Europe and Eurasia: Black Sea Initiative

Black Sea Regulatory Initiative: Supporting Cross-Border Trade

Photo Credit: NARUC

The Energy Sector

Regional optimization — both in the regulatory sphere and in network performance — requires market-based, cross-border trade of electricity to take advantage of the Black Sea region’s diverse generation resources (hydro, wind, solar, coal, gas, and nuclear) and seasonal variations in supply and demand of electricity. These arrangements necessitate advancements in supporting regulations, technical procedures, and favorable investment conditions.

National market reforms are not sufficient to support the growing need for investments in generation and transmission sectors. Each Black Sea country sees cross-border trade (including clean energy resources) as essential to accomplish national energy strategies and related regional objectives.


Our Work

With the support of the United States Agency for International Development, the Black Sea Regulatory Initiative (BSRI) aims to increase harmonization and coordination of cross-border electricity trading frameworks in the region. NARUC has assisted regulators from Armenia, Azerbaijan, Georgia, Moldova, Turkey, and Ukraine as they have focused on key ingredients of cross-border trade, including common market rules, improved regional coordination, and regional electric transmission planning.

NARUC also has supported the BSRI in developing effective incentives for clean energy projects at the national level and eliminating incompatible trade or administrative rules as barriers to more robust electricity flows.


Selected Results

Regional Cooperation
NARUC has guided the regulators in adopting common approaches that support the advancements in cross-border electricity exchanges, security of supply, and renewable energy integration. BSRI in turn has issued three guiding Principles to increase regional harmonization:

At A Glance

Project Dates: 2010-Present

Primary Partners:

National Regulators from Armenia, Azerbaijan, Georgia, Moldova, Turkey, and Ukraine

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