The effect of State aid on the electricity market in the Balkans
22 February 2019 10:00 am CET
In cooperation with:
Venue
Energy Community Secretariat, Am Hof 4, Level 5-6, 1010 Vienna, Austria
Description
Contrary to the majority of the EU countries, Balkan governments plan to expand lignite power plant projects in the upcoming years. Most of these will present serious challenges in terms of environmental, economic and legal issues.
GAP Institute, in cooperation with the Vienna Institute for International Economic Studies (wiiw), has analysed these projects and assessed the compatibility of the European Union’s State aid rules and the electricity market liberalisation objectives in the Balkans.
A preliminary review of the contracts to build new power plants suggests that there are several projects in various countries in the Balkans that might be classified as in breach with State aid laws, hence leading to the closure of their market. The report uses case studies to show how State aid is impairing the EU goal of open markets in the electricity sector in the Balkans. Some of the case studies that will be reviewed are: a) Kosovo’s recent contract with ContourGlobal to build a 500 MW power plant; b) Serbia’s loan guarantee for the ‘Kolubara’ TPP; c) Bosnia and Herzegovina’s plans to grant aid for the construction of the ‘Tusla 7’ TPP etc.
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