Second Environmental Performance Review of Albania

124 Part III: Integration of environmental concerns into economic sectors and promotion of sustainable developmentLegal frameworkParliament has created the legal basis for thesuccessful implementation of energy sectordevelopment. There are several main national lawsthat contribute to the development of the energysector of Albania and related environmentalproblems.The 2003 Law on the Power Sector, No. 9072,establishes power sector market structures andprovisions for the issuing of licences for electricitytransmission, distribution, generation, export, importand supply/trade. The Law has established ERE as anindependent electricity regulator to set rules andtariffs. It allows for the establishment of the AlbanianPower Model and Energy Regulatory Entity andpreparation of secondary legislation according to theAlbanian Electricity Model.The 2005 Law on Energy Efficiency creates the legalframework required for the promotion andimprovement of the efficient use of energy. The lawcovers energy efficiency issues such as labelling ofelectric appliances, energy audits, energy efficiencyfund establishment and financing of the fund, andprogrammes financed by the energy efficiency fund.In accordance with this Law, consumers with anannual energy use of more than 1 GWh of electricity,or 150 tons of oil or 200 tons of coal are obliged tosubmit data reports on their energy consumption forthe last year to the local Energy Office.The 2003 Law on Energy Saving in Buildings andBuilding Code defines heat loss norms for newbuildings and aims at reduction of electricityconsumption for heating purposes. In accordancewith this Law, all new buildings (after the Law wasdecreed) should have defined heat loss norms (levels)approved by the Council of Ministers in 2003. Toimplement this Law the National Energy Agencyprovides software for checking the energyconsumption of planned new buildings.The 2011 Law on Environmental Protection providesthe legal basis and framework for implementation ofa large number of EU environmental directives thatare relevant to the protection of the environment fromhuman activities, including energy production.The 2011 Law on Environmental Permittingestablishes rules for permitting the operation ofcertain groups of polluting activities, measuresdesigned to prevent or, where that is not practicable,to reduce emissions from such activities, includingmeasures concerning energy sources.The 2006 Law on Concessions, No. 9663, aims atcreating a favorable framework for promoting andfacilitating the implementation of concessionaireprojects in the development of industrial sectors suchas generation and distribution of energy.There are several other national laws and acts that arerelevant to the development of the energy sector,including the 2010 Law on Mining, No. 10304.Policy frameworkNational Energy Strategy, 2003The most important national energy policy documentis the National Energy Strategy, which aims torestructure the Albanian energy sector according tomarket principles, and to develop an energy policyfor the establishment of an effective institutional andregulatory framework to support privatization ofState energy companies. The Strategy targets theefficient use of energy resources to achievemaximum economic effect and minimum impact onthe environment. The document also considers thediversification of the energy system through theconstruction of new generation capacities, includingrenewables (solar, small HPPs, wind and biomass).The Strategy assumes active participation in theregional electricity market based on the requirementsof the EU for reforming the electrical power sector(Directive 2003/54/EC).Athens Memorandum and EnergyCommunity Treaty of the countries of South-EastEuropeThe Athens Memorandum of 2002 aims for theestablishment of an integrated regional electricitymarket in the South-Eastern European countries. Thelegal base for this market is legislation governing theEU’s internal energy market, including the ElectricityDirective (2009/72/EC).As a follow-up to this Memorandum, SEE countriessigned the Energy Community Treaty in October2005. Albania has ratified the Treaty, which enteredinto force in July 2006. Albania, along with otherParties, is committed to creating compatible modelsfor its national electricity market, especiallyconcerning the eligibility of customers to choose asupplier, non-discriminatory access to transmissionand distribution networks, and cross-border trade.Albanian electricity market modelThe Albanian market model was approved in October2007. The model envisages cost coverage, the