More Integration of European Electricity Markets
June 28, 2008 // Published as a news service by IHS
The European Commission (EC) announced that representatives from seven countries in southeast Europe agreed to set up common electricity power capacity and congestion management rules in an move towards creating a regional electricity market.
Representatives from the EC and the contracting parties under the Energy Community Treaty (Albania, Bosnia-Herzegovina, Croatia, Montenegro, former Yugoslav Republic of Macedonia, Serbia and Kosovo under U.N. Resolution 1244) met on June 27 to discuss further market integration under the Energy Community Ministerial Council.
The council debated the security of supply situation in the region and stressed the importance for the contracting parties to implement EC's directive 2005/89/EC, concerning measures to safeguard the security of electricity supply, and directive 2004/67/EC, concerning measures to safeguard the security of natural gas supply, before Dec. 31, 2009.
To this end, the council considered the establishment of a regional security of supply cooperation group, whose composition will be further discussed at the next council meeting in December.
The council also reviewed the status of the treaty's implementation, noting that substantial progress has been achieved, but that particular attention should be given to secondary legislation and enforcement. Specific efforts are needed to strengthen the regional dimension, in particular with regard to electricity cross-border exchanges.
Therefore, the ministers decided to put in place at the regional level a common procedure for the allocation of electrical capacity and for congestion management at borders. They invited the electricity transmission system operators and regulators to establish the corresponding agreements and mechanism by the end of 2009.
According to the EC, the regional management of interconnection capacity will greatly improve cross-border electricity exchanges and the security of electricity supply in the region. It will also bring the region closer to European Union (EU) market standards.
"Last week the European Council reiterated its full support for the European perspective of the Western Balkans and the importance of regional cooperation. The Energy Community is becoming a success story in this respect, but efforts should be pursued," said Andris Piebalgs, EC energy commissioner.
At the meeting, the council also adopted implementation rules for settling disputes related, in particular, to the implementation of relevant EU legislation in the contracting parties; these rules are expected to reinforce the legislation's binding character.
Finally, the council agreed to further explore the possibility of developing an "oil dimension" within the Energy Community, to foster cooperation on regional oil infrastructure and the implementation of EU legislation on oil.
Representatives from Moldova, Ukraine, Turkey, Georgia and Norway also attended the June 27 meeting as observers.
Source: European Commission.