At the 2015 Vienna Summit, the six Contracting Parties of the Energy Community in Southeast Europe: Albania, Bosnia and Herzegovina, Kosovo*, FYR of Macedonia, Montenegro and Serbia committed to implement so-called "energy soft measures”, at national and regional level. These consist of, inter alia, taking steps towards the development of trading electricity on integrated spot markets, regional balancing and regional capacity allocation as well as removing existing legal and regulatory barriers.
DEVELOPEMENT OF REGIONAL ENERGY MARKET
In June 2016, the Grant Contract between the European Commission and the Energy Community Secretariat for provision of technical assistance to support the development of a regional energy market in the Western Balkans was finalised. The 2-year project can be regarded as an upgrading of the WB6 initiative and aims to continue the previous endeavours to create a regional electricity market.
The project’s overall objective is to assist the Western Balkan governments to achieve their goal of a regional electricity market by facilitating the implementation of so-called “energy soft measures” that will remove existing legislative and regulatory barriers and enhance the institutional structures necessary for the functioning of this market in line with the Energy Community Treaty and relevant EU acquis.
The expected overall result of the project is the establishment and operations of a regional electricity market. The specific results aim at:
- spot market development, by establishing an organised day-ahead market in each Western Balkan country by adhering to a power exchange or, if economically justified, creating an own power exchange, and their market coupling to ensure competitive and transparent price formation and discourage cartelisation and corruption,
- cross-border balancing, by establishment of non-discriminatory, transparent and competitive national balancing markets and development of regional cross-border balancing cooperation to ensure the most efficient balancing and settlement processes,
- regional capacity allocation, by ensuring the best use of the already existing Coordinated Auction Office in South East Europe (SEE CAO) and introduction of a coordinated capacity calculation process for the allocation of day-ahead capacities through the establishment of a regionally coordinated calculator; and
- cross-cutting measures of a horizontal dimension that form the last pillar of implementation elements under the project.
The project’s immediate beneficiaries are the ministries responsible for energy, national transmission system operators, national distribution system operators, state producers of electricity, national regulatory authorities, state aid commissions, and competition commissions in the Western Balkan countries. Its final beneficiaries are the citizens of the Western Balkans who will benefit directly from a more efficient and sustainable supply of energy in their homes and workplaces and who will indirectly gain from the economic growth to which the regional energy market will contribute.
In July 2016, the Paris Summit meeting highlighted the importance of continuing the implementation efforts of the Western Balkan Six and reinforced the work in creating a regional electricity market by adopting a roadmap on this matter.
WORK PROGRAMME ON THE TECHNICAL ASSISTANCE ON CONNECTIVITY
| || |
Published in Dec 2016, the Work Programme was designed by the Secretariat following comprehensive discussions and consultations with the main stakeholders in the beneficiary countries of the project. The concrete activities in the form of TA projects will be delivered on the basis of this Work Programme, and consequently supplemented by terms of reference for each individual assignment. They target mainly those elements where progress has been insufficient according to the bi-monthly monitoring reports published by the Secretariat.
The work programme will be reviewed on a regular basis to ensure that the project funds are used in the most efficient manner and hence meet the respective priority needs that may evolve over time.