The Energy Community Contracting Parties have made modest progress in reforming their energy and climate sectors, according to the latest report of the Energy Community Secretariat.
All countries representing contracting parties, including Albania, Bosnia and Herzegovina, Kosovo*, Georgia, Moldova, North Macedonia, Serbia and Ukraine, increased their overall performance marginally, except for Montenegro whose track record was impacted by the non-compliance of the thermal power plant Pljevlja.
The report shows that regional power market integration remains one of the biggest challenges in the Energy Community. The gap in the implementation of the European legislative package on capacity allocation, balancing and system operation remains high on the priority list.
“Without the further integration of their power sectors, the domestic markets which are all of small scale, with the exception of Ukraine, will remain sub-optimal and unable to facilitate the transition towards a decarbonised and decentralised electricity sector. The region must prepare for the large scale deployment of variable renewable energy sources”, underlined Deputy Director of the Energy Community Secretariat, Dirk Buschle.
At the same time, “[…] the Contracting Parties are working on the actions outlined in the European Green Deal. An increasing number of [them] have formally or implicitly accepted that coal and lignite have no future in their energy mix”, Janez Kopač, the Director of the Energy Community Secretariat pointed out.
The report which covers electricity, gas, oil, energy regulators, renewables, energy efficiency, environment, climate and infrastructure among others shows that all Contracting Parties with coal in their energy mix struggle to comply with the emission ceilings established under their National Emission Reduction Plans (NERPs).
* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.