November 8 (SeeNews) - The Energy Community said Montenegro is the frontrunner in Southeast Europe (SEE) in terms of the overall results achieved in energy market development, although progress was modest in 2016.
Having transposed the European Union's Third Energy Package in December 2015, Montenegro continues to work on secondary legislation to achieve full compliance with the Energy Community rules and also progresses in the sustainability area, being the highest performer and having already met its binding renewable energy target for 2020, the secretariat of the Vienna-based organisation said in its 2016/2017 annual implementation report published earlier this week.
The completion of the unbundling process and certification of the transmission system operator remains the top priority for Montenegro, as enabling measures for market opening and competition development shall be implemented as soon as possible, the Energy Community said.
To begin with, the government has to set the necessary rules and conduct the competitive procedure for selecting a supplier of last resort and of vulnerable customers. These measures, in combination with activities to establish a competitive spot market on the wholesale level, should lead to creating a more attractive environment for new entrants in the retail market and better offers for customers, it noted.
In 2017 - 2018, Montenegro should focus on adopting the new draft law on security of supply of oil products, drafting subsequent secondary legislation in line with Directive 2009/119/EC and improving data collection.
Montenegro shall adopt the secondary legislation essential for enabling the Energy Law's implementation in practice. The auction rules for granting support to renewable energy producers for a cost-effective deployment of renewables have to be adopted and implemented, the Energy Community said. Moreover, the network and market operators should increase their efforts related to planning, connection procedures and operation of the grids to be able to take up more renewable energy in the electricity system.
In the permitting and grid connection procedures, simplification (expanding the one-stop shop) and increased transparency are urgently required to create a conducive investment framework, according to the implementation report. The poor record of installing electricity generation capacities from renewable sources testifies to this. In the transport sector, the speedy adoption and implementation of the missing by-laws are necessary if Montenegro wants to be on track to meet the 10% target, the Energy Community noted.
Finally, Montenegro is yet to adequately strengthen its institutions, either by reinforcing the capacity within the Ministry of Economy and local authorities or by establishing a specialised energy efficiency agency.
The Energy Community was established in October 2005 with the key aim of extending the EU internal energy market to Southeast Europe and beyond on the basis of a legally binding framework. The international organisation consists of the EU, represented by the European Commission, and Albania, Bosnia and Herzegovina, Georgia, Macedonia, Kosovo, Moldova, Montenegro, Serbia and Ukraine.