THE BALKAN FORUM: INNOVATIVE COLLABORATION FOR SUSTAINABLE DEVELOPMENT Report on the regional meeting: Energy Efficiency Policies in the Balkans: Opportunities for Regional Cooperation Held in Tirana, Albania, 14-15 September 2014
Contents Context... 3 Background... 4 List of Participants and Institutional Affiliation... 5 Agenda... 7 Conclusions of the Delegates... 9 Next Steps... 11 Media Coverage... 12
Context Improving energy efficiency has long been advocated as a way to increase the productivity and sustainability of society, primarily through the delivery of energy savings but also as a way to contribute to economic growth and overall social development. Benefits attributed to the implementation of energy efficiency measures range from localized benefits, such as energy affordability, improved health, wellbeing and social development, to sectorial benefits, such as industrial productivity, improved asset values and reduced environmental damage. Low level of energy efficiency in the Balkans has had a negative economic impact that creates high energy bills, widespread energy poverty and high energy import dependency. Improving energy efficiency is, among other, a powerful tool for combating the threat to energy security - a reoccurring geopolitical issue in the Western Balkans. By using less energy we decrease over- dependency on few or single supply source. Europe 2020 is a 10- year strategy proposed by the European Commission for advancement of the economy of the European Union. It aims at "smart, sustainable, inclusive growth" with greater coordination of national and European policy. It follows the Lisbon Strategy for the period 2000 2010. Within the five set targets of the Europe 2020 strategy, three targets are related to energy and climate change: (1) reducing greenhouse gas emissions for 20% lower than in 1990, (2) increasing the usage of renewables for 20% (3) and 20% of increase in energy efficiency. According to their commitments under the Energy Community Treaty, the Western Balkans countries have agreed to reduce their energy consumption by at least 9% by 2018. National Energy Efficiency Action Plans, detailing intermediary targets and proposed measures are to be submitted to the ECS every two years. A number of financial, fiscal and delivery mechanisms are available to governments and the private sector as they work towards these targets, and IFIs are particularly active in this sector. With the 2005 Energy Community Treaty establishing an energy community between the EU and South Eastern Europe, Western Balkans countries committed to an energy framework as an important step toward greater energy efficiency economic growth, and social development. Implementation of the Athens Treaty could bring benefits such as energy affordability, improved human health, industrial productivity, increased asset values, and environmental health.
Background The Balkan Forum on Regional Cooperation is a cross - sectorial platform for advancing sustainable and participatory development. It promotes a resource efficient, greener, and more competitive Balkan region that is based on collaboration and diversity. Balkan Forum brings together diverse regional stakeholders around following thematic areas: (1) economy and energy, (2) education, (3) tourism and infrastructures and (4) human capital and labour market. In cooperation with Ministry of Energy and Industry of Albania, Balkan Forum organized a regional meeting of institutions on energy efficiency policies in the Balkans with a goal to examine opportunities for enhancing regional cooperation in sector of energy efficiency as well as models of future cooperation of countries of the Balkans. The meeting aimed to identify the region s strengths and leverage each country s comparative advantage to catalyze innovation and development in the energy sector and is part of a larger Balkan Forum initiative that aspires to foster collaboration among countries in the Western Balkans. Representatives of ministries from Albania, Bulgaria, Former Yugoslav Republic of Macedonia, Kosovo, together with representatives of Energy Community, EU Delegation to Albania and South East Europe Grid Initiative agreed that regional approach in energy efficiency is crucial not only in terms of bolstering EU integration processes of countries candidates but also in creating direct benefits to citizens of the Balkans, like increasing employment and contributing to continuous process of enhancing regional relations. The delegates defined set of conclusions among which they agree a more proactive and unified voice of the region on energy efficiency represents an opportunity for economic development and regional cooperation. Additionally, delegates stated the energy savings and use of local clean energy resources can make the Balkans less dependent on energy resources import and therefore making it a more secure and stable region.
List of Participants and Institutional Affiliation # Name and Function Institution Country 1. Damian Gjiknuri, Minister Ministry of Energy and Industry Albania 2. Dorian Duçka, Deputy Minister Ministry of Energy and Industry Albania 3. Alfred Bundo, Director of EU Integration and Projects 4. Gjergji Simaku, Head of Renewables and Energy Efficiency Policy 5. Agim Bregasi, Director of Electro Energy Ministry of Energy and Industry Ministry of Energy and Industry Ministry of Energy and Industry Albania Albania Albania 6. Mirela Kamberi, Team Leader/Projects Coordinator UNDP Climate Change Albania 7. Maria Raytcheva, Director of European and Regional Energy Cooperation Directorate Ministry of Economy and Energy Bulgaria 8. Dorina Peristeri, Associate Banker The European Bank for Reconstruction and Development, Tirana Office EU 9. Borko Raičević, Energy Efficiency Expert Energy Community EU 10. Clive Rumbold, Chargé d'affaires Delegation of the European Union to Albania EU 11. Ismail Luma, Adviser Energy Department Ministry of Economy FYROM 12. Luna Kalaš, Director The Balkan Forum Greece 13. Helena Qirici, Program Assistant The Balkan Forum Greece 14. Adela Bani, Intern The Balkan Forum Greece
15. Fadil Ismajli, Minister Ministry of Economic Development Kosovo 16. Bedri Dragusha, Chief Executive Officer Kosovo Energy Efficiency Agency Kosovo 17. Visar Azemi, Coordinator Kosovo Civil Society Consortium for Sustainable Development Kosovo 18. Julian Popov, Senior Adviser South East Europe Grid Initiative UK 19. Haki Abazi, Program Director of the Western Balkans Program 20. Ariadne Papagapitos, Program Director of the Peacebuilding Program Rockefeller Brothers Fund Rockefeller Brothers Fund USA USA
Agenda SUNDAY, 14 SEPTEMBER 2014 Abret Conference Room, Tirana International Hotel 09:00 13:00 Arrivals 14:00 14:30 Registration of delegates and media representatives 14.30 15.15 Welcoming Remarks and Introduction Luna Kalaš, Director of The Balkan Forum Damian Gjiknuri, Minister of Energy and Industry of Albania Fadil Ismajli, Minister of Economic Development of Kosovo Clive Rumbold, Chargé d'affaires, Delegation of the European Union to Albania 15.15 15.45 Implementation of the Energy Efficiency Policies in the Energy Community and Future Perspectives Q&A Borko Raičević, Energy Efficiency Expert, Energy Community 15.45-16.30 Energy Efficiency and Energy Security: EU Policy Context 16.30 17.00 Coffee Break Julian Popov, Senior Adviser, European Climate Foundation 17.00 18:00 Opportunities of the Energy Efficiency Regional Cooperation Q&A Haki Abazi, Director of the Western Balkans Program, Rockefeller Brothers Fund 20.00 21.30 Dinner
MONDAY 15 SEPTEMBER 2014 Abret Conference Room 09.00 09.30 Country Overview Kosovo Q&A (10 min) Bedri Dragusha, Chief Executive Officer, Kosovo Energy Efficiency Agency 09.30 10.00 "New Legal Framework on Energy Efficiency and the Establishment of the Energy Efficiency Fund in Albania" Q&A (10 min) Gjergji Simaku, Head of Renewables and Energy Efficiency Policy at Ministry of Energy and Industry, Albania 10.00 10.30 "Bulgarian EE Policy and Measures Q&A (10 min) Maria Raytcheva, Director of European and Regional Energy Cooperation Directorate, Ministry of Economy and Energy Bulgaria 10.30 11.00 Coffee Break 11.00 11.30 Country overview FYROM Q&A (10 min) Ismail Luma, Adviser Energy Department, Ministry of Economy, Former Yugoslav Republic of Macedonia 12.00 14.00 Framework and Vision for Energy Efficiency Regional Cooperation Joint discussion Moderator: Luna Kalaš 14.00 Lunch Departures
Conclusions of the Delegates of the Regional Meeting Energy Efficiency Policies in the Balkans 1 : Opportunities for Regional Cooperation, 15 September 2014, Tirana, Albania Bearing in mind the Final Declaration by the Chair of the Conference on the Western Balkans, Berlin, 28 August 2014 and sharing the objectives of the Energy Community Treaty and EU Energy Efficiency Directives, delegates agree to following conclusions: 1. Regional cooperation in energy efficiency could bring direct benefits to citizens by increasing employment, reducing energy bills, improving living standards and creating better living environment. 2. Measures to increase energy efficiency are a significant opportunity for economic development and stronger economic growth. 3. Energy savings and use of local clean energy resources can make the Balkans less dependent on energy imports and increase the energy security of the region. 4. Effective political dialogue would ensure better coordination among countries and create a more unified voice in the region, consequently leading to improvement of economic and political relations. 5. Financial mechanisms need to be made known and available to regional actors. The region should develop an overall action plan, including the development of financial instruments that will offer variety of funding solutions for energy efficiency projects throughout the region. Funding solutions should be developed though cooperation of governments, national and international financial institutions, taking into consideration the specifics of each country. 6. South East Europe should accelerate the process of development of a properly integrated regional electricity and gas markets and build adequate energy infrastructure to facilitate the energy markets, as these are crucial for promotion of supply- side energy efficiency, security of supply and climate goals. 7. Promotion of private investment and creation of the harmonised market for energy efficiency at the regional level will accelerate the development and implementation of regional energy efficiency projects. 1 Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYROM, Greece, Kosovo, Montenegro, Romania, Serbia and Turkey
8. In order to complement and make the most of the efforts of the EU, a more active regional approach and a better coordinated regional representation on issues of energy cooperation is needed. A common regional energy policy voice would help in development of more locally appropriate energy efficiency, sustainable energy generation and cogeneration, as well as infrastructure projects. 9. Public and local government participation in the design and implementation of energy efficiency policies is required in order to change the public perception on energy usage and energy efficiency of the region. 10. Countries in the region should involve education and research institutions in order to advance the understanding of the wide benefits improved energy efficiency could bring. 11. Governments, civil and business society and the donor community working in the region should set up a regional taskforce that will examine concrete problems and offer analysis and solutions for energy saving. 12. In order to advance the energy efficiency cooperation in the region a better governmental and donor coordination needs to be established. 13. Regional exchange of best practices regarding promotion of energy efficiency policy is needed. 14. The region should work on improving the efficiency of power generation, cogeneration, transmission and distribution, which is in compliance with Energy Efficiency Directive 2012/27/EU. 15. Energy efficiency measures should be strongly promoted as beneficial for local jobs creation, as they use local labour and mostly locally produced materials supporting in that way further the development of the local economies. 16. Local financial institutions need greater human resources capacity in order to review and assess projects and loan applications. Such process would create more jobs in the region. 17. Countries in the region should cooperate closely in advancing the trend of integration of renewable energy sources into new buildings and building renovation. 18. Countries in the Balkan region should actively contribute to the European Energy Union development process and inclusion of its principles of stronger emphasis on support for accelerated energy efficiency improvement.
Next Steps In addition to the conclusions of the conference, the delegates discussed ways of continuing cooperation and their role in this process. The fact that the initiative to convene this meeting came from within the region was welcomed as an important step taken by regional actors. Such initiative conveys the message that region is taking more responsibility in initiating cooperation projects. When discussing the possibility of a regional fund being set up for energy efficiency projects, the delegates proposed an organization of the donor conference to discuss best possible ways to establish such fund. This conference would bring together representatives of ministries of energy with representatives of international financial institutions and experts. Balkan Forum has been mandated to organize this meeting in March 2015. The delegates stated there is an urgent need to research and map out country specific issues that hinder energy efficient environment and to that end they have proposed the establishment of research taskforces mandated with such assignment. Findings of such research would be the source as to what are the priorities for projects of energy efficiency in each country as well as regionally. Balkan Forum will gather information about existing initiatives that focus on energy efficiency in South East Europe by researching and publishing information on www.seeeci.org (South East Europe Energy Cooperation Initiatives). SEEECI will be collaborative effort that aims to gather scattered information into a summarized form and serve as a reference point for researchers, experts in the field, NGOs media, donors and other interested stakeholders.
Media Coverage Albania
FYROM
Kosovo
Montenegro
Bosnia and Herzegovina Bosnia and Herzegovina
Energy Saving Association ESA