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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

Energy poverty may affect nearly 11% of the EU population, Thursday, 25 June, 2015

AER Notice June 2015 Posted on Mon, June 29, 2015 12:56:58

The European Commission has published a new study on the state of
energy poverty across Europe and ways to combat it. The study found that
while many EU countries do have measures in place to protect vulnerable
people, nearly 11% of the EU’s population is in a situation where their
households are not able to adequately heat their homes at an affordable

This situation is estimated to affect around 54 million people in
Europe (2012 figures). The scale of the problem is due to rising energy
prices, low income and poor energy efficient homes, and it is
particularly prevalent in Central Eastern and Southern Europe, the study

Under the EU’s so-called Third Energy Market Package,
the responsibility for addressing energy poverty, identifying
vulnerable consumers and putting measures in place lies with national
governments. However, a number of EU countries do not currently identify
or quantify vulnerable consumers, and therefore cannot adequately
target energy poverty measures. Less than a third of EU countries
officially recognise energy poverty, and only a few have an official
definition in their national legislation.

The study found that financial interventions are a crucial means for
the short-term protection for vulnerable consumers. In the longer-term,
energy efficiency measures focussing on retrofitting buildings are a key
part of addressing energy poverty. Strong incentives to encourage low
income households to put energy efficiency measures in place, as well as
raising awareness, are needed, it says. Moreover, consumers need
transparent billing and information on price comparisons in order to
make better energy choices, the study says.

Ways forward

According to the study, EU countries need to properly assess energy
poverty and identify vulnerable consumers in order to be able to draw up
appropriate measures. The European Commission already helps EU
countries to do so. The Commission also facilitates the exchange of best
practices via the Citizen’s Energy Forum
and the Vulnerable Consumer Working Group. Moreover, the Commission is
set to issue recommendations to national goverments on how to help
vulnerable consumers through energy efficiency and other measures.

The study also recommends that the Commission should allocate a
higher share of EU funds to renovation programmes for the energy-poor,
low-income and vulnerable categories of people, while another
recommendation calls for improved monitoring of energy poverty, leading
to a better understanding of the situation.

EnC Secretariat and ENTSOG hold workshop on implementing gas interoperability network code, 22 Jun 2015

AER Notice June 2015 Posted on Wed, June 24, 2015 09:28:52

The Energy Community Secretariat together with the European Network of Transmission System Operators for Gas (ENTSOG) held a joint workshop on the implementation of the Network Code for Interoperability and Data Exchange Rules in Vienna on 18 June. ENTSOG’s Early Warning System was also discussed. The workshop brought together more than 50 participants, including TSOs from EU Member States and Energy Community Contracting Parties and Observers, including Turkey, and two other neighbouring countries – Azerbaijan and Morocco.

The Network Code on Interoperability and Data Exchange Rules is one of the key policy instruments in implementing the Third Energy Package and supporting market integration in the gas sector. The network code aims at removing barriers for gas flows when crossing different systems by strengthening cooperation amongst TSOs, thus ensuring that users remain unaffected and a high level of gas quality is maintained. The network code has recently been adopted by the European Union. It will be adopted in the Energy Community Contracting Parties following a decision of the Permanent High Level Group.

The purpose of the workshop was to present and discuss the current status of the implementation of the interoperability network code in the EU. A case study on the interconnection agreement between the Hungarian TSO FGSZ and the Ukrainian TSO Ukrtransgaz was presented. ENTSOG also introduced its Early Warning Mechanism, a voluntary TSO communication tool open to all TSOs from EU and non-EU countries. The purpose of the tool is to help anticipate potential gas supply crisis and facilitate a response to such crisis at an early stage.

Main Priorities of Reform in the Albanian Oil Sector, Dr Lorenc Gordani | Tuesday, June 23, 2015

AER Notice June 2015 Posted on Tue, June 23, 2015 11:12:24

As already announce the Albania Ministry of Energy and Industry, has open
the Areas 4, 5 and Dumre, C and Panaja with deadline of application 15.07.2015 and
other offshore and onshore Areas, due to the consolidation of seismic data, to a
postponed period.

Therefore, about an overview of the sector as reported by the annual
report of the energy community for the 2014, it can start by saying that the
country is an exporter of crude oil through the oil port Vlora 1. In 2013, oil
production was around 1.2 mt, 15.6% higher than in 2012, which is due to
significant foreign investment. Exports that reach around 1.116 mt compared to
937 kt in 2012, an increase by 24.5%.

The state-owned Albpetrol is active in the
development, production and trade of crude oil. Bankers Petroleum is the
biggest investor in the Albanian oil sector. It achieved a record level of
crude oil production of over 1 mt during 2013, representing an increase by 17%
compared to 2012. Production in 2014 was increase even further due to increased
investments in the Patos Marinza oil field.

The companies Petromanas Energy and Royal Dutch
Shell are currently exploring oil and gas production in Albania by performing
test drillings. The first phase of tests discovered significant amounts of
light oil at the Shpiragu-2 well. Petromanas Energy is drilling at the Molisht-1
well expected to reach a total depth of approximately 5,500 m.

As regards the production of refined petroleum
products, the volume of 63.2 kt processed in 2013 constitutes a decrease by
41.5% compared to 2012. Yet the volume of petroleum products exported increased
by 5% to 20 kt. At the same time, the import of petroleum products also
increased by 2.6% to a level of around 1 mt in 2013. The overall consumption of
petroleum products in 2013 reached at 1.094 mt (an increase of 8.5% compared to

Albania is currently considering how to redesign
its emergency oil stockholding system. The existing legislation related to oil
stocks stipulates requirements which currently cannot be met and is not in
compliance with Directive 2009/119/EC. The Government has established an
interinstitutional working group, which will review the existing legal and
institutional framework and foresee the present to the Government within 2014 a
proposal for the reform of oil stockholding policy.

Therefore in the here conclusions about the future
the main priorities for reforming the oil sector governance the existing
legislation related to oil stocks should be seriously modified or completely
replaced in the very near future. Moreover, should be the national incumbent’s
Albpetrol restructuring and privatisation. Among other changes, a financing
scheme should be established, and preferably based on a fee, which avoids
impacting the public budget. The necessary amendments should leave industry an
appropriate transition period to the new system.

For more keep update with the EU & WBs /
Albania Energy Investment Updates
or visit the Official Page

ACERC Report 2015: Pre-Assessment on Albania Market Liberalization, Press release 20 June 2015

AER Notice June 2015 Posted on Sat, June 20, 2015 11:14:08

Report 2015: Pre-Assessment on
Albania Market Liberalization

release 20 June 201

On June 2015 ACERC release
its preliminary Report for the 2015 on an Pre-Assessment on Market
Liberalization. In the here presentation are reported the state of art before entering
in force of the new law for the electricity sector and the challenges that it
has to afford. In regard, it is necessary to be highlight that the specific
transformation brought by the new law will be part of further closer reports
and communications.

on 28 Apr 2015, Albanian Parliament approve the new law on the electricity sector
that adopts the EU Third Energy Package. A process that place the country in
the second post among the rest of the WBs (only Serbia have done it until now)
that adopt the Third Energy Package in the electricity sector. 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.

With the
here introduction the country gives an important signal, also due to its guide
role as actual holder of the Energy Community Presidency for the 2015, in the
paths of the necessary reforms to be followed by the other Contracting Members
of the Energy Community. A
development that goes far beyond formal compliance with EU legislation. The law
consolidates the action taken so far in the sector, that in some way have been slowed
in the last period by the country. In more, it constitutes a decisive step
forward on a long path of the energy reforms in Albania for which it lays a
solid foundation.

For more about
the report click here. The here document presented base on reports provided by
the main official institutions of reference in the energy sector and found on
the website of the Energy Community Secretariat. In
particular it want to highlight that the here presentation report the state of
art before entering in force of the new law for the electricity sector that
transpose in the Albanian legal framework the third Energy Package. Therefore
the here presentation want mainly to present the challenges to be afford.

on regard putted itself in availability for any enquire and comments and will
turn soon with an extensive presentation that address the main new specific
transformation that the reform introduce.

CoS Traditional Regulation | Online Course Video Florence School of Regulation Florence School of Regulation

AER Notice June 2015 Posted on Thu, June 18, 2015 18:26:01

2015 Electricity Forum: There is no alternative to electricity market coupling 04 Jun 2015

AER Notice June 2015 Posted on Mon, June 15, 2015 08:23:40

2015 Electricity Forum: There is no alternative to electricity market coupling
04 Jun 2015

This year’s Electricity Forum focused on the next
key steps for regional electricity market integration and wholesale
market opening – the realization of coordinated electricity auctions
across all countries in the 8th region, the development of power
exchanges and market-based electricity balancing in the Energy Community
Contracting Parties. Forum Participants welcomed the EU’s recognition
of the Energy Community Contracting Parties as an integral part of the
Energy Union. The Forum’s conclusions will feed into the preparations
for the Western Balkans Summit in August this year in Vienna.

The Forum underlined the increased pressure on the 8th Region to reform
their legal and regulatory frameworks. It concluded that there was no
alternative to introducing electricity market coupling as an essential
prerequisite for the integration of the Contracting Parties’ electricity
markets with the European Union. The adaptation of the legal and
regulatory framework remains highest priority for establishing
market-based balancing and organised markets in the Contracting Parties.
The implementation of regional solutions, which increase market
efficiency and thereby reduce system costs for the benefit of end-users,
is not possible if barriers in the national legal frameworks persist
”, Janez Kopač, Director of the Energy Community Secretariat, stressed.

Recognizing the progress achieved by the Coordinated Auction Office in
South East Europe in conducting capacity auctions on additional country
borders and Serbia’s commitment to join a capacity allocation mechanism
by the end of the year, Director Kopač underlined: “If all expected
milestones will be reached this year then Bulgaria and former Yugoslav
Republic of Macedonia risk remaining the last two transmission system
operators in the 8th Region that do not comply with their legal
obligations on forward capacity allocations. The Secretariat will thus
continue to proceed with the dispute settlement procedure against the
former Yugoslav Republic of Macedonia

For the first time, the Forum discussed distribution related aspects.
Recognising the increased role of electricity distribution system
operators, Forum participants discussed the challenges faced by DSOs and
how they could be taken into account in the regulatory process.

The Forum was briefed on the recent developments of the Turkish
day-ahead and intra-day market and its potential to provide liquidity
for future integration into the Energy Community market.