INOGATE & Energy markets

To differing degrees, all INOGATE Partner Countries (PCs) face increasing dependence on energy imports, constraints on their energy resources and the challenge of affordable, secure energy for all their users. International experience shows that to address these challenges it is important to develop competitive national and regional energy markets. Consumers will thus be able to choose better and cheaper energy products and services and energy companies will have an incentive to provide better products and services in a competitive market.

The development of regional energy markets allows electricity and gas to be traded easily across borders, moving from where it is produced to where it is needed and also to reduce price volatility. This also allows for provision of renewable electricity, not just nationally, but also to customers in neighboring PCs.

To enable electricity and gas to flow freely between the PCs, a much higher degree of inter-connection between them is required. Electricity and gas market rules in each PC must be amended to encourage rather than inhibit cross-border trading and electricity and gas flows. An important existing barrier to cross-border trade is the difference in the achieved level of liberalisation of national markets in electricity and gas, i.e. they do not speak the same market and exchange ‘language’.

In addressing the development of national energy markets, INOGATE assists interested PCs to achieve the maximum approximation of their electricity and gas primary and secondary legislation with the EU legislation and in this way to open their markets to competition and bring investments.

In addressing the development of regional markets, INOGATE provides support to a framework for improving energy cross-border trade and cooperation for the three regional markets – Eastern Europe, Caucasus and Central Asia - in both the electricity and gas sectors. INOGATE also promotes networking and exchange of experiences with European organisations such as the European network of transmission system operators for electricity (ENTSO-E) and European network of transmission system operators for Gas (ENTSO-G).