Third energy package harmonization in West Balkans member states of Energy Community

, Investors

Today the energy, as ever before, remains one of the most pressing challenges for both the EU and candidate countries. In the last, EC has adopted on 25th July and enter into force on 14th August 2015 the new electricity market rules through a series of EU laws (generally known as ‘network codes and guidelines’ in this case Regulation establishing a Guideline on Capacity Allocation and Congestion Management – CACM) which will bring the goal of a well-integrated EU internal energy market a step closer.

In more the new rules enables effective regional cooperation amongst grid operators, power exchanges and regulators. In this last regard, the Western Balkan countries are bracing themselves for the next summit to be held in Vienna this August, seeing as a crucial, a fully alignment with EU energy legislation (namely EU Third Energy Package) and bring back healthy competition against corruptive practices, in order to encourage foreign private investment in power generation, cross-border interconnectors, and more significant use of renewable energy and efficiency measure, etc.

Regard the trading in specific, on 15 Jul 2015, the Secretariat launched a public consultation on draft Policy Guidelines on the Promotion of Organised Electricity Markets in the Contracting Parties. The Guidelines aim to facilitate the establishment of organised electricity market structures in the Contracting Parties by providing guidance on the harmonised development of the institutions, processes and compatible rules needed.

The focus is on specific measures that are to be implemented in the Contracting Parties’ national legal and regulatory frameworks in order to allow for competitive spot markets at national level and, consequently, the coupling of markets across borders. The establishment of organised markets is also an essential prerequisite for the implementation of the EU Regulation on Capacity Allocation and Congestion Management in the Energy Community Contracting Parties.

Process that as seen the Albania giving a first strong signal came just on the begin of July 2015, when the Ministry of Energy and Industry Damian Gjiknuri presented its plans about the opening of a power exchange platform in Tirana. Announcement that follow the enactment of the new Law on the Electricity Sector no. 43 on 30th April 2015. The new law aim a fully aligned with Directive 2009/72/EC dated 13 July 2009 “On common rules for the internal market in electricity”.

Notwithstanding, the new law on the electricity sector approved by Albanian Parliament, constitutes a decisive step forward, it is only the first step on a long path of the energy reforms in Albania. Probably by first, it comes also to give a signal, due to guide role as actual holder of the Energy Community Presidency for the 2015, then as a good example to be followed by the other Contracting Members of the Energy Community.

In same time, it is due also the pregnant problem in Albania, as in some other parts of the Western Balkans, to the volatility of energy production and the lack of liquid energy market. Except Albanian until now only Serbia has approve, probably due the leading regional position in trading, a new law on the electricity sector that adopts the EU Third Energy Package. A transposition that take particular importance in view of the step back that have register so far the FYR of Macedonia failure to liberalize electricity market in line with binding Energy Community deadline.

Source: AER

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