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Annual Implementation Report 2020

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Annual Implementation Report 2020 Annual Implementation Report 2020 Energy Community Secretariat 1 November 2020 Table of Contents 01 State of Implementation 7 02 Introduction 9 03 Annual Report 13 04 Report on Enforcement and Dispute Resolution Activities 17 05 Albania 22 Electricity 24 Gas 26 National Authorities 27 Oil 28 Renewable Energy 29 Energy Efficiency 31 Environment 33 Climate 35 Infrastructure 36 Statistics 37 Cybersecurity 38 06 Bosnia and Herzegovina 42 Electricity 44 Gas 46 National Authorities 48 Oil 49 Renewable Energy 50 Energy Efficiency 52 Environment 54 Climate 56 Infrastructure 57 Statistics 58 Cybersecurity 59 Energy Community Secretariat Internet: www energy-community org Am Hof 4 E-mail: contact@energy-community org 1010 Vienna Twitter: twitter com/ener_community AUSTRIA Design: Încotro Tel:+ 43 1 535 2222 Layout: Medium d o o Fax:+ 43 1 535 2222 11 Pictures: www shutterstock com 3 07 Georgia 62 Electricity 64 Gas 66 National Authorities 68 Oil 69 Renewable Energy 70 Energy Efficiency 72 Environment 74 Climate 76 Infrastructure 77 Statistics 78 Cybersecurity 79 08 Kosovo* 82 Electricity 84 Gas 86 National Authorities 87 Oil 88 Renewable Energy 89 Energy Efficiency 91 Environment 93 Climate 95 Infrastructure 96 Statistics 97 Cybersecurity 98 09 Moldova 102 Electricity 104 Gas 106 National Authorities 108 Oil 109 Renewable Energy 110 Energy Efficiency 112 Environment 114 Climate 116 Infrastructure 117 Statistics 118 Cybersecurity 119 10 Montenegro 122 Electricity 124 Gas 126 National Authorities 127 Oil 128 Renewable Energy 129 Energy Efficiency 131 Environment 133 Climate 135 Infrastructure 136 Statistics 137 Cybersecurity 138 4 11 North Macedonia 142 Electricity 144 Gas 146 National Authorities 148 Oil 149 Renewable Energy 150 Energy Efficiency 152 Environment 154 Climate 156 Infrastructure 157 Statistics 158 Cybersecurity 159 12 Serbia 162 Electricity 164 Gas 166 National Authorities 168 Oil 169 Renewable Energy 170 Energy Efficiency 172 Environment 174 Climate 176 Infrastructure 177 Statistics 178 Cybersecurity 179 13 Ukraine 182 Electricity 184 Gas 186 National Authorities 188 Oil 189 Renewable Energy 190 Energy Efficiency 192 Environment 194 Climate 196 Infrastructure 197 Statistics 198 Cybersecurity 199 14 Methodology Used to Define and Calculate Implementation Indicators 202 5 6 01 State of Implementation Energy Community at a crossroads of exporting European law to neighbouring countries which have committed to follow these rules, in other words the heart and That the first year of the new decade would be challenging soul of the Energy Community Moreover, the announced intro- was clear even before the virus struck The European Union, duction of carbon border adjustments for countries not pricing representing 87% of the Energy Community’s population, had in carbon emissions – the majority of Contracting Parties – en- raised the energy transition bar high by announcing its Green tailed discussions about the future of their energy imports to Deal at the end of 2019 Would the Contracting Parties, with the European Union their specific socio-economic challenges and a lot of catching up in terms of energy reform still ahead of them, be able to follow But then again, there are plenty of indications that the Energy the same path? Or would the rift created by slow implementa- Community is not stagnating but actually moving forward on tion of the acquis by (some) Contracting Parties, the subject of the path of energy transition, and has in some cases passed the many Implementation Reports in the past, widen further with point of no return Without a legal obligation to do so, many the European Union having accelerated the transformation of Contracting Parties are currently engaging in drafting integrated the energy sectors energy and climate plans in line with the Governance Regu- lation of the Clean Energy Package Without participating in Some of the recent developments did not really give rise to the EU’s emission trading scheme, Montenegro has developed optimism Decarbonisation, renewables and energy efficiency and launched its own cap-and-trade system With the Energy targets for 2030 were discussed as early as 2017 but have still Community’s acquis on reducing pollution from coal-fired pow- not been set, and the Ministerial Council could not even agree er plants not yet respected, air pollution became an important on the adoption of non-binding decarbonisation guidelines in issue of public concern in many Contracting Parties Despite not early 2020 What is more, the 2019 Ministerial Council failed adhering to the Paris Agreement, the use of coal came closer to to impose measures against two Contracting Parties in cases of being abandoned in Kosovo*1 with the failure of the Kosovo e Re clear-cut and long-standing breaches of the acquis communau- project, against which the Secretariat had opened infringement taire – by joining up with each other they prevented the unanim- procedures North Macedonia publicly announced a coal phase- ity necessary to adopt those measures One may recall that the out programme These are encouraging signs enforcement procedures are the litmus test for the effectiveness Overview of Implementation Performance by Contracting Parties 54% 39% 36% 56% 45% 69% 59% 56% 61% 90% + 7% + 3% + 12% + 8% + 1% + 6% + 0% + 0% + 12% 80% 70% EnC average: 53% + 5,3% 60% 50% 40% 30% 20% 10% 0% Albania Bosnia and Georgia Kosovo* Moldova Montenegro North Serbia Ukraine Herzegovina Macedonia Implementation Ratio Electricity Implementation Ratio Oil Overall score 2020 Implementation Ratio Gas Implementation Ratio Sustainability Annual change (%) A detailed description of the methodology used for calculating the implementation indicators is available on page 202 of this report Source: compiled by the Energy Community Secretariat 1 Throughout this Implementation Report, this designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence State of Implementation / 7 Overview of Transposition Performance by Contracting Parties Albania 47% 44% 8% Bosnia and Herzegovina 22% 47% 31% Georgia 44% 39% 17% Kosovo* 64% 22% 14% Moldova 50% 36% 14% Montenegro 72% 22% 6% North Macedonia 58% 36% 6% Serbia 67% 33% 0% Ukraine 50% 39% 11% Full transposition or significant progress Partial transposition and ongoing activities No transposition progress This summary table groups together all the transposition assessment indicators displayed in the implementation tables of the nine Contracting Parties Source: compiled by the Energy Community Secretariat Even without new renewables targets, the deployment of green In the upcoming period, the Energy Community will have to electricity has been increasing in many Contracting Parties Il- prove that it can not only support the energy transition but lustrating this positive trend, some Contracting Parties such as actively boost and steer the process, taking the Contracting Par- Albania, North Macedonia and Montenegro managed to achieve ties along on the European pathway towards decarbonisation remarkable results with auctioning their support schemes, or The signs are looking good: after many years of negotiations, even doing without subsidies Persevering with administrative- the amendments to the Energy Community Treaty will finally ly allocated support, on the other hand, led to crises and in- be sealed at the end of this year, which is expected to enhance vestor-state disputes, particularly in Ukraine Support for the compliance with the acquis by the Contracting Parties and at the renewable energy source that affects the environment in the same time unlock the potential for market integration between most adverse manner, small hydropower plants, increasingly fac- the European Union and the Western Balkans, at least in the es opposition in several Contracting Parties and may eventually electricity sector A study identifying the scope for the 2030 cease altogether energy efficiency, renewables and decarbonisation targets to be adopted, almost last minute, in 2021 together with the Clean And even in the area of market opening and integration, where Energy Package, has been launched The European Union’s inter- the Western Balkan countries have come close to a standstill est in phasing out coal, pricing carbon and extending the “ren- over the last years, the Contracting Parties in Eastern Europe ovation wave” for non-efficient buildings also in its immediate have shown remarkable dynamics 2020 saw the youngest mem- neighbourhood is increasing It has also pledged recovery and ber of the Energy Community, Georgia, be particularly active in transition support to these countries Taken together with the this respect Ukraine, which had unbundled its gas transmission many bottom-up initiatives by and within the Contracting Parties, system operator at the end of 2019, harvested the fruit of this these activities forebode the revival of the Energy Community as achievement by concluding a new gas transit agreement with a community for the European energy transition and integration Russian Gazprom And finally, most Contracting Parties’ utilities, across the entire continent operators and authorities, supported by the Energy Community and international donors, passed the test of Covid-19 rather well and deserve a great deal of praise for that Janez Kopač Dirk Buschle 8 / State of Implementation 02 Introduction a. Presenting the Energy Community and market framework which is capable of attracting invest- ments for a stable and continuous
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