Photo: Balkan Green Energy News
Share
The requirements for a green and just energy transition pose growing challenges for governments, grid operators, regulators and power utilities throughout Southeastern Europe. The readers of Balkan Green Energy News were interested this year mostly in how the process is affecting both the economy and households and prompting a major change in habits.
Numerous dilemmas persist within every country in the region, but they need to focus as well on cooperating toward a stable supply of electricity and gas. The Western Balkans are integrating with the European Union in the energy sector, putting faster alignment with the CBAM levy for carbon imports at the top of decision makers’ agendas. Our audience also traditionally followed investments, the viability of coal plants, the nuclear energy debate and Rio Tinto’s increasingly controversial lithium project, Jadar, in Serbia.
State-controlled power utilities in the Balkans are in a position to spearhead the energy transition and showcase an investment path. The ones in EU member states have an advantage, as do private companies there, given the ample grants and favorable financing. On the other hand, almost the entire region is struggling to maintain the stability of the energy supply, as aging coal power plants are breaking down and often operating with losses.
We noted and interpreted the major trends in Southeastern Europe and beyond throughout 2024. The narrower region that we cover, the Western Balkans, is in a hurry to catch up with its EU neighbors. It requires massive, dedicated and cheap funding.
Balkan Green Energy News, the leading news portal on sustainable energy in the region, remains dedicated to regular and unbiased reporting on the most important developments in this part of Europe. Thank you for trusting us. We will strive to justify it in the new year as well.
Don’t forget to check out the most popular articles in 2024 on our Serbian language page!
1. It’s boom or bust for state-owned power utilities
National flagship energy companies in the Balkans mostly seem to be on the defensive or lagging behind the private sector. Their common headwind, with the exception of Albania, is coal power. Such plants are still essential for a stable electricity supply, but they are predominantly several decades old, uncompetitive and becoming less reliable by the day.
Some power utilities do stick out positively though much remains to be done. With its acquisitions, Greece’s Public Power Corp. (PPC) also became the biggest electricity producer in Romania. Its expansion push in the surrounding region includes Italy, Croatia and more.
In a strategic partnership with UGT Renewables and Hyundai Engineering, Serbia’s state-owned Elektroprivreda Srbije (EPS) will get a group of solar power plants with 1.2 GW in peak capacity. The project includes 200 MW in battery energy storage. For EPS it would be a major leap forward, given that it is currently only finishing its first wind park and photovoltaic plant.
The deal is at the forefront of the new energy cooperation agreement between Serbia and the United States, Chief Executive Officer of UGT Renewables Adam Cortese told Balkan Green Energy News in an interview.
EPS commissioned the Kostolac B3 coal power unit last month, its first major production facility after more than three decades.
Montenegro’s Elektroprivreda Crne Gore (EPCG) recently broke ground on its first wind farm, Gvozd. In addition, the utility is preparing a tender for 300 MWh in battery storage. EPCG is developing the Kruševo hydropower project, looking to build the facility together with French EDF.
Slovenia is relying on solar power to replace much of the capacity of its only remaining coal plant, TEŠ, which is rapidly accumulating losses. But the main energy transition project, being developed by GEN energija, is for a second nuclear power plant, Jedrska elektrarna Krško 2 or JEK 2. The company’s Chief Executive Officer Dejan Paravan recently told us that the investment would contribute to stability in the wider region and not just Slovenia.
In Bosnia and Herzegovina, Elektroprivreda Republike Srpske (ERS) and Elektroprivreda BiH are working on a number of renewable energy projects. At the same time, they are scrambling to obtain enough coal. The issue is causing substantial losses and outages.
North Macedonia’s Elektrani na Severna Makedonija (ESM) has just obtained a loan for solar power plant project Bitola 2 on coal land and the expansion of its Bogdanci wind farm. It also received a donation for photovoltaic projects Bitola 1 and Oslomej 2.
Serbia signs agreement with Hyundai Engineering-UGT Renewables for 1 GW of solar
2. Battery storage auctions, solar power investments highlight Southeastern Europe’s energy transformation
Turkey keeps eclipsing the rest of Southeastern Europe in renewable energy investments, while Greece is by far the most advanced market in the rest of the region. Moreover, the government in Athens is pushing strategically for electricity interconnections not only with all neighbors but from Saudi Arabia to Germany and Poland.
Greece pushed its coal power share to a minimum and conducted some of the first auctions for battery energy storage systems (BESS). Incentives in the form of contracts for difference (CfDs) are becoming the norm for setting up a market for the technology, but more on that later. The government recently also launched a program for grants for businesses for BESS.
In the meantime, growth in wind and PV capacities is giving Greece different kind of troubles. Demand isn’t keeping up with production of electricity, leading to curtailments and negative prices. But the situation may change with the emergence of data centers and artificial intelligence servers.
Early this year, Rystad Energy reiterated that Greece and Bulgaria offer the best returns in Europe for investments in battery storage for energy arbitrage.
Romania and Bulgaria stood out in the region with enormous new solar power capacities and some of the first hybrid facilities, with batteries. In the Western Balkans and especially considering its small size, North Macedonia earned itself the nickname Solar El Dorado. The country, which has a new government, is nearing 800 MW in PV capacity.
In addition, North Macedonia got its first privately-owned wind power plant – Bogoslovec. It is also the Green for Growth Fund’s first equity investment. GGF’s project with local partners set up a model for more such endeavors in the country and the Western Balkans.
Among the initiatives that caught the eye of our readers is the cooperation between Greece, Romania and Bulgaria in offshore wind, green hydrogen and gas.
Renewable energy project frenzy in Greece defies curtailments
3. Jadar lithium project back on table but local population, environmentalists step up resistance as well
Rio Tinto’s proposal for a lithium and boron mine and a processing facility in western Serbia was revived in mid-2024. Local activists and environmentalist groups responded with waves of big protests and legal initiatives to block it again.
The National Assembly rejected a bill to ban lithium and boron mining. President Aleksandar Vučić recently said Serbia would become the only country directly supplying Germany with lithium.
Balkan Green Energy News has published and is regularly updating a chronological overview of the key events in the development of the Jadar project since 2001, when Rio Tinto arrived in Serbia.
4. Nuclear energy remains in spotlight while Western Balkans mull SMRs
Countries in the region that already host nuclear power plants are planning to build more units. Slovenia has postponed a referendum on the JEK 2 project. Bulgaria picked Hyundai Engineering and Construction and Westinghouse Electric to build two AP1000 reactors.
Romania’s state-owned Nuclearelectrica approved the investment decision and signed a deal with a consortium of contractors on the project for two new reactors in the country’s only nuclear power plant, Cernavodă, of 700 MW each. Turkey is preparing to put its first reactor in Akkuyu into operation.
Serbia scrapped its nuclear energy ban. It is working with EDF and Egis on a study to define the opportunities for both conventional reactors and small modular reactors (SMRs). Greek Prime Minister Kyriakos Mitsotakis raised the idea of using SMRs for islands and data centers.
Slovenia and North Macedonia are also examining the possibility to build SMRs. But Romania is the most advanced in the segment in Europe and beyond. The second and final phase of a front-end engineering design (FEED) study is underway for a 462 MW project in Doicești.
Balkan leaders endorse nuclear energy expansion at Brussels global summit
5. Renewable energy, battery storage auctions take center stage
Auctions for contracts for difference (CfDs) for wind and solar power mostly became conventional in Southeastern Europe. However, such technologies actually don’t require incentives anymore except in certain market segments.
Bulgaria and Greece went a step further and conducted several auctions for battery storage, funded through the EU’s Recovery and Resilience Facility. Kosovo* launched qualifications for two lots, of 170 MW in total operating power.
Croatia awarded premiums for solar and hydropower plants with a total capacity of 420 MW. Promina is the biggest PV project. Albania and Kosovo* completed solar power auctions. The latter also kicked off a preliminary call for a target wind power quota of between 50 MW and 100 MW.
In late November, Serbia launched its second round of auctions for developers of photovoltaic and wind power projects. Some of the auctions for wind and solar power plants in the Western Balkans are the condition for funding through the EU’s Growth Plan. Montenegro aims to publish the first call by mid-2025.
Romania declared the winners, earlier this month, of its first CfD auctions for photovoltaics and wind. The combined capacity is more than 1.5 GW.
Romania declares winners of its wind, solar power CfD auctions
6. Western Balkans far behind schedule in preparations for CBAM – especially for exemptions in electricity segment
The EU introduced the Carbon Border Adjustment Mechanism in 2023. Importers of a list of goods and electricity have until the beginning of 2026 to prepare for the start of payments based on the carbon dioxide content.
The Western Balkans and other third countries can get exemptions through the rollout of carbon pricing schemes equivalent to the ones in the EU. Otherwise, CBAM will likely make them uncompetitive. Electricity exporters in the Energy Community have the opportunity for exemption – the condition is market coupling with their EU neighbors.
Companies have been seeking assistance from governments, but the Western Balkans are way behind the schedule for the entire CBAM. Energy Community Secretariat Director Artur Lorkowski reiterated that any exemption for electricity is unlikely until at least mid-2026.
Bosnia and Herzegovina and Montenegro already asked for CBAM to be delayed.
Lorkowski: No Western Balkan country can get CBAM exemption for electricity in time
7. Belgrade Energy Forum 2024 moved boundaries – expect another leap at BEF 2025
The news you read on BGEN show the progress toward the sustainable development ideal and our Belgrade Energy Forum (BEF) is an impeccable indicator of the energy transition, its trends and the trailblazers in Southeastern Europe. The bold move to organize the first BEF in 2023 proved to be justified as this year’s edition became the leading event in the energy sector in the region.
More than 500 participants from 30 countries of the world gathered in Serbia’s capital city Belgrade. They included ministers, regulators, bankers and experts as well as the representatives of 150 companies.
BEF 2025, the biggest conference in Southeastern Europe, will be held on May 14 and 15 in the Crowne Plaza Belgrade hotel. Don’t miss the opportunity to be among the leaders of the region’s energy transition!
Here is the rundown of the topics from BEF 2024, which attracted a record number of clicks:
Belgrade Energy Forum 2024 – energy storage is next big thing
Western Balkans face tight electricity market coupling deadlines
GGF’s Kostadinov: Green investment is nearing inflection point in many countries
Banks in Serbia receiving lot of requests for grid connection guarantees
Energy transition is no partisan issue but global one
Successful first phase of energy transition in Balkans, especially Serbia
Belgrade Energy Forum – energy transition in Southeast Europe is accelerating
8. China cements its global lead in renewables, electric cars in 2024
China dwarfed the rest of the world in solar panel manufacturing and exports, especially to the European Union. The administration in Brussels is reluctant to impose any curbs because it has green energy goals to achieve.
Even though China is still steadily increasing the use of coal in electricity production, it is also installing more than half of the world’s solar and wind power capacity. Moreover, it is at the top of the chart in most zero emission technologies, especially electric cars, batteries and wind turbines.
China is a major investor in Southeastern Europe as well. For instance, projects worth a total of EUR 2 billion are under preparation for wind farms, solar power plants and green hydrogen in Serbia.
9. Corporate PPAs emerging in Balkans
There is an explosion of interest in private power purchase agreements (PPAs) in the Balkans and a myriad of options are available. A guide for investors that Balkan Green Energy News published in cooperation with Finance in Motion, GGF and Simmons & Simmons received a lot of attention.
Developers have the choice between private or state-backed PPAs, and physical or virtual contracts, which both have their pros and cons.
Greece has the most developed PPA market in the Balkans while several such deals have paved the way already for projects in Bulgaria and Romania. GEN-I Hrvatska added Senj, the largest wind farm in Croatia, to GEN-I Group’s virtual power plant through a power purchase agreement.
Corporate PPAs emerging in Balkans – here are options for investors
10. CMS interpreting energy legislation, advising on biggest deals
Investors and stakeholders appreciate expert interpretation of laws and regulations. An article from international law firm CMS on the renewables law in Montenegro popped up as one of the most read pieces in 2024.
CMS: Montenegro – What does the new Law on renewable energy usage bring?
Here is the rest of the 20 most read stories of 2024:
Cascading power grid failure causes blackout in BiH, Montenegro, Albania, Dalmatia
What is behind electricity price spike in SEE: grid issues, and something more
Germany adds record 14 GW of solar in 2023 – half is on households
ChatGPT consumes enough power in one year to charge over three million electric cars
World Environment Day 2024: Our land, our future
Dutch prosumers must pay fees to feed surplus electricity to grid
Global solar power capacity doubles to 2 TW in just two years
Croatia’s Krk is world’s second zero waste island
French HDF Energy unveils world’s first plant for high-power hydrogen fuel cells
* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
Be the first one to comment on this article.