CSE European Gas Connectivity

Most countries in Central and South-Eastern Europe have limited gas source diversity due to historical lock-in to long-term supply contracts from a single supplier and missing interconnections or alternative sources. Effective regional cooperation has been recognized as key to achieving the region’s energy policy objectives and addressing challenges that EU Member States and Contracting Parties face in the gas sector. Therefore a Memorandum of Understanding (MoU) was signed on 10 July 2015 as part of the Central and South-Eastern European Gas Connectivity (CESEC) initiative. It sketches a joint approach to address the natural gas diversification and security of supply challenges.

Two years later the CESEC initiative's scope of work was expanded to include 'a joint approach on electricity market, energy efficiency and renewable development as well as the concrete actions formulated to promote cost-effective renewable energy, energy efficiency and to achieve an efficient, well interconnected electricity market in the CESEC region and promoting growth, jobs investment and tackling energy poverty'. In the area of electricity the aim is to make rapid progress in the implementation of the five priority electricity market coupling projects between EU Member States and Energy Community Contracting Parties as well as the six priority electricity lines. The realisation of these projects would bring about a more integrated, larger and interconnected regional electricity market, in line with the common acquis of the EU and the Energy Community.

  • CESEC Action Plan

    CESEC Action Plan

    The signatory countries expressed their commitment to jointly resolve challenges related to security of gas supply and promote source diversification by implementing coordinated measures that should enable regionally optimal results. They expressed their readiness to sustain the necessary political commitment to oversee the full and timely implementation of the CESEC Action Plan 2.0, which includes the following elements:

    Selecting a limited number of key projects benefitting the CESEC region;

    • Identifying and addressing project-specific challenges;
    • Financing aspects, including the role of the EIB and the EBRD;
    • Addressing market integration challenges.

    Action Plan 2.0 essentially consists of a list of specific regulatory actions that are linked primarily to fully and effectively implementing harmonized EU rules in the natural gas sector as well as the over-arching the Third Energy Package provisions. Whilst the list for the EU Member State is displayed in appendix 1, there is a separate list (appendix 2) for the Contracting Parties aiming at full and effective implementation of the CESEC MoU and Energy Community gas acquis.

    A year later, a follow up Action Plan 2.1. was adopted. Whilst taking stock of the action completed, the Action Plan 2.1 concludes that complete implementation of the Action Plan 2.0 still requires serious efforts. Moreover, particular attention has been given to the complex task of creating the foundations of modern EU entry-exit gas systems and to implementing harmonized EU gas market rules (Network Codes). Action Plan 2.1 also aims to improve the gas trading environment in the region.

  • CESEC gas infrastructure projects

    CESEC gas infrastructure projects

    As regards the key CESEC projects, the Secretariat focuses on the interconnector Bulgaria - Serbia, as one of only two CESEC priority projects where a Contracting Party is involved. While the Trans Adriatic Pipeline (TAP) is also labelled as a CESEC priority project, it has been considered as “decided” on the basis of existing transport and supply contracts. The TAP’s progress is well on track, thus the decision was made not to conduct additional activities within the CESEC process, i.e. a dedicated project implementation group was not established.

  • CESEC monitoring reports

    CESEC monitoring reports

    Together with the ACER and the European Commission, the Secretariat was invited to closely monitor the implementation of the Action Plan on a regular basis by using all available tools and institutions foreseen by the EU acquis. It supports the Contracting Parties in their implementation of the Action Plan, with a particular emphasis on addressing the market integration barriers and requirements. It prepared a list of concrete actions (CESEC Action Plan 2.0, appendix 2), necessary for achieving the CESEC market integration objectives. 

    As part of its monitoring tasks assigned under the CESEC MoU, the Secretariat publishes reports that take stock of the progress achieved. It published its first set of reports on 18 December 2015.