May 7, 2026

by AEA in News

North Macedonia Launches Intraday Electricity Market as Regional Power Trading Evolves

North Macedonia has taken another significant step toward deeper integration with the European electricity market following the launch of its intraday power market by the National Electricity Market Operator (MEMO). The development represents a major advancement in the country’s electricity market liberalization process and strengthens operational flexibility within the regional energy system.

The official launch ceremony gathered senior representatives from the government, energy institutions, market participants, and international partners. The intraday trading platform and clearing infrastructure were delivered by Slovenia’s BSP Energy Exchange, continuing its cooperation with MEMO after supporting the establishment of North Macedonia’s day-ahead market. Intraday trading operates through Deutsche Börse’s M7 trading system, one of Europe’s widely adopted electricity trading platforms.

The introduction of intraday trading comes three years after the launch of the country’s day-ahead market and reflects the increasing sophistication of North Macedonia’s power sector. Intraday markets play a critical role in modern electricity systems by enabling market participants to adjust positions closer to the actual delivery hour. This improves balancing efficiency, reduces imbalance costs, and enhances the integration of variable renewable energy sources such as solar and wind.

Prime Minister Hristijan Mickoski described the launch as evidence of tangible reform progress in the national energy sector. According to him, energy security and resilience have become strategic priorities for all European economies amid accelerating market transformation and geopolitical uncertainty.

“At a time when energy is one of the most critical issues for every country, our obligation is to create a system that is secure, competitive, and resilient to global challenges,” Mickoski stated during the event.

He emphasized that North Macedonia intends to actively participate in European energy flows and policy frameworks rather than remain on the periphery of the continent’s ongoing energy transition.

Minister of Energy, Mining and Mineral Resources Sanja Božinovska underlined that the intraday market is only one phase of a broader market integration strategy. She reiterated the government’s commitment to future market coupling with the European Union and the continued development of regional electricity trading mechanisms.

“This is just the starting point for our full integration into the European energy family,” Božinovska said, adding that authorities will continue advancing regional cooperation and aligning domestic market structures with EU standards.

MEMO Chief Executive Officer Zoran Gjorgjievski highlighted the operational significance of intraday trading in a rapidly changing electricity environment increasingly shaped by renewable generation and real-time balancing requirements.

“From today, our market not only plans for tomorrow – it operates in real time. The intraday market is a direct response to the dynamics of the modern energy sector,” Gjorgjievski noted.

He stressed that transparent and efficient price formation remains essential for optimal resource allocation, prudent investment decisions, and effective risk management across the electricity value chain.

Gjorgjievski also warned that emerging European regulatory frameworks, particularly the Carbon Border Adjustment Mechanism (CBAM), could introduce additional pressure on domestic electricity producers and potentially affect regional market liquidity. While supporting decarbonization objectives, he argued that the energy transition must remain economically sustainable and carefully managed to avoid undermining market competitiveness.

The launch of the intraday market is also viewed as an important preparatory step toward integration into the single European electricity market. Chairman of the Management Board of ADEX Group and CEO of BSP Energy Exchange Anže Predovnik said the project reflects strong institutional cooperation, strategic government support, and MEMO’s operational commitment.

“What lies ahead is integration into the single European market. Together, we will build a more connected and competitive future,” Predovnik stated.

North Macedonia’s intraday market currently includes 21 participants, demonstrating growing interest among regional traders and electricity companies.

According to Martin Martinovski, electricity and statistics expert at the Energy Community Secretariat, the operational intraday market strengthens North Macedonia’s role within the regional balancing framework. As integration with the EU electricity market progresses, the country could increasingly contribute low-carbon flexibility to neighboring systems while benefiting from cross-border balancing support.

Market growth figures indicate a rapid expansion in trading activity since the launch of organized electricity trading in the country. Trading volumes increased from 335 GWh by the end of 2023 to nearly 970 GWh in 2024, before surpassing 1.37 TWh last year. MEMO currently counts forty active market members, while first-quarter 2026 trading volumes were 19% higher compared to the same period a year earlier.

February 20, 2026

by AEA in News

Montenegro Achieves Regulatory Milestone: Full Alignment with EU Electricity Integration Package

In a significant leap toward European energy integration, Montenegro has officially completed the transposition of the European Union’s Electricity Integration Package (EIP). According to the Energy Community Secretariat, this regulatory alignment positions Montenegro alongside Moldova and Serbia as frontrunners in the Western Balkans’ effort to merge with the European single electricity market.

The move is designed to catalyze Montenegro’s energy transition by enhancing market competitiveness and ensuring the country can participate in regional power exchanges even before formal EU accession.

The Gateway to Market Coupling: SDAC and SIDC

The primary objective of transposing the EIP is to enable Market Coupling. By harmonizing its domestic laws with EU standards, Montenegro is preparing to join two critical pillars of the European energy infrastructure:

Single Day-Ahead Coupling (SDAC): A mechanism that optimizes electricity prices and cross-border flows across Europe for the following day.
Single Intraday Coupling (SIDC): A continuous trading environment that allows market participants to adjust their positions as close to real-time as possible.

This integration is expected to lower costs for consumers, provide clearer signals for renewable energy investors, and significantly bolster the security of the national supply.

The Legislative Roadmap

The finalization of this process occurred on February 15, 2026, when the Montenegrin government adopted two pivotal decrees governing:

System Operation: Establishing technical rules for grid stability.
Emergency and Restoration: Outlining protocols for grid recovery during unforeseen outages.

These decrees complement existing legislation, including the Law on Energy and the Law on Cross-Border Exchanges in Electricity and Natural Gas. Together, these legal frameworks form the “four pillars” identified by the Secretariat as essential for a cost-efficient clean energy transition:

Clear investment signals.
Strengthened regional cooperation.
Reinforced fair competition.
Enhanced security of supply.

The Path to Verification

While the legislative work is complete, Montenegro now enters the Verification Phase. This process involves a rigorous audit by the Energy Community Secretariat and the European Commission to ensure that the laws on paper translate into functional market practices.

Country	Status of EIP Transposition	Verification Phase
Serbia	Completed	In Progress (Started Oct 2025)
Moldova	Completed	Initiating
Montenegro	Completed	Pending Request
North Macedonia	Partial	Pending Legislation

“Montenegro is now stepping up efforts to submit a formal request initiating the verification process,” the Secretariat noted, echoing recent sentiments from Director Artur Lorkowski regarding the rapid progress of the “Vienna Group” of energy reformers.

Expert Analysis: What This Means for the Region

For a small economy like Montenegro, market coupling is a “force multiplier.” By removing the barriers to cross-border electricity trade, the country can better manage the intermittency of new wind and solar projects. This regulatory bridge to the EU not only modernizes the grid but also makes Montenegro a more attractive destination for “green” capital, as energy produced domestically can now be more easily sold into the massive European market.

February 16, 2026

by AEA in News

Albania’s Energy Sector: Key 2025 Insights and Outlook

Albania’s energy sector in 2025 remains dominated by hydro and oil, but undergoing rapid change. Gross available energy (supply) in 2023 was 2,234 ktoe, against primary production of 1,799 ktoe. Imported oil and electricity cover the gap: the country needs roughly 4–5 TWh of net imports annually. In 2023 final energy consumption was 1,942 ktoe (down 2.8% year-on-year), with industry (~27%), residential (~34%), transport (~22%), services (~11%) and other sectors (~6%) each accounting for a share. Albania’s energy intensity remains fairly low – roughly 0.17 ktoe per million EUR of GDP (–4.0% in 2023) – reflecting both efficiency gains and a modest economic base.

Infrastructure investments are focused on grid upgrades and new pipelines. Two major 400 kV transmission projects are planned or underway: closing the internal 400 kV ring and building a 400 kV Albania–Kosovo* interconnector (both under WBIF support). The long-delayed Elbasan–Bitola 400 kV line (a 2018 Energy Community project of common interest) still awaits completion. On gas, Albania currently has no domestic market – it consumes virtually no pipeline gas today – but this will change. A Fier exit point on the Trans-Adriatic Pipeline (TAP) is under construction (targeted commissioning October 2027), and a planned Fier–Vlora feeder line is in planning. Meanwhile a new Korça gasification scheme (Azerbaijani Azeri gas via TAP) was agreed in November 2024, aiming to extend distribution into eastern Albania. These gas projects could underpin future power and industrial expansion.

2023 Albania Primary Energy Production by Fuel (ktoe) – oil and hydro dominate

Electricity Market: Liberalization and Infrastructure

Since 2023 Albania has made notable strides in power market integration, but wholesale trading remains limited. A day-ahead market was launched in April 2023 and coupled with Kosovo* from January 2024 – the first cross-border market coupling in the Energy Community. Complementary regional intraday auctions (CRIDAs) between Albania and Kosovo* began in December 2024. (Plans for a continuous intraday market are pending.) The Albanian Power Exchange (ALPEX) operates these markets: by 2024 it had 26 registered participants, of which 16 trade intraday, and traded roughly 12% of Albania’s final electricity consumption on the day-ahead market.

However, full liberalization is unfinished. The day-ahead and intraday markets run in parallel with a traditional regulated market. The state-owned utility KESH still supplies universal service customers (low-voltage households) under a public service obligation (PSO) at government-set prices. Regulated tariffs and supply obligations extend to most small businesses and residential clients. Only customers on 10–110 kV networks (large industry) face market prices, with lower-voltage consumers still sheltered under universal service tariffs. Indeed, current regulations keep in place a PSO for KESH (originally a temporary crisis measure) and a supplier-of-last-resort (SoLR) regime for others. Retail prices for low-voltage consumers thus remain controlled (free market entry is limited), and new retail deregulation phases (10 kV by 2025, 6 kV by 2026) are planned. (These interventions still fall short of EU requirements.)

Balancing and ancillary services are developing along European lines. A 15-minute imbalance settlement period was introduced in 2025 (after delays). Balancing energy is procured via a merit-order market operated by OST (the national TSO). Cross-border balancing cooperation is currently minimal: Albania only shares frequency-restoration reserves with Kosovo* under a joint “AK block” agreement. Full participation in European balancing platforms will require transposing the EU Electricity Regulation (2019/943) and Network Code on balancing (2017/2195) – work that has only just begun.

On network infrastructure, the transmission system operator OST is certified (ownership unbundled) and a member of ENTSO-E, but key grid upgrades lag. The TEN-E revision (2022/869) – which would designate new energy corridors – has not been transposed. In the meantime, two grid projects of regional interest are under development: closing Albania’s internal 400 kV loop and a new 400 kV tie to Kosovo*, both backed by EU grants. Investment plans for OST and the DSO (OSSH) are now regularly approved by the regulator ERE; ERE also endorsed the 2025–27 capital plan of OST in 2025, which includes these projects. Distribution network upgrades (smart metering, loss reduction) remain on the agenda but face funding constraints.

[Insert chart: Albania Electricity Market Coupling Timeline (Day-ahead April 2023, coupling Jan 2024, CRIDAs Dec 2024)]

Gas Market: Emerging Supply and Infrastructure

Historically, Albania had no natural gas consumption; electricity and heating ran on oil and biomass. This is changing. Although no domestic gas market exists yet, Albania is transposing EU gas rules in anticipation. The regulator has applied REMIT transparency rules (excluding market rules). Certification under the Third Package is in place: TAP AG (cross-border pipeline) is certified as an exempt TSO, and Albgaz (Albania’s gas TSO) was conditionally certified under ownership unbundling. Albgaz’s remaining unbundling issues have been repeatedly extended (new deadline end-2025), and TAP and Albgaz plan separate network codes once pipelines operate.

Two key pipeline projects will shape Albania’s gas landscape. First, the TAP Fier exit point will link Albania to the Trans-Adriatic Pipeline. Construction is slated to start May 2026 and complete by October 2027. This facility (a pressure-reduction station and meter) will allow Azeri gas from TAP to enter Albanian networks. Second, the Korça Gasification Project – a private initiative by Azerbaijan’s SOCAR – will build a local grid from a new Fier (TAP) connection eastward. A 2024 MoU commits Albgaz and SOCAR to design and build the exit and local pipeline, with a TAP capacity nomination already in place. If realized (final investment decision pending), Korça would for the first time supply gas to industries and possibly power plants in southern Albania by the late 2020s.

Domestic gas demand is expected to grow once these are online (power plants and industry will switch from oil), but there is no wholesale gas trade yet. Secondary legislation to allow retail gas supply exists, but without an existing network to serve, these serve mainly as placeholders. In practice, Albania’s future gas wholesale is effectively TAP-dominated; a functioning national hub or trading platform is still years away.

Renewable Energy and Decarbonisation

Albania’s power system is already very green by global standards, but has room to diversify. In 2024 total renewable electricity capacity reached about 3,005 MW – dominated by small hydropower (<10 MW) at some 2,181 MW and utility-scale hydro (≈375 MW), with 449 MW of solar PV. (Wind and biogas are currently negligible: the report notes only 3 MW of wind.) Renewables supplied most of Albania’s generation in 2023 (hydro plus a modest biomass cogeneration), but exact shares are not broken out in the report. What is clear is that Albania’s 2030 renewables target is ambitious: the adopted National Energy and Climate Plan (NECP) aims for 54.4% of final energy consumption from renewables by 2030, above the 52.0% goal set by the Energy Community Decision. The NECP also envisions sectoral sub-targets (e.g. ~178% for electricity, 34.6% transport, 16.6% heating/cooling) that exceed current EU RED II mandates.

Policy reforms are in motion to boost renewables. The 2023 Renewable Energy Law shifted from fixed feed-in tariffs to competitive auctions (contracts-for-difference/premium) for green power. Two auctions were already held with fixed prices, with plans to transition to pure CfDs once Albania’s day-ahead market achieves liquidity. So far no statistical transfers or joint schemes (EU cooperation mechanisms) have been used. Net metering is enabled (rooftop systems up to 500 kW) and Albania plans to move to net billing (full retail credit) as of 2024. The law also incorporated guarantees-of-origin (GOs) for all renewable generation: an electronic GO registry became operational under ERE in May 2023, laying groundwork for tracking clean energy. However, “renewable energy communities” are still theoretical – no community project has been set up yet.

In the heating sector, Albania is rolling out support for solar thermal collectors and heat pumps. A recent scheme reimburses 70% of solar water heater costs for low-income households (vs. 20–30% for other systems). Draft legislation for broader RES heating/cooling incentives is pending. On bioenergy, Albania has transposed most RED II provisions, but needs secondary rules for verifying sustainability (GHG savings and land-use criteria) for bioliquids and solid biomass used in heat and power.

Overall, the renewables pipeline is robust: capacity grew by +279 MW in 2024 (mostly PV additions). Auctions and net-billing should further drive solar rooftop uptake, especially for homes and businesses now escaping fixed feed-in tariffs. Hydropower will remain the backbone of Albania’s system; future small hydro additions and the potential for wind in the flat coastal plains (not yet tapped) could further diversify output.

Energy Efficiency and Buildings

Improving efficiency is a strategic priority. Albania’s buildings are its largest energy sink, consuming 38% of final energy in 2023. Recognizing this, in June 2025 Albania adopted a new Energy Performance of Buildings law, aligning key provisions with EU directives (including upcoming 2024 requirements). An Energy Performance Certificate (EPC) system is now operational, with ongoing training and software development. Crucially, a long-term renovation strategy (in line with the EU’s Renovation Wave) was approved in February 2025. The government is developing a detailed renovation plan to reduce building energy use, tackle energy poverty, and modernize housing and offices across Albania’s regions.

Albania’s energy consumption is already edging down. Primary energy use fell to 2,141 ktoe in 2023 (–1.5% year-on-year), while final consumption was 1,942 ktoe (–2.8%). For comparison, the 2030 NECP targets are much higher: 2,600 ktoe (primary) and 2,400 ktoe (final). The continuing decline reflects efficiency measures and structural changes. Energy intensity (use per GDP) is among the lowest regionally at ~0.17 ktoe/MEUR. Key upcoming measures include a new Energy Efficiency Law (planned in 2025 to transpose the recast EU EED), full implementation of the energy obligation scheme, and mandatory labelling and standards (a product-labeling law was passed in mid-2024). So far Albania lacks a dedicated EE fund; financing for retrofits has come from budgets and donor programs, with early ESCO activity in the housing sector. Improved access to credit and subsidies for vulnerable households are being discussed as next steps.

Policy, Regulation and EU Alignment

Albania’s legislative framework is being steadily updated to meet EU/EnC requirements, but gaps remain. The Electricity Integration Package (EIP) – the core EU rulebook for electricity markets – is not yet fully transposed. A draft law (May 2025) would implement many EIP provisions (market design, unbundling, RES integration, etc.), but it has not been passed. In the interim, ERE has adopted some CACM rules: a national capacity allocation & congestion management regulation (EUR 543/2013) was approved in April 2025. Albania also uses the SEE Regional Auction Office (SEE CAO) for cross-border capacity. Notably, the EU rule requiring at least 70% of interconnector capacity to be offered to the market is not in force yet.

In gas, Albania’s alignment is behind schedule. The EU’s Gas Security of Supply Regulation (2017/1938) is only partly implemented in law (via amendments to the 2021 Gas Law). A national Risk-Preparedness regulation (EU 2019/941) is due by end-2025; a draft Power Sector Law under discussion could designate the ministry as risk authority and mandate a preparedness plan. On emissions, Albania’s 2021 Law on Climate Change set up GHG inventories and MRV (monitoring/reporting) systems, and a new climate law (expected 2025) will refine MRVA obligations. However, Albania has no 2050 neutrality strategy yet – a critical missing piece. The Energy Community Secretariat notes this as an opportunity: the new climate law is a chance to embed a 2050 net-zero goal aligned with regional climate neutrality. Similarly, the EU’s new targets (at least –55% GHG by 2030 vs 1990) should be written into law; Albania’s NECP-included target of –53.2% by 2030 has yet to be codified.

Installed Renewable Energy Capacity by Type (MW, 2024) – large hydro vs small hydro vs solar

On renewables and energy, many EU directives are in place but not fully enforced. The transposition of RED II’s sustainability criteria for bioenergy remains incomplete (secondary rules are pending). The Energy Efficiency Directive’s Article 5/7 energy savings obligations are being revised (a new Energy Efficiency Law is expected in 2025). ERE, the energy regulator, is largely independent and well-funded (through fees), but it needs more capacity in market integration and surveillance. The Competition Authority and audit agencies are updating rules: notably, Albania’s competition law still lacks a ban on anti-competitive decisions by associations, a gap being addressed.

Challenges and Investment Opportunities

Challenges for Albania’s energy sector are many. The system is highly hydro-dependent, making it vulnerable to droughts (although the report does not quantify this risk, it is implicit). Hydropower output can swing year-to-year; in dry seasons Albania may import costly thermal power. The wholesale market is still tightly regulated: KESH’s PSO obligation and the tariff freeze for households suppress price signals. With only ~12% of demand traded on the exchange, liquidity and competition are low. Energy poverty is acute – in 2023, 34.8% of households fell behind on utility bills – and subsidies for low-income consumers cost the state ~€14.2 million per year (for under-300 kWh relief). Distribution losses remain high (the report’s chart shows ~27% of primary energy lost in losses and transformation). Regulatory delays (EIP, RED II, TEN-E) also pose risks: without quick reforms, Albania could be left out of key EU market frameworks. Finally, the lack of domestic fossil fuel resources (all oil is imported) means geopolitics still loom large.

Yet opportunities abound for investors. Albania’s grid needs modernization: the 400 kV ring and new interconnectors will unlock capacity and relieve bottlenecks. The Western Balkans Investment Framework (WBIF) and EU funds stand ready to de-risk these projects. On renewables, Albania has proven technology potential. Small hydropower already leads capacity, but solar PV has room to grow – rooftop solar in particular is financially attractive given high sunshine hours and net-billing rules. The successful launch of auctions means new wind and solar projects can seek investors. Albania also has significant wind potential along its Adriatic coast and offshore (noted by developers, though not yet realized).

In gas, early movers will find unique first-mover advantage. The imminent TAP exit point and new Korça pipeline will create an Albanian gas market where none exists. Gas-fired power plants (modern CCGTs) could then enter the mix to complement variable renewables and stabilize supply – currently discussions are underway for a planned new gas power plant (with a 2023 EIA completed). Domestic industries (steel, chemicals, cement) will benefit from cheaper and cleaner gas fuel.

The drive toward European integration is another driver. Albania’s commitment to join the EU means it can tap structural funds and grants (as the 400 kV and efficiency projects already do) to lower investment risk. The Regional Electricity Market (REM) in Southeast Europe is expanding; full day-ahead coupling with North Macedonia, Greece, and others is slated for the coming years through the IBWT process. Albanian power can thus access wider markets (raising price realization for producers). New balancing and reserve-sharing arrangements in the synchronous continental Europe grid could also enhance system stability.

Outlook (2025–2035)

Looking ahead 5–10 years, Albania’s energy transition will be shaped by how quickly reforms and investments are realized. If the EIP is transposed and markets liberalized, Albania could see a virtuous cycle: more foreign investment, deeper regional trading, and faster renewables rollout. The TAP exit (online ~2027) will mark a milestone – enabling real gasification of the economy and likely powering a switch away from oil in power and transport. The 400 kV grid projects (current timeline by 2030) will significantly improve domestic reliability and export capacity.

However, several risks remain. Climate variability poses growing uncertainty: reduced rainfall could lower hydropower generation, necessitating backup thermal plants or imports during dry spells. Delays in drafting the 2050 climate-neutrality strategy or failing to meet Energy Community targets could hinder access to green financing. Continued energy poverty and fiscal pressure from subsidies could constrain budgets for infrastructure. Geopolitical shocks (e.g. regional supply disruptions or price spikes) remain possible, underscoring the need for energy diversification.

On balance, Albania’s prospects are positive: an increasingly competitive energy mix is emerging. By 2030 Albania could comfortably meet its 54% renewables share and even push beyond with new solar and pumped hydro. Improved interconnections and market coupling will integrate Albania into the European grid both technically and economically. Enhanced efficiency in buildings and industry will moderate demand growth (the country’s 2030 NECP actually foresees higher consumption targets than today). This combination – rising renewables and efficiency gains – will bolster Albania’s sustainability, reduce emissions, and hedge fossil-fuel price risks.

In conclusion, the 2025 Energy Community Country Report highlights a period of transition for Albania: from a historically state-dominated, hydro-driven system towards a more liberalized, diversified, and EU-aligned energy economy. Achieving this vision will require sustained reform and investment. The payoff – in terms of economic competitiveness, cleaner air, and greater energy security – promises to be substantial for Albania and its regional partners.

Sources: Energy Community Secretariat, Albania – Annual Implementation Report, Nov. 2025

January 23, 2026

by AEA in News

North Macedonia’s MEMO power exchange starts work with BSP on intraday segment launch

North Macedonia’s National Electricity Market Operator – MEMO signed an agreement with the Slovenian BSP Energy Exchange for the provision of trading platforms and a clearing platform. The deal marked the start of work on the introduction of the intraday electricity market by mid-year. It is part of efforts toward North Macedonia’s integration into the single European electricity market.

North Macedonia’s National Electricity Market Operator – MEMO has selected Slovenia’s BSP Energy Exchange to provide trading platforms and a clearing platform for the day-ahead and intraday segments. Chief Executive Officer of MEMO Zoran Gjorgjievski signed the agreement today with Chairman of the Management Board of ADEX and CEO of BSP Anže Predovnik.

Their cooperation has been expanding since the launch of North Macedonia’s day-ahead power market on May 10, 2023. Through partnership, the intraday segment is expected to be established by mid-year, the officials noted.

Commitment to transparent, reliable, efficient market

MEMO pointed out that the deal is aimed at enhancing the functionality of the organized electricity market and preparing it for integration with the single European market.

“This agreement represents a continuation of the cooperation with BSP and EPEX SPOT, and an important step in the development of the Macedonian power exchange, as well as in strengthening its technical and institutional readiness for market integration with the European Union. Partnering with a renowned exchange such as BSP and EPEX SPOT, with whom we have already established cooperation based on trust and proven results, confirms our commitment to a transparent, reliable and efficient market,” Gjorgjievski stated.

The representatives of MEMO and BSP kicked off the preparations for the launch of the intraday segment

He added that following the signing, activities to establish the intraday market officially began at a kickoff meeting with BSP’s representatives. It is expected to become operational by the end of the second quarter of 2026, the CEO recalled.

“The establishment of the intraday market is of crucial importance for greater flexibility and efficiency in electricity trading, particularly in conditions of increased participation of renewable energy sources. It enables market participants to timely adjust their positions and significantly contributes to the reduction of imbalances,” Gjorgjievski said.

Predovnik: Strategically important step

MEMO and North Macedonia took a strategically important step, Predovnik underscored.

“The signing of the contract for the establishment of the intraday electricity market and the implementation of the project to be completed in Q2 2026 mark an important milestone in the country’s integration into the European electricity market. With clear and ambitious guidance, and the strong support of the responsible minister and the ministry, North Macedonia continues to make convincing progress on its path towards full integration into the European electricity market – recognized both in the region and across the EU. The high-performing MEMO and BSP / EPEX SPOT teams, together with the minister and the ministry’s support, provide a powerful and clear guarantee that North Macedonia will be among the first countries in the region to join the single European electricity market,” he said.

Direct benefit for market participants as well as energy stability

North Macedonian Minister of Energy, Mining and Mineral Resources Sanja Božinovska attended the signing of the agreement.

Božinovska stressed the role of the intraday market in flexibility, use of renewables and risk reduction.

“With such concrete projects, we are building market stability, transparency and competitiveness. The ministry actively and continuously supports the institutional and technical readiness of market operators. Our goal is clear – a functional, secure, and European-aligned electricity market. The intraday market brings greater flexibility, improved management of renewable energy sources, and a reduction of systemic risks. This represents a direct benefit both for market participants and for the country’s overall energy stability,” Božinovska stated.

BSP Energy Exchange (BSP Southpool) is wholly owned by ADEX Group, created in a merger with its Serbian counterpart SEEPEX. In December 2024, ADEX completed a merger with the Hungarian Power Exchange (HUPX).

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January 23, 2026

by AEA in News

North Macedonia’s MEMO power exchange starts work with BSP on intraday segment launch

North Macedonia’s National Electricity Market Operator – MEMO signed an agreement with the Slovenian BSP Energy Exchange for the provision of trading platforms and a clearing platform. The deal marked the start of work on the introduction of the intraday electricity market by mid-year. It is part of efforts toward North Macedonia’s integration into the single European electricity market.

Commitment to transparent, reliable, efficient market

MEMO pointed out that the deal is aimed at enhancing the functionality of the organized electricity market and preparing it for integration with the single European market.

The representatives of MEMO and BSP kicked off the preparations for the launch of the intraday segment

Predovnik: Strategically important step

MEMO and North Macedonia took a strategically important step, Predovnik underscored.

Direct benefit for market participants as well as energy stability

North Macedonian Minister of Energy, Mining and Mineral Resources Sanja Božinovska attended the signing of the agreement.

Božinovska stressed the role of the intraday market in flexibility, use of renewables and risk reduction.

Post Views:42

January 7, 2026

by AEA in News

Shared power, shared security: Nordic lessons for Europe’s energy resilience

Author: Parvathy Sobha, Brida Mbuwir and Bart Overdevest,EUSEW Young Energy Ambassadors

Renewables are transforming Europe’s energy landscape, but the rapid green transition is testing grid stability. The Iberian blackout exposed the risks of ambition outpacing the system’s flexibility. Yet the story looks different in the north. Nordic countries have integrated vast shares of renewables while keeping the lights on, proof that reliability and decarbonisation can go hand in hand. What can the rest of Europe learn from the Nordics to safeguard its energy security in a net-zero grid?

Europe’s energy security test

As wind and solar replace conventional power plants that once provided system inertia, maintaining voltage and frequency stability grows more fragile. Recent fuel market volatility and supply shocks have also exposed the limits of isolated national grids. This is no reason to slow the green transition, but a reminder that Europe must now build a power system that combines scale, resilience and low carbon intensity.

The Nordic blueprint

The Nordic countries—Sweden, Norway, Finland and Denmark—have built one of the world’s most reliable and decarbonised power systems, known for their unique combination of resources, coordination and market integration. A complementary energy mix forms its backbone: dispatchable hydropower balances variable wind, while nuclear and bioenergy add stability and seasonal flexibility. This is further complemented by growing contributions from batteries and demand response.

Moreover, the cross-border links allow electricity to flow to where it is most needed, easing local shortages and damping price volatility. Additionally, strong regional cooperation, harmonised grid codes, shared market rules and coordinated system planning enable national operators to function as a single, interconnected network. Finally, deeply integrated day-ahead, intraday and balancing markets turn variability into an asset by smoothing prices, reducing reserve needs and strengthening reliability as renewable shares rise.

Author, Parvathy Sobha, Brida Mbuwir and Bart Overdevest, EUSEW Young Energy Ambassadors

Adapting Nordic lessons for Europe’s energy future

Adopting the Nordic model requires adaptation to Europe’s diverse realities. Not every region has the hydropower that underpins the Nordics’ flexibility. Balancing variable renewables in other parts of Europe will depend on smarter combinations of storage, flexible demand and interconnections. The Nordic example shows that strong coordination, consistent investment and shared market rules can overcome resource disparities and geography alike. Infrastructure gaps, uneven market maturity and regulatory differences remain obstacles, but none are insurmountable.

The EU must strengthen not only its physical grids but also the cooperation that connects them. Accelerating interconnectors and internal reinforcements through programmes such as TEN-E and REPowerEU will allow renewable electricity to flow across borders, turning surplus wind in one region into stability in another. Equally important is market integration. Deepening day-ahead, intraday and balancing market coupling will ensure that flexibility—whether storage, demand response, or variable renewables—reaches where it creates the greatest value. Treating flexibility as core infrastructure and valuing fast frequency response and grid-scale storage within capacity and balancing mechanisms, will anchor reliability in a cleaner and more dynamic power mix.

Operational harmony will be the glue that binds this system together. Aligning grid codes, planning standards and market rules across Member States can enable transmission and distribution operators to act as one coordinated European network. A shared digital backbone, built on real-time data, forecasting and automation will add the visibility and speed needed to manage decentralised generation. Citizens remain central to this transformation. Cross-border projects must deliver tangible local benefits: fair prices, clean air and sustainable jobs. Earning public trust through transparency and equitable outcomes will sustain momentum and legitimacy.

This opinion editorial is produced in co-operation with the European Sustainable Energy Week 2026. See ec.europa.eu/eusew for open calls.

Disclaimer: This article is a contribution from a partner. All rights reserved. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the information in the article. The opinions expressed are those of the author(s) only and should not be considered as representative of the European Commission’s official position.

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December 19, 2025

by AEA in News

EU simplifying CBAM exemption for electricity, improving emissions calculation

The European Union is further simplifying the Carbon Border Adjustment Mechanism (CBAM), but with stricter oversight and an extension to 180 steel- and aluminium-intensive downstream products. From January 1, importers of designated goods and commodities will be paying the emissions tax.

Among the novelties, countries in the Energy Community that transposed the relevant EU regulations are getting an opportunity for exemptions for CBAM for electricity earlier than initially planned. The new legislation is tackling the hurdles for electricity transit as well. The calculation of emissions on national levels in the same sector is becoming more favorable for the payers of the cross-border CO2 tax. There is even a possibility, in theory for now, to declare the actual emissions level, which would suit renewable energy producers.

In response to feedback from industrial producers and other stakeholders, the European Commission proposed measures to prevent circumvention of CBAM and strengthen its efficacy. The next step is to expand it to 180 manufactured products with high steel or aluminum content, 79% on average. The list mostly consists of machinery and hardware, and 6% of the items are household appliances.

From January 1, importers will be paying a carbon price within the Carbon Border Adjustment Mechanism, which is tied to the Emissions Trading System (EU ETS). It concerns aluminum, cement, electricity, iron and steel, hydrogen and fertilizers, and the expenses will spill over to their suppliers in third countries such as the Western Balkans and Turkey.

The charge for downstream products is planned to be rolled out in January 2028.

Striving for level playing field

The system gradually levels the field, by the beginning 2034, with producers of the same goods and commodities in the EU. The measures are introduced in the form of delegated and implementing acts. They enter into force if other institutions responsible for them, like the European Parliament, don’t block them.

Hoekstra: Our system was too broad, too clunky and had too many loopholes.

“CBAM makes sure there is a level playing field – that we’re not asking anything more, or asking anything less for those goods that come into the EU. And in doing so, we’re rewarding investments in low carbon… We’re not going to ask anything more from others, than we’re asking from ourselves. During the CBAM transition period, we learned important lessons. Our system was too broad, too clunky and had too many loopholes,” said European Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra.

Thoroughly against evasion

The tax level is envisaged to be proportional to an established quantity of greenhouse gases released in production. However, if the authorities notice attempts to evade the levy, they can make the process of providing evidence stricter and, in the meantime, switch to a charge under the emissions factor of the particular country of origin.

“If I had to summarize these points in a few words, I would say: a simpler CBAM, more robust in its application, and fairer in its scope,” said the European Commission’s Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné.

Shortcut to exemption from CBAM for electricity

One of the measures is intended for easing the administrative burden for countries in the process of electricity market coupling with the EU, namely the Energy Community contracting parties.

There is going to be a possibility to sign an MoU with the European Commission with a detailed schedule

The commission may sign a memorandum of understanding with a third country, once the commission has assessed that the country has fully transposed the electricity market acquis, the proposal reads. The document would lay down details on the timeline for the CBAM exemption, including in relation to technical work still to be carried out between transmission system operators (TSOs), and for implementing a carbon pricing instrument equivalent to the EU ETS as far as electricity generation is concerned.

Hoekstra said technical adjustments to CBAM would be made to facilitate market coupling when the relevant countries are ready.

Import tax for electricity from Energy Community to be 30% lower on average

Stakeholder feedback and the experience with the implementation of CBAM during the transitional period – before the actual charge – demonstrated that the rules for electricity imports are overly rigid, the European commissioners added. In particular, they ascertained that progress in decarbonizing electricity production isn’t sufficiently acknowledged or encouraged.

Unlike with the goods, for electricity there is a default country-specific emissions value. It is based on production from fossil fuels and a five-year average. Coal is mostly dominant in the Western Balkans, except for Albania, which has a completely green mix. In addition, the conditions which must be met to declare actual emissions of electricity have proven to be almost impossible.

The proposed package is introducing solutions for electricity transit and cross-border PPAs

In the new setting, the national value will reflect the carbon intensity of all sources of electricity. The estimated taxes in the Energy Community would be over 30% lower on average.

The procedure is being streamlined for declaring actual emissions. On the other hand, at least in the Western Balkans, there has been almost no progress in that area. The proposed package is also introducing solutions for the hurdles in electricity transit through Energy Community Contracting Parties and cross-border power purchase agreements (PPAs).

Power imports from the Western Balkans account for 1% of the EU’s demand, but their share in Croatia, Bulgaria and Greece is significant, the European Commission explained. Importantly, exports of electricity to the EU represent some 58% of Montenegro’s exports to the EU, compared to 5% for Serbia and Albania.

Funds for maintaining competitiveness of domestic industrial producers in third countries

A fund has been launched to temporarily support EU producers of CBAM goods and mitigate carbon leakage risks. It addresses the competitiveness loss in third-country markets with a weaker climate policy and lower costs. Potential beneficiaries will have to demonstrate decarbonization efforts.

Th European commission is also preparing proposals for limiting scrap aluminum exports and using more scrap metal. Furthermore, it said pre-consumer metals scrap, from manufacturing, would come under CBAM.

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December 11, 2025

by AEA in News

Energy Community: Serbia best in Western Balkans in alignment with EU regulations

Integration with the European Union is advancing in practice, and the decade ahead must sustain the momentum with focus and determination, Energy Community Secretariat Director Artur Lorkowski pointed out in this year’s Annual Implementation Report.

Serbia fares best in the Western Balkans, as it advanced to 63% from 55%. Bosnia and Herzegovina is at the bottom of the entire Energy Community chart, with alignment at just 26%.

Following the 2025 CBAM Readiness Tracker, the Energy Community Secretariat also published its Annual Implementation Report 2025. The international organization marked its 20th anniversary this year.

“The message from Athens was clear: integration with the European Union is advancing in practice, and the decade ahead must sustain this momentum with focus and determination. The 2025 Implementation Report reflects this direction. It shows a region taking decisive steps toward alignment with the EU acquis and strengthening the foundations required for accelerated integration. It also highlights where further effort is needed for gradual integration with the EU energy markets – completing the electricity market coupling, boosting the cross-border trade in renewables, eliminating bottlenecks for gas flows, synchronising energy infrastructure development and gradual alignment of carbon pricing mechanisms,” Energy Community Secretariat Director Artur Lorkowski stressed.

He added that electricity integration remains central. Several contracting parties completed the required transposition of the European Union’s Electricity Integration Package (EIP), while others advanced significantly.

Deadline for requests for 2028 market coupling to expire in seven months

Intensive market coupling efforts throughout 2025 by contracting parties and EU stakeholders have laid the groundwork for a compliant and sustainable integration process, according to the Annual Implementation Report. Of note, market coupling is the requirement for an exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM) for electricity.

Contracting parties aiming to go live in 2028 must submit a formal request by July, the secretariat warned.

Energy Community Serbia best score Western Balkans — Photo: Energy Community Secretariat

Montenegro, North Macedonia advance slightly to match average

Five main indicators measure the integration with the EU energy markets and they are combined into an overall score. The Energy Community as a whole is at 53%.

Moldova has advanced the most in the process by far, climbing eight points from last year to reach 74%. Serbia fares best in the Western Balkans, as it advanced to 63% from 55%. It ranked the highest last year as well. Bosnia and Herzegovina is at the lowest level again. It retreated four points, to just 26%.

Montenegro and North Macedonia advanced slightly, both to 53%, to match the Energy Community average. Kosovo* has weakened to 46% while Albania remained at 50%.

At 61%, North Macedonia is in the lead in the Western Balkans in the markets and integration segment. Serbia reached the highest level in the Energy Community in energy sector decarbonization, 83%.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.

December 8, 2025

by AEA in News

Bruegel: Without refining or delaying CBAM for electricity, EU risks market integration, security of supply

Unless the rules are refined for the electricity sector, the Carbon Border Adjustment Mechanism (CBAM) risks undermining the European electricity market integration and security of supply, Brussels-based think tank Bruegel warned.

Bruegel has analyzed the impacts of the application of CBAM, set for January 1, 2026. The tax will apply to steel, cement, iron, aluminium, fertilizers, hydrogen, electricity, and also to the cross-border trade in electricity.

The think tank proposes the application of CBAM in the electricity sector to be reconsidered, or at least for it to be postponed until 2028.

“Including electricity from January 2026 risks undermining European electricity market integration and security of energy supply, while the climate benefits are unclear. A delay could form part of a constructive compromise in an ongoing CBAM revision,” Ben McWilliams, Rouven Stubbe and Georg Zachmann wrote.

Ukraine and the Western Balkans will face implied export penalties of EUR 70-80 per MWh

The trading partners affected by CBAM on electricity are the United Kingdom, Morocco, the Western Balkans – Albania, BiH, Kosovo*, Montenegro, North Macedonia, and Serbia – Ukraine, Moldova and Turkey.

According to the analysis, Ukraine and the Western Balkans will face implied export penalties of EUR 70 per MWh to EUR 80 per MWh. It will significantly reduce trade with the EU, the authors stressed.

Ukraine’s electricity exports to the EU are expected to drop more than 60% from the level in a scenario without CBAM – from 6 TWh to 2.5 TWh, they added.

Additional trade barriers on the EU’s eastern borders would slow electricity market integration.

The export of solar power from Greece to other EU countries could also be affected by CBAM

“Falling average electricity prices, lower market values for renewables and increased price volatility would also reduce incentives to invest in renewable assets in these countries. Moreover, the Western Balkans is an important transit region for intra-European electricity trading. The export of solar power from Greece to other EU countries, for example, could also be affected by CBAM,” the analysis reads.

The authors said the policy goal of integrating Energy Community countries into the EU’s internal energy market is strategically more important than addressing carbon leakage and argued that, in the long run, it is more important from a climate perspective, too.

Not clear whether the application of CBAM to the electricity trade will deliver

They recalled that the purpose of CBAM is to reduce the risk of so-called carbon leakage, as well as to encourage third countries to implement domestic carbon pricing.

“However, it is not clear that the application of CBAM, as currently designed, to the electricity trade will deliver on either front,” the authors said. They named two reasons why carbon leakage in the electricity sector is problematic. The free allowances issued to electricity producers under the ETS were already phased out in 2013 – implying that electricity is not considered by the European Commission to be a sector at serious risk of carbon leakage.

The current CBAM legislation is not clear enough

Secondly, the current CBAM legislation is not clear enough. Unless hard-to-fulfil conditions apply, the Regulation (EU) 2023/956, which established CBAM, proposes that default carbon emission values be applied.

The outcome is that the values in question are calculated according to the last five-year average CO2 intensity of electricity produced from fossil fuels. It is problematic because electricity is exported when prices in one grid are lower than in another, which typically happens when renewables output is high, the think tank underlined in its analysis.

It is also unfair because power systems are evolving – production from fossil fuels is decreasing and renewables generation is increasing.

The coupling of the electricity markets of Energy Community countries is unlikely before 2028

Regarding CBAM’s intention to push third countries to introduce carbon pricing, the authors said that the first developments indicate some results.

However, they explained that an exemption for the electricity sectors of third countries is available under certain conditions, including electricity market coupling and the introduction of an ETS with an equivalent price to the EU ETS by 2030.

The CBAM charge sets off in January 2026, and the coupling of the electricity markets of Energy Community countries is unlikely before 2028, which means that an exemption for electricity cannot be secured before that date under current rules, the analysis underlined.

The solution

The authors pointed out that the potential gains from including electricity in CBAM are limited, compared to the frictions it will create. They suggested to the EU to follow the lead of the UK, which doesn’t plan to include electricity in its own CBAM, and thus to drop electricity from its sectoral coverage.

Otherwise, the authors proposed a revision of the calculation of default carbon emissions, and application delay until 2028 with additional analysis on the risk of carbon leakage in the electricity sector.

Regarding the default carbon emissions, five-year average CO2 intensity should be substituted for average grid emission factors calculated on an hourly or 15-minute basis, administered by the European Network of Transmission System Operators for Electricity (ENTSO-E) and national transmission system operators.

The application of CBAM to electricity should be delayed until 2028 to avoid disruption to the electricity trade and to give more time for the introduction of domestic carbon pricing and the coupling of electricity markets, the authors of the analysis concluded.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.

November 17, 2025

by AEA in News

Maćić: Exempting Serbia from CBAM for electricity would mean disastrously fast decarbonization; carbon tax will also block market coupling with EU

Obtaining an exemption from the European Union’s Carbon Border Adjustment Mechanism (CBAM) for electricity would mean a rapid and unfeasible decarbonization of Serbia’s energy sector, which would be unacceptable for households and businesses alike, according to Ljubo Maćić, special advisor at Serbia’s Economics Institute. This is why Serbia never sought an exemption. He added that the implementation of the carbon border tax will prevent the coupling of electricity markets between Serbia, other Energy Community contracting parties, and the European Union, and discourage investment in renewable energy in the region.

CBAM will apply from January 1, 2026. Although the tax was announced at least five years ago and is set to take effect in less than two months, there are still many unknowns about its implementation and impact, particularly in the electricity sector.

In preparation for its implementation, Serbia has drafted bills to tax greenhouse gas emissions and imports of carbon-intensive products, Ljubo Maćić noted at the Power Plants 2025 conference, organized by the Serbian Society of Thermal Engineers.

The law would allow electricity producers – primarily state-owned power utility Elektroprivreda Srbije (EPS), which will account for about 90% total GHG tax revenues and has the largest decarbonization needs – to receive a tax credit equal to 20% of investment in renewables.

The tax is set at EUR 4 per ton of CO2, which translates to about EUR 100 million annually in EPS’ case, not including the tax credit. The proposed rate is low compared to those in the EU, but many countries outside the bloc began with similar rates to protect the competitiveness of their industries, he said. Serbia’s tax would certainly increase in the coming years, Maćić warned.

The implementation of CBAM should not significantly affect EPS

The bill on the GHG emissions tax has two key shortcomings. First, the tax rate is set only for 2026, rather than for several years ahead. The second is that the tax revenues would not be allocated to a decarbonization fund but to the state budget. Maćić noted that tax revenues would go into the budget, but that the bill envisages the funds to be used for decarbonization. The solution is consistent with the revenue allocation model under the EU Emissions Trading System (EU ETS).

The bill is prudently designed, tailored to the circumstances and context, he said, adding that it would encourage changes in the right direction without jeopardizing energy security and energy prices.

“The implementation of CBAM should not significantly affect EPS, as the company doesn’t have the capacity for larger electricity exports and will likely seek to trade within this region, where the CBAM cost doesn’t apply. However, Serbia’s steel production will be particularly affected by CBAM, and this will be the hardest to address in terms of technology,” said Maćić.

Exemption for electricity

CBAM would reach its full effect over a transitional period from 2026 to 2034, aligned with the gradual rise in the CO2 price under the EU ETS. However, this will apply to all CBAM-covered goods except electricity, which will be subject to a full CBAM rate immediately.

This is why the Energy Community contracting parties were given the option to obtain an exemption for electricity until 2030, but only if they meet six conditions. A critical condition is that a country agrees to charge an emissions price equivalent to that under the EU ETS from 2030, according to Maćić. There is no indication that this doesn’t mean ‘the same price,’ he added.

Maćić explained how that would affect Serbia: The current CO2 price in the EU is EUR 80, but is expected to rise to above EUR 100, or even reach EUR 150, by 2030.

“Assuming that carbon emissions from power plants in Serbia decrease to about 22 million tons in 2030, the annual additional cost for EPS would be EUR 2.2 billion at a carbon price of EUR 100 per ton of CO2 and EUR 3.3 billion at EUR 150 per ton. If these costs were passed on to EPS’ consumers, the price would increase by about EUR 75 per MWh and EUR 110, respectively,” the expert stressed.

Of note, the market power price is currently around EUR 105.

However, not all of these costs can be passed on to end consumers, Maćić added. Households will likely be affected first if, by 2030, their electricity prices do not reach market levels. EPS cannot raise its electricity prices due to emissions costs above the market prices, because customers would switch to other, more competitive suppliers with lower emissions.

The European Commission is not willing to provide financial support for the region’s decarbonization

That is good for consumers, but it has its limits, because the production capacities of these suppliers are still far from sufficient, Maćić explained.

If other power companies in the region with a high coal share were to begin reducing their power generation, energy prices on the power exchanges would rise compared to the rest of the EU. This would result in faster price growth and volatility, in Maćić’s view.

These higher prices would affect power prices for businesses, further eroding their competitiveness, similar to what is already happening in the EU, he added.

Since the country must ensure enough electricity for all consumers, EPS would quickly incur huge financial losses, threatening the company’s operations and, more importantly, the security of the supply in Serbia.

“Such a rapid and costly decarbonization, even if it had begun earlier, would not be possible in Serbia without the ability to replace coal with other stable sources of supply. This is far from realistic, and the very idea of anyone undertaking such a fast and uncertain process is highly questionable,” Maćić stressed.

He underlined that the communication between the Ministry of Mining and Energy and European Commission institutions, the conclusions of the Energy Community Ministerial Council, and the documents within the Berlin Process for the Western Balkans six do not inidcate that the commission is ready to provide financial support for the region’s decarbonization above the level it has promised under the IPA and the Growth Plan, which is insufficient.

Three problems created by CBAM: market coupling will be blocked

According to Maćić, the European Commission has acknowledged that problems with applying CBAM to electricity exist, but has not yet offered solutions. There are three main problems, he added.

First, the existing solutions do not allow for the parallel functioning of CBAM and the coupled electricity markets of the Energy Community’s contracting parties and the EU, the expert claims.

“We have been talking about, preparing, and working on this integration for almost two decades. This, among other things, is one of the most important reasons why the Energy Community was established. CBAM will practically suspend the coupling,” Maćić insisted.

A second issue is that the costs of CBAM on electricity imports into the EU are based on the emissions factor of fossil fuel power plants, regardless of their share in the country’s power generation mix.

Maćić recalled that Serbia and other contracting parties have proposed that the emissions factor be equal to the national emissions factor, which corresponds to the electricity production mix. For Serbia, this factor is currently 1.04, but if the national power mix were taken into account, it would go down to 0.7, making the cost of CBAM about 40% lower, he explained.

All this will certainly affect trade and renewable energy investments in the region

Also, electricity producers in countries that export electricity to the EU cannot use either guarantees of origin or power purchase agreements (PPAs) to reduce the CBAM cost.

The third problem is that it is still unclear how electricity transit costs would be calculated, for example, from Bulgaria to Hungary via Serbia, and who would be required to cover them.

All this will certainly affect trade and renewable energy investments in the region, according to Maćić. This is already happening, and regardless of any potential solutions, the damage will remain, he warned.

Maćić also recalled that in June, similar issues were highlighted by the European Network of Transmission System Operators for Electricity (ENTSO-E), the European Federation of European Traders (EFET), and EUROPEX – Association of European Energy Exchanges.

They also proposed that the application of CBAM to electricity be postponed for at least a year, until solutions are found, he added.

Are there solutions?

A solution exists, according to Maćić, and it could be described as trivial: abolish CBAM for electricity.

He believes it is a legitimate question whether it was justified to introduce CBAM for electricity. The main reason for introducing CBAM is carbon leakage, which is not at all relevant in the case of electricity.

Second, total electricity imports from all Energy Community contracting parties are less than 1% of the EU’s production, and are declining. Ukraine was the only significant exporter, while imports from other countries are negligible.

“Applying CBAM to electricity would bring the EU modest climate and financial effects, while generating unsolvable problems, thwarting good intentions in market integration, and producing financial damage to the contracting parties and even larger damage to EU member states,” the expert asserted.

A less radical solution would be to postpone the implementation of CBAM, not by one but by ten years, to provide the power sector with additional long-term regulatory certainty and a stable business environment, in Maćić’s view.

Not everyone from the region can claim they have done everything they could

However, these issues do not concern the implementation acts, whose final versions are still pending, but for the CBAM regulation itself, whose amendments, as he understands, have already been implemented.

Maćić acknowledges that not everyone in the region can claim to have done everything in their power, but emphasizes that decarbonization ambitions and timelines must be realistic and supported by all necessary resources.

Maćić said he hopes the EU will show more understanding, a sense of reality, and a willingness to support the changes through solidarity. Such support could change the conditions and capacity for implementation, as well as the pace of decarbonization and changes to the energy mix, the expert underlined.

“The Energy Community Secretariat should also, when it comes to climate change, be more enthusiastic than it has been. It should be an advocate for the interests of the contracting parties in Brussels and more independent in its approach to the European Commission’s initiatives toward the contracting parties,” Maćić concluded.

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