February 20, 2026
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KESH partners with France’s EDF and AFD to develop Albania’s Energy Storage Roadmap

Tirana — In a decisive move toward modernizing its national grid, the Albanian state-owned power utility, KESH (Albanian Electric Power Corp), has finalized a strategic partnership with Électricité de France (EDF) and the French Development Agency (AFD). The collaboration focuses on the development of a comprehensive energy storage strategy, underpinned by a €400,000 grant earmarked by the AFD.

This initiative arrives at a critical juncture for Albania. While the country boasts a near-total reliance on renewable hydropower for domestic production, its lack of grid-scale energy storage remains a significant structural vulnerability. As the global energy transition demands higher flexibility, the partnership aims to bridge the gap between Albania’s current hydro-centric model and a diversified, resilient future.

Engineering Flexibility: The Scope of the Partnership

The primary objective of the agreement is to identify and evaluate the most effective storage technologies suited for Albania’s existing infrastructure. The resulting study will serve as a technical blueprint for the nation’s Energy Storage Strategy, focusing on several key pillars:

  • Renewable Integration: Facilitating the entry of solar and wind energy into a grid historically dominated by water power.

  • System Modernization: Increasing the security of supply and enhancing operational flexibility.

  • Climate Resilience: Improving the long-term sustainability and management of Albania’s vital water resources and assets.

The technical expertise for this transition will be provided by the French state-owned giant EDF, a global leader in low-carbon energy, while the AFD continues to expand its financial and developmental footprint across the Western Balkans.

High-Level Diplomatic Support

The signing ceremony was attended by Nicolas Forissier, the French Minister Delegate for Foreign Trade and Economic Attractiveness. Minister Forissier emphasized that this agreement underscores Albania’s status as a priority partner for France, reflecting Paris’s commitment to supporting the country’s integration into the European Union through the mobilization of technical and financial instruments.

Under the leadership of Viola Haxhiademi, who assumed the role of CEO in late December, KESH is positioning itself to manage significant future capacities. Currently, planned projects—including KESH’s pumped storage capacity in the Drin (Drim) cascade and Statkraft’s Moglica project—represent a potential 1.6 GW of storage capacity.

A Continuing Collaboration

This latest deal builds upon an existing relationship between KESH and the AFD. Last year, the two entities signed an agreement focused on the advanced management of the Drin River cascade, the backbone of Albania’s energy sector. By adding a formal storage strategy to this framework, Albania is taking a sophisticated step toward aligning its energy sector with EU standards and the exigencies of the green transition.

December 2, 2025
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Just Transition Forum unites regional leaders to tackle energy poverty, shape fair energy future

Governments, partners, civil society and community leaders from across Europe gathered in Tbilisi for the Energy Community’s Just Transition Forum to explore how energy efficiency can help end energy poverty and strengthen public trust in the clean-energy transition.

The forum delivered a clear message: a just transition cannot succeed without meaningful dialogue with diverse civil society and non-governmental partners, whose expertise and perspectives must be integrated into planning. As contracting parties begin preparing their new national energy and climate plans (NECPs), embedding just transition in transparent frameworks and long-term strategies is key to turning decarbonization commitments into real benefits for people and communities.

This principle is further reflected in the Energy Community’s newly published Just Transition Policy Guidelines, which guide governments in integrating just transition elements into energy and climate planning – ensuring that decarbonization goes hand in hand with social protection, local opportunity, and public trust, while supporting alignment with the European Union’s clean energy and climate objectives.

Lorkowski: New NECPs should tell story of just, sustained transition

Opening the forum, Energy Community Secretariat Director Artur Lorkowski underscored the importance of the current moment for regional energy and climate planning. The new NECPs, he stressed, should tell the story of a just and sustained transition.

“We are entering a pivotal moment for the region’s energy and climate future. With just transition principles at the core, they can pave the way toward EU energy market integration and turn the green transition into an engine of investment, inclusion, and shared prosperity,” Lorkowski stated.

Critically, the Energy Community’s Governance Regulation requires contracting parties to assess and address energy poverty in their NECPs. It is an opportunity to ensure that energy-poor households receive targeted support and remain central to energy efficiency and decarbonization efforts.

Just Transition Forum unites regional leaders energy poverty fair energy future

Energy Efficiency First for Energy Poverty

To drive the agenda forward, forum participants drew on insights from the secretariat’s study Energy Efficiency First for Energy Poverty. It reveals that 30% to 40% of households in Kosovo*, Albania, North Macedonia, and Georgia face energy poverty, and shows how targeted energy efficiency investments can transform lives across the region – making homes warmer, healthier, and more affordable to run.

By prioritizing vulnerable households, establishing renovation funds, and applying the Energy Efficiency First (EE1st) principle, contracting parties could cut household energy demand by more than 60%, create up to 19 local jobs for every EUR 1 million invested, and triple the wider benefits through improved well-being, comfort, and productivity.

Energy Community contracting parties could cut household energy demand by more than 60%

Emphasizing the importance of a people-centred transition, Head of EU Delegation to Georgia Paweł Herczyński stated: “For the European Union, a just transition is not only an environmental goal. It is a commitment to people, fairness and long-term resilience. This transformation must be built through dialogue, transparency and the active participation of communities. Ensuring that this transition succeeds, it will depend on transparent governance, democratic credibility and alignment with the EU standards.”

The forum also celebrated the winners of this year’s Just Transition Young Voices Awards. Their work highlighted how listening to those most affected by the transition — and youth, who will carry it forward — is essential to understanding the diverse realities of communities navigating the shift to a greener economy.

Cooperating partners for the forum included the Delegation of the European Union to Georgia, KfW on behalf of the German government, AFD – Agence Française de Développement, and the Federal Ministry for European and International Affairs of Austria.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
November 4, 2025
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North Macedonia’s ESM needs investments of EUR 3 billion to replace coal power

Power utility Elektrani na Severna Makedonija estimated that it requires EUR 3 billion by 2040 to replace electricity from its lignite-fired power plants. According to member of the Board of Directors Ivan Stojanovski, the state-owned company is preparing investments in gas power plants, solar, wind, hydropower and energy storage. He highlighted its plans for a 300 MWh battery and the Bogdanci hybrid energy park.

North Macedonia’s utility Elektrani na Severna Makedonija (ESM), the country’s main electricity producer, generated 60% of the 2024 output in the Bitola and Oslomej coal plants.

A rough estimate is that ESM would have to invest around EUR 3 billion in the next 15 years to replace its power production from lignite, which is baseload energy, Ivan Stojanovski, a member of the Board of Directors and the company’s Chief Financial Officer, told Balkan Green Energy News on the sidelines of the International Forum on Energy for Sustainable Development (IFESD-14).

He explained that the transition to green energy is quite expensive. ESM needs to replace the 840 MW in baseload production that the Bitola and Oslomej thermal power plants provide, the executive added.

Hydropower is a domestic electricity source, unlike natural gas

The company opted for investments in diverse energy sources to achieve it, Stojanovski stressed.

Gas power plants provide baseload energy, but at the same time, they turn the spotlight on national security as well as the security of supply, in his words.

Lignite is currently mined in North Macedonia while natural gas must be imported, so gas supply interruption is possible, ESM’s CFO added.

Gas power plants are required, but it is necessary to invest in hydropower as it is a domestic resource, Stojanovski said. On the other hand, hydroelectric plants are more expensive and it takes longer to build them, he noted.

ESM launched the Bitola 3 solar power project

ESM is developing wind and solar power projects as well. Stojanovski highlighted the planned expansion of its Bogdanci wind farm. The European Bank for Reconstruction and Development (EBRD) is participating in the development of the Miravci wind power project, of at least 100 MW, he recalled.

The company is working on solar power projects Oslomej 1 (10 MW), Oslomej 2 (10 MW), Bitola 1 (20 MW) and Bitola 2 (60 MW), Stojanovski asserted. Bitola 3 endeavor is underway, too, and the financing contract is expected to be signed by the end of the year, he revealed.

The photovoltaic system will have at least 100 MW, Stojanovski asserted.

“We plan to sign a contract next year with Agence Française de Développement (AFD) for a solar power plant in Bogdanci of at least 30 MW and to create a hybrid energy park there – wind, solar, and a battery,” he stated.

According to Stojanovski, the company is developing a battery energy storage project with the EBRD, for up to 300 MWh in capacity. The site is within the REK Bitola coal complex and the facility will be a systemic solution for all the solar power plants there, he explained.

Blended financing as a solution

“EUR 1 billion to EUR 1.3 billion is needed just for solar, wind and batteries. We will need between EUR 500 million and EUR 700 million for gas power plants. Another EUR 1 billion to EUR 1.3 billion would be for large hydropower plants such as Čebren and Vardar Valley, and some smaller projects,” Stojanovski explained.

Asked how the company plans to secure financing, he pointed to blended financing – own sources combined with some participation from international financial institutions. It is important to diversify the sources by opening cooperation with as many financial institutions as possible, in Stojanovski’s view.

ESM traditionally cooperates with the EBRD and KfW. Stojanovski announced that the company would diversify financing by launching cooperation with the World Bank, Italy’s development bank Cassa Depositi e Prestiti, and AFD.

“It will enable us to access more sources and complement them with financing from local banks. We also tend to obtain support from the state budget over a longer period, 10-15 years, and state guarantees, but also additional funds. This is a financial model that can secure long-term and sustainable financing of infrastructure projects,” Stojanovski said.

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October 30, 2025
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North Macedonia receives grant from France for grid modernization

The transmission system operator of North Macedonia – MEPSO, France’s development agency Agence Française de Développement (AFD), and RTE International signed an agreement for a grant intended to support the Balkan country’s transmission system. At the same time, the Ministry of Energy, Mining, and Mineral Resources signed a joint declaration with AFD, officially welcoming the agency as a partner of North Macedonia’s Investment Platform for a Just Energy Transition.

The EUR 600,000 grant is for technical assistance for the modernization and digitalization of the transmission grid in North Macedonia, MEPSO said.

The project focuses on four areas: preparing system adequacy studies using the ANTARES market simulator, sizing system reserves, developing a methodology for calculating transmission losses and producing a feasibility study, and a project for substation digitalization.

Božinovska: AFD’s technical assistance will enable MEPSO to manage variability in the system more efficiently

As part of the project, experts from RTE International, a subsidiary of the French transmission system operator (TSO) RTE, have already held a training course for MEPSO’s engineers on the use of the ANTARES simulator, the Ministry of Energy, Mining and Mineral Resources said.

Minister Sanja Božinovska stressed that AFD‘s technical assistance would enable the company to manage more efficiently the variability resulting from increased participation of renewable sources and market fluctuations.

A more advanced and smarter grid means fewer outages, better use of clean energy, stronger regional connections, and greater system resilience – whether to weather conditions, demand fluctuations, or market instability, Božinovska noted.

Milevski: Pilot project will be launched for the digitalization of a 110 kV substation

According to RTE International CEO Veronika Milevski, the agreement combines advanced power system modeling, innovative reserve forecasting using artificial intelligence (AI), and a pilot project for the digitalization of a 110 kV substation.

This is a decisive step toward a more resilient, transparent, and competitive electricity grid, she pointed out.

MEPSO CEO Burim Latifi explained that the digital transformation pilot project is aimed at developing a fully digital substation with advanced protection, management, and monitoring systems.

Vince: AFD is committed to supporting a just and sustainable energy transition

It is a concrete step toward transforming MEPSO into a smarter, more efficient, and future-oriented TSO, he added.

Of note, AFD and RTE established collaboration with Montenegro’s TSO CGES in November last year. AFD also signed a memorandum of understanding with Albania’s power utility KESH in April.

Regarding the signing of the joint declaration, Sanja Božinovska said the partnership is improving the country’s ability to modernize its electricity system, integrate more renewables, and strengthen security of supply.

AFD is committed to supporting North Macedonia’s just and sustainable energy transition, according to the Deputy Director of the AFD Office for the Western Balkans, François Vince.

The signing of the two agreements was attended by French Ambassador Christophe Le Rigoleur.

Photo: Sanja Božinovska/Facebook
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July 23, 2025
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Germany supports Serbia in clean energy supply, environmental protection

The Republic of Serbia and Germany’s KfW Development Bank signed a loan agreement on July 18 for EUR 135 million for the second phase of the credit program Green Transition Development Policy Operation (DPO II).

The signatures underscore the joint activities by Germany and Serbia aimed at a climate-compliant and socially just energy transition, said Chargés d’Affaires ad interim Carsten Meyer-Wiefhausen from the Embassy of the Federal Republic of Germany in Serbia. “We will continue to be with Serbia on this path and support its reform efforts,” he stressed.

Within the financing for the reforms, the World Bank, French Development Agency (AFD) and the German KfW Development Bank are supporting the Republic of Serbia in conducting its ambitious reform agenda. The goal is to accelerate the transition to energy from clean sources and align with EU standards in environmental protection and climate.

Series of reforms through DPO II

Several successful reforms have been materialized within DPO II, among which:

  1. Promoting investments that are acceptable in environmental and climate terms: Public investments are graded under environmental criteria and with regard to the risk of natural disasters, and with models developed solely for the purpose. The citizens of Serbia benefit from the government’s more sustainable investment decisions.
  2. Enhanced transparency in the public budget: The Government of the Republic of Serbia has committed to publishing information on the execution of the public budget, not only at the end of the fiscal year, but also during the year. It improves the transparency of public expenditures, primarily concerning investments in environmental and climate protection.
  3. Affordable energy prices: The Government of the Republic of Serbia has rolled out temporary targeted subsidies for households with low income, like citizens with low pensions. The share of households receiving such aid has grown from 2.7%, registered in 2021, to last year’s 8%.
  4. Improvement in waste disposal: Aligning with EU standards brings a better approach to sanitary landfills, namely from 42% (2021) to last year’s 50%. The citizens of Serbia benefit from improved waste disposal and a cleaner environment.
  5. Prepared for CBAM: Since this year, large industrial facilities and power plants report their CO2 emissions in line with EU standards. That way Serbia is more prepared for the upcoming full implementation of the European Carbon Border Adjustment Mechanism (CBAM) for carbon prices. For instance, the country would be able to price CO2 emissions and charge them.

Financing reforms within climate partnership

Germany’s contribution to financing reforms is an integral part of Germany’s climate partnership with Serbia and the entire Western Balkans. The purpose of the partnership is to support Serbia’s work on achieving its national climate goals and adapting to climate change. The key goal of the partnerships is for the transformation that is necessary to meet climate goals, in the interest of Serbian citizens, to be socially just, a just transition.

This year, Serbia and Germany are celebrating the 25th anniversary of their development cooperation. In the meantime, KfW financed projects worth EUR 2.5 billion in Serbia.

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April 21, 2025
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Albania’s KESH, France’s AFD sign MoU on hydropower management, energy storage 

Albania’s state-owned power company, KESH, and France’s development agency, Agence Française de Développement (AFD), have signed a memorandum of understanding on the Drin river cascade management and advanced energy storage planning.

Albania’s three biggest hydropower plants, with a combined capacity of 1.35 GW, are located on the Drin (Drim) river. The Drin cascade consists of the Fierza Hydropower Plant (500 MW), the Koman Hydropower Plant (600 MW), and the Vau i Dejës Hydropower Plant (250 MW).

As part of French Minister for Europe Benjamin Haddad’s visit to Tirana, Albania and France have solidified their action-oriented partnership in the energy sector, agreeing on AFD’s support to KESH in line with Albania’s priorities under its Green Agenda and EU accession roadmap, according to AFD.

With EUR 800,000 in financial support, AFD will mobilize French technical expertise in hydropower infrastructure modernization and digitalization and initiate a peer-to-peer exchange between KESH and Electricité de France (EDF), its French counterpart.

The technical assistance will help upgrade and digitalize KESH’s discharge management

Cooperation between KESH and French hydropower experts sets the stage for cutting-edge cooperation in energy storage and digital modeling, reads the press release.

AFD explained that the technical assistance would support the improvement and digitalization of KESH’s discharge management.

This will optimize electricity generation, mitigate flooding risks in the lower part of the Drin cascade, and develop storage capacity through the assessment and identification of the most suitable energy storage technologies for integration within the existing infrastructure, the agency added.

Haddad: the MoU demonstrates that Albania is a priority for France

Haddad underlined that the MoU demonstrates that Albania is a priority for France, but also the French government’s willingness to mobilize all its operators and financing tools to help the country in its European convergence and EU integration process, he noted.

According to Albania’s Deputy Minister of Infrastructure and Energy, Ceno Klosi, France’s support in the energy sector has been steadily growing over the past five years. It already encompasses both structural reforms and flagship projects with different power utilities, he stressed.

The signing was attended by Erald Elezi, Administrator of KESH, Arnaud Dauphin, Director of AFD’s Western Balkans Regional Office, and Catherine Suard, France’s Ambassador to Albania.

In June 2023, Albania’s government signed a EUR 100 million loan agreement for energy sector reforms with AFD and German development bank KfW. Lately, AFD has been very active in the region. In November 2024, it signed agreements in Montenegro, and in August 2024 in Serbia.

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