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Electricity security in SEE

Our view on the energy security in South East Europe

Reorganisation of the energy sectors in the EU

Fragments of the report are taken from a research published here

During the last course of years the energy sector in Europe has been characterised by the processes of reorganisation. This correlates to the processes of functional, accounting and controlling unbundling of vertical, monopolistic companies according to different activities such as production, transmission, distribution and supply. It also correlates to the process of electricity market liberalisation.

 

When observing current various experiences of Western European countries, in general, we can say that the overall process has started with restructuring of companies which was followed by the liberalisation of the electricity market and privatisation. All the countries have followed this procedure obeying the laws proscribed by the common European legislation. However, countries outside the EU, have mostly kept their vertically-monopolistic organisation of the energy sector. With the accession to the EU, new Member States needed to swiftly fulfil the requirements set by the EU legislation (most importantly the directives on the electricity market).

 

The processes of liberalisation of the electricity market within the EU have followed the energy sector for years and continue to be a highly debated topic today. One of the main issues during reforms is the issue of the security of supply since it is imperative to be able to provide for the constant supply of both electricity and gas during all times. The initiative of creating a regional energy market in South East Europe (REM SEE) is somewhat unspecific regarding the development of the energy market in Western Europe.

 

Restructuring of the energy sector in some of the Member States has resulted in significant changes in the work market and the inability of successful interconnection and the creation of a unique market. The imbalances that the reforms created were a result of different interpretations of the guidelines provided by the EU Directives. Because of these issues, the end users have not always been able to fully benefit from the positive outcomes reforms provided. The most successful regional energy market in Europe, the Nordic market (Nord Pool), owes its success to the strong cooperation between the member countries.

 

In the case of SEE, through its own and recently founded institutions, the EU is trying to encourage the countries of the region to be more determined in taking action towards creating coordinated conditions for organising a common energy market.

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