Challenges Development of the Integrated Energy market in the South East Regional Framework of the EU
The Abstract (Overall Description of the Project Undertaken)
The concerns regard the model of the energy market, as part of the substantial regulatory framework, constitute one of the challenges par excellence of European integration. In the last period, the issue is rising up in the complex interdisciplinary debates – in correspondence of the upcoming new challenges in the field of energy – with particular regard the paradigm of the strategically development of the EU integrate energy market.
A profile that assumes extreme relevance in view of the efforts – taken by member states of ENC such as the Albania – for the implement the 3rd package by the 2014. Evolution, which makes necessary the apprehend of the impact of acquis communitare, as well as the characteristics of harmonic convergence trends in the leading countries of the EU, in particular regards the regional nexus with the Italian model and the developments on the 8th Region.
Therefore, in the complex evolving, it is foresee the concentrating on the analyse of the current ongoing accomplishment, following with the endorse of formulate shared scenarios theorized in the evolution prospective, within: (i) short-term regard the objectives of liberalization, (ii) the medium term, regard the massive introduction of renewable energy and natural gas resources, (iii) the long term, regard the energy policy targets of the 2020.
In regard of the ever-present response concerns of competition design, the market model is facing with the new challenges by global connotation deducted from the technological innovations to the climacteric changes. The revision of which require the rethinking of the both the institutional framework as the role of market participants through regulatory prospect that transcend the regional and national boundaries and need the addressed through a global scale.
In view of the extensive element that govern the model of the market, the central findings will focus the reassume of new asset to be introduced due to the upcoming role of variable resource (RES) and natural gas in the context of the eighth EU regional market and the strategic planning endorse to the evolved in the Albanian legal framework. Particular role will take the horizontal profiles related, on domains of energy efficiency, environment protection, social target and the competition as the provider of the necessary recommendations on their integration.
In the perspective of integrate operation markets, the main focus is the summarize of a dynamic analytical framework of comparison in pan-regional approach. The final contribution of which aim the promote the strategic planning of the main pillar to the contemplation of the commodity view within the obligations of public service in the context of the EU integrated market. Therefore, in definitive a better suit of the proceeding investment and business practices to the full realize of the paradigm of competitive efficiency.
State of the Art and the Expected Developments (A Short Presentation)
The European energy market is involved in a dynamic process of structural change in many areas, which concern also the design of the whole model and the role of individuals in specific. The review that descent in significant part by the drive of innovation as also the concern regard the climacteric and environmental effects. The EU social agenda is introducing more and more ambitious standards to MS regard the use of the RES, the EE as the reduction of the CO2.
In regard, of the recommendation 2010/01/MC-EnC on the promotion of energy from renewable sources, in Albania, has undertaken a voluntary implementation of specific provisions 2009/28/EC. Directive that establish the EU target of 20% of final energy that should be generated from renewable energy sources by 2020 and introduce of mechanisms for cooperation in the achievement of the objectives. In the order to support of which has been agreed a custom shorter template, so-called NREAP.
In the field of the natural gas, there are still three CP – and the Albania is one of them – without a gas market. Anyway, in the in reverse of which the county has expressed a strong commitment to advance in the production of electricity. An option indeed close to be concrete, after the definitive option of the last 28 June by the Shah Deniz Consortium of the Trans Adriatic Pipeline (TAP) vs. Nabucco as European export pipeline and the advance of ring Balkan pipeline projects so-called IAP. Framework that is accelerating the Government efforts to prepare a plan for the gasification, the addressing of legal regulatory and institutional frameworks for develop the gas infrastructure.
The all raises relevant issues about the RES efficiently as regard the sustainable role of the natural gas in the security of energy supply. In specific, the occurring of all this developments in parallel, make the future prospects of the energy market very hard to predict. Consequently, for the operators of the gas market and the stakeholders it is difficult to have a clear and shared vision regard the development and potential of energy markets. Condition that hampers a coherent and effective approach of intervention as make difficult any decisions regard the long-term investment.
Scientific Objectives of the Project (Overall Mission)
The central question of this project will focus the role of renewable energy and natural gas in the context of the eighth EU regional market and the conformity of evolution of the strategic planning of the Albanian legal framework. The outlook scenery of which is foggy due to the strong regional interaction with devise towards a society based on renewable energy and the correlation of the energy complementary relationship infrastructure between electricity and natural gas.
The liberalized electricity markets open many new opportunities, but also present a number of challenges, the understanding of which has become of absolutely priority. Indeed, the well settle of market design and competition need the consideration of the broaden context, compressed challenges on energy security and climate change. Therefore, the first focus of investigation regard the framework of the EU policies and the main models of references of the design market, as well as the experience express in the main development markets.
The plan is anchored in the previous research achievement (i.e. the doctorate), regard Albanian objectives of liberalization settled by EU Directives. The innovative perspective of which will consist in the fostering a shared judgment in the degree of implementation and the necessary correction bringing to the model. Particular emphases assume the provider of a comprehensive analysis of the design of electricity and gas markets to their interaction. The analysis of the impact of renewable energy on a large variables scale on gas and energy industries and the provider of the necessary recommendations on how to facilitate their integration.
The research will focus on the design to stimulate the removal of barriers to competition, the design of strategies to mitigate the power positions, the investment in efficient balance of the wholesale market and the generation of renewable energy. The evolution role of regulator and the competition policy in liberalized markets as the retail competition and its impact on consumers, as the restructuring reform of the industry in the design of commercial terms and conditions. Therefore, with a focus that go well beyond the national boundaries covering all the abroad debates expressed in the EU.
The all-compressive ambition of which see the improve of the liberalization of electricity markets with the facilitating of the exchange knowledge between the industry, researchers and the authorities. Target that facilitate the establishment of basic support in the development of market instruments and regulatory frameworks necessary to ensure reliable supply with the lower cost. The oriented of which can bring to assisting of the operational and decision-making processes to the full realization of the paradigm of efficiency competition, in compliance of the all-inclusive general economic interest.
Method and the Main Targets Prospect (The Overall of the Planned Project) [About the AEM]
The above project introduced is thought to advance with the progressive of day-by-day integration of the AEM proposed objective. The conception of AEM (Albania Energy Market) grow up in March 2013 – as an offspring researches conducted at the Department of Statistics and Applied Economics at the University of Pavia (Italy) – within founding scheme of a spin-off oriented towards RD&D on the legal framework of energy-regulated market and the related strategic policy. The overall of its higher projection aims the providing of supports and opportunities for the development governance towards a full realization of the paradigm of concurrence efficiency, as a trait d'union of contemplation of the commodity view with the public service obligations, in compliance of the all-comprehensive general economic interest.
Nowadays, the EU projection process of fully integration in the internal energy market, is experiencing a challenging transition with particular social, economic and political impact, towards a definite sustainable assessment. While these topics are subject of researches of the several institution, mostly moved by economic e technic background, the here AEM innovative approach aims the promotion of an interdisciplinary exchange knowledge, particularly keen to the major sub-fields of interest of the law, economics, political science, international relations and other related topics, with focus in the specificity of EnCT countries.
The overall objective is the formulating of shared scenario development from the practice of the everyday player regard the evolve prospects of the energy market, within purpose the taken advantage by the challenges that offer a competitive settle of energy market model in an integrate market. In this process, our propose link, with high quality research, guaranties the aim of the stimulation in the diffusion of ideas on the opportunities of the single market and the new European energy policies as essential itself for strengthen of the full profile of EU integrated processes.
In the view of the extensive element that govern the market model – defining by the first the impact of the entrance of new sources – the AEM projection see to the horizon of 2020. Therefore, in continues, the focus will endorse in a number of key horizontal areas related to the perspective of the market, in particular on the issue of energy efficiency, environment protection, social target and the all-present interest for competitiveness and fair market. The all above object of analyse here taken in consideration will be organise in seven major areas, categorised within: (i) short-term, (ii) the medium term, (iii) and the long term of perspective.
The Area A - The short-term interactions within the electricity markets
The First Pillar - The rethinking of the structure of the market to better respond of the liberalised management
The massive introduction of a small HEC make primary the end of the state of non-compliance. A new stage requires the removal of the public wholesale supplier model and the granting of the private providers access to the domestic market. The introduction of the responsibility on the financial statements require the approach of the phase-out when the conditions to fulfil their obligations are meet by market participants. With the creation of a balancing market, the costs incurred by public providers of retail, because of imbalances, must be appropriately dealt within the change in the method of calculating electricity tariffs for end customers.
The Second Pillar - The harmonization required in the electric model following the introduced of variable sources (Res)
The countries of 8th Region, as in specific the Albania, has made considerable efforts towards the dealing with administrative applications with the establishment of one-stop-shop. The all for coming in April 2013 in the adoption of the new law on RES, in accordance with the principles of the Directive 2009/28/EC. In this regard, the sub-relevant topic, see: a) the implementation of appropriate legislative measures in the promotion of energy power from renewable sources; b) the support of feed-in tariffs proper adopted by the ERE; c) the increase potential capacities in the electricity transmission and distribution grid.
The Area B - The medium-term interactions between the gas and electricity markets
The Third Pillar - The development of the gas market and the prospect of harmonization across the entire system
The law on the natural gas sector in force since June 2008 has implemented almost all aspects of the Directive 2003/55/EC. The priorities for Albania should have the implement of the provisions of the acquis in the missing legal regulatory framework, the institutional capacity building with regard of the regulatory authority, and develop methodologies tariff with market approach. The flexibility provided by the gas markets should be evaluated: the gas market must respond the more to new requirements within the electrical system. Prices associated with this flexibility must be defined to have an impact on the strengthening competition.
The Fourth Pillar - The level of coordination of the energy market that guarantees the target of energy efficiency
Regarding the scope of Directive 2006/32/EC of energy efficiency, only some profiles of the prepared draft project have been implemented. The priorities in Albania regards the recently concluded regional study are concentred on energy efficiency in buildings. In order to support the parties in its implementation, the ECS has launched a "Study on energy efficiency in buildings in the CP of the EnC" in May 2011 - February 2012. In this regard, the enactment of a specific building code must be updated, and are need the institutional strengthen of adequate human and financial resources.
The Area C - The horizontal policies interaction in the energy markets
The Fifth Pillar - The continuo investment in the remove of non-competitive behaviour distortions
The country has reached a relatively high degree of implementation of the competitive framework. In all the region the central authority, however the efforts, has been unable to deal with the complex issues posed by law on state aid in the energy sectors, such its enforcement and public services or the limits of energy price regulation. To this end, the priorities see the ACA (Albanian Authority for competition) to become more active in the energy field going beyond the mere defence of competition and assume the full competence in the field of application of state aid through the change of the legislation.
The Sixth Pillar - The full transposition of the environmental legislation in the research of the proposed target
The activities involved in the transmission of gas and electricity, as well as the activities of generation, equipped with high capital costs, require long planning and construction time before becoming operational. Investment decisions are therefore strongly influenced by the uncertainty framework regard the environment. In this regard, the widespread opinion that there are pending issues on environmental, rise concern regard the profits will be influenced by the costs imposed by legislation on industrial pollution, waste management and protection of natural habitats, etc.
The Seventh Pillar - The impact in the design model in following of the addressing of social challenges
Albania, as the majority part of the CP, most try to ensure the protection of the customer through non-regulated energy tariffs that means cost reflective. The all as only way that leads to balance market and secure supply. With regard to the management of change, for the CP are seen the use of the tools developed at EU level to address the social dimension of the liberalization and privatization process in the energy sector. Therefore, to be able to provide the necessary protection to the vulnerable customers on low incomes, as a priority are seen the implementation of a mechanism of social protection.
References Applicable and Further Developing
The full realise of a competitive research, poses on a number of assumptions undertaken from a long period (i.e. form the last the completion of the doctoral research, the release of the AEM portal, etc.). The continuation of developments throughout the region, with the objectives of the completion by 2014, based on the bibliography asset of the ECS. The change of paradigm due to the massification of renewables and the advance of gas, make the subject of rethinking with abundant bibliography throughout Europe, with starting reference keen to the publication of FF, AEEG, and MedReg.
The other based point, is foresee that which regard the location, thinking as fundamental the possibility to residing not far from Bruxelles, in strategic view to count by the activities and contact of excellences of innumerable international institution. Option that can offer good possibility to be kept in contact even with key organizations especially located in Paris and Nederland as also Vienna (ECS, IEA) and Ljubljana (ACER, CEER). A profile thought to be developed with the integrate in contemporary with qualified academic of research and teaching activities in Albanian institution.
The all preceded by a preliminary work through the ongoing of the platform in electronic format AEM. Work that can permit a proceeding with an integrated practical approach, experiencing the daily concerns of the participants. The platform that will provide an overall picture of the market design and the highlights in updated that affect the given model. Profile, which will be weekly and monthly, interpreted in a comparative with the acquis as the other profiles of interest. The first and second will be to report to the frequent publications in the national press as dispatched by a newspaper service to interested parties.
A setting up that will ensure better maturation of the idea and will facilitate the approach of those interested in the platform. The both for taken a further input by the idea expressed in the appropriate forum as a credible feedback from surveys created specifically to the objectives of the study. Therefore, the attraction of the partnerships to cover particular profiles it would see of great interest. An interaction that aims to become a reference point for the national as the international players thus contributing to better overall climate of the business.
Therefore, the overall objective of which is the formulate scenarios on the evolve prospects of the energy market, in function of the promoting a competitive model. An experience, which aims the taken an active role in the ongoing developments such as the ability to promote in-depth study. The final aim of which is to stimulate the diffusion of ideas on the opportunities of the single market and the new European energy policies, regard the strengthen profile of the essential processes of the full EU integration.
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