The push for Energy Community–EU electricity market integration is already bearing fruit 

^{Answers by Dr. Artane Rizvanolli, Minister of Economy}

How is—or how do you expect—the transposition of the Electricity Integration Package acquis to improve electricity market functioning in practice? How can implementing these reforms drive the transition and unlock investment in non-fossil flexibility solutions? 

"The transposition of the Electricity Integration Package acquis is expected to improve the functioning of Kosovo’s electricity market by accelerating the transition toward a more competitive, transparent, and integrated energy system.

While Kosovo’s electricity sector remains heavily reliant on lignite-based generation, the share of renewable energy sources in the electricity mix continues to gradually increase.

In this context, the implementation of the acquis is particularly important for creating the regulatory and market conditions necessary to support decarbonization, enhance energy security, and facilitate the integration of variable renewable energy sources.

At the same time, these reforms are expected to strengthen balancing mechanisms, improve market transparency and price formation, and optimize the use of cross-border transmission capacities.

-  Dr. Artane Rizvanolli  Minister of Economy

How do you envision the evolution of your electricity market to support deeper EU integration and overall European energy resilience? 

"The evolution of Kosovo’s electricity market is increasingly focused on deeper integration into the regional and European electricity market through gradual market liberalization, increased competition, and the strengthening of organized electricity trading platforms.

In this regard, ALPEX has continued to expand its role and international cooperation through participation in European market integration initiatives such as ENTSO-E, SDAC, and SIDC, while steadily increasing trading volumes in both the day-ahead and intraday markets.

In parallel, Kosovo is advancing investments in transmission and distribution infrastructure, battery energy storage, and renewable energy projects aimed at strengthening system flexibility, increasing cross-border electricity exchanges, and supporting the integration of higher shares of renewable energy into the market. These developments are contributing to the alignment of Kosovo’s electricity market with European market principles and creating a stronger foundation for deeper integration into the wider European electricity market."

- Dr. Artane Rizvanolli, Minister of Economy

^{Answers by Dorin Junghietu, Minister of Energy}

How is-or how do you expect-the transposition of the Energy Integration Package acquis to improve electricity market functioning in practice? How can implementing these electricity market reforms drive the transition and help unlock investment in non-fossil flexibility solutions? 

The transposition of the Energy Integration Package represents a major structural step in the transformation of Moldova’s electricity sector from a vulnerable, isolated and highly concentrated system into a modern, competitive and EU-integrated market. Importantly, the transposition of the Energy Integration Package also brings Moldova significantly closer to the future coupling of its electricity markets with those of the European Union. 

In practical terms, these reforms create the legal and regulatory foundation for transparent price formation, stronger competition, improved balancing mechanisms and more efficient cross-border trade. By aligning our legislation with the EU electricity acquis, we are building a market framework that is predictable for investors, compatible with neighboring systems and better equipped to respond to external shocks. 

The adoption of the Energy Integration Package also enables Moldova to move beyond a crisis-management model toward a long-term market-driven energy architecture. The launch of organized electricity markets, including day-ahead and intraday trading mechanisms, will improve liquidity and system efficiency while allowing market participants to better manage risks and optimize portfolios. 

Equally important, these reforms are essential for accelerating the energy transition. Renewable energy cannot scale sustainably without adequate flexibility and balancing capabilities. The new market design creates clearer economic signals and investment incentives for battery energy storage systems, demand-side response, flexible generation, aggregation services and smart grid technologies. 

For Moldova, flexibility is not only a technical issue - it is a strategic energy security priority. As the share of renewable generation increases, investments in storage and balancing become indispensable for maintaining system stability and affordability. We are already witnessing growing investor interest in battery storage projects, hybrid renewable installations and digital solutions that can support grid resilience. 

The reforms also support the emergence of new market actors and innovative models, including energy communities, prosumers and aggregators. Through Moldova’s regulatory sandbox framework - the first of its kind in the Energy Community region - we aim to test and accelerate innovative solutions in areas such as collective self-consumption, e-mobility, flexibility services and distributed renewables. 

Ultimately, implementing the Energy Integration Package is about creating trust: trust for investors, trust for consumers and trust between interconnected European energy systems. This alignment with the EU market framework will help Moldova attract investment, diversify supply sources and accelerate the transition toward a cleaner, more resilient and more secure electricity system. 

How do you envision the evolution of your electricity market to support deeper EU integration and overall European energy resilience? 

Moldova’s electricity market is evolving from a historically isolated and vulnerable system into an integrated component of the broader European energy architecture. Our strategic objective full integration into the EU internal electricity market as part of Moldova’s broader European path. 

The synchronization of Moldova’s electricity system with the Continental European Network through ENTSO-E was a historic achievement and a turning point for our energy security. It demonstrated that regional solidarity and technical integration can significantly reduce vulnerabilities and strengthen resilience in times of crisis. 

The next phase is market integration. We are working toward complete coupling with European electricity markets through the implementation of EU market rules, development of organized trading platforms and enhancement of cross-border capacities with Romania and the European Union. 

Infrastructure investments remain fundamental. Projects such as the 400 kV Vulcănești-Chișinău line, Bălți-Suceava, Strășeni - Gutinaș interconnection and future reinforcements of cross-border infrastructure will substantially improve transmission reliability, increase import and export capabilities and reduce congestion risks. These projects are not only national priorities - they contribute to the resilience of the wider regional system. 

 Also, the commissioning of new cross-border interconnections and market coupling will allow us to increase export NTC, currently only 135 MW, while also increasing liquidity on organised markets and encouraging exchanges/trading of generated electricity volumes.  

At the same time, Moldova sees renewable energy expansion as both a climate objective and a geopolitical security instrument. Diversified domestic generation reduces dependency on external suppliers while strengthening regional stability. In the coming years, we expect accelerated growth in solar, wind and storage capacities, supported by competitive auctions and improved investment frameworks. 

We also believe that resilience in the modern European energy system will increasingly depend on flexibility, digitalization and regional cooperation. No country can ensure energy security in isolation. Stronger interconnections, coordinated balancing mechanisms, integrated markets and shared emergency support mechanisms are becoming essential pillars of European resilience. 

Moldova is committed to contributing actively to this collective effort. Despite the challenges generated by the regional security environment, the energy crisis has accelerated reforms that otherwise could have taken many more years. Today, Moldova is moving decisively toward a more transparent, interconnected and future-oriented electricity market fully aligned with European principles and values. 

^{Answers by Admir Sahmanovic, Minister of Energy and Mining}

How is—or how do you expect—the transposition of the Energy Integration Package acquis to improve electricity market functioning in practice? 

The progress we have made in transposing the acquis from the Energy Integration Package represents a genuine breakthrough for Montenegro’s energy system — one that can rightly be described as historic. 

This process is not merely about aligning legislation with European standards. It is about fundamentally modernising our energy sector and building a system that is more stable, transparent, competitive and resilient for both citizens and the economy. 

By implementing these reforms, Montenegro is creating a predictable and credible business environment, positioning itself as a reliable investment destination for serious and responsible investors. At the same time, we are strengthening market rules, increasing transparency and opening additional space for investments in renewable energy sources, infrastructure and innovation. 

In the context of today’s geopolitical developments, which continue to reshape global markets and challenge the resilience of economies worldwide, energy security has become one of the key priorities of every responsible government. For Montenegro, this integration process is therefore much more than a regulatory obligation — it is an important step towards greater security and long-term stability of our energy system. 

What is especially important is that Montenegro will become part of the European electricity market even before formal EU accession. In that sense, we are not waiting for the future — we are actively building it today. 

Our ambition is clear: Montenegro wants to become an energy bridge between the region and the European Union, as well as an important regional energy hub. Our geographical position, significant renewable energy potential, access to the Mediterranean, and strong strategic partnerships we are developing all give us the foundation and confidence to think and act in that direction. 

2. How do you envision the evolution of your electricity market to support deeper EU integration and overall European energy resilience? 

We see the future development of Montenegro’s electricity market as inseparable from the broader European energy transition and integration process. Our strategic goal is to build a modern, interconnected and sustainable energy system that contributes not only to Montenegro’s development, but also to the stability and resilience of the wider region and Europe as a whole. 

In the coming years, Montenegro will continue investing strongly in renewable energy sources, transmission infrastructure, regional interconnections and market digitalisation. We are focused on creating a flexible and competitive market capable of responding to the growing demands of the green transition, while ensuring secure and affordable energy supply for citizens and businesses.  

At the same time, we are aware that no country today can build energy resilience alone. Recent global crises have clearly shown that stronger regional cooperation and deeper market integration are essential for long-term stability. That is why Montenegro fully supports the creation of an integrated European electricity market based on solidarity, shared responsibility and common energy security. 

Montenegro has the potential to play an important role in this process. With our renewable energy resources, strategic position on the Adriatic coast and ongoing infrastructure projects, we see our country as a future regional energy hub connecting the Western Balkans with the European Union. 

For us, European integration in the energy sector is not only a political obligation — it is a development opportunity. An opportunity to modernise our economy, strengthen our energy independence, attract new investments and create a more sustainable future for generations to come 

^{Answers by Sanja Bozhinovska, Minister of Energy, Mining and Mineral Resources}

North Macedonia has already made a significant step forward in aligning with EU legislation through the adoption of a new Energy Law, fully harmonised with the EU acquis and the obligations stemming from the Energy Community. This is not merely a formal transposition, but a substantive reform process that is already delivering tangible improvements in the functioning of the electricity market. 

At the same time, these reforms send a strong signal to investors that North Macedonia is building a transparent, modern and predictable market framework capable of supporting investment in non-fossil flexibility solutions, including energy storage, smart grid technologies and demand-side response. 

The transposition of the Energy Integration Package is already contributing to a more efficient, flexible and better-functioning electricity market. A clear example is the launch of the Intraday Market by MEMO, which represents an important step toward a more dynamic and responsive organised market. This reform enables improved system balancing, reduces imbalance costs for market participants and creates stronger conditions for the integration of renewable energy sources. 

In parallel, we are intensively advancing preparations for market coupling as the next strategic phase of our electricity market development. This process is essential for enabling deeper cross-border integration, more efficient electricity flows and stronger regional coordination in line with European market principles. 

Our vision is clear: to develop a competitive, resilient and fully integrated electricity market that will accelerate North Macedonia’s energy transition while contributing to broader European energy resilience. 

We envision the evolution of our electricity market as a determined path toward full regional and European integration. The work that we did lays the foundation for a more competitive, resilient and interconnected electricity system that will contribute not only to North Macedonia’s energy transition, but also to broader European energy resilience.” 

^{Answers by Minister of Mining and Energy Dubravka Djedovic Handanovic}

How is—or how do you expect—the transposition of the Energy Integration Package acquis to improve electricity market functioning in practice? & How can implementing these electricity market reforms drive the transition and help unlock investment in non-fossil flexibility solutions? 

The Republic of Serbia is the first Contracting Party to the Energy Community Treaty to have transposed the Electricity Integration Package, thereby fulfilling the conditions for accession to the EU internal electricity market. The verification process by the European Commission is currently underway, and further alignment of the regulatory framework will be required before the final integration with the EU electricity market can take place. This is the first time such a process has been initiated for a country that is not an EU Member State. 

The process of coupling the market with the EU has been under preparation for a long time, but it has been seriously challenged by the implementation of the Carbon Border Adjustment Mechanism (CBAM), which began this year. Due to its high share of coal in electricity generation, Serbia faces the challenge of meeting the requirements for exemption from CBAM Regulation during the transitional period until 2030. 

The Republic of Serbia has adopted laws on the taxation of greenhouse gas emissions and on the taxation of imports of carbon-intensive products, which entered into force on 1 January this year. These laws provide that the revenues collected will be directed towards the decarbonisation of the energy sector and other sectors. 

Serbia’s commitment to ensuring energy security, investing in clean energy sources, and strengthening the energy grid demonstrates that we are ready to be a reliable partner in achieving shared European climate objectives and decarbonisation in a fair and sustainable manner. At the same time, Serbia also needs support on this path, and as an EU candidate country and a leader in reforms among the Contracting Parties to the Energy Community, we have submitted a request to the European Parliament to consider expanding enhanced financial support for the region’s decarbonisation efforts. 

We believe that targeted support, beyond the frameworks currently provided under the IPA funds and the Growth Plan, would help accelerate the energy transition, following the model of support provided to EU Member States in Central and Eastern Europe with lower GDP per capita and a higher share of coal in their energy mix. Stable and continuous financial support should ensure the necessary predictability and regional coordination in the Western Balkans, while adapting the pace of the energy transition to local resources and the national energy mix. 

 How do you envision the evolution of your electricity market to support deeper EU-Integration, and overall European energy resilience? 

Regarding the energy sector, Serbia is, to a significant extent, already aligned with the rules in force in the European Union, and we consider that the integration of the energy sector with the region and the EU is important for the energy security, of not only Serbia. We were the first to transpose the Electricity Market Integration Package and nine EU directives among all Contracting Parties to the Energy Community. 

 Serbia already has a fully functional electricity exchange with two EU Member States – Hungary and Slovenia – and we are the only country with developed and operational intraday and day-ahead electricity markets. This is important because up to 70 percent of electricity flows through the Western Balkans between different EU countries.  

Given the strategic role of the Western Balkans as a key electricity transit corridor for the EU, faster integration would enable the EU to better connect its south-eastern region with the internal market, strengthening security of supply, enabling cost savings, and reducing emissions.