Decision makers, regulators, system operators, market participants and representatives of European institutions convened at the Athens Electricity Forum. They discussed the integration of the European Union’s eastern and southeastern neighbors into the single electricity market in light of the urgency due to geopolitical instability. It is among the region’s most important pre-accession energy priorities, Energy Community Secretariat Director Artur Lorkowski pointed out. Energy ministers from the organization’s contracting parties affirmed commitment to investments, reforms and alignment with the European Union’s electricity market, but also warned of the uncertainty from CBAM’s current form.
The Energy Community’s Athens Electricity Forum gathered stakeholders that are required to make electricity market integration with the EU a reality – from policymakers and regulators to system operators, market actors and European institutions. The integration of the south east and eastern European neighbours into the single electricity market has gained urgency amid ongoing geopolitical uncertainty, the organization stressed.
With CBAM alignment and the right flexibility planning, the region can turn electricity market integration into a driver of renewable investment and long-term independence from fossil fuels, Energy Community Secretariat Director Artur Lorkowski underscored. It is especially relevant if the region simultaneously advances in the electrification of fossil-fuel-intensive sectors such as heating and transport, the update reads.
“Electricity market integration is among the region’s most important pre-accession energy priorities. It is how we build larger, shock-resistant markets, unlocking the homegrown energy needed for long-term security,” Lorkowski stated.
Building blocks falling into place as integration plan is going to ACER
The legal and practical building blocks for electricity market integration with the EU are now falling into place, the secretariat added.
The Electricity Integration Package (EIP) is the legislative backbone of the process. Once fully transposed and implemented, it would allow the contracting parties to begin market coupling with the EU. Serbia, Moldova and Montenegro are advancing through the legislation verification process led by the Energy Community Secretariat and the European Commission. Several others are nearing full transposition.
Meanwhile, the operational framework is moving forward. Nominated electricity market operators (NEMOs) from the EU have drafted the Market Coupling Operator Integration Plan – central framework for connecting contracting parties. They are about to submit it to the European Union Agency for the Cooperation of Energy Regulators (ACER).
In its current form, CBAM risks pulling markets apart
But the said efforts must be matched by regulatory frameworks that unlock the flexibility needed for a renewables-based power system, the forum underscored. In this regard, contracting parties are encouraged to begin this work by assessing future flexibility needs, strengthening cooperation between system operators, regulators and market participants, and advancing cross-border infrastructure opportunities through the timely transposition and implementation of the TEN-E Regulation, for Trans-European Networks for Energy.
Yet amid integration efforts, the participants reiterated that in its current form, the Carbon Border Adjustment Mechanism (CBAM) risks pulling markets apart. In the first quarter, CBAM-related costs and regulatory uncertainty contributed to weaker price correlation, wider price spreads and reduced cross-border electricity flows between the Western Balkans and the EU – with renewable electricity exports particularly affected. The participants cautioned it is already weakening incentives for renewable energy projects.
Šahmanović: EIP transposition was Montenegro’s historic breakthrough
Montenegro will continue investing strongly in renewable energy sources, transmission infrastructure, regional interconnections and market digitalization, according to Minister of Energy and Mining Admir Šahmanović.
“The progress we have made in transposing the acquis from the Energy Integration Package represents a genuine breakthrough for Montenegro’s energy system – one that can rightly be described as historic. This process is not merely about aligning legislation with European standards. It is about fundamentally modernising our energy sector and building a system that is more stable, transparent, competitive and resilient for both citizens and the economy,” he asserted.
Montenegro is creating a predictable and credible business environment, positioning itself as a reliable investment destination for serious and responsible investors, Šahmanović pointed out.
Strong signal to investors
Minister of Energy, Mining and Mineral Resources of North Macedonia Sanja Božinovska recalled that the new Law on Energy is fully harmonized with the EU and obligations within the Energy Community.
“This is not merely a formal transposition, but a substantive reform process that is already delivering tangible improvements in the functioning of the electricity market. At the same time, these reforms send a strong signal to investors that North Macedonia is building a transparent, modern and predictable market framework capable of supporting investment in non-fossil flexibility solutions, including energy storage, smart grid technologies and demand-side response, she said.
EU’s support needed for climate action, decarbonization
The long-standing process of coupling Serbia’s market with the EU is challenged by CBAM, fully in force since the beginning of the year, Minister of Mining and Energy Dubravka Đedović Handanović noted.
Given its high share of coal in electricity generation, the country is struggling to meet the requirements for exemption until 2030.
“Serbia’s commitment to ensuring energy security, investing in clean energy sources, and strengthening the energy grid demonstrates that we are ready to be a reliable partner in achieving shared European climate objectives and decarbonisation in a fair and sustainable manner. At the same time, Serbia also needs support on this path, and as an EU candidate country and a leader in reforms among the contracting parties to the Energy Community, we have submitted a request to the European Parliament to consider expanding enhanced financial support for the region’s decarbonisation efforts,” Đedović Handanović stated.
