Committee on Industry, Research and Energy Ordinary meeting
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ITRE European Parliament
Follow its sittingsLorenzo Mannelli
The EU public administration is the most targeted sector, not only concerning the EU entities, but also, in general terms, the public administration across the member states. In 2025, cybersecurity incidents affecting the European public administration doubled to 38% of all reported incidents from 19% in 2024. Threat actors are growing bolder, exploiting geopolitical tensions and supply-chain vulnerabilities. So these three elements, fragility, vulnerability of the supply chain, a certain weakness of the human factor, so the awareness of our colleagues, of our people, and, of course, the very tense geopolitical situation. Our response focuses on three strategic priorities.
First, securing communications, promoting end-to-end encryption, and advancing post-quantum cryptography. You may recall that in a few years, due to this impressive technological development, all our systems of cryptography will probably not be effective anymore because quantum computers can process an enormous quantity of data. So we are working in that sector. The second point, as I mentioned, is the supply chain resilience, assessing overreliance on non-EU vendors to improve technological sovereignty. This is something we are paying a lot of attention to.
If we consider 20 main vendors, 16 are US vendors, one from in Europe, for the EU entities. One is from Israel, another from Australia, a couple from Canada, and only one is European from Germany, SAP. So, this is not a mystery. We need to work a lot. And the third point is adaptive defense, aligning our strategies with available threat intelligence to stay ahead.
The four key points is resource optimization. Cybersecurity is not free. We have to pay a high price to defend ourselves, so it requires skills and funding. Sadly, both are in short supply. Consequently, we adopted a pragmatic approach with shared services leveraging certain combined offerings and Freya, which is the procurement, inter institutional framework to pull resources.
So this is the first line. Then targeted investment in high-impact areas identified in cybersecurity maturity assessment. I would like to underline that while synergies and optimizations help, they are not enough. This is our best effort, but it's not enough. Structural reinforcement with more staff and budget requires continued political support.
EU decision makers must recognize that cybersecurity is not negotiable to ensure the EU's resilience. And we, of course, we hope that also in the process of adopting the multi annual financial framework, this can be considered. The fifth area, the 30 u activities in '25, a priority for '26. Under the IACB's guidance, in '25, 30 u supported new entities in risk management, especially the smallest one, and maturity assessment, and enhanced its cybersecurity monitoring service and developed data-centric practices to better anticipate and detect how adversaries target the EU entities. So there are several projects really aiming at providing a tailor made risk assessment and also recommendation to each EU entity in order to improve their own cybersecurity posture.
In '26, we will continue addressing emerging risks that we already covered in '25, especially secure communications, supply chain security, sovereignty, and quantum threats. We will also address gaps and challenges identified in '25. Sorry. Further, enhancing crisis coordination and cooperation, especially for the promotion of synergies and joint exercises. We have done the phishing exercises jointly among all the EU institutions, but there was also pooling of highly qualified resources in managing some of the major incidents we had to face across the EU entities.
So, 25 proof that this collaboration works, but cyber threats evolve daily. The ISCB mission to safeguard the use of public administration demands vigilance, innovation, and unwavering support. Thank you for your attention.
Borys Budka
Thank you. Thank you very much. On my speaker list, we've got, first, the representative of the EPP, so missus Aura Sala.
Aura Salla
Thank you so much, and good morning. The report highlights that EU institutions and public authorities remain targets for cyberattacks. Yet it is also it also identifies a systemic risk and overreliance on non-European ICT providers. So I am talking about technological sovereignty here. With the Cybersecurity Act two revision now proposing strict restrictions on high-risk third-party suppliers, it is clear that the Commission has also started to recognize this problem.
So my question is, how does the Board plan to address the dependence on non-European cloud and security providers, where the risk isn't just the technical backdoor, but also the legal obligation of these providers to comply with the third country intelligence laws? We have seen the so-called kill switch already used in the EU by an American company. Given the public entities our frontline targets, does the board think that the European preference procurement mandate for all EU institutions, bodies, and agencies should be done as a regulation and not as a directive already maybe this year? Specifically, does the board support European institutions serving as the first movers in migrating the sovereign European-made cloud and cyber security alternatives? Thanks.
Elena Santomurillo
Thank you so much. Today's debate is particularly timely as this parliament is working on the digital net networks and the review of cybersecurity at key files for Europe's digital resilience and sovereignty. The Institutions of Civil Security Board latest report shows progress, but also a very clear reality. EU institutions are increasingly targeted in a tense geopolitical context, and our level of protection remains unbalanced. So I would like to ask several questions.
First, who is behind the cyber attacks targeting EU institutions today, and what are they trying to achieve? And are we truly ready to withstand a large-scale coordinated cyber attack against the European parliaments or other EU bodies? Third, how dependent are we still on non-European technologies in critical systems, and does this create strategic vulnerabilities? Four, do we actually have the necessary skills and resources given the scale of the cybersecurity workforce gap? And finally, what is the single most urgent gap we must address in the next year to increase our cybersecurity maturity?
Because cybersecurity is no longer just a technical matter, it is at the heart of Europe's sovereignty and our ability to act. Thank you.
Borys Budka
K. Thank you. And now it's the time for catch the eye procedure, but I can't see any other members who want to ask the question. So it means that we will have time for the follow-up questions after the answering of our guests. So the floor is yours.
Lorenzo Mannelli
Thank you, Mr. Chair. The first question, there are no doubts I was mentioning. We rely too much on third countries' providers, and this is true along all the spectrum of IT, let's say, tools. This is very true, of course, for cloud, and you mentioned especially cloud security.
Lorenzo Mannelli
Situation, I'm a little bit confident that it can, let's say, evolve into a more interesting and acceptable sit way because, the European Commission launched, a few months ago an inter institutional call for tender for a new, let's say, contract framework covering a regional cloud. And, we are really why I think it's a matter probably of days, not of weeks, of the result of the attribution of this call for tender. And we expect I'm so confident in that way. We expect that we can have three or four European, sovereign providers. That could be a real, game changer element for us, for the European public administration because we could, let's say, rely on European providers.
But, of course, we still over rely a lot on the well known American hyperscalers and providers. And, as you rightly pointed out, even if there is the adequacy decision of the commission, for them, in reality, we know that, under the US legislation, they have to comply and they have to, let's say, give access to the data in case of, let's say, a certain number of public US authorities will ask for that. So, the real warranty, the real protection for our data doesn't exist in that sense. So with the European providers, we will be in a safer position. And, also, in the European Parliament, I think we can move forward towards cloud solutions, even private sovereign cloud in order to treat with the due, let's say, security our data.
So, there is still some, let's say, risks around, but a first positive step is arriving. Then, of course, there are still the question connected to the security also in cloud, and we saw a very, very, very recent incident that happened to the European Commission where, also for that part, we have to invest a lot. And European preference is not yet in the legislation. Maybe that will be the case in the future. But we, as a parliament, all the main institutions are cooperating in order to use as much as possible the margin of discretionality already allowed by the financial regulation when procuring in order to introduce some criteria that even are not fully, let's say, or explicitly in the sense of a European preference can, in any case, let's say, help a little bit in that direction.
So procuring is a practical way to move forward as well. And then, on the other question, of the honorable member for the SMB group, who is attacking us? Who's behind the cybersecurity? Let's say, who are the threat actors? Attribution in this field is not always an exact science, but there is a modus operandi or many elements that cert you receive from trusted partners and peers, also from member states.
We can, let's say, argue that the main actors are, let's say, under the current situation, Russia and China. These are, since a long time, more active with maybe different behaviors. Then, of course, the Russian is satellites like Belorussia. Then there is Iran, which emerged over the last two years in a very active manner. There is India and North Korea.
Quite strange that they normally are acting as a proxy for others. Maybe they sell the access of what they have, let's say, they were capable to do. So these are more or less. And, of course, there is a constant dependency, a link related to the political circumstances. So we see an increase of things when there is a sort of new sanctions, imagine against Russia or a particular event.
So this is very much depending on the geopolitical influence. Of course, we are facing this kind of attack and trying to scale our common capacities. As I mentioned, one of this way is not only to increase, to reach this is the purpose of the regulation to reach a common service level and of checks and measures, a common level, among all the EU entities, but also pooling resources. In a recent incident, for instance, the parliament and the commission help another institution with professional, specific guys, very skilled, that are working at the commission or the parliament and not so available to us. So we are doing a lot.
And, of course, we try also through you to increase this change and the cooperation with the national C CERT. So the network of the, let's say, peer entities, existing in member states. What kind of skills do we need? Of course, we need specialized people. I have to admit, honestly that the European system is not always in a measure of, let's say, providing skilled people.
The system of competition is working, let's say, not so fast. It's not possible to, let's say, recruit the skilled people because also the labor market is moving very, very fast, and the lab and the competition, the labor market for this kind of professionals is very high. Imagine if we have to compete with Amazon or with Microsoft offering our salaries or offering a very heavy recruitment process. In Luxembourg, Amazon recruit in three days. We recruit maybe in 8 months or 7 months.
So this is just to show you how difficult it is. And what kind of gap to address? I think we need to always be prepared for the future. If you read in the press also recently this week, this new tool developed by Anthropical, Matos, it seems to present another big step forward in the world of cybersecurity because, applying AI. AI also, of course, is massively present on the side of the attackers and on the side of the defenders.
But with this no tool, apparently, it will be possible, but we don't have access yet to also study, to understand better, to discover plenty of vulnerabilities. So, meaning that, we could be exposed, all of us, not only at the European level, to unknown vulnerabilities. But as we can learn that there are these vulnerabilities, also the attackers can have the same. So this is something happening exactly during this day. And, of course, the level of investments will probably never reach what we really need to face to make this space of evolution.
So we try to optimize. This is the gap to be in line with innovation, and probably, I would also add the vulnerability of supply chains. All the eight, nine major incidents in Europe were provoked by vulnerability in a component provided by a supplier. So, also, the incoming legislation where we should raise the level of responsibility of providers in order to provide safe and strong, let's say, products can also help to maybe face obliging them because of their responsibility to invest more in security and cybersecurity.
Borys Budka
Thank you. Okay. Thank you. Unfortunately, we've got 30 seconds left. So it was just a comment if you want, but thirty seconds, not a question, because we must start another item.
Aura Salla
Okay. I would just want to highlight about the standards because, as you know, Microsoft is offering the full package. You have the software. You have the cyber. You have the cloud.
Right? And they have the standards. And that's what's lacking in the EU right now. We don't have standards. If you choose European cybersecurity and cloud, but what is the solution for software, Linux?
But then you need to have the standard. So I think this is the one thing that we need to address now in the EU.
Borys Budka
Thank you very much for the discussion. Thanks for being with us and for your report. And now we will have the next item, the energy community parliamentary plenum.
Borys Budka
Dear colleagues, please, dear guests, please take your seats, and we start our energy community parliamentary plenum. So we have a great pleasure to host today the 26th edition of this plenum. The objective of the parliamentary plenum is to make the energy community better equipped to implement the EU acquis by bringing together elected members of the national parliaments of the contracting parties of the energy community, Albania, Bosnia, Herzegovina, Georgia, Kosovo, Moldova, Montenegro, North Macedonia, Serbia, and Ukraine, and the European Parliament. Kosovo holds the rotating presidency of the Energy Community this year. I'd like to warmly welcome all members of the national parliaments of the contracting parties here today.
And we have decided to focus our plan today on two topical subjects that are important both for the EU and energy community. The aim of the first session is to have the exchange of views on accelerated integration into the EU's electricity and gas markets. And the second session is dedicated to the discussion concerning the phasing out Russian gas and oil supplies. And, of course, I'd like to give the special thanks to Mister Dan Jorgensen, commissioner for energy and housing, for being here to make an opening statement in our plenum. I'd like to give our guest immediately the floor for five minutes.
And, of course, I understand and hope you will understand that, because of our duties, the commissioner will have to leave earlier. But once again, Dan, thanks a lot that you are supporting us and you are here with us today. So the floor is yours.
Thank you so much, my friend.
Dan Jørgensen
and thank you so much for inviting me for this. There's no doubt that our collaboration in the group of countries that are represented here today is extremely important, and we really cherish the work that the energy community is doing. It's a very high priority to me and the commission. And there's no doubt that in times of war and turbulence, the value of this collaboration shows itself in a way that really cannot be underestimated. So we are in the middle of, some would say, many crises.
But, of course, the focus right now is on the energy crisis that has arisen as a result of the situation in the Middle East. But I will start by saying that, in my opinion, yes, this is certainly a crisis, but it is also a wake-up call. We have been reminded that our dependency on volatile regions and outdated energy systems is a risk. Together, we must prioritize energy savings. In this crisis, every barrel and every cubic meter we save make our energy system more secure.
We need to optimize the use of our refineries, secure alternative supplies, and coordinate our response so that we protect vulnerable citizens and sectors without causing distortions in the internal market. In the EU, we are taking immediate steps to mitigate price hikes. Next week, I will present a toolbox of concrete measures that member states can take to save energy immediately, while advancing the structural reduction of fossil fuel use. I understand that the contracting parties of the Energy Community are also taking firm actions to deal with the current crisis. Today, we have an opportunity to exchange on these short-term actions, but also to engage on long-term ambition for a future where energy is secure, affordable, and sustainable for all.
To build this future, we must focus on integrating our markets, phasing out Russian fuel, and coordinating our efforts to safeguard energy security. These are the three topics I will focus on today. But, this crisis reminds us that our energy security is only as strong as the weakest link. So while the integration of energy community has always been a strategic necessity, it now makes even greater sense, takes on an even greater sense of urgency. On gas, we must apply the EU decarbonized gas package at our borders without delay.
This means complying with storage obligations. It means reinforcing interconnections to ensure that gas and, eventually, hydrogen can flow freely. And it means accelerating the production and integration of renewable gases, particularly biomethane and biogas. On electricity, the adoption of the electricity integration package in the energy community has opened the door to market coupling with the EU. This constitutes an extraordinary opportunity to reap the benefits of deeper integration with the EU single market before accession.
These benefits are immediate, as market coupling enhances affordability and reduces price volatility. A larger integrated market also provides a long-term signal for investors that we are strengthening competition, improving system efficiency and resilience, as well as ramping up renewable energy deployment. Overall, we send a powerful signal for enlargement, emphasizing the position of the energy community contracting parties as future members of the EU. To gain from this extraordinary opportunity, contracting parties must accelerate efforts to transpose and implement all nine legal acts of the electricity integration package. As we move closer together, we must also move away from Russian fossil fuels.
Let me be blunt. Every euro spent on Russian gas and oil funds a war machine that threatens our value and our security. The Repower EU roadmap sets clear deadlines for ending these imports. Within the EU, we are on track to eliminate Russian gas by 2027. I encourage the contracting parties of the energy community to follow our lead.
Because Russian supplies are neither reliable nor sustainable. Alternative gas supplies and renewable energy deployment must be our goal. To reach this goal, the EU stands ready to support you with funding, technical assistance, and market access. The reform agendas for the Western Balkans, the Ukraine plan, and the Moldova plan are tangible examples of this support. But the decision to take advantage of this support and to move forward with the EU energy at key must be yours.
Finally, let me come to energy security. The energy community contracting parties are already a part of our energy security architecture, covering gas, electricity, and oil. For example, last December, contracting parties adopted the extension of the gas storage regulation with the same target as the EU. This sends a powerful and pragmatic signal of our common approach to energy security. But integration, it is not just about rules and infrastructure.
It is about preparing for the future, building the hydrogen and renewable gas markets that will underpin our long-term security. To the parliamentarians here today, I say, your role is indispensable. Legislative alignment, oversight, and political commitment are the foundation of this process. Without your leadership, integration will stall, and with it, our collective security. So, dear friends, the challenge before us is significant, but so is our capacity to overcome it.
The energy community was built on the principle that energy cooperation is the foundation of peace, prosperity, and security. That principle has never been more relevant than it is today. So I encourage you to maintain your progress on this path, and I assure you that the EU will be alongside you every step of the way. Thank you.
Borys Budka
Thank you, then, for the opening remarks. And now I will give the floor to Miss Rosetta Hajari, chairperson of the economy, industry, entrepreneurship, trade and innovation committee from the parliament of Kosovo. So the floor is yours. Four minutes. Excuse me.
Rozeta Hajdari
Thank you very much, Mister Budka. Dear commissioner Dan Jorgensen, commissioner for energy and housing, dear director Arthur Lorkowsky from Energy Community, dear all, representatives from contracting parties and EU parliamentarians, I really want to thank you on behalf of Kosovo for inviting us to this discussion that is of importance for stability of all the countries, but also for faster integration to European family. As the energy community presidency, Kosova approaches this agenda with a sense of responsibility to the whole region. Therefore, we are happy to be a part of the discussion that matters to all contracting parties. Today's agenda focuses on two issues that are directly relevant for our region: accelerated integration into the EU electricity and gas markets, and stronger diversification in response to changing European supply patterns. Both issues are practical questions of security of supply, affordability, and market functioning.
From Kosovo's perspective, while today's agenda covers both electricity and gas market integration, for Kosovo the immediate and central issue is electricity. Kosovo does not have gas infrastructure, but we are still affected by developments in European gas markets through their impact on import prices, regional market conditions, affordability, and security of supply. That is why for us, electricity market integration is a critical issue beyond the energy sector in itself, and for the functioning of our economy as a whole. As here, I think parliamentarians have a very specific role. We are not here only to repeat that the integration is important.
We are here to make sure laws are adopted, institutions are aligned, implementation is followed through, and commitments are translated into something real on the ground. That is where the credibility of this entire process will be decided. Kosovo fully supports accelerated integration into the EU electricity market, including progress on day-ahead and intraday coupling, stronger cross-border coordination, and faster transposition and implementation of the electricity integration package. But while we speak about market integration here, we cannot ignore that the reality on the ground is still very different. One important issue still requiring practical progress is the use of the Kosovo-Serbia electricity interconnection, where up to 600 megawatts of capacity on the border remains unavailable for commercial exchanges.
This has contributed to price spikes up to €701 per megawatt of cross border capacities on our other interconnection lines with North Macedonia and Montenegro. I would like to thank the ministerial council for the decision taken during the last ministerial meeting for Serbia to enable the use of this interconnection for cross border electricity trade no later than first July 2026. This was an important and welcome step, but the priority now must be implementation. All available mechanisms should be used to ensure that this decision is carried out fully and on time. Electricity market integration and regional cooperation must happen in practice on the ground and not remain only discussion we have in meetings.
Furthermore, market integration is a means not an end in itself. The purpose is to improve welfare, support renewable integration, and reduce long-term system costs. For the contracting parties, market functioning, better use of cross-border infrastructure, and more predictable rule implementation are essential for investors' confidence and for credible regional cooperation. At the same time, Kosovo is doing its part on legal framework alignment with EU key. We have already approved in the government the laws on energy and the law on electricity.
And just as of yesterday, they were presented for parliamentary review, and both were approved in principle by the parliamentary committee on economy, industry, entrepreneurship, trade, and innovation. We aim to adopt both laws in the next two weeks. I would like to add more that, in parallel, we have the same work continuing.
Rozeta Hajdari
Law on energy efficiency and on the regulatory energy regulatory. So step by step, we are moving forward with full transposition of EU legislation, and closer to the legal institutional framework that real integration requires. Dear representatives from the European Parliament, dear EU commissioner, energy community secretariat, and all colleagues for convening this discussion. Kosova's message today is simple and constructive. As presidency, we want this process to remain inclusive, credible, and implementation-focused.
We support faster electricity market integration. We support legal and regulatory alignment, and we support regional cooperation that is practical and fair. But above all, we believe that the next step for the energy community must be to close the gap between what we agree on politically and what is actually functioning in reality. In this message, I would like to also invite the EU commissioner to the ministerial council in Kosovo on July 2 and see further how we can more adopt and implement the electricity package and more reforms on EU integration for all contracting parties for the interest. Thank you.
Borys Budka
Thank you very much. And now I give the floor to mister director Arthur Larkovsky for five minutes.
Artur Lorkowski
Thank you very much, Mr. Chairman. Your invitation to this committee and also the presence of commissioner confirms this unequivocal and unwavering support and the commitment to the further enlargement of the European Union energy markets to the energy community, and I'm very thankful for that. It is particularly important that we are now experiencing firsthand how the shock waves from foreign conflicts have very local consequences for both energy and economic stability. And Europe in general, the European Union and the neighbors can be successful in managing the turbulence if it creates a united energy alliance and the energy communities offering the umbrella for such an alliance. To get there, to have this alliance, I will outline three common sense legislative priorities which we are working on in the energy community.
A first step is to lock in the energy community region as an active member of Europe's gas neighborhood. This is strategically important for diversification. The pipelines running through the energy community countries, including, for example, Ukraine, and gas storage facilities, position it as a critical transit hub for the European Union. Integrated markets with diversified sources and storage availability will help ensure that homes and businesses across the region have access to gas when they need it and at affordable prices. In practice, achieving this begins with the reciprocal implementation of network codes so that everybody follows the same rulebook in Europe.
This year, EU member states will advance significantly in this regard. Beginning in August, under the EU fourth gas package, member states should apply the gas network codes at every border, including the borders with the Energy Community countries. I would like to thank the commission and the members of parliament for helping to drive this process through. While we are still on the topic of the gas market integration, I will briefly address the phase out of Russian gas, which has been raised by the commissioner. In a non-distant future, the energy committee may assume this commitment.
This is up to the commission proposal and the future decision by the ministerial council, as it is expected to adopt the version of the energy community of the Repower EU, which is now in preparation for full energy market integration. At the Secretariat, we are studying this possibility with care. We are confident that doing so will not affect security of supply. The region will still be able to buy the gas it needs and the quantities it needs to consistently sustain essential services, businesses, and households. At the same time, we recognize that there are concerns about how phasing out Russian gas might affect the region economically.
We will work alongside you to guarantee secure, diversified gas flows do not come at the cost of affordability. Let me move to the second reform. Full EU energy community electricity market integration is now within reach, and it's a step that should close political divides. If you have colleagues who are still debating in the national parliaments whether to support it, give them one big reason: affordable energy that isn't held hostage to foreign suppliers. And this reasoning seems quite powerful.
Current events are an urgent reminder that renewable energy must become a more serious part of our energy security strategy. And electricity market integration is a cost of further renewable development. That is because it will attract investment in renewable energy by creating the market size and predictability that green investors want before financing more renewable projects. For energy community contracting parties, electricity integration, electricity market integration is also about an additional decarbonization benefit. And both the European Parliament and the energy community parties have a part to play in making electricity market integration a reality.
I will address maybe the members of the European Parliament first. You are now discussing an important proposal from the European Commission on the amendment of the carbon border adjustment mechanism, CBAM. The commission proposal offers an opportunity to the conflict, the CBAM implementation with the integration of the electricity markets of the energy community and more broadly with the decarbonization and enlargement agenda. If implemented smartly, it will help remedy the current situation where the renewable energy exports from the energy community are treated by the EU in the same way as those from fossil fuels, a condition that economically discourages the EU to import cheaper electricity from the energy community region. Furthermore, the inclusion of a possible memorandum of understanding, governing the details of a possible exemption to CBAM, if all conditions are met, of course, and the integrity of environmental integrity of CBAM is not undermined, is key to ensuring that CBAM and electricity market coupling mutually strengthen and do not undermine each other.
I now turn to the honorable members of the Parliament of the Energy Community. Many of you are in the middle of debating the legislative acts that make up the electricity integration package. Let me remind you that only after transposing this legislation, the market coupling might be a reality. I commend, therefore, the progress which has been made by Serbia, Moldova, Montenegro. We have already observed some progress in Ukraine, North Macedonia, Kosovo, Albania, and Bosnia.
And we also very much strongly encourage you to follow-up and to deliver on that process. The work that I have gathered charged to you, colleagues, it is very simple. We have to transpose the gas network codes. We have to transpose the electricity package, and we have to rethink the CBAM so that the trade between the energy community and the European Union can be continued. Thank you very much.
Borys Budka
Thank you, director. And now we've got the time for our distinguished guests from the national parliaments. So first, I will give the floor to North Macedonia, mister Dimitar Kovacevskiy for four minutes each.
Dimitar Kovacevskiy
Yes. Thank you. So, dear chairman, respected colleagues, energy interconnection and integration between the energy community contracting parties and the European Union neighboring member states is of exceptional importance for the energy sector. The interconnection will enable greater stability in energy supply, open up prospects for joint investments in energy projects, increase competition, and lower prices for companies and households. In the area of electricity, the Republic of North Macedonia has made significant progress in its integration with the EU market by adopting the law on energy in 2023.
Speaker 13
Amendments to the law on energy efficiency have been adopted, primarily strengthening the principle of energy efficiency, and a register for issuing guarantees of origin has been established. Several companies have already obtained certificates of origin, enabling them to export electricity generated from renewable sources to the European market. Additionally, a legal framework has been put in place to support the process of market integration with countries in the region and across the European Union. The intraday market is expected to begin operations in May or June 2026, marking another step towards modernizing the Macedonian energy sector and advancing its integration into the European market. From an infrastructural perspective, the cornerstone for the construction of the North Macedonia-Albania transmission line was recently accelerated with the selection of a new subcontractor that will construct the Bitola-Elbasan transmission line.
Speaker 15
In the regulatory areas, a special law on the use of renewable energy sources is expected to be submitted, the adoption of which is expected to further accelerate the integration of the Macedonian and European electricity markets. It is necessary to complete the verification process of the network codes, which will enable the market integration with the electricity market. Regarding the CBAM, I'm very thankful that mister Lorkovsky mentioned the need to rework the CBAM regulation as, at this moment, it is only a burden, and it is only stopping the trade between North Macedonia, other regional countries with the European Union, and it is increasing the price of any export which is going from North Macedonia by doubling the price. Regarding the gas market, the legal framework necessary for the operation of a wholesale market has been successfully established, and the market has been active since 2023. However, the retail market remains limited, with only eight suppliers and just 2% of the gas currently delivered through the distribution network.
Speaker 13
End user prices have been fully deregulated, alongside the introduction of consumer protection measures. The unbundling of the gas transmission system operator, NOMAgas, has been completed in line with the requirements of the third energy package. In order to ensure greater utilization of natural gas as an energy source, it is essential to accelerate the development of a gas pipeline network across the country. In terms of regional integration, the Republic of North Macedonia at this moment is connected only to the Republic of Bulgaria, and it uses only Russian gas in all the years starting from 19.
sixties.
Speaker 15
But North Macedonia, at the same time, is running an important project, which is underway for the construction of an interconnector for gas supply from The Republic Of Greece. We do expect that this can be completed by 2027, which will give access to North Macedonia, to the TANAP gas line and also to the Alexandroupoliadri Vitusa LNG terminals. Thank you.
Borys Budka
Thank you very much, and also for being perfect on time. And now I will give the floor to Mrs. Yanina Yimari from Kosovo.
Yanina Yimari
Sorry. Honorable chair, commissioner, and distinguished colleagues, it is a privilege to address this plenum as we discuss accelerated integration of the electricity package into EU markets. As an engineer and vice chair of the committee on the economy in the assembly of Kosovo, my approach to this transition is informed by technical reality. I monitor NCOE data several times a week to see exactly where we stand as a country. This helps me plan structural solutions that bridge the gap between the policies and our technical challenges.
Speaker 18
For this integration to succeed, market transparency is non-negotiable. This is why we have prioritized the remit regulation, to ensure transparency and protect our customers. However, to achieve full alignment with EU legislation, we must address structural constraints. Currently, our electricity distribution network is governed by a privatization contract, not yet public, that acts as a legal holdup, limiting the development of Kosovo Energy Corporation. Thanks to this visit as my first time as an MP, I will be seeking advice also from an energy community secretariat legal team in Vienna to ensure that as we transpose the electricity integration package, we include the necessary safeguards.
Yanina Yimari
Regarding the domestic production, power plant Kosovo B will remain the backbone of energy for the next few years, but we will maximize its efficiency where we should scale cogeneration beyond the current scope. Regarding the other and the last power plant, Kosovo A, I'll be making sure that any discussion for rehabilitation must be grounded in technical and verified compliance. An independent feasibility study is a nonnegotiable as a needed step to ensure that our infrastructure investments are led by engineering logic rather than just politics. My vision and commitment of my work as a politician in Kosovo is in 24 hour power supply and access to electricity for every area, every citizen, and this should be basic standards, not just ambition. We envision a future where our domestic resources, power, a modern e-mobility infrastructure, reducing our reliance on important fuels, and ensuring a sustainable energy transition that is fully integrated in the Inter European family.
Thank you.
Borys Budka
Thank you very much. And now Mister Yak Iraqi, Messurnishvili from Georgia.
Yak Iraqi Messurnishvili
Dear colleagues, distinguished representatives of the European Union, the energy community, and esteemed partners, it is a great honor to be here today representing Georgia. As you are aware, the energy sector remains a cornerstone of Georgia's strategic priorities. It is the engine of our entire economic value chain. Simply put, there is no economic growth, no competitiveness, and no resilience without strong and reliable energy system. The price, quality, and continuity of energy supply are not just technical parameters.
It directly impacts on the competitiveness of our industries, the well-being of our citizens, and the strategic position of our country in the regional and European context. Over the past decade, Georgia has made significant and measurable progress in strengthening energy security and in developing a sustainable energy system. This progress is not accidental. It is the result of consistent reform and a clear strategic vision. The economic policy committee of the Parliament of Georgia is fully engaged in this process.
We are firmly committed to delivering our obligations under the association agreement and to ensuring the full and effective implementation of European energy legislation. Allow me to turn to electricity, one of the cornerstones of our energy policy. Our primary objective is clear, to become fully energy independent and to ensure a reliable, uninterrupted, and affordable energy supply for both households and businesses. Georgia is actively developing a modern high-tech energy sector while working to reduce the gap between growing demand and domestic generation. Electricity tariffs in Georgia remain competitive, approximately 7.7 cents for households and around 11 cents for small businesses, creating an attractive environment for both consumers and investors.
At the same time, targeted investments in domestic networks and cross-border infrastructure have significantly strengthened supply security and enhanced regional trade opportunities. Between 2016 and 2024, electricity generation grew at an average annual rate of 2.7%. In 2025 alone, consumption increased by 3.5%, reaching 14,300,000,000 kilowatts, while generation stood at 13,980,000,000 kilowatts. Installed capacity has reached 4,752 megawatts, with hydropower continuing to play a dominant role. But equally important is our progress in renewable energy.
Its share has already reached 20%, and we are firmly on track to increase it to 27% by 2030. To achieve this goal, dozens of hydropower, wind, and solar power projects are planned, creating new opportunities for sustainable investment and long term partnership. However, full integration with the European market is not only about regulations. It is also about physical connectivity. One of the most transformative projects on our agenda is the Black Sea submarine cable project, a 3,500,000,000 initiative that will link Georgia to the European power grid via Romania.
This project will significantly enhance regional energy security, facilitate green energy trade, and position Georgia as a reliable regional energy hub. Before being added to the project of mutual interest list, the project underwent a com technical and economic visibility study, which confirmed that constructing the Black Sea submarine cable is both feasible and strategically important and valuable. In conclusion, Georgia's energy sector is undergoing a profound transformation. We are steadily aligning with European standards, advancing structural reforms, and investing in strategic infrastructure that will define our energy future. Georgia stands ready to be a reliable partner for the European Union, for the Energy Community, and for international investors.
Together, we can build an energy system that is secure, sustainable, and competitive. Thank you for your attention.
Borys Budka
Thank you very much. And now we will have two speakers from Moldova. So first, I will give the floor to Miss Olga Urso.
Olga Urso
Thank you, honorable chair, distinguished EU representatives, dear colleagues. First of all, I would like to thank you all for being here, for having this opportunity, because it's a topic of high importance for the Republic of Moldova. Let me begin by underlining that the Republic of Moldova remains strongly committed to the objective of full integration into the EU internal energy market. In 2025, Moldova made substantial progress and was recognized as one of the top performers within the energy community. We achieved full transposition of the energy electricity integration package, launched day-ahead and intraday markets, and continued advancing with the market liberalization reforms.
And all these steps reflect a clear and consistent political commitment, but also the capacity of our country to align with the EU IK. For the Republic of Moldova, integration in the EU internal energy market is no longer just about alignment. It is about our security, the security of our country, and it's about today and here. Today, Moldova is under a state of emergency in the energy sector declared at the national level because of the Russian attacks on Ukraine's energy infrastructure, but on our infrastructure, which have disrupted electricity supply routes, severely affected regional energy stability, and created an immediate risk of significant power shortages across the country. In February, we already experienced a partial blackout in the country.
And this is not all theoretical for us. It reflects real vulnerabilities, structural, physical, and geopolitical, also. We continue to face limited interconnection capacity, structural dependency on imports, limited renewable energy production, and a market that is still in the process of developing sufficient liquidity. In critical moments, we rely on energy and emergency electricity, and it's at significantly higher prices for our economy. In this context, we see integration not only as a long-term perspective.
We see it as a shared responsibility. Moving forward, we believe that the focus should be on strengthening the cross-border capacities, on advancing market coupling, on promoting energy efficiency projects, and supporting the operational integration of our markets. We also see the value in exploring flexible and phased approaches for our country. We need flexibility. We need speed.
And we count on continued cooperation and on political support from the EU. Our country, Moldova, remains fully committed to continuing the initial reforms for our stability, for our affordability, and for our resilience, not for tomorrow, but for today already. We need to grow stronger together. Thank you.
Borys Budka
Thank you very much. And now, me also from Moldova, Missus Veronika Biricek. Sorry for the pronunciation.
Veronika Biricek
Honorable members of the energy community, dear colleagues, it's a pleasure and honor to address you today in Brussels, the parliamentary plenum of the energy community. I come from a country that, in just a few years, has overcome a profound transformation. The Republic of Moldova for years was dependent on a single energy source, one dependent on politics. In just a few years, it has managed to move from a state of energy dependence to a rapid champion of renewable development and regional integration. Accelerating the integration of energy community into the European Union's electricity and gas markets is not only a technical objective.
Speaker 21
It's a strategic necessity for the security, stability, and economic development of the entire region. For the Republic of Moldova, this process represents the back out of our European path. The year 2025 marks a decisive turning point. We reduced our dependence on fossil fuels, diversified our offering, and aligned ourselves with the European network. In the current year, 2026, we are witnessing substantial progress.
Veronika Biricek
Over several weekends, there have been periods during which electricity consumption was covered 100% by renewable sources. This is not merely a symbol milestone. It represents a vital necessity for the whole nation of Moldova. Our objective is clear, to achieve a 40% share in renewable energy in our electricity mix by 2030. These achievements demonstrate that our investments, policies, and reforms are delivering tangible results.
We have successfully launched organizing the electricity markets, including the day ahead and the intraday markets. Terribly establishes the foundation for a transparent and competitive energy sector. At the same time, we have advanced in a process of liberalization of the natural gas market, opening the sector to competition and international suppliers. In this context, the Republic of Moldova is marking substantial investment in its energy infrastructure. At the same time, we are actively advancing the coupling of our electricity markets with Romanian and, by extension, with the European Union market.
This process will ensure access to competitive prices, enhance market liquidity, and reduce the weak points of our energy systems. In the view of the importance of coupling Moldova's electricity markets with those of the European Union, and in accordance with the procedures established by the European Commission and the Energy Community Secretariat. The Ministry of Energy has submitted the necessary documentation to initiate the electricity market transportation verification process. We count on the support of the Energy Community Secretariat and the European Commission in facilitating and potentially accelerating this process. Energy integration is not only about the energy sector of the Republic of Moldova.
It is about our shared European future. Thank you for your attention.
Borys Budka
Thank you very much. And now we will have the representative from the parliament from Montenegro, and it will be missus Sladana Kaluderovic. The floor is yours.
Sladana Kaluderovic
Distinguished colleagues from the European Parliament and National Parliaments of the Contracting Parties, esteemed director of the Energy Community Secretariat, dear representatives of the European Commission, and other attendees, we will all agree that today's debate on expediting the integration of the Energy Community with the European Union electricity market is having a different context compared to the debates we had at the previous plenary meetings. We cannot ignore the fact that we are currently facing a new global crisis in energy markets that, at the same time, affects oil, natural gas, and electricity markets. In light of the up-to-date geopolitical tensions that have disrupted crucial global energy supply chains and a high level of uncertainty in the recovery of damaged energy infrastructure, accelerating European energy integration is both needed and necessary. We are witnessing the consequences as energy prices have pressured our economies and the standard of living of our citizens. Particular concern is felt by countries that are small, open, and economies dependent on their parts.
For this particular reason, Montenegro is investing its full capacities, institutional, financial, and human resources into the implementation of a number of parallel processes converging toward one of our priority goals, namely, security of energy supply. Firstly, we are accelerating the pace of EU accession in line with, which we intend to close all negotiation chapters by 2026, including chapter 15, energy. However, the core of this process is not only to become a full EU member, but also to position ourselves as an energy bridge between the Balkans and the EU. The memorandum of understanding was signed in 2025, under which the electricity markets coupling between Italy and Montenegro will be based on the current submarine cable along with the construction of a second line. Teraby, this will ensure full utilization of capacity, security, and stability of the power supply system, and improved renewable energy sources integration.
Secondly, the implementation of CBAM has placed an additional burden on Montenegro's energy sector, as the difference in prices between EU and Western Balkan markets has increased. Electric Power Company of Montenegro is the sole supplier delivering electricity to households in Montenegro, recorded €13,000,000 lower revenue in the first two months of 2026 due to the reduced value of electricity compared to a scenario if CBAM had not been implemented. I would like to take this opportunity in the presence of Mister Jorgensen, first, to express my gratitude for the intensive cooperation between the European Commission and Montenegro, but also to stress the need for greater sensitivity as regards the CBAM implementation, as well as stronger support to Montenegro in harmonizing its national emissions trading system with EU ETS. Within the scope of its competencies, the Parliament of Montenegro is making a full contribution to these processes. With reference to the Energy Community Implementation Report, which reflects the situation as of November 2023 until today, the Parliament of Montenegro has passed a series of new legislative acts, namely, the law on cross border exchange of electricity and natural gas, the law on cross border energy infrastructure projects, and the law on climate change, as well as amendments to the energy law and the law of efficient use of energy.
But the purpose of further harmonization with the national legislation and with EU is a case. Montenegro has thus transposed the EU electricity integration package. With regard to new global circumstances, I trust that the role of national parliament is highly significant, not only in creating an adequate regulatory framework, but also in raising public awareness of energy priorities, given the special connection the parliament have with citizens. To conclude, I am assured that Montenegro recognizes the relevance of the project with Italy as it is not merely a bilateral matter, but one of the transforms the entire region and strengthens energy security at European level. However, the matter of CBAM must not remain overshadowed by the current energy crisis, as it further complicates efforts to mitigate the consequences of the crisis.
Thank you for your attention.
Borys Budka
Thank you very much. And last but not least, our dear colleague from Ukraine, Mr. Andrey Garus. And, of course, as always, please remember that we full support all your efforts and all your fight was, in defend your country from Russia. So as always, feel as a special guest in our parliament and feel free. And, of course, we will meet after the meeting also to discuss the current situation in Ukraine.
So thanks a lot that you are here with us.
Andrey Garus
Thank you, Mr. Butka. Distinguished chairs, dear colleagues, Ukraine is no longer just preparing for integration into the European energy markets. We are already in the process of real integration. We synchronized our power system with INSUY in 2022, immediately after Russia launched its full-scale invasion. This one is an emergency decision, but it proves that Ukraine can be a reliable part of the European energy system.
Speaker 24
We have also adopted key EU aligned legislation, the Remit Law to prevent market manipulation, the market coupling framework to integrate electricity markets, and we plan to adopt ten year regulation framework in April, May, to further align infrastructure development with EU standards. At the same time, Ukraine is experiencing rapid growth in renewable energy. This creates a natural complementarity with the EU energy system. From March to October, Ukraine has strong potential to export green electricity to the EU, while from November to February, we benefit from electricity imports to balance our system. In addition, Ukraine is opening its underground gas storage facilities to European companies, contributing to the energy security of the entire continent.
Andrey Garus
What does this mean in practice? It means more competition and, therefore, more affordable prices for consumers. It means stronger system resilience, especially in times of crisis. However, full integration requires faster progress, further legal alignment, full implementation of market coupling, and deeper cooperation in the gas sector, including storage, interconnections, and future hydrogen markets. And here, the role of national energy regulators is absolutely critical.
Adapting legislation is not enough. Effective, independent, and timely implementation by regulators is what makes integration work in practice. Strong regulatory enforcement ensures fair competition, transparency, and trust in the market. Parliaments also play a key role in maintaining political commitment and ensuring that this process moves forward without delay. Ukraine is ready to be part of the single European energy market, not in the future, but today.
Thank you for your attention.
Borys Budka
Thank you very much. And now it will be the turn for the members. And first, on behalf of political groups, so I will give the floor on behalf of EPP, mister Gustaf Hetman, for two minutes.
Krzysztof Hetman
Thank you, sir. Please use your headphones, because I'm going to speak Polish.
Speaker 26
Dear colleagues, to start with, I would like to welcome all the members of the energy community. I'm very happy that we can talk today together about the accelerated integration of the energy community with the European gas and electricity markets. The geopolitical situation is unstable, so we are not talking about a technical adjustment. This is a guarantee of our energy security, of our competitiveness, and the stability of the whole region. We want to accelerate this process in practice.
Speaker 27
Declarations are not enough. All the EU rules need to be applied in practice, and the systems need to be cooperating in a cross-border way. There has been a lot of progress recently when it comes to legal alignment. The European Commission has given its positive feedback. We are on the right path towards the full integration of the energy community into the EU market.
A few words on gas. There is quite a lot of work still left to be done. We need a level playing field. The rules need to be applied, including those provided for in the latest gas package. We need to reinforce the interconnectors.
We need to respect the rules on gas storage. This is very important when it comes to energy security. Hydrogen and renewable gases will soon be used, and our infrastructure needs to be ready. This will be decisive for our competitiveness in the future. The energy community is an integral part of our energy structure.
The integration of both regions is a necessity for the sake of our prosperity and security.
Nicolás González Casares
Thank you, president, and welcome colleagues from Hungary, Macedonia, Kosovo, Georgia, Moldova, Serbia, Montenegro, Ukraine. Slava, Ukraine is the first commitment from this parliament, and this brings me to the actual situation. The whole Europe is facing an oil and gas crisis, and I believe now the European Commission is right in the recent measures proposed, reducing fossil fuel consumption, accelerating renewables and grids, and electrifying the economy as quickly as possible. These measures will also benefit the energy community. But we must not forget the essential.
We are parliamentarians. This crisis has two signatures: Donald Trump and Benjamin Netanyahu. Just as the energy prices crisis resulting from the invasion of Ukraine had the signature of the killer Putin, this one also has a clear responsibility. In Iran remains an undesirable regime, but now Iranians are worse off because of the actions of the governments of the US and Israel. The European Commission was very vocal in holding Russia responsible for the previous crisis, as it was.
Now it's time for commission her president, to break her silence and speak loudly, as she did with Putin. Dear colleagues, the acceleration and integration of the energy community into the European Union, electricity gas, a market of electric and gas is not just a technical and regulatory exercise. It is a strategic opportunity that can redefine the region's economic and energy outlook. But fully aligning national legislation with new rules, contracting parties can join European electricity market coupling even before accession. Such integration will not merely be about connecting cables and grids, that is important, as was mentioned previously for some colleagues, but about connecting opportunities both for your citizens and industries.
I think that the participation in the electricity and gas markets offers a way to build resilience against new energy crisis and against new possible aggressions. And I think they naturally aligned with the CBAM principles will ensure that regional industries remain competitive without facing additional adjustment mechanisms. Believe me, we strongly desire to have you in the EU and to have you better integrated into this energy community. But, also, we are fighting against the dependence on fossil fuels because our competitiveness is at risk. So in the gas sector, let me ask you, how do you intend to ensure that integration with the EU market strengthens security of supply without creating new long-term fossil dependencies on stranded assets.
I think this is also important to note. Thank you so much.
Sigrid Friis
Thank you, Chair. And I want to also really thank all of the speakers for joining us here today. It's been a great pleasure to listen to you. I would like to focus on electricity under CPAM, which I think can be quite a unique case since unlike the other CBEM sectors, we cannot physically track electricity flows and everything then depends on how we technically attribute the emissions. I think that the commission has recognized this challenge already recently by moving towards default values that include all sources, not only fossil fuels.
And by making it easier to use actual emissions, including via PPAs, this is indeed a step in the right direction. I would still be interested to understand further whether this is sufficient in practice or if you believe this methodology still risks overestimating emissions. We also know many energy community countries rely on electricity exports to the European Union, usually still quite carbon-intensive. And we heard many concerns that CPAM could make these exports face a significant carbon price, which could mean those countries could be priced out of the market before they have the means to decarbonize. So do you think there's a way to ensure that CPAM supports this transition in neighboring electricity systems rather than undermines the transition?
I would be very interested to discuss further. And once again, thank you for your presence here in the European Parliament.
Borys Budka
Thanks a lot, Sigveit. And now, on my speaker list, we've got Mr. Paulius Saldargas from EPP. One minute.
Speaker 32
Thank you, chair. Dear colleagues, let us be clear. Political, economic, and energy integration go hand in hand. If we are serious about EU enlargement, and I hope we are, then integrating the energy systems of candidate countries is essential. Energy is geopolitics.
It's about security, influence, and resilience. If we leave neighboring countries outside our energy market, we leave them vulnerable, we leave them exposed to influences from outside. We have already seen what happens when even member states remain dependent on fossil fuels and isolated networks. These energy islands influence and weaken all of us. Accelerating integration of the energy community is not just a technical work.
Speaker 33
As our colleague from Moldova rightly said, it's a strategic step for Europe's security and stability. A larger single market makes us a stronger player in the geopolitical arena. A connected energy system makes Europe strong. Thank you.
Borys Budka
Thank you very much. And in this part of our discussion, I don't see any person who wants to ask the quest. Okay. So one minute for questions.
Michael McNamara
Thank you very much. I just wish to focus on energy storage and gas storage in particular. Obviously, the commissioner and many of the presenters put considerable emphasis on it. Ireland, notwithstanding me, at the end of a gas line, which flows through the United Kingdom, has no gas storage. So it's uniquely positioned for a pretty disastrous outcome in the event of a gas supply shock.
Derogation was obtained on the basis that Ireland didn't have any gas storage capacity. On the other hand, it does appear that there was capacity in the Kinsale Oilfield or the Kinsale Gas Field, and that it may well even have been used for gas storage purposes in the past, and notwithstanding whatever was communicated by Ireland. So, I mean, my question is, what are the commission and what would the experts say to Ireland with regard to gas capacity storage now in the world in which we live, in the world which we face into the near future? Thank you.
Borys Budka
Thanks a lot. And no other members who want to ask questions. So before we switch to the phasing out of Russian gas and oil supplies. The next part of our discussion, I will give the floor for two, three minutes to the director if you want to answer on these questions now or in the or maybe, yeah, first to the commission. Okay?
Speaker 37
Thank you very much. Good morning. So the question that was raised regarding Ireland, we are now preparing our package, energy security package, proposal, which is incorporating the latest events, which is how to address the situation based on the lessons learned from the past, and in particular, in the invasion of Ukraine has been very challenged for both electricity and gas. And now the situation that we experience where even if there is no problem with security or supply or limited problem, so far, there is a high exposure due to the global prices of oil and gas. So it's clear that storage is playing an important role in Europe.
Speaker 38
And we are looking at as well at this issue taking into account the national circumstances, in particular, Ireland, as you mentioned, with no storages. There was already previously solidarity measures in order to ensure that a gas storage can be used in other neighboring countries. So I think this is just to try to address the situation and the national specificities. And maybe this brings as well to the underground storages in Ukraine. So regional cooperation is a must among the EU member states, but among the neighborhood as well.
Speaker 37
That's the reason why we are here. And to explore and to full utilization of underground storages in Ukraine that if I don't remember, I remember, well, it's around 30 Bcm capacity. So it's a huge capacity. It's also an important element that we are addressing as well at the European Union. Thank you.
Borys Budka
Thank you very much for your answer. And now I will give the floor to our dear guests for the second part of our today's discussion. And on behalf of North Macedonia will be Demeter Kovachevsky. The floor is yours.
Dimitar Kovacevskiy
Thank you once again. And this is really an important question, especially for the countries which geographically and historically did not have the access to any other gas sources, and they use it, rather than the Russian gas so far. And I think that we have done quite a lot, in the past four years already since the start of the war in Ukraine with our clear commitment towards the full alignment of our foreign and security policy with the European Union, which I think should be highly regarded by the European Commission and by the European Council and the European Parliament. The Republic of North Macedonia has no domestic oil reserves and gas reserves, as is valid for all the other countries in the region, relying entirely on imports to meet the energy requirements. Regarding the gas market, I would like to inform you that to date, the Republic of North Macedonia is connected only via an interconnecting pipeline with the Republic of Bulgaria, through which gas is supplied from Russia.
In order to diversify the sources of supply for this energy resource, North Macedonia has joined the project for the construction of the liquefied natural gas LNG terminal in Alexandroupolis in the Hellenic Republic. The construction of the gas interconnector between the two countries has commenced and is expected to be completed in 2027. This interconnector will enable the transport of both natural gas and hydrogen, contributing to greater energy security, reducing pollution and an accelerated transition towards green energy. And additionally, a memorandum of understanding has been signed with the state institutions from the Republic Of Serbia for the construction of a 70 kilometer natural gas interconnector between the two countries, which will be natural prolongation of the interconnector, which we will build with the Hellenic Republic. As I informed you at the beginning, oil derivatives are also supplied by imports with almost all imports being carried out by the Hellenic Republic for North Macedonia.
Speaker 15
In this regard, I would like to share that the Thessaloniki Skorpio oil pipeline, which has been built in the past and was nonfunctional, was recently put into operation after thirteen years of inactivity. In addition to North Macedonia, this oil power plant also can enable supply of oil derivatives to the Republic of Kosovo, South Serbia, and Bulgaria as well. It is planned to transport 2,500,000 tons of crude oil and oil derivatives annually through the pipeline. In addition to faster and safer supply of petroleum products, this allows for significant environmental protection compared to the previous period, when petroleum products were imported only via tanker trucks. Furthermore, the Macedonian government, which holds a 20% ownership stake in the oil pipeline, will generate revenue for the state budget from the transit of petroleum products.
Speaker 13
Since most of the energy community contracting parties satisfy their needs for gas and oil derivatives through imports, I would like to emphasize that the meeting of this ministerial council and the energy community parliamentary plan on which we currently have are an excellent opportunity to provide ideas and support for joint energy projects. This will contribute to strengthening regional cooperation, security of energy supply, and energy connectivity between the Energy Community contracting parties and the European Union member states. Republic of North Macedonia supports all energy projects that will enable diversification of supply, greater security, and greater environmental protection, which will benefit not only North Macedonia, but also the region and Europe in general. In the past years, we have proved as a country that wants to cooperate and cooperates with all the neighboring countries, and all the interconnectors and pipelines which are existing in Macedonia and are to be put in operation by the end of next year are available to be connected for the neighboring countries of Kosovo, Serbia, Bulgaria, and Albania if needed and wanted. Thank you.
Borys Budka
Thank you very much. And once again, on behalf of Mondova, Missus Veronica Berysak.
Veronika Biricek
Thank you. Once again, instinct colleagues, we cannot ignore the fact that the Republic of Moldova is having a war, it's a very burden initiated by Russia. Faces amplified, changeless, which directly affect the well-being of its people. Russian's invasion of Ukraine has clearly demonstrated how vulnerable energy system can be to geopolitical risks. In this context, integration into the European energy market is not only an economic objective.
It is also a critical instrument of security. Until recently, Moldova's energy system was almost entirely dependent on a single supplier, the Russian Federation. More of that, 90% of our natural gas was developed through a single pipeline controlled by a single company from a single resource. The gradual elimination of dependence on natural gas and petroleum products from the Russian Federation represents one of the most significant strategic transformations of the European energy sector in recent decades. For the Republic Of Moldova, this process has not been optional.
It has been an urgent necessity driven by geopolitical realities and the historical weak point of our energy system. Russia's invasion of Ukraine has dramatically accelerated this process, creating an unprecedented risk to regional energy security. In response, the Republic of Moldova has acted promptly and decisively. Enough though, in the early month of 2026, Moldova's power system was subjected to a severe stress test triggered by major bombardments originating from Russia, which led to the disconnection of key transmission lines, including such as Volcanist and Grasse. We succeeded with the support of our partners from Romania and close cooperation with authorities in Ukraine, Slovakia, Poland, and Hungary in restoring their network, maintenance system stability, and ensuring the continuity of electricity supply to consumers' anti crisis conditions.
In March, when the transmission line was damaged by these attacks, we managed to keep the lights on in people's homes with 25% of consumption covered by renewable energy sources. This clearly demonstrates what The Republic Of Moldova has stood firm, reducing its refines of Russian natural gas while continuously identically solution for customers in both the right and the left bank of the Dnistro River. Today, the energy supply is ensured through poor sales from the European markets, and diversification of sources has become a reality. At the same time, we have stratified our energy security mechanism, including the establishment of strategic natural gas reserves and the development of regional interconnection, particularly with Romania and Ukraine. We are also continuing our effort to enhance the security of supply of petroleum products, including through the transport transposition of European legislation on minimum stock obligation, which will enable the creation of strategic reserves equivalent to 90 days of imports.
Eliminating the dependence on Russian energy resource is not merely about changing support supplements. It required the transformation of an entire energy system. It entails investment in infrastructure, the development of renewable energy sources, increased energy efficiency, and full integration into the European market. Furthermore, we must analogize that this process involves significant cost and challenges. That is what European solidarity and the support of our partners are essential to ensure a fair and sustainable transitions.
The Republic Of Moldova reaffirm its commitment to continue along this path, contributing to the consolidation and regional energy security and to reducing the geopolitical leverage of energy resources. Thank you.
Andrey Garus
Dear colleagues, let me start with a simple question. Which country here was one of the most dependent on Russian gas, oil, and petroleum products 15 or even 80 years ago? The answer is Ukraine. And this dependence did not bring us prosperity. It brought political pressure, corruption, financing of pro-Russian forces, and ultimately war.
That is why, today Ukraine can say with full confidence, do not rely on Russian energy. Because behind seemingly cheap gas and oil, there is always a hidden cost, security risks, instability, and, tragically, human lives. The EU has already taken an important step through Repower EU, setting clear goals to fight Russian fossil fuels. This is the right direction. But as we move forward, we must also ensure that this transition is coordinated with partners, including the energy community countries.
Changes in supply routes, infrastructure use, and market dynamics will affect the entire region. That is why diversification, integration, and security of supply must go hand in hand. And let me know on a more personal note. Our chair today, Mister Boris Butka, is known for his passion for running. So here's my message to all of us.
Run from Russian energy. Run as fast as you can, and run as far as possible. Because this is not just about energy. It's about security, sovereignty, and the future of Europe. Thank you for your attention.
Borys Budka
Thanks a lot, and thanks for this very, very strict message for us. Thanks a lot. And now it will be time for group representatives, so Mr. Shaun Kelley from EPP.
Seán Kelly
Two minutes. Thank you very much, and welcome to our colleagues from neighboring countries and particularly Ukraine. We stand 100% with them in their struggle for sovereignty and for independence. So the energy community was set up to bring our neighbors into a common European energy system based on shared rules and enhanced cooperation, bringing mutual benefits and close integration. In the time-sensitive setup, an awful lot has changed, and we are now living through a period of sustained geopolitical instability, with energy supply being right at the center of it.
If there is one lesson from the past number of years for both the EU and the wider energy community, it is that dependence on imported fossil fuels leaves us completely exposed. And nowhere is that more obvious than with Russia, as our colleagues have said. We cannot continue to fund the regime that is waging war on our continent by purchasing its oil and gas, nor can we leave ourselves open to the kind of pressure and disruption that comes with that dependence. At both EU and energy community level, we have to urgently phase out Russian gas and oil. This is critical to reduce the flows of money to the Russian war machine, but also for our own energy security.
The EU has already delivered an ambitious plan to phase out gas. Now we need to both deliver and build on this, and that applies across the energy community countries, not just within the European Union. Even beyond Russia, the system we have built around imported fossil fuels leaves us completely vulnerable. Price shocks are happening more frequently, and they are hitting households and businesses hard. What we used to call exceptional is now becoming the new normal.
As long as we are reliant on these imports, we will continue to deal with that price volatility. There's only one solution. We need to move towards energy independence. For Europe and for the energy community, that means scaling up what we can produce ourselves: renewables, electrification, storage, and the grids to make it all work. All these technologies are available, proven, and they're already being deployed.
We just have to do it faster. We are too slow on permitting, too slow on infrastructure, too slow to remove the barriers that we all know are there. We need to see a real delivery on the ground, more projects built, more capacity connected, and fewer obstacles in the way. I'd be interested to hear from our energy community colleagues about how they see this and what their experience is on the ground. Are there markets encouraging the same problems, and how do they propose to address them?
In the end, the only way to take control of our energy future is reducing our dependence on nefarious external suppliers, most of all Russia. Thank you very much.
Borys Budka
Thank you, Sean. And now Mister Nicolas Gonzalez Cazares from S and D.
Nicolás González Casares
Thank you. I will speak in Spanish now.
I'd like to add that over the last few years, we've all seen how fossil fuels have been exploited, used as weapons to attack our economies, but also to strengthen Putin's war machine. So the S and D clearly support this goal to put a stop to our dependence on Russian gas because it's been a strategic approach. Our increasing independence from Russian gas should be seen as a strategic approach, but also consistent with our common energy project. Therefore, I'd ask the commission, you seem to be ignoring the phase-out of petrol as well. And also perhaps you could say something about nuclear energy as well, because this will have direct and indirect impacts on the contracting parties of the energy community, looking at the focus on gas and its supply infrastructure with possible impact on supply elsewhere and on the internal market as well.
But all of these problems would be even worse if we were dependent on third parties. We have to put a stop to Russian dependence on Russian gas, because otherwise, we'll be exposing ourselves to further vulnerabilities. So our challenge is to look at decarbonization, not to continue investing in fossil fuels. We need to diversify but also focus on more renewables, better energy efficiency, better interconnectivity, and better regional planning. Furthermore, I think we need to ensure a socially fair transition, which will allow us to support all the countries of the energy community and support the electrification of our economies, because without this, we will be unable to reap all the benefits of the energy transition, especially for the most vulnerable amongst us.
Thank you.
Speaker 42
Dear colleagues, I have to say there is a number of contradictions here, including in your interventions. For four years now, you have been talking about phasing out Russian oil and Russian gas, but some member states have done nothing. There is one point on which you are right. We will always be dependent where we are importing, but if we want to stop importing, we need to speed up investments. We need to deregulate, because now we are only talking.
Speaker 43
We are talking about alternative fuels, big buzzwords, green hydrogen, which is not really available. Synthetic fuels not available either. If we really want to replace oil and gas, and if we maintain the current method, in twenty years, we'll still be in the same place. There has been a lot of political debate, but little action. But because of this debate, some people, some investors stop investing in refineries and the petrochemical industry.
Speaker 41
Since 2010, 30 refineries have stopped, have been closed down in Europe. They stopped producing. Today, we are dependent on oil and gas, but that's not it. We are also dependent on fuel products. Let me give you an example.
Jet fuel, kerosene, a very telling example. Diesel, fuel oil. We keep importing not only oil and gas, but also petroleum-based products and gas because we did not find any substitutes. We don't have alternative fuels. With the current level of regulation, we are nowhere near.
Let me tell you. I am in favor of transformation, but there is one thing that needs to dawn on you. This is a clean transformation, but not everything can be 100% clean on this way, on this path towards clean energy. Otherwise, we will run out of time. Energy savings, very well.
But I'm failing to understand. The cheapest energy is the energy you don't use. This is a buzzword. But where do you want to end up? Do you want to stall our economy?
Do we want to stop tourism, mobility? Is this the way for the next 20 years? I'm waiting for those synthetic fuels for hydrogen. The regulations are still thwarting us, especially on green hydrogen. We need to diversify.
We need to speed up. We need new technologies. We need to simplify permitting procedures, and we need to make it easier to get capital.
Sigrid Friis
Thank you, and thank you most of all for the strong message from our Ukrainian colleague to run as fast as we can and as far as we can away from Russian gas. That's a message I will also bring home to my member state. If I may, I would like to touch on the progress on the cross-border infrastructure, which is really at the heart of the discussion. We're seeing progress, especially with new projects under the energy community, which is very positive. But at the same time, we still struggle with weak interconnectors, limited reverse-flow capacity, and uneven development between countries.
And with the phase-out of Russian gas, these constraints become even more visible. There is a real risk that gas cannot flow where it's needed in a crisis, and that some countries remain more exposed than others. Of course, this is also a strategic dilemma. We need enough infrastructure to ensure the security of supply, but we also need to avoid locking ourselves into assets that may not be needed in a decarbonized system of the future. So I'd be very interested to hear your views on how to ensure that new gas infrastructure remains compatible with future needs, whether hydrogen or declining gas demand, and how we see the need for a stronger coordination between EU and the energy community infrastructure in planning, especially given the changing gas flows.
Borys Budka
Thank you very much. And on my speaker list, I've got only two members. So I will give the floor to Christophe Hetman, and then to Aura Sala, yeah, and to Christian Heller. Anyone else? No.
I can't see. So three more speakers. Christophe?
Speaker 26
Dear colleagues, we want to stop using Russian gas and oil. This is about energy security, but about much more. Our solidarity and resilience is being put to the test. Russia attacked Ukraine, which confirmed that being dependent on Russian oil undermines the stability of the whole region. We cannot be dependent on supplies, which might be used as a weapon against us.
Speaker 27
We need to phase out Russian gas forever. And I'm very happy about those brave decisions of many countries from the energy community that are diversifying, including their import and supply routes. We cannot be easily blackmailed. In order to be resistant to this blackmail, we should all diversify so as to become independent of Russia, and at the same time more competitive. Therefore, renewables are crucial.
We need to invest in cross-border infrastructure. The EU regulations need to be applied fully, and the gas storage needs to work smoothly. If we do it jointly, if we depart from Russian fuel jointly, it will be a signal that our energy market is becoming resilient, safe, and integrated. I'm very happy that many countries of the European Community are well on the way.
Aura Salla
Thomas, I have two main worries here. We are phasing out Russian gas way too slowly. And the second thing is that we are building new dependencies on countries outside the EU. So where we need to invest now heavily is more domestic clean energy, including nuclear power, because that's the winning ticket that we will have renewable energy coming from the EU, and that together with nuclear power. So we actually built resilience.
And we cannot talk about sovereignty, not in technology, if we don't have sovereignty when it comes to energy. So here, we are too slow. I think the combination of renewable and nuclear is the key. However, I have a question for the panel. How will the EU make sure that we have everyone on board?
Because we still have member states who are reliant on Russian gas and now moving towards the US in the worst case scenario? And how do we make sure that investments go to clean energy and nuclear, and we will also have an adjustment mechanism that we balance our consumption? Thank you.
Christian Ehler
Thank you very much. I think, relating to colleagues, but also to our guests, I mean, there are three issues up for decision in the recent time, which are relevant for the discussion. First of all, it's the European grid package. We have to have more of a European steering that we overcome the capacity and investment shortages in some member states in the interest of connecting Europe, but also connecting our neighboring countries to the grid, specifically to the gas grid, but also potentially to the electricity grid. That is the reason why my colleague Danica and I will provide a proposal on Monday on the European Campanalysis Fund, which foresees an infrastructure budget for the grid.
Because I think strategically, we have to understand that national interests are well placed, but especially, national interest in terms of grid has to be contextualized in the European context, but also in the context of the political importance and geopolitical importance of our neighbor states. And then thirdly, I think that we should start considerations on how to connect our neighboring countries to the European gas reserve. It's a critical issue. It's an expensive issue. We had a lot of discussions in recent time.
Speaker 45
But I think strategically, that is a way to go because it's in the interest of our neighbor states, but it's also in our strategic interest to stabilize the situation in our neighboring countries. Thank you very much.
Borys Budka
Thank you, Christian. And now I will before I will give the floor for closing remarks to our guests, to director Lorkovsky and missus Rosetta Hajari, first five minutes for answering the question from the commission side. So please, the floor is yours.
Speaker 37
Thank you very much. I will start with the free power. One year ago, the legislative proposal on phase out Russian gas was proposed, was stable in May. And in only a few months, thanks to the parliament and thanks to the council, this was adopted. December 3, there was the agreement and is in the official journal since second February this year.
Speaker 38
So in force since the third of February. We have been working hand in hand with the member of state, but also with the parliament in the proposal, but now in the implementation. We are, in particular, the commission is helping the countries that are more affected. Then we need to ensure that we are phasing out Russian gas in a gradual approach. This was agreed.
First, LNG, that the shorter contracts will phase out in June. And then the long-term contract, the legacy contract will be phased out first. The LNG contracts by end of this year and the long term contracts pipeline, there is only one pipeline that is bringing today Russian gas. The second pipeline was the Ukraine route that is not in operation since first January 2025. But for the second route, TurkStream, the phase-out of the Russian gas will come in September 2027.
So this will be done in a gradual phase-out approach in order to avoid that it can put at risk security or supply or affordability issues in those countries that they are still receiving Russian gas. In total, it's 35 BCM that we receive today, is 12% of our gas imports compared to 45% that Russia represented in 2021. So a gradual phase out of the Russian gas has been done, and the last mile will be done in the coming months. In between, we are working with the member states in the region, but in particular, in cooperation with the neighboring countries, so with the contracting parties. Here, I will put into the picture the regional cooperation, because it's extremely important what we do.
The challenge is really important, so we are not able to do it alone. We need to do it always in partnership with you, contracting parties, with the neighbors. I don't forget about repowered oil and nuclear that Mr. Casares mentioned. So it's, of course, part of the repowered roadmap, but we need to do things gradually. And repowered oil and repowered nuclear, we are working, but we are not, I'm not able to say when this could be, proposed by the commission, but has not been abandoned.
It's just to address the priorities that we have in front of us. In terms of cooperation, I have to mention SESEC. These are regional cooperation which brings together member states, but also the contracting parties. We are working, in particular, in gas, in the diversification, important diversification of routes and suppliers. And to use existing routes are efficient use of the routes, it will bring us well to this keyword of affordability.
We need to use efficiently what we have and not really bring what could be possible stranded assets. So we need to be careful. And the way to do it is to cooperate with you. I only want to mention Transbalkan Corridor, which is bringing gas and has been mentioned by some of the speakers, bringing gas with the possibility of using the LNG terminals in Greece, Alessandro Poly and Revitusa, bringing from the South directly crossing Moldova, crossing as well Romania, and the possibility to store gas in Ukraine. But it's not the only route because via Poland is also possible or Lithuania bringing LNG that can be stored as well using the underground storages in Ukraine.
This is just to give two examples of how we are cooperating in the region. I want to mention as well the example of Moldova because it's really important to highlight how you have diversified and how you phase out from Russia both in gas immediately after the invasion of Ukraine by Russia in 2022. You were able to phase out the imports of Russian oil and electricity via Emigres power plan in Transnistria. So I think this is remarkable. And when there is political will, regional cooperation, and financial support from the European Commission, we were close to you, together with the energy community secretariat providing assistance, things can be materialized.
So I only want to say that the way forward as we see from the European Commission, together with energy community secretariat is to transpose legislation, implement legislation, and cooperate together because the challenge are important, but it's clear that to be part of the European Union, it is win win for the contracting parties because it makes you stronger as well in the challenges that we have in front of us, which is mentioned as well by speakers, reduce the dependency on fossil fuels goes to more homegrown energy, so renewables and those that they have nuclear, and, of course, important as well, energy efficiency. So it's win-win. We'll be stronger, better equipped if we are together cooperating, you contracting parties, Cuestar, Balkan, Ukraine, Moldova, Georgia, and the 27 member states. Thank you.
Borys Budka
Thank you very much. And now four minutes for closing remarks to Director Lorkovsky.
Artur Lorkowski
Thank you very much, Mr. Chairman. As a summary, what I heard, what I take away from this discussion is a strong commitment of the contracting parties, of the representatives of the contracting parties of the energy community towards the integration with the EU. And this strong commitment is translated into very precise actions already taken by the countries of the energy community. This is the strong commitment to the diversification of gas. And Moldova has explained the actions already taken, of course, Ukraine, but also North Macedonia.
There is a strong commitment to the cross border development of the cross border infrastructure with the EU. And also, the issue was raised by Georgia, but also by MONOVA. This is a very important part of this commitment. There is a strong commitment to the regulatory alignment, both in electricity and gas, and the transposition of the electricity package has been reported by many of the colleagues today. And this is also a strong commitment to the renewables and the development of the renewables in the countries.
Moldova has been called a champion in renewables. Progress in the new renewables development in Ukraine has also been underlying, both in Georgia and Ukraine. And, firstly, transparency. It has been said transparency is not negotiable. This is something which is the very fundament of the integration process.
The question, however, remains how to accommodate this commitment, how to make this commitment be properly consumed, and how this commitment be properly addressed. And I think we have already in place several projects, actions being taken both by the Commission, European Union, and the Energy Community. The first, the most important, action to accommodate this commitment by the contracting party is the market coupling project, which is very advanced. And the progress in the transposition of the EU legislation in this regard has also been reported by many countries today. The second is the action which is related to the refinement of the CBAM regulations so that the CBAM would be better coordinated with the, with the objective of integration of the electricity market.
There are some nitty gritty elements which have to be improved. The Commission has made the proposal. This electricity part of CBAM is to be taken into account so that the interest of the future members of the EU are properly, you know, recognized in the legislative process within the European Union. The third project, the third action which is already undergoing, is the remit extension, the full remit extension to the countries of the energy committee to provide this accountability, monitoring transparency of the markets. And the proposal by the commission is expected to be tabled on behalf of the European Union soon.
And the final one is the new list of the 10 e projects to complement the development of the grid of the EU towards the cooperation with the countries of the EU. So, in summary, we have a great commitment. We have a readiness to cooperate. And we are on the other hand, we have the projects, very concrete actions to be proposed or that had been already proposed by the commission. Those actions are on the table, and we are making good progress in delivering them.
Thank you very much.
Borys Budka
Thank you, director. And now, my co-chair, to today's meeting. So the floor is yours for the closing remarks.
Rozeta Hajdari
Thank you very much, Mr. Budka. Not to repeat Mister Lorkovsky, but, very important, the EU alignment legislation for each contracting party to the energy community. And, therefore, in conclusion, I would like to highlight the importance of monitoring evaluation of the countries integrating the EU directives on the gas on EU electricity and gas markets that is requiring this full alignment with EU legislation. I see also the strong commitment as mister Lorkovsky mentioned in conclusion, but also from the EU, EU representatives to not depend further on Russian gas, but very thankful to hear the European Commission for the development of the new corridor, Trans Balkan corridor with connection to Greece going up to Moldova. This is very important, and it is a good signal for all that we really need to commit all to remove ourselves from any dependency from the Russian gas because it's about economic security.
In further, I would like to highlight not only about electricity, security on energy, but economic security to introduce the FDI screening for every investment that is coming to energy sector. EU has the FDI screening regulation. And as former minister of industry, entrepreneurship and trade, I was challenging that neighboring countries were not really committed to FDI screening regulation of EU because of these plans with Russian projects, joint projects, some, in particular, Serbia. So have monitoring evaluation introduce any good expertise, let's say, OECD or other competent organizations. I am very thankful on behalf of Kosovo that OECD opens us the eyes about policies, about indicators that we reached in our targets.
Let's do more on monitoring evaluation and see the implementation of the EU legislation as we, as a country, have adopted recently all the EU directives for law for energy, law on electricity, but also further legislation for efficiency and the regulatory of energy. I thank everyone, and it's a good opportunity to have this conclusion as a lessons learned for their ministerial meeting in July in Kosovo. Thank you.
Borys Budka
Thank you very much. Thanks, especially for our distinguished guests and my colleagues from the commission, the committee, and, of course, for the commission being with us. Thank you very much. And I just remind you that the next committee meeting will take place next week, April 20, but on Monday here in Brussels, and it will be meeting with Commissioner Kubilius. Thanks a lot for this week, and I close the committee session.
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