Enhancing Stability and Technical Expertise in European and Eurasian Energy Markets (ESTEEM) Quarterly Report Jan-Mar 2021

The program is implemented by the National Association of Regulatory Utility Commissioners (NARUC) with support from the United States Agency for International Development (USAID). The program focuses on four main categories: Task 1: Competitiveness, Task 2: Energy Security, Task 3: Fostering Investment, and Task 4: Institutional Enhancement. These categories align with the three pillars of USAID's Energy Bridge's Initiative: competitive energy markets integrated with Europe, infrastructure investment, and critical infrastructure protection. In the E&E region, regulators have made progress in improving electric distribution investment planning and ensuring quality of electric service. Moldova's National Energy Regulatory Agency (ANRE) approved updates to the country's distribution quality of service regulation with NARUC support. The updates incorporate new standards and procedures, such as performing annual data audits and using historical data to develop benchmarks, to ensure customers receive safe and reliable electric service at just and reasonable rates. In Kosovo, NARUC and the regulator, ERO, finalized a long-term electricity demand forecasting tool. The tool will enable ERO to independently develop a ten-year forecast of electricity demand in Kosovo, which will help ERO staff to identify and approve the most important and cost-effective infrastructure investments needed to improve electric service. The tool will also serve as a valuable asset for ERO and the government of Kosovo to shape national energy policies necessary for European integration. In Moldova, ANRE updated its methodology to calculate "losses" in the natural gas system. Following international best practice, ANRE will no longer calculate losses based on formulas and use actual metered data instead. The new methodology is now in public consultation, and further discussions with distribution representatives are expected to follow. The ESTEEM program also focuses on promoting transparency and market monitoring capabilities. In FY 20, NARUC conducted one in-country workshop and one webinar series focused on market coupling, reserve sharing, and load flow analyses. The activities aimed at building the NRAs' ability to consider how engineers plan and operate the bulk power system, such as conducting optimal load flow analyses. The program also supports the development of national and/or regional regulatory authorities or associations. NARUC works with commissions across Europe and Eurasia to develop custom plans to improve quality of service standards. The program also focuses on advancing women leaders in energy and promoting diversity and inclusion in the energy sector workforce. Overall, the ESTEEM program aims to strengthen the capacity of E&E regulators to develop stable, efficient, transparent, and competitive energy sectors, and to promote regional cooperation and increase trade volumes in the region.