Enhancing Stability and Technical Expertise in European and Eurasian Energy Markets (ESTEEM)

The program aims to strengthen regulators' capacity to develop stable, efficient, transparent, and competitive energy sectors in European and Eurasian countries. The ESTEEM program focuses on four main programmatic 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 the USAID U.S.-Europe Energy Bridge Initiative: competitive energy markets integrated with Europe, infrastructure investment, and critical infrastructure protection. In the quarter from October to December 2021, NARUC made significant progress in implementing the ESTEEM program. One notable achievement was the completion of a four-part training webinar series for the Georgian National Energy and Water Supply Regulatory Commission (GNERC) on conducting a market dry run process. This training aimed to support GNERC and market stakeholders as they test their software and prepare for different market scenarios once the market is operational. NARUC also provided guidance to the State Electricity Regulatory Commission (SERC) of Bosnia and Herzegovina (BIH) as it updated market rules. Following a series of webinars held in June and July 2021, SERC updated the Tariff Pricing Methodology for Services of Electricity Transmission, Operation of ISO and Ancillary Services, and approved the new Market Rules in October 2021. Additionally, SERC adopted new tariff rates for electricity distribution services and tariff rates for electricity supply within the universal service in the Brčko District. The BIH regulators also put lessons from NARUC's communications workshop into practice. Following a ten-part training series on communications and public outreach held in May, June, and July 2021, the Regulatory Commission for Electricity in the Federation of Bosnia and Herzegovina (FERK) held a more informal event with the local media to discuss recent activities and answer questions from reporters. Based on the skills and knowledge gained during NARUC's communications activities, SERC adopted its Communications and Public Outreach Plan in December 2021. The Electricity Market Performance Initiative is a key component of the ESTEEM program, focusing on building the capacity of partner countries to transform domestic energy markets into competitive and transparent regional exchanges. In FY 22, the initiative has continued to take a deeper dive into two topics necessary for the development of healthy, functioning electricity markets: dry run processes and market transparency. NARUC has offered customized short-term technical assistances (STTAs) to select regulators from the region based on their progress and needs, and has held a four-part training series with GNERC on bidding strategies and calculating costs during a dry run. Overall, the ESTEEM program has made significant progress in strengthening regulators' capacity to develop stable, efficient, transparent, and competitive energy sectors in European and Eurasian countries. The program's focus on competitiveness, energy security, fostering investment, and institutional enhancement has contributed to the development of healthy, functioning electricity markets in the region.