March 16, 2026
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Hydrological Deficit: Albania’s KESH Sees 2025 Production Plummet 22% Below Historical Average

Albania’s state-owned power utility, the Albanian Power Corporation (KESH), is grappling with a significant production shortfall as 2025 emerges as one of the driest years in recent history. According to official data, electricity generation from the Drin River Cascade fell 22% below the historical average, forcing the country to rely heavily on costly imports to meet domestic demand.

Climate Volatility Tests Energy Resilience

The Drin River Cascade comprising the Fierza, Koman, and Vau i Dejës hydropower plants serves as the backbone of Albania’s energy system. However, its total reliance on hydrology remains a structural vulnerability.

The 22% drop against the multi-year average underscores the increasing impact of climate variability on the Balkan energy landscape. While the historical average production serves as the benchmark for national energy planning, the lack of significant precipitation throughout 2025 has depleted reservoir levels, leaving the state utility with limited maneuverability.

Market Exposure and Economic Implications

The production deficit has immediate financial consequences. To ensure an uninterrupted supply for regulated consumers, Albania has been forced to turn to the international open market. This shift exposes the state budget to price volatility, as KESH must purchase electricity at market rates while selling it to domestic distributors at fixed, regulated prices.

Energy experts note that such “dry years” highlight the urgent need for Albania to diversify its energy portfolio. While solar and wind projects are currently in the pipeline, the current 2025 figures serve as a stark reminder that the country remains at the mercy of the weather.

Operational Strategy

In response to the low inflows, KESH has implemented a conservation strategy for the Fierza reservoir the country’s primary energy reserve to maintain technical safety levels and ensure a baseline of stability for the winter peak. However, without a significant shift in meteorological conditions, the deficit is expected to weigh heavily on the sector’s year end financial performance.

This 22% contraction is more than just a statistical dip, it is a call for accelerated investment in storage and alternative renewables. For a country that prides itself on “green” energy through hydro, the 2025 data proves that “green” is not always synonymous with “reliable” in an era of climate extremes. The government’s ability to manage this deficit without passing costs onto the end consumer will be the defining fiscal challenge for the energy sector this year.

January 15, 2026
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Slovenia again uses shortcut to meet national renewables target

Slovenia will purchase renewable energy from Croatia through a statistical transfer to meet its 2024 renewable energy target.

A statistical transfer is allowed at the European Union to help member states meet their national renewable energy targets. This will be the fourth time Slovenia has used this option in the 2020-2024 period.

Since 2020, the 25% goal for renewable energy’s share in gross final consumption has only been reached in 2023. The shortfall for 2024, when the share was 24.6%, will be covered by purchasing 207 GWh from Croatia for EUR 1.78 million, or EUR 8.60 per MWh, Žurnal24 reported.

The Czechs and Croats have benefited from Slovenia’s failure to reach the set goal

In 2020, Slovenia paid the Czech Republic EUR 5 million for a missing 465 MWh. The same country assisted it in 2021 as well, and the price for the service was EUR 2 million, for 208 MWh. According to the Ministry of Infrastructure, which was in charge of energy at the time, it did it to retain access to the EU’s Cohesion Fund for 2021-2027.

Slovenia paid the most in 2022, EUR 10.8 million for 1,193 MWh, to Croatia. In total, since 2020, nearly EUR 20 million has been spent on statistical transfers from the Czech Republic and Croatia.

EUR 20 million in total went to Czechia and Croatia

The government in Ljubljana covered the cost from renewable energy support funds, managed by electricity market operator Borzen.

The problem could become even bigger as the national target will increase to 33%

The Ministry of Environment, Climate and Energy attributed the failure to reach the 2024 goal to an increase in the consumption of fossil fuels.

It was 1 TWh higher than in 2023. However, the issue could get even worse. Slovenia faces new targets from 2030 on.

The minimum share set in the National Energy and Climate Plan (NECP) is 33%. It means that the share should increase by at least 1.6 percentage points per year on average over the next five years to avoid new payments.

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January 15, 2026
by in News

Slovenia again uses shortcut to meet national renewables target

Slovenia will purchase renewable energy from Croatia through a statistical transfer to meet its 2024 renewable energy target.

A statistical transfer is allowed at the European Union to help member states meet their national renewable energy targets. This will be the fourth time Slovenia has used this option in the 2020-2024 period.

Since 2020, the 25% goal for renewable energy’s share in gross final consumption has only been reached in 2023. The shortfall for 2024, when the share was 24.6%, will be covered by purchasing 207 GWh from Croatia for EUR 1.78 million, or EUR 8.60 per MWh, Žurnal24 reported.

The Czechs and Croats have benefited from Slovenia’s failure to reach the set goal

In 2020, Slovenia paid the Czech Republic EUR 5 million for a missing 465 MWh. The same country assisted it in 2021 as well, and the price for the service was EUR 2 million, for 208 MWh. According to the Ministry of Infrastructure, which was in charge of energy at the time, it did it to retain access to the EU’s Cohesion Fund for 2021-2027.

Slovenia paid the most in 2022, EUR 10.8 million for 1,193 MWh, to Croatia. In total, since 2020, nearly EUR 20 million has been spent on statistical transfers from the Czech Republic and Croatia.

EUR 20 million in total went to Czechia and Croatia

The government in Ljubljana covered the cost from renewable energy support funds, managed by electricity market operator Borzen.

The problem could become even bigger as the national target will increase to 33%

The Ministry of Environment, Climate and Energy attributed the failure to reach the 2024 goal to an increase in the consumption of fossil fuels.

It was 1 TWh higher than in 2023. However, the issue could get even worse. Slovenia faces new targets from 2030 on.

The minimum share set in the National Energy and Climate Plan (NECP) is 33%. It means that the share should increase by at least 1.6 percentage points per year on average over the next five years to avoid new payments.

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January 4, 2026
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EU4CAET project pre-selects 43 ideas for first renewable energy communities in BiH

A total of 43 project ideas from 28 local authorities for establishing the first renewable energy communities in Bosnia and Herzegovina have been pre-selected to receive assistance under the EU for Collective Action for Energy Transition project.

The EU for Collective Action for Energy Transition (EU4CAET) project is jointly financed by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ). Under the slogan ‘Together for Energy Transition,’ the EUR 3 million project is implemented by GIZ.

The initiative aims to empower local municipalities, citizens, and private actors to develop sustainable energy solutions that create jobs, improve energy efficiency, and advance climate goals, according to the EU Delegation to Bosnia and Herzegovina.

A total of 51 municipalities submitted 89 project ideas

In the project’s development phase, 51 municipalities submitted a total of 89 project ideas, such as solar power plants, heat pumps, biomass heating systems, public lighting upgrades, and electric vehicle charging stations.

The proposed projects also included kindergartens, youth centers, sports halls, theaters, health centers, and other public facilities. Following the evaluation, 28 local self-governments submitted their first concept notes, and 43 ideas were pre-selected.

“The final selection, based on detailed concept notes, is currently ongoing. The number of final projects will depend on the quality of submitted concepts and available funding under EU4CAET,” the Communication Office of the Delegation of the EU to BiH & EU Special Representative in BiH told Balkan Green Energy News.

The evaluation will begin in January 2026

The deadline for the pre-selected local authorities to submit their detailed concept notes was December 20. The evaluation of the submitted concepts will begin in January 2026.

Selected local authorities will be invited to present and discuss their ideas in more detail, according to the Communication Office.

The strongest concepts will receive assistance for capacity development, business planning, feasibility studies, and the preparation of technical design documentation.

The 28 municipalities pre-selected for further evaluation are as follows: Bijeljina, Bileća, Centar Sarajevo, Doboj, Donji Vakuf, Drvar, Goražde, Ilijaš, Kakanj, Kalesija, Laktaši, Maglaj, Milići, Modriča, Mostar, Novi Grad, Novi Travnik, Novo Sarajevo, Šamac, Sokolac, Srebrenica, Teslić, Travnik, Višegrad, Vogošća, Zenica, Živinice, and Zvornik.

BiH does not yet have renewable energy communities, but one of its two entities – the Republic of Srpska – managed to adopt the necessary regulations for their establishment in May this year, becoming the first in the region to do so.

Hahr: The grant call is planned for February 2026 and 2027

Mareike Hahr, Head of EU4CAET, said the project is now focused on tailored technical assistance to further refine the ideas and prepare high-quality applications for the grant call, planned for February 2026 and 2027.

“What has been particularly encouraging is the remarkable level of interest and readiness shown by local communities from both entities to ‘enter new terrain’—to propose their own project concepts, explore innovative solutions, and actively shape their energy future,” she explained.

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January 1, 2026
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EU4CAET project pre-selects 43 ideas for first renewable energy communities in BiH

A total of 43 project ideas from 28 local authorities for establishing the first renewable energy communities in Bosnia and Herzegovina have been pre-selected to receive assistance under the EU for Collective Action for Energy Transition project.

The EU for Collective Action for Energy Transition (EU4CAET) project is jointly financed by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ). Under the slogan ‘Together for Energy Transition,’ the EUR 3 million project is implemented by GIZ.

The initiative aims to empower local municipalities, citizens, and private actors to develop sustainable energy solutions that create jobs, improve energy efficiency, and advance climate goals, according to the EU Delegation to Bosnia and Herzegovina.

A total of 51 municipalities submitted 89 project ideas

In the project’s development phase, 51 municipalities submitted a total of 89 project ideas, such as solar power plants, heat pumps, biomass heating systems, public lighting upgrades, and electric vehicle charging stations.

The proposed projects also included kindergartens, youth centers, sports halls, theaters, health centers, and other public facilities. Following the evaluation, 28 local self-governments submitted their first concept notes, and 43 ideas were pre-selected.

“The final selection, based on detailed concept notes, is currently ongoing. The number of final projects will depend on the quality of submitted concepts and available funding under EU4CAET,” the Communication Office of the Delegation of the EU to BiH & EU Special Representative in BiH told Balkan Green Energy News.

The evaluation will begin in January 2026

The deadline for the pre-selected local authorities to submit their detailed concept notes was December 20. The evaluation of the submitted concepts will begin in January 2026.

Selected local authorities will be invited to present and discuss their ideas in more detail, according to the Communication Office.

The strongest concepts will receive assistance for capacity development, business planning, feasibility studies, and the preparation of technical design documentation.

The 28 municipalities pre-selected for further evaluation are as follows: Bijeljina, Bileća, Centar Sarajevo, Doboj, Donji Vakuf, Drvar, Goražde, Ilijaš, Kakanj, Kalesija, Laktaši, Maglaj, Milići, Modriča, Mostar, Novi Grad, Novi Travnik, Novo Sarajevo, Šamac, Sokolac, Srebrenica, Teslić, Travnik, Višegrad, Vogošća, Zenica, Živinice, and Zvornik.

BiH does not yet have renewable energy communities, but one of its two entities – the Republic of Srpska – managed to adopt the necessary regulations for their establishment in May this year, becoming the first in the region to do so.

Hahr: The grant call is planned for February 2026 and 2027

Mareike Hahr, Head of EU4CAET, said the project is now focused on tailored technical assistance to further refine the ideas and prepare high-quality applications for the grant call, planned for February 2026 and 2027.

“What has been particularly encouraging is the remarkable level of interest and readiness shown by local communities from both entities to ‘enter new terrain’—to propose their own project concepts, explore innovative solutions, and actively shape their energy future,” she explained.

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December 27, 2025
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ENNA kicks off installation of its first solar power plant outside of Croatia

Romanian ENEVO Group has started the construction of a solar power plant for Croatia-based ENNA Group.

The site for the 87.5 MW photovoltaic plant is 25 kilometers southwest of Romania’s capital Bucharest. It is ENNA Group’s first major investment outside of Croatia.

Installation began after an EPC contract was signed in November between PVP Cepheus, owned by ENNA Solar, which is part of ENNA Group, and Romanian Enevo Group, ENNA said.

The Giurgiu solar power plant will be built in the Mihăilești area on 93 hectares. The expected annual electricity production is 133 GWh, the company added.

The investment is part of ENNA’s ten-year plan

The plant’s commercial operation and power delivery to the grid are scheduled for the first quarter of 2027. It is an investment of around EUR 60 million, according to the update.

“We are extremely pleased to announce the start of construction of our solar power plant just a few months after taking over the project. It is also a confirmation that we have chosen very reliable partners,” ENNA Group CEO Boštjan Napast stressed.

With this investment, the company is proving its commitment to a ten-year business plan with planned investments of EUR 330 million in solar energy in Croatia and abroad, he explained.

Under the EPC contract, Enevo is responsible for the entire solar power project – design, procurement, and construction.

Bureau Veritas is in charge of supervision services

Enevo Group Technical Director Radu Brașoveanu said it supports the expansion of the ENNA Group into the Romanian renewable energy market with this strategic solar investment.

Bureau Veritas will be in charge of supervision services in line with FIDIC standards, ENNA added.

Of note, the project in Romania was acquired in April.

It is implemented by ENNA Solar, which is part of the energy division of the ENNA Group. The parent company said it has around 50 MW in operational renewable energy plants or advanced projects, as well as about 350 MW in various stages of development.

ENNA is developing two geothermal power projects – Zagocha (Slatina) and Babina Greda.

In addition to energy, the company operates in the logistics sector.

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December 27, 2025
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North Macedonia’s ESM secures loans for investments in solar, hydro

North Macedonia’s power utility Elektrani na Severna Makedonija has secured EUR 97 million for the installation of the Bitola 3 solar power plant and revitalization of hydropower plants.

Elektrani na Severna Makedonija (ESM) said today it signed the contracts for a state guarantee and loans totaling EUR 97 million for two major energy projects.

This is an important step in strengthening North Macedonia’s energy transition, ESM added.

The company received EUR 87 million for the construction of the largest photovoltaic plant, Bitola 3. KfW allocated EUR 50 million, and the European Bank for Reconstruction and Development approved EUR 37 million.

The Hydropower Plants Revitalization Project is estimated at EUR 47.3 million

Another EUR 10 million from KfW will support the revitalization of ESM’s hydropower plants (HPPs), ESM explained.

According to the utility, the Hydropower Plants Revitalization Project, estimated at EUR 47.3 million and supported by a EUR 10 million EU grant, will increase annual hydropower generation by 50 GWh.

The agreements were signed by Minister of Finance Gordana Dimitrieska-Kochoska, EBRD representative Fatih Türkmenoğlu, KfW’s director for Kosovo* and North Macedonia Moritz Remé, and ESM CEO Lazo Uzunchev.

The ceremony was attended by Prime Minister Hristijan Mickoski and Minister of Energy, Mining and Mineral Resources Sanja Božinovska.

Uzunčev: We will increase domestic renewable capacity by over 200 MW

“With these capital investments, together with ESM, we are strengthening domestic energy production, ensuring stable electricity supply, and fostering sustainable economic development,” Gordana Dimitrieska-Kochoska underscored.

According to ESM CEO Lazo Uzunčev, the company’s strategic goals are being implemented with strong momentum.

“With ongoing solar and wind projects, including Bitola 3, we will increase domestic renewable capacity by over 200 MW in the next two to three years, while reducing CO₂ emissions by more than 260,000 tons annually,” he stressed.

Petra Drexler, Ambassador of Germany to North Macedonia, recalled that over the last years, Germany and the EU have continuously supported North Macedonia on its path toward a sustainable and resilient energy future.

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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.
December 27, 2025
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Bislimoski urges ESM to pivot toward market procurement of electricity

State-owned power utility Elektrani na Severna Makedonija should make the most of the opportunities when prices on the power market are lower than its production costs, according to Marko Bislimoski, President of the Energy, Water Services and Municipal Waste Management Services Regulatory Commission of the Republic of North Macedonia (ERC or RKE).

​Marko Bislimoski doesn’t see the future of Elektrani na Severna Makedonija (ESM) only in production. He expressed the belief it should also be much more active in the wholesale and retail markets.

The mindset that ESM should only produce power should be abandoned, in his view.

In times when the price of electricity in the domestic and regional market is lower than its production price, it is much more logical for the company to buy it on the market, Bislimoski underlined.

This is going to reduce costs, he added.

ESM should purchase electricity when prices are lower than its costs as well as when the level is below the one at which it sells the energy to universal supplier EVN Home, Bislimoski pointed out. The firm is responsible for all households, among other categories.

North Macedonia’s solar power capacity has reached 1,200 MW

He recalled that solar power plants with a total capacity of 1,200 MW are installed in the country.

Their owners sell electricity on the market to other suppliers and traders, who then resell it to consumers.

If ESM offers them a fair price, it would have a stable and predictable cost structure in terms of purchasing and producing electricity, Bislimoski pointed out.

He noted that ESM imports coal and mixes it with domestic coal, which has caused an increase in its power production costs. In Bislimoski’s view the company can offer a fair price over a longer period, five to 10 years.

Solar power would save water in hydropower plant reservoirs and coal for thermal power plants

It would enable, especially in the summer and spring months, the purchase of electricity from domestic photovoltaic plants at a price that should be lower than EUR 65 per MWh, avoiding losses, according to Bislimoski.

Of note, the company has offered to supply electricity to EVN Home at a rate of EUR 65 per MWh for 2026.

Purchasing electricity from photovoltaic plants would allow saving water in hydropower plant reservoirs, and only one unit in the REK Bitola coal power would be required to work during some daily hours, Bislimoski concluded.

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December 16, 2025
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Slovenia draws up first climate vulnerability, risks assessment for energy sector

In cooperation with the Jožef Stefan Institute, the Ministry of the Environment, Climate and Energy has issued the first national assessment of climate vulnerability and risks for the energy sector. The analysis shows that the sector is moderately vulnerable under current climate conditions.

The main threats to the energy sector in Slovenia are floods, fires, storms, landslides, sleet and wet snow, heatwaves, and drought.

The assessment of climate vulnerability and risks for the energy sector was produced in line with the IPCC AR5 methodology and the national guidelines of the Faculty of Biotechnology.

The greatest threat to the energy sector are floods, which jeopardize fuel storage, substations, electricity distribution networks, and other elements of the supply chain, the ministry underscored.

The most important subsystem is liquid fuels

By using weighting and considering the current energy mix and the state of infrastructure, the most important subsystems for the functioning of the overall system are liquid fuels (34%) and electricity (33%), followed by natural gas (18%), solid fuels (10%), and heat (5%), the assessment reads.

This reflects a high dependence on imported liquid fuels and the key role of electricity in all consumption sectors, the ministry explained.
The overall weighted vulnerability score for the energy sector is 2.3 on a scale of one to five, with the electricity subsystem having the highest vulnerability, 2.6.

Electricity distribution grids, solar power plants, and fuel transport and logistic routes also show high vulnerability, according to the assessment.

Subsector ratings:

  • electricity subsector (2.6)
  • liquid fuel supply (2.2)
  • solid fuel supply (2.2)
  • natural gas supply (around 2.0)
  • heat supply (1.9)

Regarding individual elements of the sector, the most vulnerable are the electricity distribution network (3.5), electricity transmission system and imports (3), preparation of firewood, wood chips and pellets, and photovoltaic plants (3); vehicles/tanks for liquid fuels and vehicles/trucks for solid fuels, fuel stations, and other renewable energy sources (2.5).

The identified risks are expected to intensify in the future

The assessment reveals that Slovenia’s energy sector comprises critical elements whose failure could lead to significant supply disruptions.

It provides a technical basis and starting point for preparing a climate change adaptation strategy and for drafting measures such as strengthening infrastructure resilience, reviewing planning for new facilities, and incorporating climate risks into strategic documents and investment plans, according to the ministry.

Climate change scenarios indicate that the already identified risks will intensify in the future – especially floods, storms, and heatwaves.

The ministry said it would be necessary to implement adaptation measures to ensure a reliable energy supply.

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December 16, 2025
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Firms from Croatia, BiH, Serbia to build power line in North Macedonia

Croatia-based Dalekovod, Elnos from Bosnia and Herzegovina, and Serbian Kodar Energomontaža will jointly build electricity transmission infrastructure in North Macedonia.

Dalekovod said it signed a EUR 19.7 million contract with MEPSO, the transmission system operator of North Macedonia, as the lead member of a consortium that includes Elnos BL and Kodar Energomontaža.

The contracted works include the delivery and construction of a 400 kV power line from the 400/110 kV Bitola 2 substation, via the 400/110 kV Ohrid substation, to the North Macedonia – Albania border.

The project ensures long-term stability of the electricity system in the wider region

The new Ohrid substation is currently under construction, with Končar, another Croatian company, as contractor. Končar is the majority shareholder of Dalekovod since 2022.

The Croatian firm pointed out that the new power line in North Macedonia represents a significant infrastructure project ensuring long-term stability of the electricity system in the wider region.

Dalekovod: Strengthening position in the regional and European market

Construction is scheduled for completion by mid-2028.

Of note, all three companies are active on the territory of former Yugoslavia, as well as across Europe and even worldwide. The owners of Elnos and Kodar are individuals from Bosnia and Herzegovina and Serbia, respectively, while the largest shareholders of Dalekovod are the Government of Croatia and three foreign banks operating in the country.

Operations in the region, Europe, Africa

Dalekovod has subsidiaries in six countries, including Namibia. In October, the company concluded a EUR 100 million deal for the construction of a 400 kV power line in Sweden.

Elnos BL is part of Elnos Group based in Banja Luka, Bosnia and Herzegovina. The company, which recently marked a remarkable dual jubilee – 80 years of tradition and 30 years of modern business development, operates in 18 countries.

A week ago, it signed a contract with Power China Construction Group to build a connection to the transmission grid for the 300 MW Vetrozelena wind farm in Serbia.

Kodar Energomontaža, headquartered in Serbia’s capital Belgrade, has carried out numerous projects across Europe – from southeastern Balkans to Scandinavia, as well as in West Africa.

In March, the company inked a deal with Serbia’s transmission system operator Elektromreža Srbije (EMS) for the construction of a two-system 400 kV transmission line, part of the Trans-Balkan Electricity Corridor.

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