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Albania as a Regional Outlier: Diesel Dominance Persists Amid Europe’s Green Transition

New data from Eurostat reveals a significant divergence in automotive trends between Albania and the European Union. While the EU moves aggressively toward decarbonization, Albania has emerged as the country with the highest share of diesel-powered vehicles among first-time passenger car registrations in 2024.

This trend stands in sharp contrast to the broader European trajectory, where environmental regulations and technological shifts are rapidly phasing out internal combustion engines in favour of electric and hybrid alternatives.

The Data: A Stark Statistical Divide

According to Eurostat’s latest report on transportation, 66.2% of all passenger vehicles registered for the first time in Albania during 2024 were diesel-powered. To put this in perspective, the EU average for diesel registrations has plummeted to just 14.9%.

The regional comparison further highlights Albania’s unique position:

  • Albania: 66.2% diesel share

  • Moldova: 47.0%

  • Bosnia and Herzegovina: 34.5%

  • Other Balkan neighbors: Generally below 30% (excluding Kosovo and North Macedonia, for which data was unavailable).

In absolute numbers, out of the 85,700 passenger vehicles registered for the first time in Albania in 2024, approximately 56,700 were diesel. Conversely, gasoline vehicles accounted for only 17.6% of registrations—one of the lowest shares in Europe—while electric vehicles (EVs) represented a mere 3.3% of the total.

The European Shift Toward Electrification

The European landscape tells a completely different story. The transition to Battery Electric Vehicles (BEVs) is accelerating, driven by the EU’s ambitious climate goals to reduce the 27% of greenhouse gas emissions currently attributed to transport.

  • Denmark: Over half (51.3%) of new registrations are fully electric.

  • Sweden, Malta, and the Netherlands: EVs account for more than one-third of the market.

  • EU Average: Electric vehicle registrations reached 13.5% in 2024.

Looking back at the decade between 2014 and 2024, the shift is even more dramatic. In 20 representative EU countries, the registration of diesel vehicles fell by 67%, while registrations for fully electric cars grew by 45 times, moving from a negligible 0.3% share in 2014 to nearly 14% today.

Why is Albania Lagging Behind?

The dominance of diesel in Albania is not a matter of consumer preference alone but is rooted in several structural and economic factors:

  1. Second-Hand Market Dominance: The Albanian market is heavily reliant on imported used cars from Western Europe. As EU consumers sell off their older diesel models to switch to EVs, these vehicles often find a second life in the Albanian market.

  2. Initial Cost Barriers: The upfront cost of electric or hybrid vehicles remains high compared to older diesel models, making them less accessible to the average Albanian consumer.

  3. Infrastructure Gaps: The national charging network for electric vehicles is still in its infancy, leading to “range anxiety” and deterring potential EV buyers.

  4. Policy Incentives: There is a lack of robust fiscal incentives or subsidies to encourage the adoption of “green” vehicles compared to the aggressive tax breaks seen in EU member states.

Looking Ahead

While Albania remains a diesel stronghold for now, the European trend is inevitable. As EU emission standards tighten and the production of internal combustion engines scales down, the supply of diesel vehicles will eventually dwindle.

For Albania to bridge this gap, experts suggest a dual approach: investing in charging infrastructure and implementing fiscal policies that make cleaner alternatives more competitive. Without these interventions, Albania risks becoming a “parking lot” for Europe’s aging, high-emission fleet.

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Fortis Energy and EBRD Partner to Finance Landmark 270 MW Solar-plus-Storage Project in Serbia

Fortis Energy and EBRD Partner to Finance Landmark 270 MW Solar-plus-Storage Project in Serbia

In a significant move for the Western Balkans’ energy transition, Fortis Energy has formalized a mandate letter with the European Bank for Reconstruction and Development (EBRD). The agreement initiates due diligence and structured negotiations for the long-term financing of a 270 MW solar photovoltaic (PV) plant, integrated with a 72 MWh battery energy storage system (BESS).

Located in the city of Sremska Mitrovica, west of Belgrade, the project is set to become the largest solar facility in both Serbia and the broader region.

Strategic Importance and Regional Impact

The mandate letter, signed by Fortis Energy’s leadership and the EBRD’s Sustainable Infrastructure Group, establishes the preliminary terms for a project aimed at bolstering Serbia’s national grid. According to Fortis Energy, the facility is a “demonstration of bankability,” signaling that large-scale renewable assets in Southeast Europe can meet rigorous international environmental and social sustainability standards.

The Sremska Mitrovica plant is expected to deliver substantial environmental and social benefits:

  • Annual Output: Estimated at over 365 GWh of clean electricity.

  • Household Impact: Capable of powering more than 105,000 households annually.

  • Carbon Mitigation: Forecasted to avoid approximately 182,000 tons of emissions per year.

Construction is scheduled to begin in the third quarter of 2026, with full commissioning targeted for the first quarter of 2028.

Technical Breakdown and EPC Partnerships

The development is being executed in phases. Earlier this year, Fortis signed an Engineering, Procurement, and Construction (EPC) contract with Kontrolmatik Technologies for the first phase, known as Noćaj 1.

Phase/Project Solar Capacity (MWp) Grid Connection (MW) Storage Capacity (BESS)
Noćaj 1 135 MW 90 MW 36 MWh
Full Sremska Mitrovica 270 MW 72 MWh
Erdevik (Proposed) 100 MW 74 MW 30 MWh

Fortis Energy and EBRD Partner to Finance Landmark 270 MW Solar-plus-Storage Project in Serbia

In a significant move for the Western Balkans’ energy transition, Fortis Energy has formalized a mandate letter with the European Bank for Reconstruction and Development (EBRD). The agreement initiates due diligence and structured negotiations for the long-term financing of a 270 MW solar photovoltaic (PV) plant, integrated with a 72 MWh battery energy storage system (BESS).

Located in the city of Sremska Mitrovica, west of Belgrade, the project is set to become the largest solar facility in both Serbia and the broader region.

Strategic Importance and Regional Impact

The mandate letter, signed by Fortis Energy’s leadership and the EBRD’s Sustainable Infrastructure Group, establishes the preliminary terms for a project aimed at bolstering Serbia’s national grid. According to Fortis Energy, the facility is a “demonstration of bankability,” signaling that large-scale renewable assets in Southeast Europe can meet rigorous international environmental and social sustainability standards.

The Sremska Mitrovica plant is expected to deliver substantial environmental and social benefits:

  • Annual Output: Estimated at over 365 GWh of clean electricity.

  • Household Impact: Capable of powering more than 105,000 households annually.

  • Carbon Mitigation: Forecasted to avoid approximately 182,000 tons of emissions per year.

Construction is scheduled to begin in the third quarter of 2026, with full commissioning targeted for the first quarter of 2028.

Fortis Energy’s Growing Regional Footprint

Headquartered in the Netherlands with key operational hubs in Istanbul and Belgrade, Fortis Energy is aggressively pursuing its goal of becoming a premier Green Baseload Independent Power Producer (IPP).

Beyond Sremska Mitrovica, the company is advancing a robust pipeline:

  • Erdevik, Serbia: A planned 100 MW hybrid plant with 30 MWh of storage.

  • Erseka, Albania: A 75 MW solar project with 25 MWh of storage, currently under construction.

  • Portfolio Growth: Fortis currently operates over 200 MW of renewable assets, with an additional 500 MW slated for deployment through 2027.

By integrating storage with solar and wind assets, Fortis is positioning itself to provide stable, renewable energy across Southeast Europe, supporting the region’s broader decarbonization objectives.

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INOVA Launches €25m Green Grants for SMEs in North Macedonia

North Macedonia’s Agency for Innovation, Scientific and Technological Development and Entrepreneurship has launched a grant program to support small and medium-sized businesses investing in environmental protection and sustainability.

The green business support program for 2026–2030 is valued at €25 million, with €22 million earmarked for direct subsidies, according to the agency (INOVA). Eligible companies can receive between €5,000 and €300,000, provided they co-finance 20% to 50% of the investment, depending on the project type.

The European Union is providing €18 million, while the remaining funding will come from the Government of North Macedonia.

At least 300 companies expected to benefit

INOVA said it expects to support at least 300 companies, focusing primarily on micro, small, and medium-sized enterprises, particularly in manufacturing, while remaining open to applicants from other sectors. The program is designed to back projects that reduce CO₂ emissions and waste and increase the use of renewable energy, with a particular emphasis on solar power, the agency noted.

Through public calls, businesses will be able to apply for technical and advisory assistance, standardization support, and financial backing for the purchase of equipment, deployment of new technologies, and development of new products.

INOVA expects the first public call around mid-year.

Previously, the agency said the initiative would be implemented through three instruments: green startups (grants up to €40,000), green modernization (up to €150,000 per beneficiary), and transformation of industrial systems (subsidies of €300,000 per beneficiary).

Officials frame program as competitiveness and climate action measure

INOVA CEO Daniela Dimovska said the initiative offers both financial and expert support to companies investing in sustainable, environmentally friendly, and innovative solutions, describing it as a step toward an economy guided by long-term thinking and responsible action.

Daniela Dimovska, Hristijan Mickoski, and Michalis Rokas (photo: INOVA/Facebook)

Prime Minister Hristijan Mickoski said the program aims to help the country advance toward the climate neutrality goals set out in the Green Agenda for the Western Balkans, by strengthening the private sector and promoting sustainable business practices. He added that green transformation should be viewed not as a cost, but as an investment in economic resilience, environmental quality, and citizens’ well-being.

EU Ambassador to North Macedonia Michalis Rokas said the program is expected to stimulate innovation and the adoption of green technologies among SMEs, supporting a new stage of development that improves competitiveness and strengthens integration into EU value chains.

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Guarantees of origin: turning renewable ambition into action

Author: Naida Hausmann, Lead of the Renewable Energy Taskforce, Energy Community Secretariat

Far from being mere certificates, guarantees of origin (GOs) underpin the entire renewable energy value chain – building trust and accountability among producers, businesses and consumers. By ensuring transparent tracking of green electricity and enabling cross-border recognition, GOs can accelerate decarbonisation across the EU and the Energy Community, helping Europe achieve its climate targets. Mutual recognition between the EU and the Energy Community would open regional markets, attract investment, and give consumers and businesses a tangible role in the energy transition.

A guarantee of origin (GO) certifies that one megawatt-hour (MWh) of electricity was generated from renewable sources. It provides a transparent chain of information about where and how electricity was produced, allowing consumers and companies to claim the renewable origin of the electricity they use, even if they draw it from a mixed grid.

In the European Union, the national systems for guarantees of origin are well established. Cross-border transfer of certificates is enabled through the Association of Issuing Bodies (AIB), helping to build confidence among suppliers and buyers alike.

As part of the Energy Community regional project, nearly all issuing bodies have now established national electronic registries for issuing GOs

In the Energy Community, similar systems are advancing rapidly, laying the groundwork for a fully integrated regional market for renewable electricity. As part of the Energy Community regional project, nearly all issuing bodies have now established national electronic registries for issuing GOs.

Work is ongoing to finalise disclosure rules, with the goal of fully aligning these systems with EU legislation and requirements. Once fully aligned, these systems can enable seamless cross-border trade in renewable electricity – bringing the Energy Community a step closer to the EU’s internal energy market.

Empowering consumers and corporates

GOs transform energy consumers from passive users into active participants in the energy transition. When a household subscribes to a “100% renewable” tariff, or when a company purchases GOs to match its electricity use, it signals clear market demand for renewable generation. This demand translates into investment: it strengthens developers’ business cases, supports project financing, and helps accelerate the construction of new renewables capacity.

Moreover, when GOs are sold separately from electricity, they provide an additional revenue stream for developers, making projects more financially viable.

For corporates, GOs have become an essential tool to meet sustainability and reporting obligations and demonstrate that their electricity consumption is renewable. GOs therefore form the backbone of corporate energy procurement strategies and sustainability claims, particularly when coupled with long-term power purchase agreements (PPAs).

Naida Hausmann Guarantees of origin GOs turning renewable ambition into action features

Why mutual recognition matters

Under the EU’s Renewable Energy Directive, GOs can only be mutually recognised with third countries once a formal agreement is concluded – a requirement that carries significant implications. For the Energy Community contracting parties, such recognition would effectively link their systems with the EU market for renewable attributes, allowing renewable energy producers to access European buyers and investors.

Importantly, such recognition would also catalyse other mechanisms that drive the uptake of renewables, enabling regional PPAs, enhancing liquidity and sending stronger investment signals. For investors and utilities alike, a unified GO market reduces risk, increases price transparency and ensures that renewable attributes are valued consistently across borders.

For investors and utilities alike, a unified GO market reduces risk, increases price transparency and ensures that renewable attributes are valued consistently across borders

In the Energy Community region, where access to capital remains a barrier to the deployment of renewables, this is not a minor issue – it is a gateway to unlocking the private investment needed to meet regional and European decarbonisation goals.

The Energy Community Secretariat, together with the European Commission, has been advancing a decision for mutual recognition. Once in place, it will allow certificates issued in the Energy Community to be traded and recognised within the EU, provided they meet equivalent standards of reliability and verification.

Criteria for recognition

Beyond the technical criteria for establishing and maintaining a system of guarantees of origin by national competent authorities, including membership in the AIB, the draft decision on the mutual recognition of guarantees of origin, as presented by the European Commission, sets out additional requirements. These include criteria for the transposition and implementation of the acquis communautaire on electricity and renewable energy.

The Energy Community Secretariat is expected to support the assessment of compliance and monitor implementation. Together, these criteria aim to establish a credible and transparent framework for mutual recognition, ensuring that GOs issued across the region are reliable and can be confidently traded.

Way forward

With almost all issuing bodies in Energy Community contracting parties having operationalised electronic registries for GOs, the focus should now shift to implementing robust disclosure rules and meeting the remaining criteria for mutual recognition. Ensuring alignment with EU legislation and participating in the AIB will be essential to create a transparent and trusted system, unlocking cross-border trade, investment and market confidence in renewable electricity.

Issuing bodies in Albania, the Republic of Srpska (Bosnia and Herzegovina), Georgia, Kosovo*, North Macedonia, Montenegro, Serbia, and Ukraine have operationalised their registries. The issuing body in Moldova has signed an agreement with a service provider and is expected to operationalise its registry by the end of 2025, while the only issuing body without an electronic registry remains that of the Federation of BiH.

Conclusion

GOs translate environmental ambition into measurable progress toward decarbonisation. They give visibility to renewable electricity, credibility to corporate climate action and empower consumers with choice and the ability to participate in the clean energy transition. For the Energy Community and the European Union alike, mutual recognition of GOs would mark a practical and symbolic step toward a truly integrated European renewables market – one where clean electricity, investment and trust flow freely across borders.

By turning certificates into confidence and ambition into action, GOs can help bridge the remaining gap between policy objectives and market reality, ensuring that the path to decarbonisation is both transparent and inclusive.

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Motor Oil’s MORE completes three battery systems in Greece

MORE, standing for Motor Oil Renewable Energy, built three standalone battery energy storage systems in Greece. The company won government support for the projects two years ago at an auction.

Oil refiner Motor Oil Hellas said its green energy arm has installed 72 MW in BESS capability, with 144 MWh in total capacity. The three standalone facilities are in Phocis (Fokida), Florina, and Boeotia (Viotia).

MORE, which is an acronym of Motor Oil Renewable Energy, completed the battery systems in just three months, the update reveals. The company pointed out they are among the first of such a scale in Greece.

“The operation of these energy storage systems will lead to a substantial further reduction in electricity prices for consumers by utilizing renewable energy that is currently being curtailed. At the same time, they will contribute to grid stability and enhance the country’s energy security,” Motor Oil added.

The three projects were selected during the second competitive process of the Regulatory Authority for Energy, Waste and Water (RAAEY or RAEWW) for energy storage systems. It was held in 2024. The investments are funded through the National Recovery and Resilience Plan Greece 2.0 and the European Union’s Recovery and Resilience Facility, under the NextGenerationEU program.

According to recent reports, new BESS facilities of 300 MW in combined operating power were waiting for approvals in Greece to be able to start operating.

Athens International Airport (AIA) Eleftherios Venizelos inaugurated a large solar-BESS hybrid power plant last month. Government-controlled Public Power Corp. – PPC Group is building three standalone battery storage systems at its coal plants.

Motor Oil is also involved in hydrogen projects, wind power and carbon capture and storage.

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Motor Oil’s MORE completes three battery systems in Greece

MORE, standing for Motor Oil Renewable Energy, built three standalone battery energy storage systems in Greece. The company won government support for the projects two years ago at an auction.

Oil refiner Motor Oil Hellas said its green energy arm has installed 72 MW in BESS capability, with 144 MWh in total capacity. The three standalone facilities are in Phocis (Fokida), Florina, and Boeotia (Viotia).

MORE, which is an acronym of Motor Oil Renewable Energy, completed the battery systems in just three months, the update reveals. The company pointed out they are among the first of such a scale in Greece.

“The operation of these energy storage systems will lead to a substantial further reduction in electricity prices for consumers by utilizing renewable energy that is currently being curtailed. At the same time, they will contribute to grid stability and enhance the country’s energy security,” Motor Oil added.

The three projects were selected during the second competitive process of the Regulatory Authority for Energy, Waste and Water (RAAEY or RAEWW) for energy storage systems. It was held in 2024. The investments are funded through the National Recovery and Resilience Plan Greece 2.0 and the European Union’s Recovery and Resilience Facility, under the NextGenerationEU program.

According to recent reports, new BESS facilities of 300 MW in combined operating power were waiting for approvals in Greece to be able to start operating.

Athens International Airport (AIA) Eleftherios Venizelos inaugurated a large solar-BESS hybrid power plant last month. Government-controlled Public Power Corp. – PPC Group is building three standalone battery storage systems at its coal plants.

Motor Oil is also involved in hydrogen projects, wind power and carbon capture and storage.

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Kosovo’s* just energy transition: greening the Kingdom of Coal

Author: Tringë Shkodra

Kosovo’s* energy transition has great potential but key players such as small and medium-sized enterprises (SMEs) and young people are facing structural exclusion.

Our energy system is still heavily dependent on dirty fossil fuels and overburdened by frequent outages, reliance on imports, and growing costs, particularly during the winter when demand is at its highest and most households and businesses can no longer afford to pay energy bills. While infrastructure upgrades are essential, they are not enough. In order to succeed, this transition must be just, meaning it needs to be inclusive and rooted in the lived experiences of the people it aims to serve.

Understanding Kosovo’s* distinct socio-economic landscape, with the country having the youngest population in Europe as well as a large number of SMEs, is essential for addressing its development challenges and unlocking its potential.

SMEs form the backbone of the Kosovan* economy but get structurally excluded from accessing energy-saving practices. Many studies shed light on energy efficiency within Kosovo’s* private sector – particularly among SMEs, and show that these businesses face serious barriers to adopting sustainable practices. While larger firms are more likely to invest in energy-saving technologies, SMEs struggle with access to finance, lack awareness, and get minimal institutional support.

Businesses require energy efficiency for survival

Yet energy audits show that many could reduce consumption by up to 40% with low-cost interventions. This isn’t about reluctance, but structural exclusion. Energy efficiency, in this context, is not just a technical fix but a survival strategy for businesses.

With the right incentives, this sector can become a driver of Kosovo’s* green transition, creating jobs and fostering innovation.

Youth rarely invited to table

Another overlooked potential for Kosovo’s* energy transition are the youth. Over half of Kosovo’s* population is under the age of 30, yet their involvement in environmental governance remains limited. A study of youth participation in environmental and climatic concerns across ten municipalities of Kosovo* found that, while 63% of young respondents reported a strong desire to contribute to environmental policymaking, only 15% had ever participated in such processes.

Youth-led initiatives, innovation hubs, and climate advocacy networks are lacking institutional trust and real influence

This isn’t a lack of engagement; it’s again a lack of access. Youth-led initiatives, innovation hubs, and climate advocacy networks are already active, but they need to be met with institutional trust and real influence. The potential of our youth is vast – from engineers developing solar microgrids to community organizers shaping local green agendas. However, without inclusion, this potential remains untapped. We are ready to lead, but we are rarely invited to the table.

Dependence on lignite is cause of public health crisis

Advancing fundamental reforms aligned with European values is a prerequisite for sustainable development. This includes harmonizing structural reforms outlined in the Economic Reform Programmes (ERPs), strengthening the rule of law, and embedding the energy transition within the European Union’s broader green agenda. Kosovo’s* overreliance on lignite coal poses not only environmental but social risks, and the outdated mindset of living in the Kingdom of Coal clashes with the urgent need for a clean, secure, and just energy future.

Data from Riinvest Institute outlines clearly that over 90% of Kosovo’s* electricity is still produced from coal, while renewable energy accounts for less than 6%. This dependence is more than an economic liability – it is a public health crisis. Around 300,000 to 400,000 people live within 30 kilometers of lignite-fired power plants Kosovo A and Kosovo B, which lack modern emission controls.

Air pollution and outdated technology put thousands at risk every day. The urgency to diversify the energy mix isn’t only environmental – it is humanitarian. Energy, when approached with justice in mind, can become a tool for dignity and equal opportunity.

Despite a myriad of strategies and policy documents, Kosovo* has made only partial progress in aligning with EU energy and environmental standards. The Energy Community Annual Implementation Report (2024) shows that implementation across clusters such as decarbonization and energy security ranges from just 40% to 66%. True transformation demands more than technical upgrades as it requires institutional coordination, transparency, and strong evidence-based policymaking.

We are transitioning lives

In a recent conversation, a national energy expert put it simply: “We are not just transitioning technologies. We are transitioning lives.” A just energy transition must therefore encompass more than grid modernization or solar farms. It requires tailored policies – legislation that removes bureaucratic bottlenecks, the rollout of incentives for low-income households to adopt renewables, and clear pathways for communities to become prosumers.

Kosovo’s* policy frameworks, such as the forthcoming National Energy and Climate Plan and the renewable energy law, must be instruments of real transformation – practical, inclusive, and focused on impact.

Permitting procedures for renewables need to be simplified

To catalyze a just energy transition, the country requires comprehensive investments across its energy infrastructure while ensuring that reforms are socially inclusive and environmentally sound. This begins with diversifying the energy mix by prioritizing renewables – particularly solar and wind – through competitive auctions and de-risked investment environments that attract private sector participation. Kosovo* must simplify permitting procedures, build institutional expertise, and enhance the grid’s technical capacity to absorb renewable inputs.

Alongside infrastructure upgrades, investments are needed in energy efficiency for public and private buildings, especially given the country’s high winter heating demand and grid losses. Carbon-free heating solutions and retrofitting programs can help reduce both emissions and energy poverty, especially among vulnerable groups.

Subsidies must be designed for low-income households

Financing this transformation requires a blended approach – mobilizing domestic resources, securing grants from the EU and the United States, and leveraging international financial institutions through loans with state guarantees. But energy justice is not only about technology or money, it is about who benefits. Subsidies and support schemes must be designed for low-income households to participate in renewable adoption as consumers and prosumers.

A just transition brings inclusive growth and long-term climate resilience

Moreover, Kosovo* must link its investment strategies to broader social objectives, like upskilling labor for green jobs, protecting coal-reliant communities, and embedding equity and participation in every step of reform.

Kosovo* needs to make use of its strengths, and supports its young population, smaller enterprises and low-income households. Without an integrated approach, it risks reinforcing existing inequalities, but if it creates an energy transition that is just for the people, the country can turn its transition into a platform for inclusive growth, and long-term climate change resilience.

Tringe Shkodra Just Transition Young Voices Awards

* 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.
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Renewables account for 99% of Turkey’s net electricity capacity additions

Electricity capacity in Turkey reached 122 GW in 2025, of which 62% was from renewable sources, according to the SHURA Energy Transition Center. Photovoltaics grew by 4.9 GW, compared to 1.7 GW in the wind power segment. Renewables made up 99% of the net additions, amounting to 6.3 GW, the think tank calculated. This year, however, the first unit of the Akkuyu nuclear power plant is scheduled to come online, adding 1.2 GW.

Gross electricity production in Turkey increased 2% last year, to 360 TWh, the SHURA Energy Transition Center estimated in a new report. The share of renewables dropped to 44.1% from 46%. Namely, hydropower output is on a downward trajectory, due to droughts. Wind, solar and geothermal power rallied to 24.6%, though. Photovoltaics and wind power together surpassed 20%.

Renewables continue to dominate the sector’s development, accounting for 99% of the overall 6.3 GW in net additions, the think tank calculated. The total reached 122 GW. Renewable sources made up 62%, compared to 59.7% in 2024.

Solar power surged by 4.9 GW and the wind power capacity jumped by 1.7 GW, while the natural gas item declined by 684 MW.

Importantly, the picture is about to change, as the first, 1.2 GW reactor in Akkuyu, Turkey’s first nuclear power plant, is scheduled to be commissioned this year. Coal plant projects remain dormant and uncertain.

Race to 2035 targets

Daily power consumption reached an all-time high of 1,244 GWh on July 29. SHURA attributed the record to cooling demand caused by rising temperatures.

To reach the 2035 targets, an average of 8 GW of combined solar and wind capacity must be commissioned each year. The high momentum is expected to continue in 2026, the report reads. The government aims to hit 120 GW altogether from the two technologies, against the current 40 GW.

However, grid constraints for self-consumption units (formally, unlicensed power plants) may slow solar energy growth, the authors warned. The plan is to resolve the issue through capacity allocations for the segment. The increasing prevalence of renewable and hybrid power plants with storage will enhance system flexibility, SHURA added.

Electricity decarbonization plan costs USD 15 billion per year

Just transition plans for coal regions are critical, the think tank said. It estimated that decarbonizing the electricity sector by 2053 would require an average annual investment of USD 15 billion.

Decisions regarding fossil fuels made for security of supply reasons must be more carefully balanced with the net zero target, SHURA stressed. Temporary solutions risk creating a permanent deadlock, it underscored.

Focus switching to grid, flexibility

Turkey has reached a critical juncture in its energy transformation, according to the update. The authors commended the rise in capacity and new tenders and investments. Nevertheless, they claim the pace cannot be sustained without strengthening the grid, flexibility and implementation capacity, while implying expansion in storage, electrification and financing.

In the view of SHURA’s Steering Committee Chair Selahattin Hakman, energy transition should no longer be considered solely as a topic of climate policy, but rather in conjunction with geopolitical developments, security and economic resilience. Clean energy investments, particularly in solar and wind power, continue to grow despite increasing global uncertainties, he noted.

“In this new era, energy transition is defined at the intersection of geopolitical independence, economic resilience and social justice. Energy policies have transcended the boundaries of the environment and have become central to foreign policy, industrial strategy and trade policies,” Hakman stated.

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Kosovo’s* just energy transition: greening the Kingdom of Coal

Author: Tringë Shkodra

Kosovo’s* energy transition has great potential but key players such as small and medium-sized enterprises (SMEs) and young people are facing structural exclusion.

Our energy system is still heavily dependent on dirty fossil fuels and overburdened by frequent outages, reliance on imports, and growing costs, particularly during the winter when demand is at its highest and most households and businesses can no longer afford to pay energy bills. While infrastructure upgrades are essential, they are not enough. In order to succeed, this transition must be just, meaning it needs to be inclusive and rooted in the lived experiences of the people it aims to serve.

Understanding Kosovo’s* distinct socio-economic landscape, with the country having the youngest population in Europe as well as a large number of SMEs, is essential for addressing its development challenges and unlocking its potential.

SMEs form the backbone of the Kosovan* economy but get structurally excluded from accessing energy-saving practices. Many studies shed light on energy efficiency within Kosovo’s* private sector – particularly among SMEs, and show that these businesses face serious barriers to adopting sustainable practices. While larger firms are more likely to invest in energy-saving technologies, SMEs struggle with access to finance, lack awareness, and get minimal institutional support.

Businesses require energy efficiency for survival

Yet energy audits show that many could reduce consumption by up to 40% with low-cost interventions. This isn’t about reluctance, but structural exclusion. Energy efficiency, in this context, is not just a technical fix but a survival strategy for businesses.

With the right incentives, this sector can become a driver of Kosovo’s* green transition, creating jobs and fostering innovation.

Youth rarely invited to table

Another overlooked potential for Kosovo’s* energy transition are the youth. Over half of Kosovo’s* population is under the age of 30, yet their involvement in environmental governance remains limited. A study of youth participation in environmental and climatic concerns across ten municipalities of Kosovo* found that, while 63% of young respondents reported a strong desire to contribute to environmental policymaking, only 15% had ever participated in such processes.

Youth-led initiatives, innovation hubs, and climate advocacy networks are lacking institutional trust and real influence

This isn’t a lack of engagement; it’s again a lack of access. Youth-led initiatives, innovation hubs, and climate advocacy networks are already active, but they need to be met with institutional trust and real influence. The potential of our youth is vast – from engineers developing solar microgrids to community organizers shaping local green agendas. However, without inclusion, this potential remains untapped. We are ready to lead, but we are rarely invited to the table.

Dependence on lignite is cause of public health crisis

Advancing fundamental reforms aligned with European values is a prerequisite for sustainable development. This includes harmonizing structural reforms outlined in the Economic Reform Programmes (ERPs), strengthening the rule of law, and embedding the energy transition within the European Union’s broader green agenda. Kosovo’s* overreliance on lignite coal poses not only environmental but social risks, and the outdated mindset of living in the Kingdom of Coal clashes with the urgent need for a clean, secure, and just energy future.

Data from Riinvest Institute outlines clearly that over 90% of Kosovo’s* electricity is still produced from coal, while renewable energy accounts for less than 6%. This dependence is more than an economic liability – it is a public health crisis. Around 300,000 to 400,000 people live within 30 kilometers of lignite-fired power plants Kosovo A and Kosovo B, which lack modern emission controls.

Air pollution and outdated technology put thousands at risk every day. The urgency to diversify the energy mix isn’t only environmental – it is humanitarian. Energy, when approached with justice in mind, can become a tool for dignity and equal opportunity.

Despite a myriad of strategies and policy documents, Kosovo* has made only partial progress in aligning with EU energy and environmental standards. The Energy Community Annual Implementation Report (2024) shows that implementation across clusters such as decarbonization and energy security ranges from just 40% to 66%. True transformation demands more than technical upgrades as it requires institutional coordination, transparency, and strong evidence-based policymaking.

We are transitioning lives

In a recent conversation, a national energy expert put it simply: “We are not just transitioning technologies. We are transitioning lives.” A just energy transition must therefore encompass more than grid modernization or solar farms. It requires tailored policies – legislation that removes bureaucratic bottlenecks, the rollout of incentives for low-income households to adopt renewables, and clear pathways for communities to become prosumers.

Kosovo’s* policy frameworks, such as the forthcoming National Energy and Climate Plan and the renewable energy law, must be instruments of real transformation – practical, inclusive, and focused on impact.

Permitting procedures for renewables need to be simplified

To catalyze a just energy transition, the country requires comprehensive investments across its energy infrastructure while ensuring that reforms are socially inclusive and environmentally sound. This begins with diversifying the energy mix by prioritizing renewables – particularly solar and wind – through competitive auctions and de-risked investment environments that attract private sector participation. Kosovo* must simplify permitting procedures, build institutional expertise, and enhance the grid’s technical capacity to absorb renewable inputs.

Alongside infrastructure upgrades, investments are needed in energy efficiency for public and private buildings, especially given the country’s high winter heating demand and grid losses. Carbon-free heating solutions and retrofitting programs can help reduce both emissions and energy poverty, especially among vulnerable groups.

Subsidies must be designed for low-income households

Financing this transformation requires a blended approach – mobilizing domestic resources, securing grants from the EU and the United States, and leveraging international financial institutions through loans with state guarantees. But energy justice is not only about technology or money, it is about who benefits. Subsidies and support schemes must be designed for low-income households to participate in renewable adoption as consumers and prosumers.

A just transition brings inclusive growth and long-term climate resilience

Moreover, Kosovo* must link its investment strategies to broader social objectives, like upskilling labor for green jobs, protecting coal-reliant communities, and embedding equity and participation in every step of reform.

Kosovo* needs to make use of its strengths, and supports its young population, smaller enterprises and low-income households. Without an integrated approach, it risks reinforcing existing inequalities, but if it creates an energy transition that is just for the people, the country can turn its transition into a platform for inclusive growth, and long-term climate change resilience.

Tringe Shkodra Just Transition Young Voices Awards

* 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.
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IRENA: Global daily flexibility needs are quadrupling by 2050

In IRENA’s Planned Energy Scenario at the global level, electricity system flexibility needs on a daily timescale are four times higher in 2050 than in 2019. In the weekly and monthly timescales, the energy required for the purpose grows by three and 2.5 times, respectively. As for the 1.5°C Scenario, implying a much higher share of renewables, the daily flexibility needs jump ten times by mid-century, versus six times for both remaining segments.

Electrification of end-use energy, large-scale deployment of distributed energy resources and the emergence of large new electricity loads from data centres are increasing demand and adding new layers of complexity. It means power systems will need stronger grids and more flexibility to ensure that electricity is available when and where needed and at the lowest possible cost, the International Renewable Energy Agency (IRENA) pointed out in a brief called Flexibility for a secure and affordable power sector transformation.

Aside from buildings and transportation, new demand is coming from the growing adoption of artificial intelligence (AI), driving the expansion of data center capacity. In 2024, data centers consumed 1.5% of electricity. The International Energy Agency expects the share to double by 2030.

The share of variable renewable energy is increasing – wind and solar power in particular. Demand patterns become more complex, so the potential for mismatches between supply and demand is likely to grow, becoming more frequent and significant. It highlights the increasing importance of system flexibility. It is the capacity to respond to expected and unexpected fluctuations in the demand for and supply of electricity in a cost-effective manner.

Some forms of flexibility act automatically to keep the system stable, while others can be scheduled and operate over hours, days or even seasons

Insufficient system flexibility can result in excessive curtailment or, in market-based systems, negative electricity prices. It can also result in shortages, jeopardising the reliable supply of electricity.

System flexibility is needed by the power system to adjust to the variability of generation and demand patterns across different timescales. Some forms of flexibility act automatically within seconds to keep the system stable, while others can be scheduled in anticipation and operate over hours, days or even seasons, through market adjustments and operational and resource planning.

Network flexibility, which isn’t covered in IRENA’s brief, is different. It is the capacity to adjust for grid availability by means of preventing or solving congestion or voltage issues.

Required flexibility depends on numerous factors

In the timescale of seconds to minutes, flexibility is needed to maintain the balance during sudden changes in demand or supply, such as the
disconnection of an interconnector or a major load or generator. The hours and days timescale has daily ups and downs of solar and wind generation alongside the peaks and troughs in demand throughout the day.

In the weeks and seasons segment, flexibility enables covering longer weather patterns caused by changes in the season or low-wind periods. In power systems mainly supplied by renewables, flexibility is also needed at inter-annual timescales. The main factors are climate-driven variations in resource availability. It especially concerns hydrology, but also wind and solar, as well as year-to-year differences in seasonal heating and cooling demand.

In power systems mainly supplied by renewables, flexibility is also needed at inter-annual timescales

Flexibility is not a single asset or function; instead it corresponds to a capability provided by a portfolio of different technologies, operational practices and market mechanisms. The required level of flexibility in a power system depends on, among other factors, the prevailing generation mix, geography, power sector structure and affected timescales.

Storage, demand-side management (DSM), interconnections and dispatchable resources each contribute differently.

Advances in forecasting and the introduction of shorter dispatch intervals, scheduled closer to real-time operation, allow more frequent and precise adjustments of generation and demand before electricity is delivered. One example are intraday markets complementing day-ahead markets.

Electricity must become main energy carrier by mid-century to keep global warming in check

In IRENA’s 1.5°C Scenario, the energy transition will be driven by the deployment of renewable energy, improvements in energy efficiency and the electrification of end-use sectors. The aim is to limit global warming to 1.5 degrees Celsius by 2100.

Electricity would need to become the main energy carrier by 2050. It would account for over half of total final energy consumption. The 2022 level was 23%.

Global electricity generation is projected to be 36% higher in 2030 and three times higher in 2050 than in 2023. Renewable resources would supply 68% of electricity in 2030 and 91% in 2050. Renewables would account for 77% of total installed power capacity in 2030 and 94% in 2050.

In the same setting, 70% of electricity generated in 2050 comes from wind and photovoltaics, taken together. In IRENA’s Planned Energy Scenario, not projecting full decarbonization, the level is 53%.

In IRENA’s 1.5°C Scenario, the share of electricity in total final energy consumption more than doubles by 2050, surpassing 50%

Flexibility needs are calculated as total cumulated annual energy deviation from the average net load (which excludes variable renewable energy generation).

In the 1.5°C Scenario, the power sector requires ten times more flexibility in 2050 than in 2019 to manage the daily variability of net load. In terms of share of annual electricity demand, the authors observed a surge to 30% from 7%. Flexibility needs for managing the variability in weekly and monthly timescales are both six times higher.

In IRENA’s Planned Energy Scenario, daily flexibility needs in 2050 are four times higher. In the weekly timescale, the level triples from 2019, and the monthly item is 2.5 times higher.

IRENA Global daily flexibility needs quadrupling by 2050
Photo: The height of bars indicates flexibility requirements in terawatt-hours per year. Purple horizontal markers show flexibility needs as a percentage of annual electricity demand. (IRENA)

Batteries perform best in daily segment

Battery energy storage is the most effective in addressing daily flexibility needs, the report finds. It is only 24% as effective at meeting weekly needs and 12% as effective for monthly needs.

Interconnections and LDES are effective on the weekly and monthly scales

Interconnections are the most effective in addressing weekly flexibility needs, but also 98% as effective for monthly needs. As for the daily segment, the coverage is just 28%.

The numbers for long-duration energy storage (LDES) solutions are similar. Compared with addressing weekly flexibility needs, LDES is 90% as effective for monthly needs and 34% as effective in the daily item.