Update to the contribution to the progress report on the process of accession of the republic of macedonia to the european union

3.15ENERGY

Security of supply

In the field of security of supply, notable progress has been achieved with the enactment of the new Law on Mandatory Reserves of Oil and Oil Derivatives (“Official Gazette of the Republic of Macedonia” No.84/2008). This law transposes the EU Council Directive 98/93/EC and contributes towards essential changes in the concept of managing reserves of oil and oil derivatives in the Republic of Macedonia and more efficient and cost-effective operation. In the new Law, the quantities of crude oil in pipelines and oil derivatives in the production lines are not considered as reserves.

The Law enters into force in July 2008 and shall start applying as from January 2009.
Law Amending the Law on Energy, adopted by the Parliament (“Official Gazette of the Republic of Macedonia” No.106/2008), is aligned with Directive 2003/54/EC for basic rules on Internal Market of electricity; this provides creating conditions for liberalisation of energy market in the field of direct consumers, (consumers which are directly connected to the transmission network). These consumers have become eligible consumers and they are obliged to provide their needs of electricity on the open market. The solution provides market opening for about 42% from the total consumption of electricity, as well as entrance on more traders of energy who will supply the eligible consumers.
With this Law Amending the Law on Energy a step forward for changing electricity market model is taken, according to the obligations from the Energy Community Treaty, in a way that a single buyer market model is transforming into a model on bilateral agreements. For that purpose the function wholesale electricity supplier for tariff consumers has been eliminated.
On 10 of July 2008 an Agreement for preparation of Long Term Energy Strategy was signed between the Ministry of Economy and the Macedonian Academy for Science and Arts.
In the field of energy, the Ministry of Economy realised the following activities:

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  participated at the 4^th Meeting of the Energy Community Ministerial Council on 27 June 2008 in Brussels;
  
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  Adopted the Amendments of the Rulebook on the Quality of Liquid Fuels (Official Gazette of the Republic of Macedonia No. 78/2008). The amendments extend the validity of the transitional period for usage of the specific liquid fuels;
  
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  Initiated the Macedonian Solar Test Centre, in the Hydrometeorological Service in Skopje, under the Project “Solar water heating” financed by the Austrian Development Agency;
  
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  5^th Workshop on Capacity Building for Policy and Assistance for Administration was held on 23 June 2008 in Hydrometeorological Service (UHMR);
  
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  Тhe Steering Committee Meeting of the Project “Solar water heating” was held on 24 June 2008.
  

Internal Energy Market

On 29^th of September 2008, the Energy Regulatory Commission submitted for adoption to the Parliament of the Republic of Macedonia a proposed Financial Plan for the 2009. According to the Financial Plan of the Energy Regulatory Commission it is planned to have new employments and to increase the capacity of the Energy Regulatory Commission in order to establish efficient monitoring of the functioning of the market, effective competition and transparency and to improve the protection of the customer’s rights.

The “Grid Code for Distribution of Electricity” delivered by the JSC EVN Makedonija Skopje, as Distribution System Operator, was approved by the Energy Regulatory Commission on 7^th of July 2008 (“Official Gazette of the Republic of Macedonia” No. 83/2008).
In June and July 2008 meetings with the consultants by the World Bank were held in order to amend the “Rulebook on the method and conditions for regulating electricity prices in accordance with the new electricity market model”.
After the held public discussion on 10^th of July 2008, the Energy Regulatory Commission issued the “Rulebook on the method and procedure for establishing and approving the use of feed-in tariffs for purchase of electricity produced from photovoltaic power systems” and the Decision on establishment of the feed-in tariffs for sale of electricity produced and delivered from photovoltaic power systems, which have qualified as a preferential producer” on 4^th of September 2008 and published it (“Official Gazette of the Republic of Macedonia” No. 112/2008).
In the period of June- September 2008, the Energy Regulatory Commission issued the following decisions:

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  4 Decisions for issuing licenses for performing energy activity trade with electricity;
  
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  1 Decision for issuing license for performing energy activity combined generation of electricity and thermal energy to the company TE-TO AD Skopje;
  
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  1 Decision for issuing license for performing energy activity distribution of natural gas to the company KUMANOVO – GAS JP - Kumanovo
  
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  9 Decisions for highest selling prices for different oil derivates on every fourteen-days period in accordance with the Methodology for establishment of the prices for different oil derivates as prescribed by the Annex D of the Agreement for purchase and sale of shares and for concession of the Oil Refinery AD “OKTA” – Skopje, signed between the Government of the Republic of Macedonia and the share hold company “EL.P.E.T. - Balkanike” as a strategic investor;
  
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  1 Decision for price for selling of natural gas to the tariff customers directly connected to the natural gas transmission system for third quarter in 2008;
  
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  3 Decisions for amending the Decisions for average price of generation, distribution and supply of thermal energy for heating for the regulated period for the companies Toplifikacija AD – Skopje, Skopje Sever AD – Skopje and AD ELEM – Energetika Skopje.
  

In September 2008 the companies AD ELEM, AD MEPSO and EVN MAKEDONIJA AD – Skopje, submitted requests for determining the prices and revenues for generation of electricity, transmission of electricity, distribution of electricity and retail supply of electricity for tariff customers. The Energy Regulatory Commission is expected to issue Decisions for determining these prices by the end of October 2008.

In the period June-September 2008 meetings with the consultants by the World Bank were held in order to amend the “Rulebook on the method and conditions for regulating electricity prices“ in accordance with the new electricity market model. The Energy Regulatory Commission is expected to l issue the new Rulebook on the method and conditions for regulating electricity prices by 31^st of October 2008.
In the reporting period, preparations for the Twinning Project Fiche for Support to the Energy Regulatory Commission” started.
Renewable energy sources and energy efficiency

The following rulebooks, deriving from the Law on Energy are in their final stage of preparation and upon them an expert discussion was held in the premises of the Ministry of Economy on the specified dates:

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  Rulebook on utilisation on renewable energy sources, 22 of July 2008;
  
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  Rulebook on energy efficiency of new and reconstruction of existing construction facilities, 25 July of 2008;
  
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  Rulebook on issuing guarantee on the origin of electricity generated from renewable energy sources, 10 of July 2008. The final report of the Consultants, IPA Energy and Water Consulting, including the text of the Rulebook was submitted to the EARM on June 17, 2008.
  

In June 2008 the Energy Agency of the Republic of Macedonia (EARM) has started with process of selection of consultant for preparing the Rulebook for Acquiring the Status of Preferential Producer of Electricity Produced from Renewable Energy Sources and the selection process continued through August 2008.

Under the Sustainable Energy Project – Market Framework Component activities of the EARM and the PDAF consultants for the purpose of providing a technical assistance to the interested applicants for development and implementation of Renewable Energy Projects and Energy Efficiency Projects were undertaken. Applications of two interested applicants were received in August 2008.
The Project for establishment of Wind Database in the Republic of Macedonia was launched.
The Programme for improving energy efficiency in construction facilities, financed by the Austrian Development Agency, is in the final stage of approval.. Project commencement is expected in mid of November 2008.
Nuclear safety and radiation protection

In the field of nuclear safety and radiation protection, during June-September 2008, the Radiation Safety Directorate of the Republic of Macedonia issued 12 licenses for activities with sources of ionising radiation and realised 88 inspections.

Furthermore, in order to enhance the cooperation with other institutions and to the Radiation Safety Directorate the following memoranda were signed:

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  Memorandum of Cooperation among National Coordination Centre on border management, Ministry of Interior, Ministry of Defence, Ministry of Finance – Customs Authority of the Republic of Macedonia, Ministry of Agriculture, Forestry and Water Supply, Ministry of Health, Ministry of Environment and Physical Planning, Ministry of Transport and Communications, Ministry of Local Self-Government, Radiation Safety Directorate and State Statistical Office for using the IT system for integrated border management.
  
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  Memorandum of cooperation between the Radiation Safety Directorate and the Crisis Management Centre;
  

The Radiation Safety Directorate in accordance to the Decision of the Government of the Republic of Macedonia provided IT equipment and system for exchanging of information in the frame of integrated border management.

In the period from 9 – 11 September 2008, Expert Mission for Nuclear safety and radiation protection was conducted in the Radiation Safety Directorate, Public Health Protection Institute and Institute of Pathophysiology and Nuclear Medicine. During the Expert mission, the potential storage for radioactive sources was visited by the expert and it was stated that the potential storage fulfils the required Basic Safety Standards.
Administrative capacities

Representatives of the EARM have attended the following events:

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  a meeting in the Joint Italian-Macedonian Office for investments in Environment for the purpose of introduction of feed-in tariffs for electricity generated from solid biomass
  
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  International Conference for Fair and Clean Energy for the Balkans, held on 18-20 June in Sarajevo and organised by the foundations “Open Society of the Republic of Bosnia and Herzegovina” and “Heinrich Boll Stiftung” from Germany;
  
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  Workshop for Capacity Building for Policy and Assistance for Administration, under the Project “Solar Water Heaters” held at the MANU premises.
  

The representatives of the Radiation Safety Directorate attended the following training courses and workshops:

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  Regional workshop on Regulatory Control of Public Exposure, 29 of June – 04 July 2008, Prague, Czech Republic;
  
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  Inspection/Detection Equipment Training, 22-23 of July 2008, Skopje, Macedonia;
  
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  Combined Seminar for Coordination and Information, 21-24 of July 2008, Bitola, Macedonia,
  
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  Training on Electronic Application of Public Purchase, 24-25 of July 2008, Skopje, Macedonia;
  
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  Workshop on “Project Identification: Logframe and Budget Planning”, on 06-07.08.2008, Skopje, Macedonia;
  
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  Training course on “Preparedness and response in a case of radiation emergency, on 01-31.08.2008, Riga, Latvia and
  
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  Scientific visit of Bulgarian Nuclear Regulatory Agency, visit of the storage of radioactive waste and Nuclear Power Plant Kozloduy.
  

In June 2008, Energy Regulatory Commission participated on 4^th ERRA Training for New Commissioners, held in Budapest and ERRA Presidium meeting, held in Budapest, Hungary.