Secretariat’s Implementation Report 2018: Energy Community has to step up efforts to prepare for the clean energy transition

31 October 2018

The Energy Community Secretariat’s Annual Implementation Report, released today, underlines that the Energy Community Contracting Parties have made progress in reforming their energy sectors, but upgraded efforts are needed. This is especially important if the clean energy transition is to succeed in the Energy Community. The Report, which was revamped to provide an even more accurate snapshot of the progress achieved by the Contracting Parties, concludes that the average implementation score is at around 43%. For the first time, the report comprises all nine Energy Community Contracting Parties, including the newest member Georgia.   

The Report reveals that Montenegro and Serbia remain the frontrunners in terms of implementation performance, while former Yugoslav Republic of Macedonia has leapfrogged into third place. Albania and Kosovo* score in the middle. Moldova, Ukraine and Bosnia and Herzegovina are the laggards, with the latter having the weakest implementation record out of the three. Finally, the newest Energy Community member, Georgia, has the lowest implementation mark but is performing well considering that the majority of transposition deadlines are yet to expire.

Source: compiled by the Energy Community Secretariat

Director of the Energy Community Secretariat, Janez Kopač, underlined, “Time and again we have warned about the increasing implementation gap between the Contracting Parties’ commitments under the Energy Community Treaty and the actual state of acquis implementation. This call is now more urgent than ever as the European Union moves ahead with the Clean Energy Package. The Energy Community has to take part in the momentum towards building the energy sectors of the future marked by decarbonisation, decentralisation and digitalization”.

The aim of the Energy Community is to set the correct legal and regulatory framework to support the Contracting Parties in the transition to a sustainable energy future. But we are not there yet as many important elements of the acquis have not yet been implemented,” explained the Secretariat’s Deputy Director Dirk Buschle. “For example, the creation and coupling of organized electricity markets, important for supporting the uptake of energy from renewable sources and taking advantage of economies of scale, is yet to take place in all countries but Serbia where a day-ahead market exists.”

The report warns that regional energy market integration is yet to take concrete shape on the ground. No progress has taken place with respect to removing one of the biggest stumbling blocks - the unresolved dispute between the transmission system operators of Kosovo* and Serbia. Market opening tends to be postponed and national agencies such as energy regulators, competition or State aid authorities are yet to live up to their purpose.  

With the Large Combustion Plants Directive aiming to reduce air pollutants from coal-fired power plants entering into force in January 2018, the environmental part of the Energy Community acquis has taken centre stage. Two Contracting Parties – Kosovo* and Moldova – are subject to dispute settlement procedures for lack of transposition of emissions control legislation. The Report also points to deficiencies in the implementation of the Environmental Impact Assessment Directive, which includes the environmental assessment of coal, hydro and other energy projects, in a number of Contracting Parties. The lack of quality control and public participation are among the critical issues observed.

The Secretariat’s Annual Implementation Report, covering the period from September 2017 to September 2018, features dedicated chapters on electricity, gas, oil, infrastructure, national regulatory authorities, renewable energy, energy efficiency, environment, climate, competition and statistics. To order a paper copy of the report free of charge, please write to us at


*This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence.