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Energy Sector

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The energy sector in the Western Balkans is characterised by insufficient and ageing infrastructure, relatively high reliance on fossil fuels, late adoption of renewables beyond hydropower and residential biomass, limited energy efficiency and energy productivity, high rates of energy poverty despite usually high levels of direct and hidden energy subsidies (mostly targeted towards fossil fuels), limited market mechanisms and private sector participation.

Thus, it faces a unique dual transition: from centralised state-controlled systems to open and competitive markets, and towards decarbonisation. These are the key pillars of the Economic and Investment Plan for the Western Balkans in line with the aims of the Green Agenda. Participation in the Energy Community Treaty provides a clear policy framework and bears the potential for regional growth through multi-country projects, and by tapping into the region’s large renewable energy and energy efficiency potential. WBIF support is oriented to the Plan’s priorities: Flagship 3 - Renewable energy, Flagship 4 - Transition from coal, Flagship 6 - Renovation wave.

Achieved results (2009 - 2020)

  • 123 MW electricity from renewables
  • 62 public buildings renovated and over 590,000 CO2 t/year avoided
  • District heating systems upgraded in 22 cities and towns

Expected results (2021 - 2030)

  • 1,238 km of electricity transmission lines upgraded
  • 1,156 MW electricity from renewables
  • Stable and competitive energy supply for people and businesses
  • 656 km of gas pipelines
  • 132 public buildings renovated

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