Photo: Serbian Minister of Mining and Energy Dubravka Đedović Handanović (Balkan Green Energy News)
The Western Balkans have achieved significant progress in decarbonization and integration with the European Union’s single energy market, but the transformation must be accelerated, top officials agreed at Belgrade Energy Forum 2026 in Serbia. The EU’s financial and technical assistance is necessary for the countries of the region to advance in their efforts, especially with regard to the Carbon Border Adjustment Mechanism and electricity market coupling, they pointed out.
The two-day Belgrade Energy Forum – BEF 2026 began today in Serbia’s capital for the fourth time, organized by Balkan Green Energy News. Gathering five hundred participants, it is a unique opportunity for dialogue between decision makers, investors, regulators and the business community. Founder and Editor of Balkan Green Energy News Branislava Jovičić said joint efforts are needed to diversify supply sources and routes, integrate renewable energy into grids while enhancing flexibility and storage, strengthen the regulatory framework, and for innovation and investment in green technologies that create jobs and boost the domestic industry.
“The progress we have made so far gives us reason for optimism. However, the speed and scale of the transformation are still not at a level that would fully protect us from foreign policy shocks and enable full economic and environmental benefits,” Jovičić stressed in her welcoming speech.
As a good example of regional cooperation, she pointed to the letter that Montenegro’s Minister of Energy and Mining Admir Šahmanović sent to the European Parliament on behalf of a group of Energy Community contracting parties. They asked for adjustments to the measures in the electricity sector, especially regarding the contracting parties’ intensive activities in aligning with EU law and integrating with the single European market, Branislava Jovičić underscored.
Lorkowski: Crisis didn’t change direction – it sped up timeline
Integrated and decarbonized energy markets are the way to ensure the least possible disruptions in everyday life and mitigate future energy crises, Energy Community Secretariat Director Artur Lorkowski said in his opening speech at Belgrade Energy Forum 2026.
“The Western Balkans have considerable untapped renewable potential of homegrown energy. As the region moves closer to energy market integration with the EU, the transition can transform the region into a clean energy hub, ensuring the sustainability of the electricity sector with long-term financial benefits,” he underscored. Lorkowski said easy cross-border flows would help keep markets competitive, business running and prices affordable in times of crisis.
The Energy Community has been steadily advancing toward a green, integrated future for over twenty years, the head of the secretariat asserted. The current crisis hasn’t changed the direction – it sped up the timeline, he added.
As the region moves closer to energy market integration with the EU, the transition can transform the region into a clean energy hub
“Today, it has become clear that the region cannot wait until after accession to catch up with the energy reforms necessary to join a decarbonised EU market. It would simply be too costly. It would lead to an economy held back by sudden regulatory uncertainty,” Lorkowski warned.
Businesses would lose competitiveness due to outdated infrastructure and rising production costs, while vulnerable households would have to navigate a new reality suddenly, instead of gradually and with support needed for social cohesion, he explained.
“The Carbon Border Adjustment Mechanism adds extra urgency to this equation. The Western Balkans are now paying a price at the borders for not having advanced sufficiently in the transition,” Lorkowski stated.
In the first quarter of 2026, commercially scheduled cross-border electricity exchanges between the Western Balkans and EU member states dropped by a quarter, he recalled and said it could most likely be attributed to CBAM.
European Commission to issue opinion on Serbia’s alignment by May 16
As for attracting investment and financing for the transition, Lorkowski highlighted the basic economics: market size and investor certainty. The former will be achieved through electricity market integration with the EU, he noted.
“There has been progress in the Western Balkans. Serbia has adopted the relevant legislation, and the European Commission is expected to issue its opinion on compliance by May 16. In the case of a positive opinion, Serbia will enter a phase intended to guarantee contractual and technical readiness for market coupling,” Lorkowski said.
Investors will commit green funding to the region when they are certain it is committed to its decarbonization targets, Energy Community Secretariat Director Artur Lorkowski said
Larger markets attract more suppliers, foster competition and build investor confidence, he underscored. Investors will commit green funding to the region when they are certain it is committed to its decarbonization targets, according to Lorkowski.
“Establishing carbon pricing systems can incentivise emissions reductions and, in line with EU standards, help ensure that revenues remain within the region to support the clean energy transition… Contracting parties that decide to move forward with carbon pricing should be supported through targeted pre-accession assistance, including for just transition measures, affordability concerns, and the social and economic challenges linked to progressive carbon price alignment,” the secretariat’s director concluded.
CBAM’s emission factors must distinguish renewables from fossil fuels
The region has maintained its position that the electricity market needs to be integrated first, before the introduction of a cross-border carbon dioxide tax, said Minister of Mining and Energy of Serbia Dubravka Đedović Handanović. Another prerequisite are realistic emission factors, which distinguish renewables from fossil fuels, she stressed.
The 26% drop in cross-border exchange of power doesn’t benefit EU countries either, the minister added.
“For countries with a high share of coal, like in our region, we still don’t see a sustainable solution that would enable overcoming the incompatibility of the application of CBAM and market coupling. We expect financial and technical support from EU member states and the EU, as the region is highly dependent on fossil fuels and it cannot be changed overnight,” Đedović Handanović stated.
Đedović Handanović: Serbia’s initial carbon price is low to avoid abrupt changes in the power price for citizens and protect the industry’s competitiveness
Serbia must carefully manage the decarbonization process, she cautioned and noted that its initial price of emissions is EUR 4 per ton of CO2 equivalent.
“By having a low emissions price, we avoid sudden changes in electricity prices for citizens, we protect the competitiveness of our industry, maintain energy supply security and the operational stability of energy companies – among which Elektroprivreda Srbije will bear the heaviest burden. Consultations are currently underway to adopt a higher level of tax credit, to ensure more positive cash flows for Elektroprivreda Srbije. In any case, investments in green energy must be intensified,” the minister stated.
Renewable electricity capacity tripled in four years
State-owned power utility Elektroprivreda Srbije (EPS) has recently added 426 MW in new capacities including renewables, the most since the early 1990s, Đedović Handanović added. She also highlighted the rise in total renewable electricity capacity to 1.2 GW from 420 MW in the last four years.
Turning to the initial stage of the nuclear program, she announced that the necessary analysis and studies, recommended by the International Atomic Energy Agency recommends, would be completed next year, enabling a final decision on the location and technology for Serbia’s nuclear power plant.
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