triggered the procurement procedure for the requested items, including power transformers, generators, valves, pumps, pipes, oil transformers, surge arresters, batteries, disconnectors, wires, insulators and circuit breakers, to be conducted by an independent procurement agent.

The Spanish Ministry for the Ecological Transition and the Demographic Challenge made a contribution of EUR 4.5 million to the Ukraine Energy Support Fund to be disbursed by the Energy Community Secretariat to the benefit of Ukrainian energy companies through the Ukraine Energy Support Fund. It thereby contributes to the support provided by other European governments to the energy sector of Ukraine and its citizens exposed to the impact of the Russian war during this winter.

On 29 December, the President of Ukraine signed the Gas Storage Certification Law. Certification of gas storage system operators is a key element of the Gas Storage Regulation adopted by the Ministerial Council in October 2022.  The mechanism strengthens security of gas supply in the Energy Community Contracting Parties and EU Member States. 

On 30 December 2022, a three-phase 110 kV transformer donated by Latvenergo was successfully received in Ukraine and will be used to restore the Ukrainian power system after the Russian military attacks. Latvenergo AS successfully cooperated with the State Fire and Rescue Service and international institutions – the Energy Community Secretariat and the European Union Emergency Response Coordination Centre – to ensure the delivery of the transformer to Ukraine.

Yesterday, the Ukrainian President signed the Law on amending the Customs Code and the Law on amending the Tax Code of Ukraine in order to encourage donation efforts and help rebuild the energy infrastructure of Ukraine. Following the Laws’ entry into force, donations of emergency energy equipment, materials and other items arriving in Ukraine under the umbrella of the Energy Community will be exempt from VAT and other taxes. The legal changes were initiated particularly to cover the equipment procured under the Ukraine Energy Support Fund.

The Council of European Energy Regulators (CEER) and the Energy Community Regulatory Board (ECRB) publish today the 7th Benchmarking Report on the Quality of Electricity and Gas Supply, a key document identifying good regulatory practices on the quality of supply in electricity and gas grids that help to safeguard European consumers from energy cuts.

The Secretariat was alerted about a huge explosion at the Urengoy – Pomary – Uzhgorod pipeline in Russia’s Vurnar district of Chuvashia. This is the main pipeline supplying Europe with Russian gas. The Secretariat was informed by the Gas Transmission System Operator of Ukraine (GTSOUA) that transit via Ukraine remains unaffected for the time being and will continue to stay in close contact with transmission system operator.

Upon requests of the parties, the Secretariat will mediate a dispute which has arisen between the Ministry of Environment, Spatial Planning and Infrastructure of Kosovo* and the Austrian hydropower investor KelKos. The dispute concerns the three hydropower projects on the Deçan river, Lumbardhi II, Belaja and Deçani, which were in operation until 2021 when the operational permits were suspended by a Supreme Court ruling based on environmental grounds. While the Constitutional Court recently declared that ruling unconstitutional, the final decision on the validity of the permits is still pending. 

The Georgian State Electrosystem became the first issuing body to sign an agreement with the service provider on the go-live of the national electronic registry for guarantees of origin for energy from renewable sources. Guarantees of origin allow consumers to choose the origin of their energy and in that way empower them to contribute to the energy transition. They are also key for enabling corporate Power Purchase Agreements.

On 15-16 December 2022, two workshops on assessing the progress in transposition and implementation of the EU acquis in Georgia, as provided by the Energy Community Treaty and bilateral agreements/partnerships with the EU, were held under the EU Energy Governance Project.

A well-attended trilateral workshop on sustainable empowerment, security of energy supply and interoperability of the systems in Vienna attracted participants from three regulatory organisations. The event kicked off a larger initiative within the framework of a long-term cooperation between the Council of European Energy Regulators (CEER), the Energy Community Regulatory Board (ECRB) and the Association of Mediterranean Energy Regulators (MEDREG).

Yesterday, the Kosovo* National Assembly adopted the Law on Environmental Impact Assessment. The Law will strengthen environmental protection in Kosovo* by ensuring that projects that have significant impacts on the environment are granted building permits only after their assessment has been carried out and suitable mitigation measures put in place. 

The Federal Ministry for Economic Affairs and Climate Action of Germany has announced a EUR 99,5  million contribution to the Ukraine Energy Support Fund. The grant agreement was signed today between the Energy Community Secretariat and the German Development Bank KfW. The bank was commissioned by the Ministry to implement the agreement on behalf of the German Government.

The Energy Community Ministerial Council adopted 2030 targets to reduce primary and final energy consumption, accelerate the uptake of renewables and reduce greenhouse gas emissions to achieve climate neutrality by 2050 at its meeting in Vienna today under the presidency-in-office of Ukraine. The Ministers also adopted a new electricity package that will enable full market integration of Energy Community Contracting Parties into the European market, based on the principle of reciprocity, that will support the large-scale integration of renewables and coal-phase out. They also discussed coordinating measures to secure energy supplies and address the impacts of the price surge.

The EBRD and Energy Community Secretariat are strengthening their joint emergency support for Ukraine’s energy sector. A Memorandum of Understanding (MoU) was agreed on the margins of the international donors’ conference “Standing With The Ukrainian People” in Paris. 

The German Federal Foreign Office has announced a contribution of EUR 30 million for emergency energy equipment and support to the Ukraine Energy Support Fund.

The Ukraine Energy Support Fund provides for the procurement of vital emergency energy equipment needed for the stable operation of the energy system of Ukraine on the basis of requests by Ukrainian energy companies. The Secretariat invites potential suppliers of items and/or services to present their portfolio and submit unsolicited offers.

As of 10 October 2022, Russia has been deliberately shelling Ukraine’s energy infrastructure in a series of missile and drone attacks whose consequences are still unfolding. Ukrenergo, the Ukrainian electricity transmission system operator, has incurred probably the most severe damages, as its transmission lines, power stations and dispatch centres have been particularly targetted. As of November 2022, the damage inflicted on Ukrenergo alone was estimated at more than EUR 2 billion. The estimations do not include the damage caused by the latest attacks on energy infrastructure.

On 9 December, in Tbilisi, the Energy Community Secretariat, with the support of the EU, under the umbrella of the EU4Energy project (phase II), brought together Georgian stakeholders for the Workshop to discuss establishing a conducive renewables legal framework.

On 7 December, representatives of USAID regional offices based in the Contracting Parties visited the premises of the Energy Community Secretariat. The USAID delegation was led by Lisa Magno, Senior Deputy Assistant Administrator, Europe and Eurasia Bureau. The meeting focused on further integration of the power markets in the Energy Community and the emergency support provided to Ukraine, as well as support to other Contracting Parties in modernizing their energy sectors in line with the acquis communautaire and the European Green Deal.

Ahead of the Energy Community Ministerial Council on 15 December, the Energy Community Secretariat published its Annual Implementation Report which tracks the Contracting Parties’ progress in implementing the Energy Community acquis.

In the lead up to next week’s Ministerial Council, Parliamentarians of the Energy Community Contracting Parties and the European Parliament exchanged views on the most pressing issues in the context of the ongoing war in Ukraine, concerns about security of energy supply and the unprecedented rise in energy prices. The Parliamentary Plenum meeting was chaired by Inna Sovsun, Chair of Subcommittee on European Integration and Member of the Committee on Energy of Verkhovna Rada on behalf of the Ukrainian Presidency of the Energy Community 2022. Morten Petersen, Vice-Chair of the Committee on Industry, Research and Energy of the European Parliament delivered opening remarks.

The Secretariat welcomes the agreement reached between Energocom, the public electricity trader of Moldova, and the Denstrovsk Power Plant (MGRES) on electricity supply for the month of December, and potentially beyond. The Moldovan gas supplier Moldovagaz will supply gas to MGRES for the production of electricity. In these difficult times of winter, this arrangement will allow customers everywhere in Moldova to have access to electricity at affordable prices.

On 2 December, EU4ENERGY brought together key electricity stakeholders in Moldova to discuss how the country can participate in the European inter-transmission system operator compensation (ITC) mechanism in order to take full advantage of the synchronization of its power system with Continental Europe and transpose and implement Regulation (EU) 838/2010 as required under its membership of the Energy Community. The successful joining of the ITC Mechanism will bring the country’s transmission system operator closer to European ENTSO-E standards and advance market integration with the European Union.

Yesterday, Director Lorkowski met Serbia’s newly appointed Minister of Mining and Energy, Dubravka Đedović, in Belgrade. The discussion focussed on cooperation between Serbia and the Secretariat to advance the country’s energy transition and reforms in line with the acquis as well as energy security and affordability.  

The Energy Community Secretariat brought together representatives of ministries and institutions dealing with renewables in the Contracting Parties under the umbrella of the Renewable Energy Coordination Group. The group expressed support for the adoption of 2030 climate and energy targets at the December Ministerial Council meeting in Vienna and discussed short-term measures to boost the use of renewables in order to tackle the current energy crisis. The speeding-up of the permit-granting procedures for renewables projects, best practices on creating an enabling framework for corporate power purchase agreements and self-consumption schemes were in focus.

On 30 November, representatives of the Ministry of Infrastructure and Regional Development (MIDR), Energy Efficiency Agency, State Inspectorate for non-Food Products Surveillance and Consumer Protection, together with the EU Delegation to Moldova and Energy Community Secretariat experts, discussed the transposition and implementation of the newest EU energy labelling regulations in Moldova. The new energy labels, scheduled to be adopted at the December Energy Community Ministerial Council in Vienna, will enable consumers to make better informed choices about their purchases, helping them to lower their energy bills and supporting the country’s decarbonization goals.

The Energy Community Secretariat together with the World Bank is organizing an information session on the upcoming procurement of the equipment necessary to conduct emergency repairs of the Ukrainian power transmission system under the Energy Community Ukraine Energy Support Fund and the World Bank Multi-Donor Trust Fund. 

The Energy Community Secretariat initiated a series of capacity building workshops for Ukrainian stakeholders on Regulation (EU) 1227/2011 on wholesale energy market integrity and transparency (REMIT). This technical assistance was launched in response to the request from Ukrainian authorities that are finalizing the draft Law on Amendments to Certain Laws of Ukraine on Prevention of Abuse in Wholesale Energy Markets (#5322), the initial version of which was developed under EU4Energy (Phase I).

The annual meeting of the Initiative for coal regions in transition in the Western Balkans and Ukraine took place on 22 – 23 November 2022 in Brussels. The event gathered representatives of public authorities, international organisations, energy sectors, civil society and trade unions to discuss key issues currently facing coal regions, including coal phase-out policy challenges linked to the ongoing energy crisis and Russia’s war on Ukraine and financing implications on the just transition. The Secretariat was represented by the Director – Artur Lorkowski and Head of the European Green Deal Unit – Adam Cwetsch. 

In spite of fulfilling its payment obligations, Moldova is under threat of being cut off from Russian gas supplies. Gazprom has made unsubstantiated claims that a third party - Ukraine - is decreasing the actual quantities needed for Moldova. All these claims are false as Ukraine’s gas transmission system operator is performing its transit obligations for months in spite of the war conditions. It is another example of the unreliability of the Russian supplier and the use of gas supplies as blackmail.

As called for by Ministerial Council Decision on the adoption of the Regulation on Gas Storage in the Energy Community, the Secretariat adopted the filling trajectory and respective intermediate targets to ensure that Contracting Parties with underground gas storage facilities, namely Serbia and Ukraine, reach the mandatory target of 90% by 1 November 2023.

The Energy and Climate Committee met in the EU Pavilion on the side-lines of COP27 in Sherm-el-Sheik. The meeting, co-hosted by the Secretariat, brought together the European Commission, represented by Ditte Juul Jørgensen, Director-General – DG ENER, Cristina Lobillo Borrero, Director of Energy Platform Task Force - DG ENER and Diana Acconcia, Director of International Affairs and Climate Finance – DG CLIMA, officials of the Contracting Parties and civil society organizations represented by CAN Europe.

The Ukraine Energy Support Fund will receive a financial donation from the Government of the United Kingdom. The agreement to transfer the first £5 million of the UK’s £10 million commitment to the Fund was signed today. The support will be used to purchase vital emergency energy equipment to repair critical energy infrastructure damaged by Russian attacks.

European Commissioner for Energy, Kadri Simson, Minister of Energy of Ukraine, German Galushchenko and Energy Community Secretariat Director Director, Artur Lorkowski, have launched a joint appeal to ramp up emergency equipment donations to Ukraine.

At the Berlin Summit, Western Balkan leaders adopted a seminal Declaration on Energy Security and Green Transition, underlining their commitment to the European Green Deal and enhanced regional cooperation in the process of transforming their energy sectors. The Declaration envisages that these commitments will be further conceptualized, supported and monitored in the framework of the Energy Community and are aligned with the European Green Deal. Donors and international financial institutions were invited to streamline their financial support to the policies, measures and actions set out in the national energy and climate plans to be endorsed by the Energy Community Secretariat and adopted by the end of 2023. The Summit was attended by Director Lorkowksi and Deputy Director Buschle.

Today, the Secretariat sent an Opening Letter to Bosnia and Herzegovina to address its breach of the Large Combustion Plants Directive in the case of the two thermal power plants  Tuzla 4 and Kakanj 5, which continue to operate despite the expiry of their limited lifetime derogation period (also known as „opt-out”). Operation after the derogation period ends has negative impact on citizens in Bosnia and Herzegovina as air pollution is responsible for severe health and environmental damage.

During his week-long mission to Kyiv, Director Lorkowski met with representatives of the Ukrainian government and energy sector stakeholders to discuss immediate actions to ensure the stability of Ukraine’s energy system during wartime while continuing the reform process under the Energy Community Treaty. Director Lorkowski pledged to redouble the Secretariat’s efforts to support Ukraine, including by strengthening donor coordination activities and advancing the country’s post-war energy transition in line with 2050 decarbonisation goals.

Director Lorkowski discussed the green transition of Ukraine’s energy sector with First Deputy Minister of Ecology and Natural Resources of Ukraine Ruslan Grechanyk and Deputy Minister Svitlana Grinchuk today in Kyiv.

During his mission to Kyiv, Director Lorkowski met with the Minister of Energy of Ukraine, German Galushchenko. The discussions centred on strengthening the Energy Community Secretariat’s support for Ukraine. The mission took place against the backdrop of intensified Russian attacks targeting the country’s civilian energy infrastructure.

The Secretariat is committed to advancing the energy transition in the Energy Community Contracting Parties. Accurate and fact-based reporting on issues surrounding the energy transition as well as creating positive narratives are important factors in facilitating the social acceptance of the energy transition. To prepare journalists to cover the energy transition with greater knowledge and skill, the Energy Community Secretariat is now accepting applications for a journalism training workshop to be held on 14 December in Vienna.

Two trucks loaded with urgently needed equipment for the repair of Ukraine’s energy infrastructure donated by the MOL Group left Százhalombatta, Hungary. The materials, valued at ca. EUR 135.000, include pipes, valves, cables, insulators, welding electrodes and more. The shipment was coordinated by the Energy Community Secretariat’s Ukraine Support Task Force, which was on site at the Danube Refinery during the loading of the goods together with representatives of MOL and the Embassy of Ukraine in Budapest.

Energy Community Contracting Parties and Director Lorkowski attended the informal meeting of EU Energy Ministers today. During a special session dedicated to exchanges between the Contracting Parties and EU Member States, Ministers discussed energy security, winter preparedness and high energy prices against the backdrop of the ongoing war in Ukraine, the decreasing supply of Russian gas to Europe and the related energy crisis.

The Ministerial Council of the Energy Community has adopted by written procedure the Gas Storage Regulation. The new rules require those Contracting Parties that have storages, notably Serbia and Ukraine, to fill them to at least 80% of capacity. Contracting Parties without underground gas storages but with gas in their energy mix are required to ensure that their market participants have in place arrangements in Contracting Parties and/or Member States with those facilities.

Ukraine’s energy infrastructure has suffered major damage in the latest wave of Russian attacks. According to reports, 11 energy facilities were damaged in 8 regions of Ukraine and the city of Kyiv. Thermal power plants are offline and substations, transformer stations and distribution lines around the country have been destroyed. Power outages were reported in several regions. 

This week’s Energy Community Gas Forum focused on the state of play of the Energy Community Contracting Parties’ preparedness for this winter and the security of supply situation in the region. In view of the tight gas supply situation, the Forum discussed concrete mitigation measures in case of a prolonged halt of Russian supplies and underlined the need to step up cooperation and coordination between Energy Community Contracting Parties and EU Member States, as underlined in the recently published SEEGAS study. This includes the swift application of the EU’s Network Codes at border points and the prompt signing of interconnection agreements between Energy Community Contracting Parties and EU Member States.

Today, the Secretariat opened dispute settlement procedures against Bosnia and Herzegovina for the exemption from the payment of toll for diesel fuel used by mines and thermal power plants for the production process and used to drive railway vehicles. The toll exemption has never been notified to and approved by the State Aid Council and exemptions constituting State aid are granted year after year since 2010. Therefore, the Secretariat took the preliminary view that Bosnia and Herzegovina infringed the Treaty by not effectively ensuring implementation of the State aid prohibition.

Discussions on security of gas supply and winter preparedness took center stage at today’s Energy Community Gas Forum in Ljubljana. The situation in Moldova was in particular focus due the Russian Federation’s recent announcement to reduce gas transit quantities from the contractual quantity of 8.1 mcm/d to 5,7 mcm/d as of 1 October 2022 and the country’s unique vulnerability in such a case. The Transmission System Operator of Ukraine confirmed that Ukraine was ready to transport the quantities required by Moldova.

Electricity distribution networks form a critical part of local energy systems with distribution system operators (DSOs) charged with ensuring reliable electricity supply, which is delivered in a safe and secure way. Following the Covid-19 crisis, DSOs are again under increased financial stress as they face high electricity purchase costs without the possibility of their recovery though network tariffs. In a position paper published today, Energy Community electricity DSOs call on national regulatory authorities to amend the rules and procedures for distribution tariff setting in order to ensure they can react adequately to rapidly changing developments on the electricity market.

At its plenary session of 30 September 2022, the Parliament of the Republic of Moldova adopted the Law on Industrial Emissions. This is an important step in ensuring compliance with the requirements of integrated permitting and the application of the concept of the best available techniques, as well as the introduction of compliant emission limit values for large combustion plants beyond 2028.

In a time of increased instability due to the Russian invasion of Ukraine, Energy Community Contracting Parties and EU Member States face the risk of gas supply disruptions and skyrocketing energy prices. Taking into account the urgency of ensuring the energy security of consumers in preparation for winter, the Energy Community Secretariat outlines concrete measures to mitigate gas supply risks through more efficient usage of existing gas infrastructure and new supply routes in a report published today under the “SEEGAS Initiative”.

Opening the Energy Community Oil Forum in Belgrade, Deputy Prime Minister and Minister of Mining and Energy of Serbia, Prof Dr Zorana Mihajlovic, underlined the importance of supplier diversification, a well-functioning energy market and infrastructure as well as regional cooperation under the Energy Community as critical for ensuring security of energy supply.

On 27 September, representatives of the Ministry of Regional Development and Infrastructure, the National Agency for Energy Regulation, Moldelectrica and Energocom (as acting Central Electricity Buyer), together with the EU Delegation to Moldova and Energy Community Secretariat experts, discussed the implementation of the day-ahead market (DAM) in Moldova, supported by the EU4Energy Governance Project. The establishment of the DAM is a crucial step to develop the country’s electricity market in compliance with Moldova’s obligations within the framework of the Moldova–European Union Association Agreement and the Energy Community Treaty, especially in the context of early synchronization with ENTSO-E and enabling deeper cooperation with Ukraine. 

On 14 July 2022, the Secretariat had submitted a Reasoned Request to the Ministerial Council under Article 91 of the Treaty concerning failure to transpose the so-called Connection Network Codes, incorporated in the Energy Community in 2018. Over the summer, namely on 25 August 2022 and 8 September 2022, the Government of Serbia adopted the network codes transposing the Energy Community’s Connection Network Codes on national level. This rectifies the breach identified in the Secretariat’s Reasoned Request. The Secretariat hence decided to withdraw its Reasoned Request.

On 13 September, the representatives of the Ministry of Economy and Sustainable Development of Georgia (MoESD), the Georgian National Energy and Water Supply Regulatory Commission (GNERC), the electricity transmission system operator - JSC Georgian State Electro system (GSE) and the Electricity Market Operator (ESCO) met with experts of the Energy Community Secretariat to discuss how to boost the country’s security of electricity supply ahead of the upcoming winter season. The Workshop took place on the premises of GSE in Tbilisi and focused on finalising the Risk Preparedness Plan, prepared under the EU4Energy Project (Phase II), aiming to identify and categorise the potential risks for the security of supply in the electricity sector of Georgia and define national, regional and bilateral measures to be planned or taken to prevent, prepare for and mitigate electricity crises.

The Ukraine Energy Support Fund will receive a financial donation from the Energy Regulators Regional Association (ERRA) under an agreement signed yesterday between the Association, the Ministry of Energy of Ukraine and the Energy Community Secretariat. The donation will be used to purchase vital emergency energy equipment and fuels to ease the hardship of Ukrainian people in anticipation of the most challenging winter in decades.

Since December 2020, KOSTT, the electricity transmission system operator (TSO) of Kosovo*, operates a single bidding zone and control area within the system of Continental Europe. However, at the interconnection lines between Niš and Kosova B and between Kruševac and Podujeva, Serbia’s TSO EMS has not agreed with KOSTT on a mechanism to set the net transfer capacity (NTC), nor has it determined any value for the available interconnection capacity. Therefore, the value of the NTC at these interconnection lines amounts to zero, which effectively prevents trade.

The Energy Community Ministerial Council is expected to adopt 2030 energy and climate targets at its meeting on 15 December 2022 in Vienna under the presidency-in-office of Ukraine. The adoption of the targets is essential to put the Energy Community Contracting Parties on a path towards achieving climate neutrality of their economies by 2050 and decreasing dependence on fossil fuels in the shorter term.

North Macedonia has become the first Energy Community Contracting Party to donate emergency energy equipment to Ukraine. Six electricity transformers given in-kind by the distribution system operator Elektrodistribucija DOOEL, a daughter company of EVN North Macedonia, were delivered to Ukraine. The delivery of the shipment was coordinated by the Secretariat’s Ukraine Support Task Force.

The Energy Community Secretariat expresses concern over the further postponement of the day-ahead, balancing and ancillary services markets establishment in Georgia.

Effectively tackling the multifaceted challenge of energy poverty has become more urgent than ever.  Rapidly rising energy prices and inflation have pushed more people into energy poverty and worsened their living standards. This is a growing concern in particular for the Energy Community Contracting Parties where citizens already suffer from energy poverty. The recommendations published today by the Secretariat are designed to assist the Contracting Parties in putting in place targeted policies and measures to tackle energy poverty.  

On 29 July, the Moldovan Parliament adopted amendments to the existing Law on natural gas in order to address scarcity and price volatility in the gas market and enhance its preparedness in case of a potential gas supply disruption. For the first time, Moldovan operators will be permitted to store natural gas in neighboring Energy Community or EU countries and harmonized entry-exit tariffs will facilitate cross-border gas flows. The new amendments also enable the Moldovan energy regulator to “force” the unbundling and certification of transmission systems operators under the independent system operator model.

By decisions of 7 July 2022 the Georgian regulatory authority GNERC refused certification of Georgian State Electrosystem (GSE) and Georgian Gas Transportation Company (GGTC), the Georgian electricity and gas transmission system operators. It gave both TSOs a deadline to comply with the conditions from the Final Decisions by 1 August 2022 and to notify GNERC of fulfilling those conditions by 8 August 2022.

On 14 July 2022, the Secretariat initiated dispute settlement procedures against three Contracting Parties by submitting Reasoned Requests to the Ministerial Council. The cases concern Serbia for not transposing the Connection Network Codes (Case ECS-3/22), North Macedonia for not transposing the REMIT Regulation (Case ECS-4/22) and Kosovo* for not transposing the Environmental Impact Assessment Directive (Case ECS-5/22), in line with the deadlines foreseen by the Energy Community acquis.

Ministers responsible for energy and climate concluded negotiations on the level of 2030 targets for energy efficiency, renewables and greenhouse gas emission reduction at the Informal Energy Community Ministerial Council on 8 July in Baden, Austria, under the presidency-in-office of Ukraine.

As the energy transition advances in the Energy Community Contracting Parties, the share of power generation from variable renewables such as wind and solar will increase manyfold. The Energy Community power system with currently planned investments until 2030 can integrate as much as 30 GW of variable renewables without additional investments into flexibility sources, reveals an Energy Community study published today. Higher levels of variable renewables will require a more flexible power system to balance supply with demand, but investments will be substantially lower if existing cross-border infrastructure is better utilized and short-term electricity markets are operational and coupled with the EU.

Today, over 150 stakeholders gathered at the Just Transition Forum in Sarajevo and online to discuss the best ways for the Energy Community Contracting Parties to embrace a just energy transition by designing climate and energy policies that are fair and inclusive. The Forum underlined the importance of ambitious and credible energy and climate targets for 2030, underpinned by National Energy and Climate Plans to guide the delivery of long-term policy objectives, based on stakeholder consultation and engagement in the preparation of the plans. The Forum gathered representatives of national, regional and local governments of the Energy Community Contracting Parties, high-level officials as well as representatives of civil society, academia, international organisations, trade unions and youth.

The Energy Transition Tracker published today points to positive trends in terms of progress made by all nine Energy Community Contracting Parties in reducing electricity production from coal and boosting renewables. Coal-based electricity production dropped in all Contracting Parties, diving to a five-year low and an average decrease of 13% from 2020 to 2021, while carbon emissions from fossil fuels fell by 11%. The share of renewables in the generation mix grew, with 979 MW of solar photovoltaic and 611 MW of wind added, while biomass capacity grew 2,5 times.

On 29 June 2022, the State Aid Council of Bosnia and Herzegovina annulled its decision from 2018 where it found that a guarantee granted by the Federation of Bosnia and Herzegovina in favour of the Export-Import Bank of China for a loan by the latter to the public utility Elektroprivreda BiH d.d. Sarajevo for the Tuzla 7 coal power plant project does not constitute State aid. Following the argumentation by the Secretariat in an infringement case against Bosnia and Herzegovina (Case ECS-10/18), the State Aid Council now decided that the guarantee constitutes illegal State aid which the Federation’s Ministry of Finance is obliged to recover.

The Energy Community held its fourth South-East European Gas (SEEGAS) Joint Steering Committee meeting in Vienna on 30 June and 1 July. Participants agreed that the risks of a Russian gas supply disruption in the region can only be addressed through further market integration and the harmonisation of market rules, as well as trading and post-trading structures on regional gas exchanges. The meeting focused on how to fast-track the integration of gas infrastructure and markets in central, southern and eastern Europe. In order to react to the ongoing gas crisis effectively, the meeting was joined by representatives from the European Commission, ACER, EBRD, USAID, ENTSOG, Europex and EFET. 

Following the emergency synchronisation of the Ukraine/Moldova power systems with Continental Europe on 16 March 2022, the Energy Community Secretariat welcomes the implementation of the pre-conditions set by the transmission system operators (TSOs) of Continental Europe for allowing commercial exchanges on the interconnections with Ukraine and the gradual start of commercial exchanges on 30 June. The Energy Community Secretariat supports the work of the TSOs and the national regulatory authorities (NRAs) in ensuring harmonised and efficient allocation and use of cross-border capacity.  

On 23 June, representatives from the European Commission, the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), Engie Impact, E-Control, the European Institute of Energy Equality (EIGE) and the Energy Community Secretariat gathered to raise awareness of the importance of gender disaggregated data in the energy sector. Gender-disaggregated data is needed to advance gender equality and diversity in the energy sector in order to produce a swifter and more inclusive energy transition, boosting innovation and accelerating the attainment of multiple Sustainable Development Goals.

I sincerely welcome yesterday’s decision of the European Council to grant EU candidate status to Ukraine and Moldova and set forth a clear EU perspective for Georgia.

On 24 June 2022, the national regulatory authorities of the Republic of Moldova and Ukraine (ANRE and NEURC), transmission system operators (Moldelectrica and Ukrenergo), the European Commission (DG Energy and the Support Group to Ukraine) and Energy Community Secretariat experts discussed how to ensure fair compensation to transmission system operators for the costs of hosting cross-border flows of electricity, known as the ITC Mechanism. This is important for ensuring the continuity of electricity market integration of Moldova and Ukraine with the Continental Europe power system following the emergency synchronization of the two countries. The technical assistance is implemented in the framework of the EU4Energy Governance Project.

Following the EU-facilitated dialogue, Kosovo* and Serbia agreed on a roadmap for implementation of the Energy Agreements of 2013 and 2015.

The 9^th Energy and Climate Committee met on 20 June in Vienna to negotiate the 2030 energy and climate targets for the Energy Community Contracting Parties. The adoption of 2030 targets is needed to accelerate the clean energy transition and set the countries on the path to decarbonisation by 2050.

On 17 June 2022, the national regulatory authorities of Moldova and Ukraine (ANRE and NEURC), transmission system operators (Moldelectrica and Ukrenergo), EU Delegation to Moldova, the Support Group to Ukraine and Energy Community Secretariat experts came together to discuss how to advance electricity market integration between the two countries, focussing on the process of unintentional deviations settlement.

The energy sector is currently facing a major transformation which implies multiple challenges, such as price surge and security of supply concerns and increasing energy poverty as well as many opportunities like digitalisation in light of the Clean Energy Package, as well as the transformation of heating and energy generation to meet decarbonisation goals. These themes were addressed at the workshop jointly organised by the Council of European Energy Regulators (CEER), the Energy Community Regulatory Board (ECRB) and the Association of Mediterranean Energy Regulators (MEDREG) on 15 June 2022 in Vienna.

Energy poverty is a prevailing problem in the Energy Community Contracting Parties and needs to be placed at the forefront of efforts to ensure a just and inclusive energy transition. Addressing energy poverty is at the centre of the Energy Community’s Just Transition Initiative and the newly created Centre for Alleviating Energy Poverty started its mission to promote solutions for its reduction.

On 7 June, the transmission system operators (TSOs) of Continental Europe responded positively to the request of Ukraine’s TSO Ukrenergo for the gradual opening of commercial electricity exchanges on the interconnections with Ukraine. This follows the emergency synchronization with the network of Continental Europe on 16 March this year. The Regional Group Continental Europe also set the key technical conditions that need to be fulfilled before the commercial exchanges can start.

On 3 June, Director Lorkowski met with the Deputy Prime Minister for regional development and Minister of Capital Investments of Montenegro, responsible for energy issues, Ervin Ibrahimović. The discussions focussed on the country’s progress in transposing the Clean Energy for all European package, its coal phase-out strategy, efficient and renewable energy deployment and the current situation in the energy market. Director Lorkowski highlighted priorities at the level of the Energy Community, including the adoption of 2030 energy and climate targets and the implementation of the Decarbonisation Roadmap.

Over 200 stakeholders discussed how to take advantage of the momentum to accelerate regional electricity market integration and the transition to renewable energy following Russia’s invasion of Ukraine and the energy price surge at the Energy Community’s biggest annual conference on electricity, which took place in hybrid format on 1 and 2 June.

As of 1 June, the electricity market rules entered into force in Moldova. These rules establish a balancing mechanism that sets a level playing field for all market players and unlocks the potential to utilise the interconnection with Ukraine. This boosts competition and security of supply, mitigating Moldova’s dependence on one dominant electricity source.

Director Artur Lorkowski and Deputy Prime Minister for Economic Affairs of North Macedonia, Fatmir Bytyki, agreed to step up cooperation to accelerate the just energy transition during their meeting in Skopje on 31 May. The meeting coincided with the adoption of the final National Energy and Climate Plan by the Government of North Macedonia, following the Secretariat’s recommendations.

Under the regional project launched by the Energy Community Secretariat in January 2022, electronic registries for guarantees of origin have been created for Albania, two entities in Bosnia and Herzegovina, Georgia, Kosovo*, North Macedonia, Moldova, Montenegro and Ukraine. All nine registries are ready to go-live following the signing of direct agreements between the Contracting Parties’ issuing bodies and the service provider Grexel. After signing the agreements, two or more Contracting Parties will be able to trade guarantees of origin through the regional system established by the service provider.

Donations of energy equipment are urgently needed to keep Ukraine's energy infrastructure operational and restore energy supply to hundreds of thousands of families and businesses. The Energy Community Secretariat’s Ukraine Support Task Force (USTF) coordinates first aid shipments of critical specialised energy equipment to Ukraine donated by private companies. 

The Energy Community Secretariat continues supporting Ukraine and Moldova in aligning their legal and regulatory frameworks with EU rules.

On 11 May, Energy Community experts in close cooperation with the Ministry of Economy and Sustainable Development of Georgia (MoESD), the Georgian National Energy and Water Supply Regulatory Commission (GNERC), the electricity transmission system operator - JSC Georgian State Electrosystem (GSE) and the Electricity Market Operator (ESCO) kicked off EU4Energy technical assistance aimed at supporting Georgia in drafting amendments to the current Law on promotion of energy from renewable sources to transpose Renewables Directive 2018/2001 as adapted and adopted by the 2021 Energy Community Ministerial Council.

On 23 May, the Agency for the Cooperation of Energy Regulators (ACER) and the Energy and Water Services Commission of North Macedonia (ERC) signed an agreement that formalizes ERC’s participation in ACER’s electricity working group. This follows an assessment of the Energy Community Secretariat on compliance of North Macedonia with Third Package requirements in the electricity sector and regulatory independence as well on environmental, competition, climate and renewables performance.

With the conclusion of the negotiations on the European Commission’s proposal on the carbon border adjustment mechanism (CBAM) around the corner, the Energy Community brought together key stakeholders to take stock of the opportunities and challenges posed by the implementation of the CBAM instrument. Participants recognized the beneficial role that CBAM could have on incentivizing increased decarbonization efforts and compliance with the Energy Community emission reduction rules.

During their mission to Kosovo*, Director Lorkowski, Deputy Director Buschle and Electricity Expert Kllokoqi met the Deputy Prime Minister Besnik Bislimi, Minister of Economy Artane Rizvanolli and Deputy Minister for Environment, Spatial Panning and Infrastructure Linda Cavderbasha. They also held meetings with representatives of the Parliamentary Committee responsible for energy, the Energy Regulatory Office and other energy stakeholders. The discussions focused on the transposition of the Clean Energy for all European Package, the forthcoming Network Codes and Guidelines for electricity, Kosovo*’s Energy Strategy and the National Energy and Climate Plan. The Secretariat committed to support the Kosovan authorities in developing the legal acts necessary for regional market integration and attracting investments in renewables.

Published by the European Commission today, the new EU External Energy Strategy defines the Energy Community as the framework for promoting ambitious energy and climate policies and market reforms. The Strategy is part of the REPowerEU Plan that aims to end the EU's dependence on Russian fossil fuels and tackling the climate crisis and sets out how the EU will work together with its neighbours. 

Parliamentarians of the Energy Community Contracting Parties and the European Parliament met today in Brussels under the umbrella of the Energy Community Parliamentary Plenum. In the presence of EU Commissioner for Energy Kadri Simson, Members of Parliament discussed how to strengthen Europe’s energy security following Russia's invasion of Ukraine. Support for the energy sector of Moldova and Ukraine and enhanced European energy market integration were also discussed.   

Moldova’s main electricity supplier, Energocom, has signed a contract with the Ukrainian hydropower producer, Ukrhydroenergo, for supplying around 30% of demand in Moldova for the period from 12 until 31 May 2022.

Today, the Secretariat submitted an Opening Letter to Moldova to address its failure to adopt the legal framework necessary for the transmission system operator to effectively offer backhaul capacity. In the Opening Letter, the Secretariat preliminarily concludes that although Moldova transposed the provision of the network code obliging transmission system operators to offer backhaul capacity, it failed to adopt necessary provisions for the customs clearance of such transactions. 

The Secretariat’s Ukraine Support Task Force is continuously working to keep the lights on in Ukraine during the conditions of war. Cooperating closely with the EU’s Emergency Response Coordination Centre, the Task Force has supported the delivery of more than 60 metric tons of emergency energy equipment donated by companies across Europe.