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EU & WBs / Albania Energy Regulatory Updates

Presentation of Albanian Centre for Energy Regulation and Conservation - ACERC

Acerc is a think tank centre with a focus on the Albania energy market and its integration in Regional & IEM. The Acerc mission based on the in-depth knowledge of EU and Regional Energy Law and Policy and strives to provide aqualified contribution to the promotion of the liberalization and effective integration as well as efficient use of energy resources.

Acerc main activities consists in build-up collaborationand support to market players in the market researches such as the release of reports, articles and periodicals. Activity accompanied with the offering of the support in capacity building through national and regional seminars, trainings and conferences. Initiatives aims to enable in advocating in the energy sector promoting a forum called in Albanian School of Regulation.

For more visit us at the Official Website of Acerc | Albanian Energy Market - AEM Group in LinkedIn

New CEER reports set out recommendations for gas storage and security of supply 22 July 2015

AER Notice July 2015 Posted on Sun, July 26, 2015 23:07:41

The Council of the European Energy Regulators (CEER) announce the publication of its two new gas reports:

(1) CEER Concept Paper on Security of Gas Supply; and
(2) CEER Report Monitoring Implementation of the Gas Storage Guidelines of Good Practice (GGPSSO) and the GSE Transparency Template.

As an input to the ongoing revision of EU Regulation 994/2010 on security of gas supply, we set out in our Concept Paper our recommendations for measures to safeguard security of gas supply. The paper builds on concepts and ideas we put forward in the CEER response (April 2015) to the European Commission’s public consultation on gas security of supply. Overall, we make an appeal for the use of the market-based measures (in the “prevention phase”), for greater regional cooperation and for explicit involvement of National Regulatory Authorities in the security of supply decision-making process.

Our Report Monitoring Implementation of the Gas Storage Guidelines of Good Practice and the Gas Storage Europe’s (GSE) Transparency Template shows how well these two important voluntary initiatives have been implemented. In many cases, the results are positive and CEER welcomes the efforts made by gas Storage System Operators (SSOs). There are, however, a number of areas where improved implementation is necessary to ensure that European storage markets are functioning effectively (such as, information provision and transparency). The report encourages European SSOs to work towards full implementation of these important initiatives.

For the documents please click here.

Framework of Trading Activity and Market Entry in Albania by Lorenc Gordani | Sunday, July 26, 2015

AER Notice July 2015 Posted on Sun, July 26, 2015 20:17:55

At the begin
of July 2015 the Albanian Ministry of Energy announces the plans for the
opening of a power exchange platform. Announcement that follow the enactment
the new Law of the Electricity Sector nr. 43 on 30th April 2015. The
new law aim a fully aligned with Directive 2009/72/EC of the European
Parliament and the Council, dated 13 July 2009 “On common rules for the
internal market in electricity”. A process that ranks the country in the second
post among the rest of the WBs (only Serbia have done it until now).

In regard the
ECS release on 15 July 2015 the Draft for Consultation on the Policy Guidelines
on the Promotion of Organised Electricity Markets in the Contracting Parties
developed with the support of an ad-hoc working group comprising academia and
industry professionals.

The part of
the Rules governing trading activity and market entry report the “a
comprehensive set or rules governing market entry, trading activity, product
development and market oversight is needed for operating an organised market
which is suitably designed to swiftly couple with connected markets. Joining
existing market couplings that have a well established structure and standards
for these rules offers not only a focal point, but should deliver all guiding
principles in order to ensure a harmonised set of rules, ready for coupling”.

A framework
that is address in the Part VIII “The Electricity Market” by the Law 43 / 2015
that in the Article 98 “Market Rules” state “ERE, upon proposal of the
Transmission System Operator and in collaboration with all participants of the
electricity sector, shall adopt the Electricity Market Rules, in accordance
with this law and the Electricity Market Model, including the rules for
planning, dispatching, balancing, settlement of disputes and requests for
reserve management. In regard, the Market Rules shall be adopted by the ERE,
within 1 (one) year from the date of entry into force of this law.”

Indeed the
Draft for Consultation on the Policy Guidelines on the Promotion of Organised
Electricity Markets in the Contracting Parties bring in brief that market
coupling will lead to sufficiently harmonised trading rules. No additional
regulation of these will be required. Nevertheless, a few elements will facilitate
market participation: All documents should be made available in English, what
at best is also the language of working documents. All standard contracts
between the power exchanges or operators of the organised market and the market
participants should also be in English.

Despite the
fact that rules for the supervision of market activity or market surveillance
practices will be needed, as well as a code of conduct developed by the
operator of the trading platform to be followed by the market participants, the
present Policy Guidelines recommend the adoption of the REMIT Regulation into the
Energy Community acquis. In order to avoid discrimination between market
participations, the same standards for market monitoring should be applicable
in an integrated market. Following existing European standards may lead to
lower implementation and transaction costs as compared to a separate and
potentially different scheme resulting in undue discrimination and hampering
overall market monitoring.

In general,
quality in trading and security for clearing and settlement should be coming
from the internal rules agreed between the parties running the processes and
those participating in the market. Most importantly, the contractual
requirements from the side of the power exchange, the TSOs (requirements for
balance responsible parties) and, in case separately organised, the clearing
house provide for the most important elements and constitute market
participation requirements which do not require further regulation.

Then even
the fully implementation will require a further time and efforts the country
gives an important signal, probably also due to its guide role as the actual
holder of the Energy Community Presidency for the 2015, in the path on the
reforms necessary to be followed. Indeed, it constitutes a decisive step
forward a long path of reforms in energy sector in Albania for which the Law 43
/ 2015 lays a solid foundation.

In regard, it
can be conclude with what in the ECS Draft for Consultation state “It is in the
interest of all parties to have functioning markets based on the best possible
rules; existing standards have largely proved this. Still, market participation
requirements should provide for low market entry barriers and receive
regulatory facilitation to be harmonised and gradually reduced where outdated.
Where these rules provide for all minimum requirements, no additional trading
licenses should be required”.

New electricity market rules allow efficient EU-wide electricity trading, Friday, 24 July, 2015

AER Notice July 2015 Posted on Sun, July 26, 2015 10:26:30

European Commission has adopted new electricity market rules which will
bring the goal of a well-integrated EU internal energy market a step

The new Regulation creates a comprehensive legal framework for electricity trading
in Europe and makes so-called ‘market coupling’ legally binding across
the EU. Market coupling essentially brings all bids and offers from
different national power exchanges for cross-border trading into one
‘basket’ and allows matching them in an optimal manner across borders.
Market coupling is estimated to save customers from €2.5 to 4.0 billion a year.

The Regulation is part of the Commission’s project to create an
Energy Union with a truly integrated electricity market. One pillar of
this project is the initiative to remove barriers to electricity trade
and coordinated grid operation through a series of new EU laws (known as
‘network codes and guidelines’).
More cross-border trade will increase competition in electricity
markets, and more coordinated system operation will save unnecessary
costs resulting from the current fragmented grid operation.

The Regulation on market coupling adopted today (official title:
‘Regulation establishing a Guideline on Capacity Allocation and
Congestion Management’) will also help increase trading of electricity
over shorter time horizons. This will allow for a more efficient
integration of renewables into the grid as suppliers and traders can
take into account better forecasts on how much solar or wind energy will
be produced. Finally, the new rules establish a new decision-making
procedure which enables effective regional cooperation amongst grid
operators, power exchanges and regulators.

The new Regulation will be published in the EU’s Official Journal on 25th July 2015 and enter into force on 14th August 2015.

Factsheet on market design