Energy Community
Encyclopedia
The Energy Community (also referred as Energy Community of South East Europe (ECSEE) and European Energy Community (EEC)) is a community established between the European Union
(EU) and a number of third countries in order to extend the EU internal energy market
to Southeast Europe
and beyond. The Treaty establishing the Energy Community was signed in Athens
, Greece, on 25 October 2005, and entered into force on 1 July 2006.
, and competition of the EU legislation. The Energy Community deals with electricity, natural gas, and petroleum products.
Timetable for implementation of the Treaty is the following:
through the Athens Memorandum.
, and Turkey.
The 2003 revision added natural gas to the scope of work. Under the Athens Memorandum a South-East Europe Regional Energy Market (SEEREM) was envisioned, to form part of the EU's internal energy market. The Athens Memorandum also set up a number of institutions, which collectively are known as the 'Athens Process'. In 2004, the Athens Forum meeting decided to name the process 'Energy Community'; at the same time the location of future institutions was agreed.
on 29 May 2006.
By terms of the treaty, any Member State of EU may be represented in the Ministerial Council, the Permanent High Level Group and the
Regulatory Board and participate in the discussions in these bodies and the Fora. This privilege is used by
Any other neighbouring third country can participate if a reasoned request is approved by the Ministerial Council. Observers are:
.
Environmental organisations from South Eastern Europe criticised the process in December 2008 as they believed that the ECSEE contains insufficient safeguard mechanisms to ensure that the well-intentioned promotion of energy efficiency and renewable energy is not drowned out by the promotion of large and often environmentally harmful coal and hydropower plants.
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
(EU) and a number of third countries in order to extend the EU internal energy market
Energy policy of the European Union
Although the European Union has legislated in the area of energy policy for many years, and evolved out of the European Coal and Steel Community, the concept of introducing a mandatory and comprehensive European energy policy was only approved at the meeting of the European Council on 27 October...
to Southeast Europe
Southeast Europe
Southeast Europe or Southeastern Europe is a relatively recent political designation for the states of the Balkans. Writers such as Maria Todorova and Vesna Goldsworthy have suggested the use of the term Southeastern Europe to replace the word Balkans for the region, to minimize potential...
and beyond. The Treaty establishing the Energy Community was signed in Athens
Athens
Athens , is the capital and largest city of Greece. Athens dominates the Attica region and is one of the world's oldest cities, as its recorded history spans around 3,400 years. Classical Athens was a powerful city-state...
, Greece, on 25 October 2005, and entered into force on 1 July 2006.
Aim
The Energy Community aims at establishing a common regulatory framework for energy markets in contracting parties by extending the acquis communautaire of the European Union to the territories of participating countries. It covers the relevant fields of energy, environmentNatural environment
The natural environment encompasses all living and non-living things occurring naturally on Earth or some region thereof. It is an environment that encompasses the interaction of all living species....
, and competition of the EU legislation. The Energy Community deals with electricity, natural gas, and petroleum products.
Timetable for implementation of the Treaty is the following:
- in twelve months (by 1 July 2007) implement the two EU energy market directives and the regulation on cross-border network access.
- from 1 January 2008 liberalizationLiberalizationIn general, liberalization refers to a relaxation of previous government restrictions, usually in areas of social or economic policy. In some contexts this process or concept is often, but not always, referred to as deregulation...
of the market for all non-household customers. - by 31 December 2011 reduction in the sulphur content of certain liquid fuelsLiquid fuelsLiquid fuels are those combustible or energy-generating molecules that can be harnessed to create mechanical energy, usually producing kinetic energy; they also must take the shape of their container...
. - from 1 January 2015 liberalizationLiberalizationIn general, liberalization refers to a relaxation of previous government restrictions, usually in areas of social or economic policy. In some contexts this process or concept is often, but not always, referred to as deregulation...
of the market for all customers. - by 31 December 2017 limitation of emissions of certain pollutantPollutantA pollutant is a waste material that pollutes air, water or soil, and is the cause of pollution.Three factors determine the severity of a pollutant: its chemical nature, its concentration and its persistence. Some pollutants are biodegradable and therefore will not persist in the environment in the...
s into the air from large combustionCombustionCombustion or burning is the sequence of exothermic chemical reactions between a fuel and an oxidant accompanied by the production of heat and conversion of chemical species. The release of heat can result in the production of light in the form of either glowing or a flame...
plants.
History
The Energy Community builds upon the South-East Europe Regional Energy Market for electricity and natural gas formed in the framework of the Stability Pact for South Eastern EuropeStability Pact for South Eastern Europe
The Stability Pact for South Eastern Europe was an institution aimed at strengthening peace, democracy, human rights and economy in the countries of South Eastern Europe from 1999-2008. It was replaced by the Regional Co-operation Council in February 2008...
through the Athens Memorandum.
Athens Memorandum
The 'Athens Memorandum' refers to the Memorandum of Understanding of 2002 and its revision of 2003, signed in Athens. It was proposed by the European Union and it outlined the principles and the institutional necessities for regional electricity market development in South East Europe. Following intense discussions, an agreement was reached at the first South East Europe Electricity Regulation Forum in June 2002. The signing of the memorandum took place in November 2002 by Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Republic of Macedonia, Romania, Serbia and MontenegroSerbia and Montenegro
Serbia and Montenegro was a country in southeastern Europe, formed from two former republics of the Socialist Federal Republic of Yugoslavia : Serbia and Montenegro. Following the breakup of Yugoslavia, it was established in 1992 as a federation called the Federal Republic of Yugoslavia...
, and Turkey.
The 2003 revision added natural gas to the scope of work. Under the Athens Memorandum a South-East Europe Regional Energy Market (SEEREM) was envisioned, to form part of the EU's internal energy market. The Athens Memorandum also set up a number of institutions, which collectively are known as the 'Athens Process'. In 2004, the Athens Forum meeting decided to name the process 'Energy Community'; at the same time the location of future institutions was agreed.
Energy Community Treaty
In May 2004, the European Union open negotiations with the countries of the South Eastern European region in order to conclude a legal agreement. The negotiations took place between the European Community on one side, and Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Republic of Macedonia, Republic of Montenegro, Serbia, Romania, Turkey and UNMIK on behalf of Kosovo on the other side. The Treaty establishing the Energy Community was signed in Athens, Greece, on 25 October 2005 and entered into force on 1 July 2006. Signature of the Treaty has been approved by the European ParliamentEuropean Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...
on 29 May 2006.
Participants and observers
Participants of the Energy Community Treaty are:| Kosovo (UNMIK) | |
By terms of the treaty, any Member State of EU may be represented in the Ministerial Council, the Permanent High Level Group and the
Regulatory Board and participate in the discussions in these bodies and the Fora. This privilege is used by
Any other neighbouring third country can participate if a reasoned request is approved by the Ministerial Council. Observers are:
Ratification
- Kosovo (UNMIK) (UNMIK as Kosovo representative under Security Council resolution 1244) – 23.12.2005
- Bulgaria – 07.03.2006
- Albania – 24.05.2006
- Republic of Macedonia – 29.05.2006
- European CommunitiesEuropean CommunitiesThe European Communities were three international organisations that were governed by the same set of institutions...
– 29.05.2006 - Romania – 26.06.2006
- Croatia – 30.06.2006
- Bosnia and Herzegovina – 20.09.2006
- Serbia – 09.08.2006
- Montenegro – 15.12.2006
- Ukraine – 15.12.2010
Institutions
The main institutions established or being established are:- Ministerial Council
- Permanent High Level Group
- Energy Community Regulatory Board (ECRB)
- Fora
- Secretariat
Secretariat
The Secretariat provides administrative support to the other institutions of the Energy Community, reviewing the implementation of obligations by member countries, submitting yearly progress reports to the Ministerial Council, and reviewing and assisting the donors’ activity. The seat of the Secretariat is in ViennaVienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
.
Critics
The Treaty has been criticised by trade unions (European Federation of Public Service Trade Unions EPSU) as it lacks a social dimension. The European Commission is now developing a Memorandum of Understanding on the social aspects of the treaty in response.Environmental organisations from South Eastern Europe criticised the process in December 2008 as they believed that the ECSEE contains insufficient safeguard mechanisms to ensure that the well-intentioned promotion of energy efficiency and renewable energy is not drowned out by the promotion of large and often environmentally harmful coal and hydropower plants.
See also
- Stability Pact for South Eastern EuropeStability Pact for South Eastern EuropeThe Stability Pact for South Eastern Europe was an institution aimed at strengthening peace, democracy, human rights and economy in the countries of South Eastern Europe from 1999-2008. It was replaced by the Regional Co-operation Council in February 2008...
- Energy policy of the European UnionEnergy policy of the European UnionAlthough the European Union has legislated in the area of energy policy for many years, and evolved out of the European Coal and Steel Community, the concept of introducing a mandatory and comprehensive European energy policy was only approved at the meeting of the European Council on 27 October...
- Baku InitiativeBaku InitiativeThe Baku Initiative is an international initiative of the European Union. It is a policy dialogue on energy and transport cooperation between the European Union and the littoral states of the Black Sea, Caspian Sea and their neighbours, undertaken as part of the INOGATE energy and TRACECA...
- Agency for the Cooperation of Energy RegulatorsAgency for the Cooperation of Energy RegulatorsThe European Agency for the Cooperation of Energy Regulators is an Agency of the European Union by the 3rd Liberalisation Package in 2009. Its seat is Ljubljana, Slovenia....
- European Network of Transmission System Operators for ElectricityEuropean Network of Transmission System Operators for ElectricityThe European Network of Transmission System Operators for Electricity is an association of Europe's transmission system operators for electricity...
(ENTSO-E) - European Network of Transmission System Operators for GasEuropean Network of Transmission System Operators for GasThe European Network of Transmission System Operators for Gas is an association of Europe's transmission system operators . ENTSOG was created on 1 December 2009 by 31 TSOs from 21 European countries. Creation of the ENTSOG was initiated by the adoption of the European Union third...
(ENTSO-G) - European Atomic Energy CommunityEuropean Atomic Energy CommunityThe European Atomic Energy Community is an international organisation which is legally distinct from the European Union , but has the same membership, and is governed by the EU's institutions....
- INOGATEINOGATEINOGATE is an international energy co-operation programme between the European Union , Turkey and countries of the NIS, with the exceptions of the Baltic States and the Russian Federation. Formally it describes itself as supporting "international cooperation between the European Union, the...
- Energy Charter TreatyEnergy Charter TreatyThe Energy Charter Treaty is an international agreement which provides a multilateral framework for energy trade, transit and investments...