Chapter 15 – Energy

What is being negotiated?

Energy is traditionally one of the most important areas of activity of the European Union, and accordingly, the management of the energy sector is a particularly important area of activity of its institutions. There are numerous reasons why energy is considered to have a significant impact on all other sectors of the economy and society in the European Union. The European Union as a whole is dependent on energy imports and this dependence is growing almost continuously. Given that each country’s energy policy has multiple impacts on the economy, the market, public health and the environment, appropriate strategic commitments in this area should ensure the economic and overall development of society.

Energy is, alongside tourism and agriculture, a priority area for Montenegro’s national development plans. The alignment of Montenegrin legislation with the acquis in this chapter is aided by Montenegro’s membership in the Energy Community, since the legal framework of the Energy Community Treaty is, among other things, the EU acquis related to electricity, gas, renewable energy sources, strategic reserves of petroleum products, energy efficiency and environmental protection.

Sub-areas?

The energy sector is divided into the following subfields:

• electricity,
• gas,
• hydrocarbons,
• renewable energy sources,
• energy efficiency and
• nuclear safety and protection against radiation.

When was the chapter opened?

Chapter 15 was opened on 21 December 2015 at the Intergovernmental Conference in Brussels.

Opening benchmarks?

Montenegro had one opening benchmark, which it met on 23 April 2015.

1. Presentation of a detailed action plan to align its national legislation with the acquis relating to the mandatory 90-day oil or petroleum product reserves, the establishment of a central body for the mandatory oil reserves and the improvement of storage capacities.

Closing benchmarks?

Under negotiation chapter 15, Montenegro is obliged to meet the following benchmarks:

1. Montenegro to complete legislative alignment with the acquis on oil reserves, establish an administrative structure for the management of oil reserves and start establishing reserves in accordance with the Action Plan.
2. Montenegro to comply with the internal energy market acquis, including the separation of all energy entities in accordance with any of the models defined in the acquis.
3. Montenegro to comply with the energy efficiency acquis.

What are the activities in the coming period?

In the coming period, efforts will be focused on intensifying activities to meet the closing benchmarks, as well as on achieving the European Union’s energy policy goals related to security of energy supply, sustainability and competitiveness.

Institutions / organizations participating in the negotiation group?

The negotiator for Chapter 15 as well as the Head of the Working Group are from the Ministry of Economy, while the contact person for the Working Group is from the European Integration Office.

Members of the Working Group are, alongside representatives of the Ministry of Economy, representatives of the following institutions and organizations: Montenegrin Power Transmission System AD, Union of Employers of Montenegro, Electricity Exchange LLC, Ministry of Sustainable Development and Tourism, Montenegro Bonus DOO, Faculty of Electrical Engineering, NGO PRONA – Foundation for the Promotion of Science Electricity Production Company (EPCG), NGO Green Heart, Administration for Inspection Affairs, Montenegrin Electricity Distribution System LLC, Montenegrin Electricity Market Operator LLC, Montenegro Business Alliance and Energy Regulatory Agency.

What is the benefit for Montenegro of this chapter?

The implementation of European regulations in this field will bring significant benefits for the citizens of Montenegro and the society as a whole. Energy savings, better energy prices and a higher level of end-user service quality are just some of the benefits of alignment with the regulations in this chapter. In addition, by joining the European Union, Montenegro will ensure greater security of energy supply through attracting investments in the energy sector, increasing the use of renewable energy and developing market competition, while improving environmental protection. Through the bodies of the Energy Community, the degree of harmonization of Montenegro’s regulations in the field of energy with the acquis is continuously monitored. As the energy sector is one of the strategic branches of the Montenegrin economy, and given the benefits we receive by aligning with European regulations and standards, reforms in this sector and integration into the regional and European energy markets remain our country’s priority

Chapter 15 - Working Group

Nikola Vujović

Negotiatior

Marko Radulović

Head of the WG

Nikolina Goranović

Secretary of the WG

The working group was formed in February 2013. The negotiator for this chapter is Nikola Vujovic, State Secretary at the Ministry of Economy. Head of the working group is Marko Radulovic, Director General of the Energy Directorate at the Ministry of Economy. Secretary for the Working Group for this chapter is Nikolina Goranović from European Integration Office.

The working group consists of 26 members (11 from state institutions and 15 from the civil sector).

Energy regulation affects regulation in all other sectors. Accordingly, European energy regulations consist of rules and policies covering competition and state aid, the internal energy market (especially the opening of the electricity and gas market), the promotion of renewable energy sources, energy efficiency, crisis management and security obligations. petroleum supplies, nuclear energy and nuclear safety and radiation protection.