Official title of the project

Supporting the Implementation of the Energy Community Treaty

Sectors

Project information

Region / City
Cities
Serbia
Total budget of programme / project

6,000,000 EUR

Implementation period
2008. Jan - 2010. Jan
Expected results

Project 1: Assistance to the Energy Regulatory Agency (AERS)

a.       Implementation of the requirements of the Road Maps/ Action Plans for the Energy Community Treaty

b.      Improved market monitoring and enhanced price/ tariff regulation giving proper incentives to improve efficiency of the utilities while taking account of protection of vulnerable consumers.

c.       Increased professional capacity of AERS staff and trained staff

d.      Increased regulatory cooperation at the regional level

 

Project 2: Strengthening the capacity of the Transmission System and Market Operator EMS

a. Improved performance of the transmission system operator and market operator

b. Increased professional capacity of EMS staff on the implementation of market rules, technical codes and on participation in cross border trade.

c. Improved operational security and transmission service quality

d. Increased capacity for cross border trade (contributing to the regional energy market).

 

Project 3: Technical Assistance to Srbijagas

a.       Unbundling, as foreseen under the Energy Community Treaty

b.      Wholesale market opening

c.       Increased professional capacity of staff.

 

Project 3: Feasibility studies for priority cross border capacity investments

a.    Feasibility study of priority cross border capacity strengthening projects: Construction of new 400kV link between Serbia and Romania

b.    Feasibility study of priority cross border capacity strengthening projects: Construction of substation Bistrica

Beneficiary

Ministry of Energy, Development and Environmental Protection

Target Groups

Stakeholders in the energy sector

Energy consumers

Summary of the project

The entry into force of the Energy Community Treaty imposed significant obligations on Serbia to comply with the EU acquis communataire in the energy and environmental field.  Action plans (road maps) have been prepared by Serbia, which set out in detail the actions, with concrete deadlines, which have to be implemented by the line ministry, the Energy Regulator (AERS), the energy utilities – EPS, EMS, and Srbijagas. The most important of these obligations are:

·         The requirement to implement unbundling of the transmission and distribution system operators

·         Elaborate and implement wholesale market opening

·         Develop cost reflective retail tariffs

·         Develop cost reflective tariffs for third party access to transmission (for electricity and gas)

·         Develop and adopt support schemes for the protection of vulnerable consumers

·         Investment in cross border electricity interconnections

 Strengthen the capacity and technical skills of the Serbian institutions/energy industries, to meet the legal and technical requirements of the Energy Community Treaty/Regional Energy Market (electricity, gas and developing renewable energy sources) and to assist in developing the investments needed in cross border electricity interconnections in order to create a functioning regional energy market.

Programme/Project objectives

The institutions concerned with implementing the Energy Community Treaty within the scope of this project are already established (Energy Regulatory Agency AERS, Transmission System and Market Operator EMS, and Srbijagas) but still in need of capacity strengthening. The result of the capacity building activities is intended to consolidate these institutions and build the regional energy market. This project has an important cross border impact, since the Energy Community Treaty is intended to increase cross border (regional) energy trade by creating a single market in network energy covering the Member States and South Eastern Europe.

More details on project

Service Contract

Name:  Further Assistance to Energy Regulatory Agency (AERS)

Budget: EUR 1.5 M

MERCADOS in consortium with KEMA

 

Service Contract

Name:  Strengthening the capacity of the Transmission System and Market Operator EMS

Budget: EUR 1.5 M

Red Electrica International

 

Service Contract

Name:  Technical Assistance to Srbijagas

Budget: EUR 2 M

KEMA

 

Service Contract

Name: Feasibility study of priority cross border capacity strengthening projects: Construction of new 400kV link between Serbia and Romania and substation Bistrica

Budget: EUR 1 M

MVV