Energy Community: Creating an integrated pan-European energy market

Written by Monika Dulian.

The Energy Community is an international organisation facilitating energy cooperation; it brings together the EU and neighbouring countries. Established by the Treaty establishing the Energy Community, signed in 2005 in Athens, Greece, it has been in force since 2006. The treaty’s validity has been extended twice, most recently until 2036. The signatories to the treaty are the EU and nine contracting parties: Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Georgia, Moldova, Montenegro, Serbia and Ukraine. There are also three permanent observers: Armenia, Norway and Türkiye. EU Member States may become participants in the Energy Community.

The Treaty establishing the Energy Community is designed to bring the contracting parties closer to the EU by facilitating reform and gradually extending the EU acquis on energy, environment and climate to their respective territories. The Energy Community’s objectives as defined by the treaty include: building a regulatory and market framework enabling investment in power generation and networks; creating an integrated energy market in the region (including infrastructure) compatible with the EU energy market; ensuring energy supply security; and promoting climate‑friendly energy sources. The climate and energy policies of the Energy Community countries are those enshrined in the EU Green Deal and are reflected in their commitment to the Decarbonisation Roadmap, based primarily on the 2030 energy and climate targets.

In response to the energy crisis following Russia’s full-scale invasion of Ukraine, the Energy Community contracting parties implemented emergency regulations (on gas storage and solidarity). The European Community is also active in supporting Ukraine through the Ukraine Support Task Force, which provides equipment needed to repair damage to energy systems caused by the war. To finance this activity, the Energy Community set up the Ukraine Energy Support Fund. Ensuring that Ukraine’s reconstruction and recovery is in line with the EU Green Deal could become a centrepiece of the Energy Community’s mission in the coming years.

Read the complete briefing on ‘Energy Community: Creating an integrated pan-European energy market‘ in the Think Tank pages of the European Parliament.