M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 15 – Energy Bilateral screening: Chapter 15 PRESENTATION OF MONTENEGRO Brussels, 2013

Chapter 15: Energy ENERGY SECTOR IN MONTENEGRO -General overview - Dragica Sekulic, Deputy Minister Ministry of Economy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union o National legislation o Policy and strategic framework o Energy balance o Administrative capacities (institutional framework and stakeholders) TABLE OF CONTENTS Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Law on Ratification of the Treaty between the European Community and the Republic of Montenegro on the Energy Community ("OG of Montenegro", no. 66/06) Energy Law ("OG of Montenegro", no. 28/10) Energy Efficiency Law ("OG of Montenegro", no. 29/10) The Law on Exploration and Production of Hydrocarbons ("OG of Montenegro", no. 41/10 and 40/11) NATIONAL LEGISLATION Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Law on Ionizing Radiation Protection and Radiation Safety("Official Gazette of Montenegro", no. 56/09, 58/09, 40/11) with 17 implementing regulations Law on transport of dangerous goods ("Official Gazette of Montenegro", no. 5/8, 40/11) Law on Inspection Supervision ("Official Gazette of Montenegro", no. 5/8, 40/11); 15 international conventions/agreements NATIONAL LEGISLATION - NUCLEAR - Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Energy Policy is a special branch in the overall economic policy of the state which deals with issues of research and utilization of energy resources, transformation of energy, transmission/transportation and supply of energy to consumers Energy Strategy is a strategic mechanism - a series of measures and instruments - whose implementation envisage achievement of adopted objectives of the Energy Policy of the State POLICY AND STRATEGIC FRAMEWORK Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union The newly adopted Energy Policy (2011) recognizes three main priorities and covers twenty key strategic objectives by 2030 Chapter 15: ENERGY PriorityMeaning 1 Security in the energy supply Permanent, secure, high quality and diversified energy supply aimed to comply the supply with the demands of the buyers; 2 Development of the competitive energy market Securing liberalized, non-discriminatory, competitive and open energy market on the basis of transparent conditions; Establishing of competition in market activities (electricity and natural gas production and supply), base of price policy for energy forms solely on market principles, as well as creating conditions for new energy undertakings to emerge (independent energy producers, suppliers, traders); 3 Sustainable energy development Securing the sustainable development of energy sector based on accelerated, but rational use of own energy resources in compliance with the principles of environment protection, increased energy efficiency (EE) and increased use of renewable energy sources (RES), as well as need for socio-economic development of Montenegro. POLICY AND STRATEGIC FRAMEWORK

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Energy Development Strategy until 2025 (adopted in 2007) Action plan for the implementation of the Strategy for the period (adopted in 2008) Strategy for small hydro power plants in Montenegro (2006) Energy Efficiency Strategy of Montenegro (2005) National Energy Efficiency Action Plan (2010) Strategy on Ionizing Radiation Protection, Radiation Safety and Radioactive Waste Management with the Action Plan (2011) National Strategy for Emergency Situation ( 2006) National Plan of Action in Case of a Radiological Accident (2010); Chapter 15: ENERGY POLICY AND STRATEGIC FRAMEWORK

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Strategic documents in preparation: Energy Development Strategy of Montenegro until 2030 Program for development and use of renewable energy sources (RES) National Energy Efficiency Action Plan Chapter 15: ENERGY POLICY AND STRATEGIC FRAMEWORK

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Final energy consumption by sector, (PJ) ENERGY BALANCE Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Final energy consumption by sector, (%) ENERGY BALANCE Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Gross domestic consumption of energy and fuel, (PJ) ENERGY BALANCE Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Gross domestic consumption of energy and fuel, (%) ENERGY BALANCE Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Gross electricity supply, (PJ) ENERGY BALANCE Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Gross electricity supply, (%) ENERGY BALANCE Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union ENERGY BALANCE FOR electricity - Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union INSTITUTIONAL FRAMEWORK Chapter 15: ENERGY Ministry of Economy Energy Sector Energy Efficiency Sector Mining and Geological Explorations Sector Energy Regulatory Agency Regulator Competent Ministry Administration for Inspection Affairs Inspection

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 15: ENERGY INSTITUTIONAL FRAMEWORK -NUCLEAR ENERGY- Environmental Protection Agency Administration for Inspection Affairs Ministry of Sustainable Development and Tourism Environmental Protection Sector Regulator Inspection Competent Ministries Ministry of Interior

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union STAKEHOLDERS - ELECTRICITY- Chapter 15: ENERGY Elektroprivreda Crne Gore (EPCG AD)Crnogorski elektroprenosni sistem (CGES AS)Crnogorski operator tržišta električne energije (COTEE ltd)Montenegro Bonus D.O.O. CetinjeZETA ENERGY LTD Danilovgrad ELECTRICITY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union STAKEHOLDERS - MINING AND OIL AND GAS- Chapter 15: ENERGY Rudnik uglja AD Pljevlja (RUP)Rudnik mrkog uglja "IVANGRAD" AD Berane Jugopetrol AD KotorMontenegro Bonus D.O.O. Cetinje MINING OIL AND GAS

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union STAKEHOLDERS - NUCLEAR ENERGY- Chapter 15: ENERGY L.T.D. Center for Ecotoxicological Testing-operator of radioactive waste facility- central storage Users: Holders of licences for performing radiation activity- temorary storages NUCLEAR ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 15: ENERGY ADMINISTRATIVE CAPACITY OrganizationNumber of employees Ministry of Economy trainees Energy Regulatory Agency trainees Administration for Inspection Affairs 5

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 15: ENERGY ADMINISTRATIVE CAPACITY-NUCLEAR ENERGY OrganizationNumber of employees Ministry of Sustainable Development and Tourism 1 Environmental Protection Agency 5 Administration for Inspection Affairs 1 Ministry of Interior1

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Other institutions involved are: The Ministry of Sustainable Development and Tourism whose competences over spatial planning, construction and environmental protection intersect with energy. The Ministry of Agriculture and Rural Development: – water management and protection, Municipalities, spatial planning and construction on local level Energy managers in municipalities Energy auditors ADMINISTRATIVE CAPACITIES Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Other Ministries involved are: The Ministry of Economy whose competences, among others, are over dual- use goods which is in connection with Annex II of Additional Protocol (Nuclear Safeguards). The Ministry of Transport and Maritime Affairs supervises Directorates for Road and Rail Transport and civil aviation and Maritime Safety Administration (transport of dangerous goods class 7 ). The Ministry of Justice which is generally in charge of law enforcement, Criminal Code... The Ministry of Finance – Law on Budget The Ministry of Health – health surveillance ADMINISTRATIVE CAPACITIES -NUCLEAR ENERGY- Chapter 15: ENERGY

Chapter 15: Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 15: ENERGY

Thank you for your attention QUESTIONS