?? Navigating the Energy Transition: Insights from the Energy Community's CBAM-Readiness Tracker Report ??

The Energy Community Secretariat has recently published its latest CBAM-Readiness Tracker. I'm excited to share some key insights from the report, particularly from the analyses I enjoyed working on alongside Jasmina Trhulj .

?? Electricity Trade: A Record-Breaking Year

2023 marked a historic year for electricity trade within the Energy Community Contracting Parties (excluding Ukraine), with net exports reaching new heights, driven by favourable hydrological and market conditions.

• Bosnia and Herzegovina maintained its position as the largest net electricity exporter to the EU and neighbouring markets, followed by Serbia, Albania, and Montenegro.
• On the other hand, Moldova registered the highest net electricity imports, followed by Kosovo*, while North Macedonia recorded negligible net imports.

?? Electricity Flows & Cross-Border Dynamics

Data from ENTSO-E shows that Serbia led in total electricity volumes, including exports and transits to the EU, followed by Montenegro, North Macedonia, Bosnia and Herzegovina, and Albania. A substantial portion of the transit volumes passing through the Contracting Parties originated from neighbouring EU Member States, with a smaller share generated within the region itself.

?? Renewable Energy on the Rise

The Energy Community Contracting Parties are making substantial strides in renewable energy, with notable progress in 2023:

• Renewables (including large hydro and pumped storage) accounted for 58.5% of total installed capacity.
• Smaller renewable capacities (small hydro, wind, solar, and biofuels) grew to 14.1% of total capacity, up from 10% in 2022.
• Installations of solar, wind, and biofuels have nearly quadrupled over the past five years, now representing 9.35% of total installed capacity, compared to just 2.57% in 2019.

?? The Path Forward: CBAM and Electricity Trade

These trends underscore the critical evolution of the energy landscape in the region. Distinguishing between commercial electricity imports into the EU and transit flows remains one of the key issues for successfully implementing the Carbon Border Adjustment Mechanism (CBAM).

Be sure to explore the full CBAM-Readiness Tracker for more detailed data and analysis and an in-depth look at the challenges ahead the Energy Community Contracting Parties must address to secure CBAM exemptions.

#EnergyCommunity #CBAM #ElectricityTrade #RenewableEnergy #EnergyTransition #DataAnalysis #EnergyEconomics #Sustainability