Focus on Energy, 2010 - Karanovic & Nikolic

the regulations regarding the energy sector and energy policy in Kosovo. Furthermore, MEMK leads theco-operation and communication between the different players on the energy market and plays the mainrole regarding the integration of the market. In addition, MEMK manages and operates the foreign investmentsin the energy sector and drafts the state Energy Balance, promotes energy programs and investmentsin the renewable energy sector. In 2005, the MEMK passed the draft “Energy Strategy of Kosovo”.For more information on the MEMK, please refer to the section entitled “Important Key Players”.REOKREOK was established in June 2004 as an independent body which regulates the activities in the energysector in Kosovo (including electricity and gas) in accordance with the obligations arising from the EnergyCommunity Treaty. REOK is authorized to issue energy licenses. It also regulates energy tariffs and themethodology used for the determination of the energy cost of such energy tariffs. REOK also assists in theharmonization of the Kosovan energy legislation in accordance with acquis communautaire.Energy StrategyOn November 2002, UNMIK signed the Athens Memorandum. In December of 2003, UNMIK signed thesecond “Memorandum of Understanding”, including the establishment of the regional gas market andthe proposal for a common approach on environment. After the signing of these documents, the KosovanGovernment faced a huge challenge to develop the energy sector in order to comply with all commitmentsput forward for the establishment and operation of the Energy Community. At the same time itwas trying to exploit all of the opportunities that came out its involvement in the Regional Energy Marketsuch as renewable energy.35The Energy Strategy of Kosovo (the “Energy Strategy”) is the basic document that stipulates the energypolicy and the planning of the Kosovo market. The Energy Strategy has been prepared in accordance withESTAP I-II (World Bank 2002- 2005) 2 , as well as expert feedback from the EAR 3 and the RIINVEST institute4 . The Kosovo Energy Strategy is divided in two main chapters (i) short term strategy and (ii) long termstrategy. The short term strategy includes a planned strategy for the period of three years (until 2011),and the long term strategy plans the Kosovo energy market until 2015.Oil & GasThe oil and gas market is regulated by the Kosovo’s “Law on Natural Gas” and “Law on Trade with Oil andOil Derivates”. These laws stipulate the basic principles for the transfer, distribution, use and storage ofoil and gas in Kosovo.FOCUS ON ENERGYGASAll natural gas utilities in Kosovo related to the transmission or distribution network have as their commonaims the transmission, storage, distribution and the achievement of a continuous supply of naturalgas. The natural gas system in Kosovo is integrated to the natural gas systems of other countries in theregional market (but only if these systems are in compliance with the technical and security standards ofthe EU). The distribution of gas is considered to be a public service in accordance with the Kosovan regulationson oil and gas.The policy in the natural gas sector is created by the MEMK in coordination with the Kosovan Government,the REOK and the Kosovan Regulator’s Office (“KRO”). The established policy created by the MEMKis revised every three years.The KRO is a regulatory body that organizes the competitive natural gas market and is authorized to regulatecompanies that work with gas (i.e. safety measurements, the efficiency of the supply of gas, measure-2 The overall objective of ESTAP II/1 project is to prepare and submit a feasibility study report of the selected and recommended line and substationsof the Kosovo, Serbia and Montenegro energy sector.3 European Agency for Reconstruction4 Economic Research Institute RIINVEST, Pristina