Leaders of Western Balkan states have recognized that the only way for the region to overcome the energy crisis is through a closely coordinated approach and accelerating the deployment of renewable energy and the best available technologies. They discussed cooperation opportunities at an event in Belgrade organized by the Nordic Business Alliance and highlighted the role of foreign investments in the energy transition.
Unprecedented droughts hinder hydroelectric production everywhere Europe and endanger energy stability. Power plants struggle to meet demand, especially after disruptions gas deliveries by pipeline linked to Russia’s invasion of Ukraine, which worsened the energy crisis. Faced with energy shortages, which are expected to worsen in the coming winters, the leaders of the Western Balkan countries vowed today at an event in Belgrade to close ranks to get the region through the energy transition.
They met at the Norway-Western Balkans Business Conference: Investment Opportunities in Renewable Energy in the Western Balkans, organized by the Nordic Business Alliance. Keynote speakers agreed that the energy sector should take center stage as the main driver for the development of a stronger, more cohesive, more resilient and more integrated region.
Norwegian Deputy Prime Minister and Special Envoy for Energy Andreas Eriksen said efforts to mitigate climate change must continue regardless of the energy crisis and in particular with the deployment of renewable energy. He stressed that his country offers cooperation and highlighted the need to develop energy exchanges, adding that they are crucial for energy security and access to affordable energy as well as for climate goals.
Change everything
Western Balkans leaders spoke with Norwegian business representatives and acknowledged that the transformation involves a closely coordinated approach within the region, as well as foreign investment and the latest technologies such as hydrogen and floating solar power plants.
Vučić said Serbia should invest between 16 and 33 billion euros in energy
Serbia’s energy sector must change substantially and structurally, said President Aleksandar Vučić, emphasizing that citizens and businesses, starting with public companies, must change their habits. Based in Norway Rystad Energy presented proposals for short, medium and long term reforms for the country. “There are no easy decisions on our side, but we have to make them as soon as possible. Otherwise, we face disaster,” he said.
For the next ten to twenty years, the consultancy estimates the necessary investments in the energy sector between 16 and 33 billion euros, Vučić revealed. He highlighted that renewable energy, power grid and interconnections are the most important segments.
Adaptability is the key to the game
On the bright side, the potential for renewable energy in Serbia is vast, said Tim Bjerkelund, partner at Rystad Energy. Solar and wind resources exceed what the country can consume, he said.
“Where technology evolves quickly, regulation must keep pace. Not only because you want to control the development of your most vital resource, but also because you want to maximize its value. This requires a new approach. We are no longer done with regulations. Adaptability is the key to the game,” Bjerkelund emphasized.
He explained that the system must be made flexible and able to deal with unknowns, while keeping options open to take advantage of new technologies.
Emergy made a good choice by coming to Serbia
emergency, one of the Norwegian companies that presented its operations in the region, has developed more than 400 MW of wind projects worldwide. Magnus Johansen, executive vice president in charge of electricity offtake, said the company was focused on expansion in Southeast Europe.
The company has partnered with VM-International in Serbia on a portfolio of 800 MW, dominated by wind power, compared to 2 GW in total. “We really made the right choice,” Johansen said, explaining that the projects are mature in terms of permitting and network development. Emergy would consider adding storage capacity if necessary, he added.
State budgets are bleeding from the costs of electricity imports
Heads of government from other Western Balkan countries have expressed support for closer integration in the energy sector. With the exception of Bosnia and Herzegovina, public finances and fiscal stability are under extreme pressure due to high prices of imported electricity. They also fuel inflation and weaken capital investment opportunities.
A regional energy market would avoid a return to hard times, says Albanian Prime Minister Edi Rama
“The only viable defense is a common defense. » Albania Prime Minister Edi Rama said. He suggested that joint projects and joint financing could bring improvements and enable stronger partnerships with private companies.
“I firmly believe that a regional energy market is our only secure future, not only economically but also politically. This would save the region from returning to difficult times,” Rama said.
Kovačevski: Only together
The only way for the Western Balkans to get through the energy transition is to act together, says the Prime Minister of North Macedonia Dimitar Kovačevski declared.
“We all come from the consolidated energy system of Yugoslavia. So when Yugoslavia collapsed, the system was deconsolidated… For me, it’s utopianism if someone thinks that a country with the level of GDP that we have, with the level of space budget that we have, in terms of the possibility of committing additional financing, can make the energy transition by itself. So, I can start, I can try, I won’t do anything. Building 40 MW of solar, 50 MW of wind, and another 60 MW of solar somewhere – that doesn’t solve the problem. This only solves the problem of facade, which allows us to say something nice at conferences,” Kovačevski said.
Kovačevski: It is utopianism to think that a country like ours can achieve the energy transition alone
Outgoing Prime Minister of Montenegro Dritan Abazovic said his country was focusing on solar energy. There is a lack of electricity in summer, which is incredible given that most localities enjoy more than 250 days of sunshine per year, he noted.
One of the roundtables brought together another group of leading decision-makers in the Western Balkans energy sector: the Minister of Mines and Energy of Serbia Dubravka Đedović, Deputy Prime Minister and Minister of Infrastructure and Energy of Albania Belinda Balluku, Fatmir Bytyqi, Deputy Prime Minister of North Macedonia, State Secretary at the Ministry of Investments of Montenegro Admir Šahmanović and Minister of Energy and Mining of the Republic of Srpska in Bosnia and Herzegovina Petar Dokic.
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