Energy Community and Clean Energy Package

In December 2021, the Energy Community Ministerial Council adopted the Clean Energy for all Europeans package. The package covers legislation in the area of energy efficiency, renewables, governance, electricity market design and electricity security of supply rules, to enter into force in the next years.  During the course of 2022, the European Commission conducted a study on  "Extension of the EU energy and climate modelling capacity to include the Energy Community and its nine Contracting Parties”. Its results was the basis for an intensive interaction with Contracting Parties at political level to agree on energy and climate headline targets for the post-2020 period.

With Decision 2022/02/MC-EnC, the Energy Community Ministerial Council adopted the 2030 energy and climate targets on 15 December 2022. The targets are 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. In case of Ukraine, the ministers shall review the targets and shares at their next meeting after martial law ceases to apply in Ukraine. 

 

Energy Community 2030 energy and climate targets

Greenhouse gas emissions

overall Energy Community 2030 target: decrease of 60.9% below 1990 CO2 levels

Renewable energy

overall Energy Community 2030 target: 31.0% share of final energy consumption

Energy efficiency

Energy Community 2030 headline target: 79,06 max. share of final energy consumption

Decarbonisation readiness - 2021 Clean energy package transposition
 

As part of its 2022 implementation reporting,  the Secretariat looked for the first time at the Contracting Parties' decarbonisation readiness. The assessment is based on the related Clean Energy Package acquis in the area of governance, electricity, renewable energy and energy efficiency. 

Decarbonisation readiness

  • Decarbonisation readiness

    Decarbonisation readiness

  • Governance

    Governance (Regulation (EU) 2018/1999)

    Albania has partially transposed the Governance Regulation. There is no institutional setup for the multilevel energy and climate governance required by the Regulation. The provisions of the Law on Climate Change include high-level references to the NECP and to the Long-term Strategy and ensure public participation in line with the Aarhus Convention. The Law also includes provisions related to the monitoring and reporting of GHG emissions to the UNFCCC, but the reporting frequency related to climate change adaptation planning and strategies should be amended from the current four years to two years in order to ensure compliance with the Governance Regulation. It is foreseen that the National Plan for Adaptation to Climate Change will be developed.  

  • Electricity

    Electricity (Directive (EU) 2019/944 and Regulation (EU) 2019/941)

    The Ministry should review the Power Sector Law with a view to identifying the amendments needed to transpose the Electricity Directive, with the support of the Secretariat. This Law requires substantial improvements in order to fully transpose customer empowerment and protection, energy poverty, smart metering, data management, allow storage and aggregation and define new tasks of the Distribution System Operator, Transmission System Operator and the National Regulatory Authority in line with the new Electricity Directive. Transposition of the Risk-preparedness Regulation should be addressed by the review of the Power Sector Law, however the amendments are yet to be proposed by the Ministry. The obligation to designate a national governmental or regulatory authority as a competent Authority and notify without delay the Secretariat and the Security of supply Coordination Group in line with the Regulation shall be transposed and implemented by 5 January 2023 at the latest.

  • Renewable Energy

    Renewable Energy (Directive (EU) 2018/2001)

    At the Ministerial Council held in December 2022, target of 52% of renewable energy share in gross final energy consumption by 2030 was adopted for Albania. Target is yet to be formally imbedded in the Albanian legal framework. Albania has drafted a Renewables Law with a view to transpose the Directive. The Law passed public consultation and should be adopted in the first half of 2023. Albania plans to amend the Law on biofuels in order to transpose the new requirements introduced by the Directive.

  • Energy Efficiency

    Energy Efficiency (Directive (EU) 2018/2002)

    Albania has partly transposed the amended Energy Efficiency Directive. 2030 energy efficiency targets were adopted as part of the NECP, but contribution need to be confirmed after adoption of 2030 targets at the 2022 Ministerial Council.  Albania is yet to set the renovation targets for central government buildings and start working on the Long-Term Building Renovation Strategy as required by the Directive. The energy savings obligation (new targets until 2030) should be implemented via a new regulation.   

  • Decarbonisation readiness

    Decarbonisation readiness

  • Governance

    Governance (Regulation (EU) 2018/1999)

    The Governance Regulation is not transposed in Bosnia and Herzegovina.  The legal basis for the NECP and the adoption of the entity energy and climate plans continue to be pending.

  • Electricity

    Electricity (Directive (EU) 2019/944 and Regulation (EU) 2019/941)

    The Electricity Law in Republika Srpska and Brcko District transpose certain elements of the Clean Energy Package, but amendments are needed to ensure full transposition. Federation of Bosnia and Herzegovina approved an Electricity Law which transposes certain elements of the new Electricity Directive, but the adoption of the Law is pending in the Parliament.  Full transposition of the Electricity Directive requires amendments to the entity and State laws. The State Law is still not compliant with the Third Energy Package. Transposition of the Risk-preparedness Regulation should be addressed by the amendments to the State and Entity laws, however the decision on the approach to the transposition is yet to be made. The obligation to designate a national governmental or regulatory authority as a competent Authority and notify without delay Secretariat and the Security of supply Coordination Group in line with the Regulation shall be transposed and implemented by 5 January 2023 at the latest.

  • Renewable Energy

    Renewable Energy (Directive (EU) 2018/2001)

    At the Ministerial Council held in December 2022, target of 43,6% of renewable energy share in gross final energy consumption by 2030 was adopted for Bosnia and Herzegovina. Target is yet to be formally imbedded in the Bosnia and Herzegovina legal framework. In February 2022, Republika Srpska adopted a new Renewables Law transposing main elements of the Directive, secondary acts as well as implementation are still pending. Following the completion of public consultations and endorsement by the Government, it is expected that Parliament of Federation of Bosnia and Herzegovina will adopt the Renewables Law in the first half of 2023. There are currently no plans known to the Secretariat to transpose provisions concerning biofuels, bioliquids and biomass fuels and GHG emissions savings.

  • Energy Efficiency

    Energy Efficiency (Directive (EU) 2018/2002)

    Transposition is at the early stage. Both reporting on the achievement of the 2020 energy efficiency targets (Annual report to Secretariat), and official approval of 2030 targets proposed by Commission is pending. While there is ongoing work on renovation targets and plans for central government buildings, both entities need to amend existing energy efficiency laws to introduce new provisions from the energy efficiency directive amended in 2021. The energy savings obligation (new targets until 2030) should be implemented by amended regulation. The draft Long-Term Building Renovation Strategies (on national and entity levels) should be adopted.

  • Decarbonisation readiness

    Decarbonisation readiness

  • Governance

    Governance (Regulation (EU) 2018/1999)

    The legal basis and main provisions for the NECP are transposed by the Law on Energy and Water Supply. The NECP is to be a part or an annex of the State Energy Policy and it includes the five dimensions of the Energy Union. A Climate Change Law, which is expected to accommodate at least all the climate-related elements of the Governance Regulation, is being drafted.

  • Electricity

    Electricity (Directive (EU) 2019/944 and Regulation (EU) 2019/941)

    Electricity is partially transposed through the Law on Energy and Water Supplies and the Law on National Regulatory Bodies. However, an improvement of the existing legislation is needed in order to fully transpose the Directive, in particular in the area of customer empowerment and protection, energy poverty, smart metering, data management and new tasks of the distribution system operator. The legal framework in Georgia transposes most of the provisions of the Risk Preparedness Regulation through the Rules on Security of Electricity Supply. The Law on energy and water supply transposes the obligation for the establishment of competent authority, however the requirement to notify the Secretariat and Security of Supply Coordination Group and make public the name and contact details of the competent authority representative has not been transposed and implemented yet.  

  • Renewable Energy

    Renewable Energy (Directive (EU) 2018/2001)

    At the Ministerial Council held in December 2022, target of 27,4 % of renewable energy share in gross final energy consumption by 2030 was adopted for Georgia. Target is yet to be formally imbedded in the Georgian legal framework. With the support of the EU4Energy project and the Energy Community Secretariat, Georgia is amending its Renewables Law to transpose the Directive. Adoption is expected in the first half of 2023.

  • Energy Efficiency

    Energy Efficiency (Directive (EU) 2018/2002)

    Georgia submitted 2022 annual report (required by the Energy Efficiency Directive and Governance Regulation), with implemented measures and reporting on the achievement of 2020 energy efficiency targets. 2030 energy efficiency targets were preliminary agreed with Commission, still to be introduced in national strategic documents. The provisions of 2012 Energy Efficiency Directive are transposed by the 2020 Energy Efficiency Law, and there is ongoing work on drafting by-laws, as well as amendments of Energy Efficiency Law to introduce the 2018 amendments of the Energy Efficiency Directive (with the technical assistance provided by GOPA under EU/KfW assistance programme). The Long-Term Building Renovation Strategy is in planning phase, with certain background studies (including building inventory) ongoing.

  • Decarbonisation readiness

    Decarbonisation readiness

  • Governance

    Governance (Regulation (EU) 2018/1999)

    The draft Law on Climate Change establishes the legal basis for the NECP and the Strategy for Adaptation to Climate Change. Several elements of the precursor of the Governance Regulation have been established in Administrative Instruction (GRK) No. 01/2016 on Mechanism for Monitoring Greenhouse Gas Emissions. These include: the development of low-carbon development strategies; the establishment of a national GHG inventory; national system for reporting on policies and measures and for reporting on projections of GHG emissions by sources and removals by sinks; reporting every 2 years on the policies and measures and updates on the Low-Carbon Development Strategy; publication of the costs related to policies and measures and their implementation; preparation of a national adaptation plan and strategy.

    The new Law on Climate Change is expected to repeal several Administrative Instructions including No. 01/2016.

  • Electricity

    Electricity (Directive (EU) 2019/944 and Regulation (EU) 2019/941)

    The Energy Law, the Electricity Law and the Law on Energy Regulator (transposing The Third Energy Package) have to be amended in order to transpose new provisions of Electricity Directive, in particular related to the customer empowerment, smart metering and new roles of the distribution system operator. Kosovo* started activities towards initiating the changes of the laws by drafting the concept document outlining the scope and impact of changes to the Law.

    Legal framework governing electricity sector transposes few provisions of the Risk Preparedness Regulation, but the full transposition requires amendments of the laws. Kosovo* started activities towards initiating the changes of the laws by drafting the concept document outlining the scope and impact of changes to the Law. The obligation to designate a national governmental or regulatory authority as a competent Authority and notify without delay the Energy Community Secretariat and the Security of Supply Coordination Group in line with the Regulation shall be transposed and implemented without further delay and by 5 January 2023 at the latest.

  • Renewable Energy

    Renewable Energy (Directive (EU) 2018/2001)

    At the Ministerial Council held in December 2022, target of 32% of renewable energy share in gross final energy consumption by 2030 was adopted for Kosovo. Target is yet to be formally imbedded in the Kosovan legal framework. With the support of the Energy Community Secretariat and USAID, Kosovo is preparing its first Renewables Law to transpose the Directive. Adoption is expected in the first half of 2023.

  • Energy Efficiency

    Energy Efficiency (Directive (EU) 2018/2002)

    Kosovo submitted the Annual Report (including reporting on the achievement of 2020 energy efficiency targets) to the Secretariat in November 2022. 2030 energy efficiency targets were preliminary agreed with Commission, still to be introduced in national strategic documents. The general provisions of the amended Energy Efficiency Directive are transposed by the Energy Efficiency Law, while there is ongoing work on drafting by-laws (Technical assistance provided by REEP, GIZ and others). The Long-Term Building Renovation Strategy was developed, and its adoption is pending.

  • Decarbonisation readiness

    Decarbonisation readiness

  • Governance

    Governance (Regulation (EU) 2018/1999)

    Moldova is currently working on transposing the Governance Regulation. Governmental Decision No. 1277/2018 on establishing the National System for Monitoring and Reporting Greenhouse Gas Emissions and Other Information Relevant to Climate Change was adopted to implement provisions of the Paris Agreement. Moldova approved its Low-emission Development Strategy in 2016 and updated it in 2021 along the NDC2, and a Low Emission Development Program spanning until 2030. Those documents do not fully comply with the requirements for a Long-term Strategy in the Governance Regulation. A National Commission on Climate Change was set up by the Governmental Decision No. 444/2020. The National Climate Change Adaptation Strategy is being updated via the support of UNDP Moldova.

  • Electricity

    Electricity (Directive (EU) 2019/944 and Regulation (EU) 2019/941)

    Transposition of Electricity Directive requires amendments of the existing Law on Energy and the Electricity Law, which are to be drafted with the assistance of the Secretariat. Changes are needed in particular related to the customer empowerment, smart metering, data management, new roles of the transmission and distribution system operators and national regulatory authority. Transposition of the Risk-preparedness Regulation requires amendments to the Law on Electricity, yet to be drafted. The obligation to designate a national governmental or regulatory authority as a competent authority and notify without delay the Energy Community Secretariat and the Security of supply Coordination Group in line with the Regulation shall be transposed and implemented without further delay and by 5 January 2023 at the latest.

  • Renewable Energy

    Renewable Energy (Directive (EU) 2018/2001)

    At the Informal Ministerial Council held in December 2022, target of 27% of renewable energy share in gross final energy consumption by 2030 was adopted for Moldova. Target is yet to be embedded in the Moldovan legal framework. With the support of the Energy Community Secretariat and EBRD, Moldova is amending its Renewables Law to transpose the Directive. Adoption is expected in the first half of 2023.

  • Energy Efficiency

    Energy Efficiency (Directive (EU) 2018/2002)

    Moldova submitted 2022 annual report (required by the Energy Efficiency Directive and Governance Regulation), with energy efficiency indicators and reporting on the achievement of 2020 energy efficiency target. 2030 energy efficiency targets were preliminary agreed with Commission, still to be introduced in national strategic documents.  Amendments to the Law on Energy Efficiency (developed with Secretariat’s support) to transpose the latest amendments of the Energy Efficiency Directive, adopted by the Ministerial Council in 2021, are in the final phase and pending adoption. The Long-Term Building Renovation Strategy is also developed, but still not adopted.

  • Decarbonisation readiness

    Decarbonisation readiness

  • Governance

    Governance (Regulation (EU) 2018/1999) 

    The Law on Energy was amended in July 2020 including provisions on the NECP such as legal basis for the development and adoption including the Energy Union dimensions, the period, the responsible ministry and contributing authorities and the update. Progress reports on the implementation of the NECP are prescribed every two years. The Law on Protection from the Negative Impact of Climate Change defines: Low-carbon Development Strategy (Long-term Strategy) covering 30 years and Climate Change Adaptation Plan covering 10 years including the main elements, update every 5 years (for the LTS), reports on policies and measures and projections on GHG emissions; and the preparation of a GHG inventory (a Rulebook which transposed the requirements of the MMR on the establishment of a formal national inventory system was adopted in 2017). The Law on Protection from the Negative Impact of Climate Change is being amended to accommodate additional elements of the Governance Regulation. The GHG inventory is still developed based on external support – the process of establishing a national inventory system in accordance with the MMR Regulation was planned for 2022. The “Rulebook on the manner of preparation and content of the inventory of greenhouse gas emissions” ("OG of MNE" No. 55/20) harmonizes national rules with the Governance Regulation.

  • Electricity

    Electricity (Directive (EU) 2019/944 and Regulation (EU) 2019/941) 

    The existing legislation, consisting of Energy Law as amended in 2020 and Law on cross border exchange of electricity and natural gas, defines some of the provisions of the new acquis related to energy poverty, active customers, smart metering system, data management and interoperability requirements, but it has to be further upgraded in order to fully reflect requirements of the Directive. Drafting of amendments to the laws necessary to transpose missing provisions is to be done with the support of the Secretariat. Transposition of the Risk-preparedness Regulation requires amendments to the Law on Energy, drafting is yet to be initiated. The obligation to designate a national governmental or regulatory authority as a competent Authority and notify without delay the Energy Community Secretariat and the Security of supply Coordination Group in line with the Regulation shall be transposed and implemented without further delay and by 5 January 2023 at the latest.

  • Renewable Energy

    Renewable Energy (Directive (EU) 2018/2001)

     At the Ministerial Council held in December 2022, target of 50% of renewable energy share in gross final energy consumption by 2030 was adopted for Montenegro. Target is yet to be embedded in the Montenegrin legal framework. With the support of the Energy Community Secretariat and EBRD, Montenegro is preparing its first Renewables Law to transpose the Directive. Adoption is expected in the first half of 2023.

  • Energy Efficiency

    Energy Efficiency (Directive (EU) 2018/2002)

    Montenegro submitted 2022 annual report (required by the Energy Efficiency Directive and Governance Regulation), with energy efficiency indicators and reporting on the achievement of 2020 energy efficiency targets. 2030 energy efficiency targets were preliminary agreed with Commission, still to be introduced in national strategic documents.  Amendments to the Law on Efficient Use of Energy to transpose the latest amendments of the Energy Efficiency Directive were finalised during 2022 and are in the parliamentary adoption procedure.

  • Decarbonisation readiness

    Decarbonisation readiness

  • Governance

    Governance (Regulation (EU) 2018/1999)

    The legal basis for the NECP is established via the amendment of the Energy Law in November 2022. The draft Law on Climate Action is expected to transpose the high-level climate-related provisions of the Governance Regulation with technical rules to be addressed in secondary legislation.

  • Electricity

    Electricity (Directive (EU) 2019/944 and Regulation (EU) 2019/941)

    The existing Energy Law as amended in 2022 transposed certain provisions of the Directive related to vulnerable customers and energy storage. However, full compliance with the Directive is yet to be reached. Drafting of amendments to the laws necessary to transpose missing provisions is to be done with the support of the Secretariat.

    Amendments to the Energy Law are needed in order to transpose the Risk-preparedness Regulation. The obligation to designate a national governmental or regulatory authority as a competent Authority and notify without delay the Energy Community Secretariat and the Security of supply Coordination Group in line with the Regulation shall be transposed and implemented without further delay and by 5 January 2023 at the latest.

  • Renewable Energy

    Renewable Energy (Directive (EU) 2018/2001)

    At the Ministerial Council held in December 2022, target of 38% of renewable energy share in gross final energy consumption by 2030 was adopted for North Macedonia. Target is yet to be formally embedded in the North Macedonian legal framework. Existing energy law partially transposes requirements of the Directive, for full transposition amendments to the law are needed. The draft law on biofuels needs to be adopted to transpose requirements from the Directive.

  • Energy Efficiency

    Energy Efficiency (Directive (EU) 2018/2002)  

    North Macedonia submitted 2022 annual report (required by the Energy Efficiency Directive and Governance Regulation) in November 2022, reporting on the achievement of 2020 energy efficiency target. The 2030 energy efficiency targets and policy measures were introduced in the Energy Strategy and the country’s NECP adopted in May 2022. New provisions of the amended Energy Efficiency Directive are generally treated by the Energy Efficiency Law, while there is an ongoing work on drafting of by-laws (technical assistance provided by various donors). The Long-Term Buildings Renovation Strategy is still not finalised, while the guidelines for its development were adopted as part of the programme for realisation of the energy strategy.

  • Decarbonisation readiness

    Decarbonisation readiness

  • Governance

    Governance (Regulation (EU) 2018/1999)

    The Law on Climate Change incorporates several elements of the Governance Regulation, notably: the establishment and main elements of the Low-carbon Development Strategy, which is to include targets and an action plan for its implementation; the Climate Change Adaptation Program; the establishment of a national Climate Change Council; the establishment of a national GHG Inventory System and reports; projections of GHG emissions and sinks, and policies and measures. The Law on Energy establishes the legal basis for the NECP and puts the ministry responsible for energy in charge of its drafting. The main elements of the NECP, its duration (10 years) and the possibility of an update is also set in the law as well as its adoption and submission to the Secretariat. The provisions on integrated reporting are included in the Rulebook on NECP.

  • Electricity

    Electricity (Directive (EU) 2019/944 and Regulation (EU) 2019/941)

    The Energy Law, amended in 2021, partially transposes the new elements of the Directive related to storage, aggregation, active customers, smart metering systems and energy poverty. Yet, additional amendments are needed to fully transpose remaining missing provisions.

    Transposition of the Risk-preparedness Regulation will require amendments to the Energy Law, drafting of which yet to be initiated. The obligation to designate a national governmental or regulatory authority as a competent Authority and notify without delay the Energy Community Secretariat and the Security of Supply Coordination Group in line with the Regulation shall be transposed and implemented without further delay and by 5 January 2023 at the latest.

  • Renewable Energy

    Renewable Energy (Directive (EU) 2018/2001) 

    At the Ministerial Council held in December 2022, target of 40,7% of renewable energy share in gross final energy consumption by 2030 was adopted for Serbia. Target is yet to be embedded in the Serbian legal framework. In April 2021 Serbia adopted its first Renewables Law transposing the Directive. To enable implementation of market-based support scheme, act on balancing responsibility needs to be adopted. Decree on sustainability criteria for biofuels, bioliquids and biomass fuels is in adoption procedure.

  • Energy Efficiency

    Energy Efficiency (Directive (EU) 2018/2002) 

    Serbia submitted 2022 annual report (required by the Energy Efficiency Directive and Governance Regulation), with energy efficiency indicators and reporting on the achievement of 2020 energy efficiency targets. 2030 energy efficiency targets were preliminary agreed with Commission, still to be introduced in NECP.  After the adoption of the Law on Energy Efficiency and Rational Use of Energy in April 2021, Serbia adopted only part of implementing acts to improve compliance with the amended Energy Efficiency Directive 2018/2002.  The Long-Term Building Renovation Strategy was adopted in February 2022.

  • Decarbonisation readiness

    Decarbonisation readiness

  • Governance

    Governance (Regulation (EU) 2018/1999) 

    With the support of EU4Energy, a draft Framework Law on Climate Change was prepared and proposed to the Ministry of Environment, in order to support the transposition of the climate-related provisions of the Governance Regulation.

  • Electricity

    Electricity (Directive (EU) 2019/944 and Regulation (EU) 2019/941)

    Transposition of the Directive will require amendments to the Electricity Market Law and the Law on the NEURC in order to incorporate provisions which are partially transposed or missing. The Secretariat will assist Ukraine in drafting amendments. 

    Transposition of the Risk-preparedness Regulation will require amendments to the Electricity Market Law. The obligation to designate a national governmental or regulatory authority as a competent Authority and notify without delay the Energy Community Secretariat and the Security of supply Coordination Group in line with the Regulation shall be transposed and implemented by 5 January 2023 at the latest.

  • Renewable Energy

    Renewable Energy (Directive (EU) 2018/2001) 

    At the Ministerial Council held in December 2022, Ukraine conditionally agreed to 27% of renewable energy share in gross final energy consumption by 2030 was adopted for Ukraine. Target is yet to be embedded in the Ukrainian legal framework. In August 2021, the Ministry published for public consultation the amendments to the Law introducing market-based support. In July 2022 the Parliament adopted amendments where producers of renewable energy were allowed to sell electricity at the day-ahead market, intra-day market, bilateral agreements market and the balancing market. Implementation is still pending. Ministry of Energy announced that Government have adopted resolution with the proposed net energy billing scheme, but it is not yet published. The draft law on amendments to the Law on the Mandatory Use of Liquid Biofuels in Transport passed first reading in the Parliament in September 2021 but have not yet been adopted.

  • Energy Efficiency

    Energy Efficiency

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Governance and NECPs