October 31, 2025
by in News

Serbia eyes last quarter of 2027 for power market coupling with EU – SEEPEX CEO

Serbia is targeting the last quarter of 2027 for coupling with the European Union’s single day-ahead market, Serbian power exchange SEEPEX’s Managing Director Miloš Mladenović said.

Miloš Mladenović was one of the speakers at the Energy Connectivity, Resilience and Security in Southeastern Europe panel at the 14th International Forum on Energy for Sustainable Development in Skopje.

He recalled that a few weeks ago, the European Commission finally published the governance for the verification process regarding the transposition of the Electricity Integration Package (EIP) for market coupling by the contracting parties of the Energy Community.

SEEPEX would try to reduce the required time

Also, he added, it would took up to six months starting from the new year to implement the Market Coupling Operator Integration Plan (MCO IP).

“I think that in the middle of next year, we can start with this famous 18 months, which is regular time to implement the single day-ahead coupling (SDAC),” Mladenović stressed.

He underlined that within the extended ADEX family, with EPEX Spot and the transmission system operators (TSOs), which are shareholders, they would try to reduce the required time at the market coupling steering committee.

“Our common goal now is to try to catch this time slot, the last quarter of 2027,” he stated.

Mladenović noted that it is usual to use the first quarter of a year for the single day-ahead coupling (SDAC), and the last quarter for single intraday coupling (SIDC).

SEEPEX plans to proceed with intraday coupling with Hungary

“I hope that we would have understanding within the nominated electricity market operators (NEMOs) and the TSOs community to catch this thing and to have this last quarter of 2027 as a time slot for SDAC coupling,” he explained.

After that, SEEPEX plans, in his words, to proceed with intraday coupling with Hungary.

He pointed out that a few days ago, SEEPEX received positive feedback from the Italian Border Working Table (IBWT) regarding its initiative to couple Serbia with Bulgaria.

Now the request will be provided to national regulators for a confirmation letter, he added.

“I hope that for all other neighboring contracting parties of the Energy Community, the Serbia-Hungary coupling could be a vehicle to speed up the process,” Mladenović asserted.

European Commission to allow acceleration of market coupling

Mladenović also highlighted the experience Serbia had with the legal and regulatory side of the coupling process. “I will put business and technical parts aside, because I’m sure that my colleagues, both the power exchanges and the TSOs, are ready to implement all that is needed for the coupling,” he added.

The legal and regulatory process is, in his words, very demanding, because there are 10 grid codes to be transposed to align all the rules with the country’s market rules, with the transmission codes and with the legal framework.

He expressed doubt that the neighboring countries could achieve such speed.

“It could be some joint request to the European Commission to try to make coupling processes parallel. We insisted on this from the beginning. I hope that our colleagues from the region will get the green light to implement the project even before the legal and regulatory framework are in place,” Mladenović stressed.

He said he believes that the Serbia-Hungary coupling and the future Serbia-Bulgaria coupling could be a shiny start, leading soon to the entire region’s coupling with the EU internal market.

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October 30, 2025
by in News

Renewable electricity should not be subject to EU’s CO2 import tax

The European Commission is collecting evidence to come up with solutions for unintended effects of the Carbon Border Adjustment Mechanism (CBAM) on renewable electricity in the Western Balkans, Director of the Energy Community Secretariat Artur Lorkowski pointed out in an interview with Balkan Green Energy News, as one of the most important developments in the sector. Boosting renewable energy development and trade with third countries such as the Western Balkans was supposed to be accelerated by the European Union’s CO2 import tax.

To reduce the payment obligations of EU importers under CBAM, the contracting parties in the region are planning carbon pricing systems, but under different models. The ultimate goal is eventually joining the EU Emissions Trading System, implying the need for coordination and cooperation between the governments in the process, Lorkowski stressed.

Looking back twenty years since the Energy Community Treaty was signed, it proved to be a successful format of cooperation, the Energy Community Secretariat Director Artur Lorkowski said. On the occasion of the anniversary, Balkan Green Energy News sat down with the head of the international organization to speak about the achievements and benefits for the contracting parties, and the remaining milestones that the Western Balkans need to reach in order to integrate with the EU’s energy union.

“Economic growth depends on energy security and fair pricing. There is visible progress in transformation, clearly seen from the 2024 figures. And the final element is the accelerated energy market integration with the EU, and this is what we can be really proud of,” Lorkowski asserted.

Among the segments with tangible improvements, he also highlighted the convergence on the wholesale gas and electricity markets. It is facilitating competitiveness in the Energy Community, the secretariat’s chief added.

Renewables capacity doubled in four years

Fossil fuels used to account for 60% of electricity production in the contracting parties five years ago, compared to 50% now, Lorkowski noted. The significant results in renewables except for large hydro are illustrated by the fact that the overall capacity in the segment has more than doubled between 2020 and 2024, he stressed. More importantly, the carbon footprint – the CO2 emissions per unit of the nominal gross domestic product, fell 11% last year alone.

CO2 emissions per unit of the nominal GDP fell 11% last year in the Energy Community

As for EU integration, electricity market coupling is progressing very well, as a good example, in Lorkowski’s view. The legislation is mostly aligned, so most countries are just waiting for the process to be concluded, the director of the Energy Community Secretariat explained.

“There are operating wholesale markets everywhere in the Western Balkans except in Bosnia and Herzegovina, which is about to adopt the required law. Serbia is at the forefront of that process. North Macedonia and Montenegro are very close, with small elements yet to be achieved. It is a non-reversible point, point of no return on a path towards EU integration,” Lorkowski said. He recalled that when capacity calculations regions (CCRs), operationalization and verification are cleared from the to-do list, it would take 18 months to join the EU’s market coupling project.

Electricity can be exempted from CBAM at later stage

Energy Community contracting parties may become eligible for exemption until 2030 from CBAM in electricity, if they meet the CBAM requirements. However, the EU is starting to charge the CO2 import tax already on January 1.

“I wish the contracting parties followed my messages from the Belgrade Energy Forum in 2023, because you might remember me saying that CBAM is coming and we have to prepare for that. But unfortunately, we have observed a lot of delays and hiccups in the preparatory process. Fair enough, this is the reality we have to face now – no country of the Energy Community will be exempted on 1 January 2026. But we can still work to be exempted at a later stage,” Lorkowski underscored.

Artur Lorkowski was a keynote speaker at Belgrade Energy Forum 2025, organized by Balkan Green Energy News

European Commission expected to clarify rules by end of year

The second part of the story is that CBAM, in addition to its intended impacts, especially on coal power, also has unintended impacts, Lorkowski explained. For example, electricity transit between EU member states through the contracting parties, in practice, may also be subject to the tax, even if it was not intended by the European legislators.

CBAM was intended to provide equal treatment for products produced inside and outside the EU when it comes to carbon payments. “Renewable energy, not being subject to the EU ETS, would – logically – not need to be subject to CBAM, but with the current rules, even EU off-takers with cross-border power purchase agreements (PPAs) may still be subject to payment obligations, as the implementing rules remain overly complex, effectively treating them in the same way as fossil fuel importers. These are real problems that stakeholders have been raising with us in our targeted outreach to power companies, traders, and other stakeholders both from the EU and Energy Community,” Lorkowski added.

Legislative efforts to further improve trade in renewables with the EU continue under the Energy Community

The Energy Community Ministerial Council reported it in Athens to the European Commission and asked it to find a solution.

Lorkowski said he expects the EU’s top executive body to soon issue implementing and delegated acts, by the end of 2025, clarifying the CBAM implementation rules, and to follow it up in 2026 with a targeted amendment proposal on electricity.

Legislative efforts to further improve trade in renewables with the EU continue under the Energy Community. “The European Commission has presented to the contracting parties a draft decision on the mutual recognition of guarantees of origin and is now awaiting their feedback. I hope that in 2026 we can have a decision. But it does not mean that the guarantees of origin can be used as the currency for paying the CBAM fee. That would require amending the CBAM legislation,” he stated.

Carbon pricing systems need to evolve toward matching EU ETS

For a potential reduction of CBAM payments in other areas as well – iron and steel, aluminum, fertilizers, cement and hydrogen – third countries need to introduce carbon pricing systems. Serbia recently drafted legislation for a CO2 tax and for a tax on imports of carbon-intensive products. It is a good step forward, according to Lorkowski.

“We expect each and every country to make a decision on the carbon pricing. All of the countries of the Energy Community, with the exception of Kosovo*, have communicated to the secretariat which model they will implement. And the models vary: from Serbia’s carbon tax to a domestic emissions trading system of Montenegro, which is already in place,” he revealed.

There is no uniform carbon pricing model for the Energy Community

Namely, the Energy Community Ministerial Council decided not to implement a uniform regional carbon pricing mechanism but opted for individual models. They should all be built with the perspective of aligning eventually with the EU Emissions Trading System (EU ETS), Lorkowski said.

“The key challenge now for the Energy Community is how to maintain the integrity of the electricity market between the contracting parties and the European Union after CBAM enters its definitive phase from next January. We need to figure out how to coordinate among the systems. It implies not only the existence of the domestic carbon markets, but also the cooperation within the region,” he pointed out.

Ministerial Council to announce way forward on carbon pricing coordination

The Ministerial Council is due to conclude on carbon pricing at its regular annual meeting in December, Lorkowski said.

“The three critical elements are how much the CO2 will cost, who will pay – which businesses and sectors are in scope – and when those carbon pricing systems will be introduced. They need to maintain the integrity of the market, the level playing field of the market, and avoid market distortions,” the top Energy Community official added.

Practical policies more important than coal phaseout dates alone

Turning to the coal phaseout, essential for the decarbonization of the economy, Lorkowski acknowledged the significance of political declarations such as the Sofia Declaration and commitments from the national energy and climate plans (NECPs).

“That said, it is critically important to anchor the actions for the future with practical policies. The decisions on the establishment of carbon pricing mechanisms are even more important. In addition, we should focus on monitoring, reporting and verification – MRV systems. The contracting parties need to identify emitters and measure quantities,” the director of the Energy Community Secretariat underscored.

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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.
October 30, 2025
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Energy Community’s CBAM Readiness Tracker: Western Balkans still far from exemption as full implementation nears

With less than three months remaining until the European Union’s Carbon Border Adjustment Mechanism (CBAM) is fully implemented, none of the Energy Community’s contracting parties has yet qualified for an exemption in the electricity segment, according to the 2025 CBAM Readiness Tracker. However, the Energy Community’s report suggests that efforts to meet the are gaining momentum, with Serbia, Moldova, North Macedonia, and Montenegro leading the way to market coupling with the EU, and almost all contracting parties planning to introduce carbon pricing.

These efforts signal a growing readiness across the Energy Community to turn CBAM into a catalyst for deeper regional energy market integration and decarbonization, according to the annual report.

“The progress reflected in this year’s tracker underlines that CBAM can drive – not deter – regional cooperation on the energy transition,” Energy Community Secretariat Director Artur Lorkowski stressed and added that the scheme should “serve as a bridge into the EU, not a barrier.”

Lorkowski: CBAM should serve as a bridge into the EU

Starting on January 1, 2026, the EU will charge fees on the CO2 emissions of goods imported from countries that don’t apply matching carbon pricing schemes. In addition to electricity, the carbon border tax will cover cement, iron and steel, aluminum, fertilizers, and hydrogen.

Serbia faces the highest exposure to CBAM costs

Estimates based on 2024 data show the CBAM exposure of EU electricity importers could reach around EUR 1.17 billion a year. Serbia accounts for the largest share, with an estimated EUR 612.5 million in annual CBAM costs, followed by North Macedonia, with about EUR 200 million, Montenegro, EUR 190 million, and Bosnia and Herzegovina, EUR 158 million. Moldova’s exposure is about EUR 6 million, while Albania, which has an electricity mix almost entirely dominated by renewables, faces no CBAM-related costs, according to the report.

The estimated average CBAM cost per megawatt-hour is EUR 33.14 for Moldova, EUR 59.71 for North Macedonia, EUR 62.45 for Montenegro, EUR 66.71 for Serbia, and EUR 73.37 for Bosnia and Herzegovina.

The criteria for a CBAM exemption for electricity include integrating the power market with the EU and introducing a carbon pricing system. A contracting party must also adopt EU regulations on energy, electricity, environment, and competition, increase the share of renewables in its energy mix to align with the EU’s 2030 targets, commit to climate neutrality by 2050 and submit a related roadmap to the EU, and implement measures to prevent indirect electricity imports from non-compliant countries.

Advances evident in emissions, renewables, and market coupling

The 2025 CBAM Readiness Tracker shows that last year alone, carbon intensity across the contracting parties’ power sectors fell by an average of 11%. At the same time, capacity from renewables, excluding large hydro, surged to 5.1 GW from 2 GW between 2020 and 2024. The expansion was driven almost entirely by solar and wind, helped by renewable energy auctions.

When it comes to electricity market integration, no contracting party has completed market coupling with the EU. However, Serbia, Moldova, North Macedonia, and Montenegro are approaching a “point of no return,” which represents a full transposition of EU regulations relevant for market coupling, according to the tracker.

The energy transition unfolding across the Energy Community contracting parties is both tangible and measurable, Adam Cwetsch, Head of the Green Deal Unit at the Energy Community Secretariat, told Balkan Green Energy News. “Carbon intensity in electricity production and economic output continues to fall, while renewable energy deployment accelerates through competitive auctions. This progress reflects a clear commitment to European decarbonisation goals and lays the foundation for deeper energy market integration and long-term climate neutrality,” he stressed.

The secretariat remains committed to ensuring the process continues smoothly – without obstacles from possible unintended impacts of CBAM, Cwetsch said.

Even though no contracting party has introduced a carbon pricing instrument for electricity, almost all of them have outlined plans to establish domestic systems that reflect their specific circumstances.

“This is a crucial step toward alignment with the EU’s carbon pricing framework under CBAM. The rollout of monitoring, reporting, and verification systems across the region is laying the groundwork for implementation and demonstrates growing readiness and credibility, even as timelines remain tight and challenges persist,” Cwetsch stated.

Available carbon pricing models are carbon taxes, ETS and a combination of the two

The available models are a carbon tax, an emissions trading system (ETS), and a hybrid version. The only contracting party that has no plans to introduce carbon pricing is Kosovo*, according to the report.

All contracting parties have concluded agreements to apply EU law in the fields of energy, electricity (including renewable energy), the environment, and competition. In each of them, the implementation of renewable energy legislation is either underway or showing visible progress, the report shows.

No Western Balkan country has included the EU’s 2050 climate goals into national legislation

On the other hand, Ukraine and Moldova are the only ones that have included the 2050 climate neutrality objective in national legislation, while no contracting party has submitted a corresponding roadmap to the EU.

Another requirement that no one has yet fulfilled is the establishment of an effective system to prevent indirect import of electricity into the EU from other third countries or territories that do not meet the CBAM exemption criteria for electricity.

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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.
October 9, 2025
by in News

Voice from beyond the centre

Balkan Green Energy News, the media partner of the 2025 Just Transition Young Voices Awards, is publishing the three winning articles. The Energy Community Secretariat organized the contest in collaboration with Bankwatch, CAN Europe, the CLEW Network, and the Regional Youth Cooperation Office. The aim is to promote young adults set to shape the climate, energy, and social landscape in the years ahead in the Energy Community region. 

Author: Ani Gogokhia

It is the summer of 2045  – unusually hot compared to previous years – but the unbearable heat is not the only problem. I wake up in my small apartment in western Georgia, open the window, and immediately see clouds of exhaust fumes. For me, this is just another part of everyday life.

After a quick breakfast, I step outside for a short walk to wake myself up. The buildings in the city are the only things that remain unchanged. The number of people on the streets is declining. I feel lonely – most of my peers have either moved to the capital, Tbilisi, or left for European countries.

Thinking of them inevitably leads me to reflect on my own career path. Unfortunately, I haven’t had the opportunity to make a meaningful impact in my region.

Not much choice for young woman

With those thoughts weighing on me, I walk quickly to my first job. I call it my first job because I’ll head to another one later in the afternoon. The commute is long, and public transport only slows me down – so I walk. As I pass the local market, I see vendors, most of them women, standing in the scorching sun.

My job is house cleaning. The pay is just enough to cover groceries and utility bills, but with the cost of living rising daily, I rush to a second cleaning job in the afternoon. Floors, windows, walls – it’s all the same. If you wonder why I chose this line of work, the answer is simple: there wasn’t much choice, especially for a young woman.

The scenario described above could become a regular part of life if we halt progress toward a just transition and neglect it

There’s little to say about the workday. I return home as the sun begins to set, carrying groceries in both hands. As I unpack, I wait for my family. Everyone works – my mother and father in a factory, and my sister at a hospital. We gather for dinner and talk about current events: rising tensions, protests over low wages, unemployment, and deepening poverty.

But these conversations always end the same way – with my mother’s cancer. She developed the disease after years of exposure to harmful substances at the factory, yet she still can’t stop working. We simply can’t afford her treatment otherwise.

The scenario described above could become a regular part of life if we halt progress toward a just transition and neglect it. For the energy transition to be truly just, it must include rural areas, too, creating fair opportunities for people across Georgia.

A just transition refers to a series of policies that ensure fair and equal opportunities for everyone as we shift to a greener economy in the fight against climate change. It’s a process meant to align energy systems with modern, sustainable standards. Local governments play a vital role, though many factors – such as geography and ethnicity – can affect how smoothly this transition occurs.

Just transition in Georgia

Georgia is working to stay aligned with global green trends through international cooperation. Hydropower dominates its energy sector, but the country is slowly incorporating wind and solar systems. Since joining the Energy Community in 2017, Georgia has made notable strides toward harmonizing its legislation with the European Union’s energy standards.

This alignment has attracted major investments in renewable energy. Projects like the Kartli wind farm and a national roadmap for a circular economy – supported by the EU4Environment program – are steps in the right direction.

The city of Zugdidi is among the trailblazers in Georgia in the energy efficiency segment, youth engagement and environmental education

These national achievements are significant, but what about rural areas far from the capital? Each region presents unique challenges and opportunities in the just transition. In western Georgia, Zugdidi has started participating in this process. Although large-scale renewable projects remain concentrated elsewhere, the city has seen pilot initiatives in energy efficiency, youth engagement, and environmental education supported by the EU.

The rural development programs of the United Nations Development Programme (UNDP) in Zugdidi focus on inclusive economic participation, especially for youth, and promote eco-tourism and sustainable agriculture to curb outward migration. One noteworthy initiative involved using hazelnut shells to heat school greenhouses – a clever use of a crop central to local livelihoods. Educational projects and international partnerships have also helped raise awareness about the green economy, yet challenges remain.

Chiatura craves economic diversification away from mining

Take, for example, Chiatura – a mining town east of Zugdidi, known for its manganese industry since Soviet times. Chiatura’s economy has long depended on mining, with consequences such as environmental degradation, poor working conditions, and economic stagnation when mining activity declines. Without economic diversification, residents remain vulnerable and largely excluded from sustainable development benefits.

In 2024, Georgian news outlets reported: “The hunger strike entered its 22nd day on July 10, involving eight miners, three of whom have sewn their mouths shut.“ The unrest stems from decisions to shut down underground mining operations, leaving workers desperate and uncertain about their futures.

While Zugdidi explores decentralized, eco-friendly solutions like biomass heating, Chiatura still lags in implementing alternatives – clean industries, green technologies, or renewable energy – deepening the divide between regions.

Youth massively moving to capital Tbilisi

Unfortunately, Georgia’s development remains overly centralized. Most opportunities are clustered in Tbilisi, causing a massive youth outflow from other regions into the capital.

Geographic and infrastructural limitations in rural and mountainous areas also pose serious barriers. For example, eastern Georgia has high solar radiation – perfect for photovoltaic panels – but varied terrain complicates installation. Wind energy prospects are greater in the east, as western regions are less windy.

A just transition also demands inclusive participation, especially from women. As of 2024, women make up just 28% of the global STEM (science, technology, engineering and mathematics) workforce – a glaring underrepresentation. In Georgia, the meaningful inclusion of women in the just transition remains a significant challenge. Empowering women – politically, economically, and socially – is key.

A difficult past marked by political instability and conflict has left its mark, but the more women engage in public life, the greater their chances of economic empowerment, entry into traditionally male-dominated professions and establishing decent place in economy.

What must be done

While Georgia has made substantial headway towards its climate goals, it is key for the country to create a unified national policy that addresses all regions equitably. We need robust educational campaigns, targeted support for rural areas, and most importantly, greater inclusion of women and minority groups in the just transition.

Only then can we build a fair, resilient society capable of meeting the challenges of the 21st century.

Photo: Just Transition Young Voices Awards
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October 8, 2025
by in News

Powering the Future with Sustainable Energy – North Macedonia to host 14-IFESD forum on October 28-30

Over 300 officials, policymakers, experts, business leaders, scholars and civil society representatives are gathering in Skopje on October 28 at the three-day International Forum on Energy for Sustainable Development (14-IFESD). Key topics include energy connectivity, energy security, a just energy transition and international energy cooperation.

The 14th International Forum on Energy for Sustainable Development (14-IFESD) will be held from October 28 to 30 at the Hotel Holiday Inn Skopje in North Macedonia. This year’s theme, From Goals to Action: Powering the Future with Sustainable Energy, will guide discussions among more than 300 participants, including officials, policymakers, energy experts, business leaders, scholars and civil society representatives.

They will discuss critical topics such as energy connectivity, energy security, just energy transition, international energy cooperation and collective efforts to accelerate the implementation of the United Nations 2030 Agenda for Sustainable Development.

The forum will serve as a platform for shaping actionable strategies to accelerate progress toward global sustainable energy goals

The Ministry of Energy, Mining and Mineral Resources is organizing the event in collaboration with the UN Development Programme (UNDP) Country Office in North Macedonia and the five regional commissions: UN Economic Commission for Europe (UNECE), UN Economic and Social Commission for Asia and the Pacific (UNESCAP), UN Economic Commission for Latin America and the Caribbean (UNECLAC), UN Economic Commission for Africa (UNECA) and Economic and Social Commission for Western Asia (ESCWA).

Last year’s IFESD was held in Bangkok.

The speakers list includes Prime Minister Hristijan Mickoski, Minister of Energy, Mining and Mineral Resources Sanja Božinovska, Energy Community Secretariat Director Artur Lorkowski and Minister of Energy and Mining of Montenegro Admir Šahmanović.

The forum will serve as a platform for shaping actionable strategies to accelerate progress toward global sustainable energy goals, the organizers said.

One of the segments on the first day of 14-IFESD is dedicated to opportunities for the mitigation of methane emissions from the coal sector. It will take place in a hybrid format – onsite and online.

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August 21, 2025
by in News

Winners of 2025 Just Transition Young Voices Awards revealed

Tringë Shkodra, Ani Gogokhia, and Kateryna Pereloma have been announced as the winners of the 2025 Just Transition Young Voices Awards. The award was created to amplify the voices of young adults under 30 who are set to shape the region’s climate, energy, and social landscape in the years ahead. It is organized by the Energy Community Secretariat in collaboration with Bankwatch, CAN Europe, the CLEW Network, and the Regional Youth Cooperation Office, with Balkan Green Energy News serving as the media partner.

Young people aged 18-30 across Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia, Moldova, Georgia, and Ukraine had the opportunity to submit their original, fact-based articles that explore how their communities are navigating the shift away from fossil fuels. Recognizing that youth are essential agents of change, the 2025 Just Transition Young Voices Awards aimed to provide a platform for creative and solution-oriented journalism addressing the challenges and opportunities of a just transition.

“Across South East and Eastern Europe, the energy transition will succeed only if it is inclusive and regionally connected. The voices of young people are central to that effort, and this award shows the depth of talent and commitment they bring”, said jury member Marta Schulte-Fischedick, from the Energy Community’s Green Deal Unit.

The winning stories highlight the opportunities of the green transition while tackling its complex challenges, from unequal access to clean energy to the impacts of war, migration, and poverty. Together, they reflect how communities across South East Europe are striving to build sustainable and resilient energy systems in fair and inclusive ways.

The winning stories highlight the opportunities of the green transition while tackling its complex challenges

Tringë Shkodra (26, Kosovo*) won the first award, a paid one-month internship with the Energy Community Secretariat. Her article focuses on Kosovo’s just energy transition and the shift away from coal. She traces its reliance on lignite as an environmental liability, public health and social justice crisis, calling for faster, more inclusive reforms that empower youth.

The second award went to Ani Gogokhia (18, Georgia) for her personal story, which highlights how everyday challenges related to low salaries, migration, pollution, and health issues reflect the dangers of an inequitable energy transition in Georgia. She will receive a fully funded opportunity for a fact-finding mission on energy transformation in the Western Balkans with Bankwatch.

Kateryna Pereloma (22, Ukraine) came in third for her report from Kyiv. She documented how communities are responding to the war by embracing sustainability through solar energy, recycling, urban gardening, green startups, and youth-led initiatives. Her award is to participate in the Training for Journalists on Climate Disinformation in the Western Balkans, hosted by CAN Europe in Ohrid, North Macedonia, this September.

The winning pieces will be published on Balkan Green Energy News and other partner platforms.

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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.
July 25, 2025
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Belgrade in focus: challenges and solutions for sustainable urban development

Author: Ivan Gazdić, Attorney at Law and Partner at Petrikić & Partneri AOD in cooperation with CMS Reich-Rohrwig Hainz

For many years, Belgrade has struggled with long-standing urban, infrastructural and environmental challenges that have impeded its progress towards sustainable development in accordance with the standards of contemporary European cities. The main obstacles to Belgrade’s urban advancement include poorly regulated construction, persistent traffic congestion, high levels of air pollution and a chronic lack of green spaces. To reach the level of cities like Vienna or Paris, Belgrade should undertake systemic reforms, establish a clear development strategy, and ensure more decisive action by the city authorities.

An analysis of the current situation reveals that Belgrade holds significant potential for transformation. This ranges from preserving its cultural heritage and implementing coordinated development in the city centre to introducing sustainable mobility solutions tailored to pedestrians and cyclists. Further opportunities lie in investing in green initiatives and developing affordable housing, drawing on best practices from across Europe. Nevertheless, without a more robust city budget and stronger support from both experts and the wider public, these ambitions risk remaining little more than aspirations.

Architectural identity of Belgrade: between heritage preservation and modern development

Achieving sustainable urban development in Belgrade requires a careful balance between modern construction and the preservation of historical architecture. Areas featuring buildings from the late 19th and early 20th centuries – structures that form the bedrock of Belgrade’s cultural heritage and architectural identity – are particularly vulnerable.

Among the architectural styles of this period, academism stands out as especially prominent. Its defining features – symmetry, monumentality and richly decorated façades – have left a lasting imprint on the city’s visual and cultural character. The National Theatre and the National Museum are among the most distinguished examples of academic architecture in Belgrade, and the city’s main cultural landmarks at the Republic Square (Trg Republike), one of the city centre’s most significant urban spaces.

The new opera house could be designed to incorporate elements of academism

For these reasons, any new development in the central urban zones needs to be approached with great care and fully harmonised with the historical context.

One notable proposal in recent years is the construction of a landmark opera house on the site of the current Staklenac shopping centre at the Republic Square. Given the enduring popularity of the historicist and decorative styles among Belgrade residents, the new opera house could be designed to incorporate elements of academism.

Such an approach would not only ensure architectural coherence with the National Theatre, but would also create a direct aesthetic and cultural link to the era when the idea of building an opera house in Belgrade was first seriously considered.

Opera (photo: AI-generated illustration – OpenAI, 2025)

However, it is important to emphasise that preserving Belgrade’s identity does not mean relying solely on historical architectural styles. Contemporary Serbian architecture is equally important for maintaining the authenticity of the city’s urban fabric and adapting it to modern needs.

To fully harness this potential, the city should continuously promote local architects through regular public competitions, professional exhibitions, and the implementation of the most successful proposals – following the model of established European architectural practices. Initiatives such as BINA and mandatory architectural competitions create opportunities for innovation and give young architects in Belgrade a chance to shape the city’s contemporary architectural identity.

Mia Dorćol, an award-winning project of the Zabriskie studio, one of the notable examples of contemporary architecture in Belgrade (photo: zabriskie.rs/Ilya Ivanov)

One of the most notable examples of successful public architectural competitions in Serbia was the international competition held in 2021 for the new Belgrade Philharmonic building at Ušće, organised by the United Nations Development Programme (UNDP) and the Government of Serbia.

The winning proposal, by London-based Amanda Levete Architects (AL_A), envisioned a concert hall without a defined front or back façade, allowing for seamless integration with the landscape of Ušće Park and the Danube River. Architect Amanda Levete described the project as “an expression of harmony between nature, architecture and music”, emphasising the need to “bring nature back into our cities to make them greener and more beautiful places”.

In line with this vision, the design features a green roof and landscaping with native tree species. The new Philharmonic building thus stands as an example of sustainable and contemporary architecture in Belgrade. However, despite receiving positive evaluations from the professional community, the project has been delayed due to uncertain funding and administrative hurdles relating to the building permit.

Future Belgrade Philharmonic building, integrated into the Ušće Park landscape (render: AL_A/Zabriskie Studio)

Unfortunately, the opportunity to showcase contemporary domestic architecture through the Belgrade Waterfront project appears to have been missed. The project has frequently been criticised for its lack of alignment with the urban and cultural context of Belgrade. According to many architects, it prioritises spectacle and commercial appeal over authenticity, failing to reflect the spirit of Belgrade’s urban culture.

It draws neither from the architectural language of Belgrade academism nor from the legacy of socialist modernism in New Belgrade, instead adopting the global International Style – a contemporary architectural trend that heavily favours glass and steel, with little regard for local or historical references.

Given the growing disconnect between new construction and the historical character of central Belgrade, establishing a professional body to oversee architectural standards in the inner city seems increasingly necessary. Composed of architects and art historians, such a body would be empowered to review new projects and reject or condition those that are not appropriate for the historic urban core of the capital.

Terazije as the Times Square of Belgrade

Walking through Terazije in Belgrade, it’s hard not to notice the Albania Palace – a building that has stood as a symbol of modern architecture in the capital for decades. Interestingly, before the Second World War, there was a plan to build Mitić’s Palace, intended for a different location but never realised. However, when we look at the architectural drawings of Mitić’s Palace, the resemblance to Albania Palace is striking, allowing us to imagine what Albania might have looked like had it been built with a few additional floors.

Mitić’s Palace, an excerpt from the newspaper Vreme, 10 November 1940, p. 5 (digitised by the University Library Svetozar Marković)

In her text on the history of the building, Milica Ceranić notes that architect Ivan Zdravković once remarked that the Albania Palace appeared somewhat unbalanced – as if something were missing from the top. The idea of upgrading the building was considered in the late 1980s, when architect Branko Bon proposed adding several floors to make the structure “more graceful and less squat”.

With careful planning and respect for heritage preservation guidelines, such an upgrade could one day restore the building’s lost prominence, which was diminished by the construction of taller surrounding buildings in the second half of the 20th century. It could also help reshape the modern image of Terazije as a lively urban square in Belgrade – echoing the energy of major public squares around the world.

Why Belgrade isn’t a city for cyclists – and why it needs to become one

Traffic and mobility remain among key unresolved urban issues in Belgrade. The lack of a developed cycling infrastructure, combined with an overburdened public transportation system, is recognised as one of the main factors contributing to traffic congestion and increased air pollution. Introducing safe, physically separated bike lanes in the capital would not only improve road safety but also encourage broader use of bicycles as a means of transport.

Following the construction of a network of physically separated bike lanes in Seville, the number of bike trips rose by more than 400%, while the risk of traffic accidents per trip dropped by around 60%. In Belgrade, where cyclists often ride on pavements due to the lack of space on the roads, the need for the planned development of safe and separate bike infrastructure is becoming increasingly clear.

A cyclist in Paris near the Eiffel Tower, 2025 (photo: © Olivier DJIANN/iStock)

In central Belgrade, heavy traffic congestion is often caused by vehicles parked on pavements and a chronic shortage of garages, while pedestrian zones are limited to just a few streets – such as Knez Mihailova, Obilićev Venac and Topličin Venac.

Experts have long emphasised the need to expand pedestrian zones in Belgrade, which is standard practice in well-organised European cities. Instead of serving as a pedestrian zone and an attractive tourist destination, Kosančićev Venac, the oldest preserved historical area in Belgrade, has been left to traffic chaos and is clogged with parked cars every day.

Prioritising infrastructure that supports sustainable mobility is no longer just a matter of urban planning – it is a question of public health and the city’s long-term resilience

Recently, Paris held a referendum approving the gradual closure of 500 additional streets to traffic and a 10% reduction in parking, significantly decreasing the number of cars in the city centre. At the same time, the Paris city administration is investing in the creation of new parks and the expansion of green areas in urban neighbourhoods, accompanied by a strong public push for streets to be shared more fairly and adapted to the needs of pedestrians and cyclists.

In addition to enhancing safety and accessibility for pedestrians and cyclists, investing in new infrastructure plays a vital role in protecting the environment. Encouraging alternative modes of transport, such as cycling and walking, helps reduce car dependency, leading to lower emissions of harmful pollutants that significantly degrade air quality in Belgrade.

Cities like Copenhagen and Amsterdam, which have consistently invested in pedestrian-friendly and cycling infrastructure, report noticeably lower pollution levels and a higher quality of life for their residents. With air pollution episodes becoming increasingly frequent in Belgrade, prioritising infrastructure that supports sustainable mobility is no longer just a matter of urban planning – it is a question of public health and the city’s long-term resilience.

Energy efficiency and urban sustainability in Belgrade

  • nZEB and ZEB standards: EU regulations and Serbia’s position

Energy efficiency is a cornerstone of the European Union’s climate and energy policy. Under the revised Energy Performance of Buildings Directive (EPBD), all new buildings in the EU must meet near-zero energy building (nZEB) standards, while existing buildings are to be systematically renovated to reduce both energy consumption and greenhouse gas emissions.

The Fit for 55 package has raised the bar even higher: by 2030, the EU aims to reduce overall greenhouse gas emissions by at least 55% compared to 1990 levels, with the building sector expected to play a key role in achieving this target.

nZEB standards are still not clearly defined at the national level

The most recent revision of the EPBD stipulates that, beginning on 1 January 2028, all newly constructed public buildings must comply with the Zero‑Emission Building (ZEB) standard. Starting on 1 January 2030, this requirement extends to all new buildings – both residential and non‑residential. ZEBs must feature extremely high energy performance, produce zero on-site carbon emissions from fossil fuels, and ensure that any remaining energy demand is met exclusively through renewable energy sources (on-site, nearby, or via district systems).

As a contracting party to the Energy Community and a candidate for EU membership, Serbia is required to gradually align its national legislation with EU regulations. However, nZEB standards are still not clearly defined at the national level, and to date, no public building in Serbia has been constructed according to these criteria.

  • National project for nearly zero-energy buildings: Belgrade among participating cities

The Nearly Zero-Energy Buildings in Serbia project, launched at the end of 2023, has a total budget of EUR 77.68 million – EUR 50 million in concessional loans from KfW and EUR 27.68 million in grants provided by the EU, the German government, REEP and IPA funds. The project consists of three components: the energy rehabilitation of approximately 35 public buildings, the installation of solar panels on around 125 buildings, and the pilot construction of one or two buildings in line with the nZEB standard.

Implementation is scheduled to continue until February 2026, with expected energy savings of at least 40% and an overall annual reduction in CO₂ emissions of around 11,750 tonnes (6,900 tonnes through building rehabilitation and 4,850 tonnes through solar panel installation). So far, teams and working groups have been established to identify the buildings to be included, while public calls and the start of construction work are expected in 2025. The locations and building types planned under the nZEB pilot component have not yet been disclosed, indicating that this part of the project is still in the preparatory phase.

  • International support for energy efficiency: 30 public buildings in Belgrade undergoing renovation

In 2024, two major energy renovation projects for public buildings were launched in Belgrade, with a combined value exceeding EUR 50 million.

The first project involves the rehabilitation of 26 state-owned buildings – including the Palace of Serbia and the Institute for the Improvement of Education – with support from the Council of Europe Development Bank (CEB) and UNDP. Completion is planned for 2027. The upgrades include window and door replacement, thermal insulation, LED lighting and other energy efficiency measures, along with the integration of renewable energy sources. These improvements are expected to reduce energy consumption by 36–50%, lower CO₂ emissions by around 45%, and generate average annual savings of EUR 10,000 per facility.

At the same time, the project “EU and EBRD for Energy Efficiency in Belgrade” is underway, targeting four municipal institutions: the Belgrade City Library, the Student Polyclinic, the Student Hospital, and the Institute for Emergency Medical Assistance. The EU has allocated EUR 11 million in grants, while the EBRD has provided an additional EUR 5 million in loans. Similar renovation measures are expected to deliver energy savings of 46–86% and reduce CO₂ emissions by 41–74%. The tender was announced in May 2023, and construction began in May 2024, with completion expected by 2026.

  • Belgrade without a fund, but relying on temporary solutions for residential building renovation

More than 85% of existing residential buildings in Serbia remain energy inefficient. The previously announced city fund for improving energy efficiency – intended to support window and door replacement, façade insulation and heating system upgrades – never came to fruition in its intended form. Instead, the City of Belgrade adopted an alternative model: periodic public calls for awarding subsidies for construction or renovation works, or loans for housing associations.

However, a fund based on the revolving principle would offer a more sustainable solution to the long-term challenge of deteriorating buildings. Initially financed through the city budget and donor contributions and later replenished via user repayments through public utility company Infostan (the City of Belgrade’s consolidated billing and collection of utility services), such a model would enable continuous reinvestment in new projects. This would create a stable, transparent and self-sustaining financing system, with a significantly lower risk of misuse compared to current subsidy schemes and individual loan arrangements.

The Fund for the Improvement of Energy Efficiency in Serbia exists within the legal and strategic framework, but it has yet to be fully institutionalised

At the national level, the Fund for the Improvement of Energy Efficiency in Serbia exists within the legal and strategic framework, but it has yet to be fully institutionalised or to function as an independent operational body.

Currently, funding for energy efficiency is provided through alternative mechanisms – such as public calls from the Ministry of Mining and Energy, local co-financing programmes and international projects. Still, it is expected that the fund will be formally established in the coming years and begin operating at full capacity, aligned with European standards and the goals of sustainable development.

The untapped potential of Belgrade’s rivers: still no wastewater treatment plants

Revitalising the rivers and opening access to the banks of the Sava and the Danube for recreational use would significantly enhance quality of life and boost Belgrade’s tourism appeal. Many European cities have transformed previously neglected riverbanks into vibrant public spaces – a notable example being Madrid’s Madrid Río, a ten-kilometre green oasis created by burying the highway along the Manzanares River and adding walking paths, sports fields, playgrounds and even sandy beaches.

In July 2025, Paris broke a century‑long precedent by officially reopening the Seine to swimming for the first time since 1923, following a EUR 1.4 billion cleanup ahead of the 2024 Olympic Games.

Meanwhile, Zagreb, Budapest and Prague have already built or modernised large facilities for municipal wastewater treatment, yet Belgrade still has over one hundred direct discharges flowing freely into the Sava and the Danube – without any purification. Estimates show that a complete system of sewage collectors and the construction of five wastewater treatment plants would require at least EUR 1 billion to EUR 1.5 billion.

The government signed commercial contracts worth EUR 3.2 billion with Chinese company CRBC

Although the construction of the main wastewater treatment plant in Veliko Selo is included in the national Clean Serbia programme, the method of financing and the exact scope of work have yet to be clearly defined.

Official sources confirm that EU grants were also considered for projects such as the Belgrade wastewater treatment plant (which Serbia uses, but which, according to available reports and assessments by relevant institutions, are insufficient for investments of this scale). Instead, at the end of 2021, the government signed commercial contracts worth EUR 3.2 billion with Chinese company CRBC (financed through a Chinese loan) for the Clean Serbia programme, aimed at building a sewage network and wastewater treatment plants in 65 municipalities at 73 locations across the country, including parts of Belgrade.

Shortage of green spaces: Belgrade falls short of WHO recommendations

According to the World Health Organization (WHO), Belgrade does not have enough green space per capita. This underscores the urgent need for systematic approach to urban planning that focuses on expanding parks and green areas, as well as ensuring more regular and higher-quality maintenance of existing greenery. Rather than relying on an ad hoc approach, the city needs a long-term strategy to increase green space per resident and enhance the overall quality of urban life.

Belgrade is experiencing a declining trend in green space per capita – citywide estimates range between 14 and 20 m² per person, while in central municipalities such as Vračar, that figure drops to just 2 to 3 m². This is significantly below the WHO’s recommended minimum of 9 m² per person, and even further from its ideal benchmark of 50 m² per person.

The forgotten plans of Mali Kalemegdan

As early as the late 19th century, urban planners envisioned transforming the Belgrade Fortress into a structured city park filled with attractions. The first public competition for the design of the Kalemegdan park was held in 1898, and the winning proposal by architect Dimitrije T. Leko included the addition of artificial water features in Mali Kalemegdan (the lower section of the park). Leko’s design featured a small lake – referred to as “the pond” – and a stream with a waterfall located near children’s playgrounds.

This made the park a major attraction in the early decades of the 20th century. At the time, the city even installed a dedicated water supply system, drawing water from the Sava River for irrigation and to fill the ponds. These water features, however, disappeared in 1936 with the construction of the Belgrade Zoo.

Mali Kalemegdan (photo:_AI-generated illustration – OpenAI, 2025)

Reportedly, on the occasion of the 120th anniversary of the first Kalemegdan park plan, some admirers of Belgrade’s historical heritage proposed restoring the stream, waterfall and pond as a tourist attraction. However, the outcome of this initiative remains uncertain.

Most residents of Belgrade seem to agree that Kalemegdan should be cleared of all unnecessary and improvised structures that undermine its cultural and historical character – such as souvenir stalls, temporary kiosks and ad hoc café terraces – that have proliferated over time across the fortress plateaus. Removing these makeshift structures would allow for a more authentic and unobstructed experience of this nationally significant cultural landmark.

Housing and social policy

Unlike Vienna – where as many as 62% of residents live in subsidised apartments with below-market rents – Belgrade has virtually no meaningful stock of municipal housing. Rental and housing prices in the city have reached levels that are disproportionate to local incomes. Experts note that the construction of socially affordable housing would significantly alleviate the housing crisis, particularly among young people and students. While Vienna invests approximately EUR 600 million annually in the construction of new apartments, thereby helping to stabilise the housing market over the long term, Belgrade allocates only symbolic amounts to such initiatives.

In this context, the public-private partnership (PPP) model could offer an effective solution for building student dormitories and addressing the chronic shortage of student accommodation. One successful example comes from Nikšić, Montenegro, where a student residence was built through a PPP contract. Similar projects are now being explored throughout the Western Balkans.

Budget and financial challenges

The City of Belgrade’s budget for 2025 is approximately EUR 1.6 billion. With an estimated 1.68 million residents within the city’s administrative territory, this translates to around EUR 950 per capita annually. By comparison, Vienna planned a budget of approximately EUR 19.8 billion for the same period; with around 2.03 million residents, this equates to roughly EUR 9,800 per person. Paris adopted a budget of EUR 11.3 billion for 2025, which corresponds to approximately EUR 5,500 per capita, based on a population of about 2.05 million.

In Serbia, local self-governments receive a portion of the personal income tax (PIT) – primarily the salary tax – based on citizens’ registered place of residence. According to the Law on Financing Local Self-Government, since 2016, 77% of salary tax revenues are allocated to cities, while Belgrade receives a reduced share of 66%. These percentages were higher in the past. This means that Belgrade currently retains 66% of the salary tax revenue generated within its territory. Other components of PIT (such as those from self-employment or agriculture) are allocated entirely to local budgets.

It appears that reforms to public finance and fiscal policy should be considered

In contrast, Serbia’s value added tax (VAT) revenue is retained in full by the central government. Local governments do not receive a direct share of VAT; instead, funds are allocated through general, non-earmarked transfers. As a result, Belgrade cannot rely on a stable inflow of VAT revenue – unlike cities in countries such as Austria, where a portion of VAT is allocated directly to local governments and constitutes a significant part of their budgets.

Given these structural limitations and compared with the budgetary capacities of other major European cities, it appears that reforms to public finance and fiscal policy should be considered. Without such changes, Belgrade will continue to face significant constraints in funding strategically important projects – including those essential to the city’s transition towards a greener and more sustainable future.

Is Belgrade ready to catch up with Europe in sustainable development?

Belgrade’s development in the spirit of modern European cities is achievable only through long-term planning, a clear vision and well-defined priorities – not through short-term decisions or frequent shifts in direction. A more functional urban future requires a larger city budget, more efficient use of public funds, and the coordinated implementation of urban planning initiatives.

At the same time, Belgrade should invest in the revitalization of historic urban cores, the expansion of pedestrian zones, the development of cycling infrastructure, the construction of wastewater treatment plants, and the gradual adoption of the “Viennese model” of social housing. Achieving this vision will demand strong political will, strategic governance, and the active engagement of both experts and citizens.

The experiences of cities such as Vienna and Paris demonstrate that, while such development may require significant public investment, it yields numerous long-term benefits.

Ultimately, Belgrade’s trajectory will depend on both the decisions of city leaders and the engagement of its citizens. From the authorities, responsibility is expected; from the public, initiative and participation. Time is not an ally – every decision made today shapes the Belgrade we will live in tomorrow.

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July 22, 2025
by in News

Ninth Energy Community Summer School gathers 40 participants in Montenegro from 28 countries

The ninth Energy Community Summer School has kicked off in Montenegro, gathering 40 participants from 28 countries.

On July 19, forty young professionals and researchers from 28 countries convened at the Faculty of Maritime Studies in Kotor, Montenegro, to dive deep into the pressing technical, political, and economic issues driving the energy transition, according to the Energy Community Secretariat.

“The energy transition is no longer a distant goal—it’s happening now, shaped by technology, driven by policy, and tested by crises,” Artur Lorkowski, Director of the Energy Community Secretariat, said in his welcoming address.

Lorkowski: A successful and just transition depends on bringing together diverse people and perspectives

A successful and just transition depends on bringing together diverse people and perspectives to learn and exchange ideas—just as the secretariat does each year at this summer school, and as it has done for two decades across the Energy Community: building connections, aligning energy rules, and driving the shift to cleaner, more secure energy systems in our region, according to Lorkowski.

The 2025 edition attracted 242 applications from 58 countries. At the end of the selection procedure, 40 participants representing 28 countries were selected: 18 from Energy Community contracting parties, one from an observer country, 18 from EU member states (including seven from the Visegrád Group), and the remainder from Switzerland, South Africa, and the United States.

Among them, 27 hold a master’s degree and 13 have a PhD.

The seven-day program is organized by the Energy Community Secretariat, in collaboration with the International Visegrad Fund, Friedrich-Ebert-Stiftung – Dialogue Southeast Europe (FES-SOE), and Montenegro’s state-owned companies – power utility Elektroprivreda Crne Gore (EPCG), and distribution system operator Crnogorski Elektrodistributivni Sistem (CEDIS).

The Energy Community’s long-standing commitment to building the next generation of leaders

Since its launch in 2016, the initiative has also been supported by Polis University (Tirana), Comenius University (Bratislava), Jagiellonian University (Krakow), Masaryk University (Brno), and REKK (Budapest).

The Summer School reflects the Energy Community’s long-standing commitment to building the   next generation of leaders—those who will drive long-term integration, cooperation, and sustainable energy transformation across the region, the secretariat pointed out.

Throughout the week, participants will work closely with leading experts from academia, industry, and policymaking circles to examine real-world approaches to transforming energy systems.

Through lectures, case studies, and collaborative discussions, they will explore how innovation, cross-border cooperation, and policy reform can drive decarbonization while supporting economic development and regional stability, according to the secreatariat.

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July 21, 2025
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Energy Community marks 20th anniversary as integration pillar for Southeastern Europe

The Energy Community Ministerial Council held its annual informal meeting in Athens, where the organization was founded twenty years ago. No contracting party is expected to meet the criteria for exemption from the Carbon Border Adjustment Mechanism (CBAM) in the electricity sector – the European Union is due to start charging the CO2 tax on January 1 – but the European Commission could propose amendments.

The Energy Community promotes integration, reforms and investments across the region, top officials stressed.

Ministers from the Energy Community contracting parties convened today at the Informal Ministerial Council in Athens to mark the organization’s 20th anniversary. The Energy Community Treaty, establishing the Energy Community, was also signed in the Greek capital. The purpose of the organization is to create a more integrated market, help attract investment and speed up decarbonization by aligning with the European Union’s rules on energy, environment and competitiveness.

In recent years, close cooperation has enabled the contracting parties to strengthen the security of supply, particularly against the backdrop of the ongoing Russian war in Ukraine, the Energy Community Secretariat said. During the annual gathering, hosted by the Greek Ministry of the Environment and Energy, the ministers underlined the need for an accelerated integration with the EU, grounded in delivering a secure, resilient energy transition.

Ministers agreed to revise capacity calculation regions

Many contracting parties are close to completing the reforms needed to launch the 18-month countdown to electricity market coupling – including full legal alignment under the Energy Community’s Electricity Integration Package and the appointment of nominated electricity market operators (NEMOs). If transposition is verified as compliant by the European Commission and the Energy Community Secretariat, integration will be initiated with the EU’s Single Day-Ahead Coupling (SDAC) and Single Intraday Market Coupling (SIDC).

Ministers made a breakthrough in regional coordination, backing a proposal by EU transmission system operators to revise capacity calculation regions (CCRs), now under review by the EU energy regulator ACER – Agency for the Cooperation of Energy Regulators. Recognizing the proposal’s importance for an effective operation of the interconnected grid, they called for swift follow-up, including the operationalization of regional coordination centers (RCCs) and system operation regions (SORs).

The aim is to boost electricity flows and grid security, especially along the north-south corridor of the Balkans, while laying the groundwork for full EU market coupling.

Decarbonization must accelerate ahead of CBAM implementation in 2026

To avoid disruptions to regional electricity trade, clarifying CBAM rules for electricity is a priority for the ministers, the secretariat pointed out. The EU is set to begin charging the carbon border tax on January 1.

Lorkowski: Electricity market integration and decarbonisation are two sides of the same coin

As no contracting party is expected to meet the exemption criteria by then, a proportionate and context-sensitive application of the mechanism is essential, as supported by active engagement in the European Commission’s ongoing call for evidence that precedes the future amendments of the CBAM regulation to be possibly proposed by the European Commission, in the secretariat’s view.

“Electricity market integration and decarbonisation are two sides of the same coin. The green energy transition unlocks meaningful integration with the EU market – and vice versa. Only by aligning policy, infrastructure, and pricing can contracting parties fully realise the benefits of clean, secure, and affordable energy,” said Energy Community Secretariat Director Artur Lorkowski.

The ministers called for carbon revenues to support vulnerable communities and mobilize investment in clean energy, stressing that just transition financing must go hand in hand with policy reforms.

Energy Community Treaty is now cornerstone of Europe’s energy architecture

Born out of crisis and shaped by cooperation, the Energy Community Treaty has become a cornerstone of Europe’s energy architecture, Lorkowski stressed. What began as an unlikely experiment in regional integration has grown into a dynamic framework – extending the EU’s internal energy market, strengthening energy security, and advancing the clean energy transition across South-Eastern and Eastern Europe, he asserted.

Energy Community contracting parties can fully integrate their electricity markets with the EU before joining it

“Our contracting parties are now on the cusp of a major breakthrough: full electricity market integration with the EU – even ahead of accession. This is the product of two decades of reform, dialogue, and trust-building. With the right political will, we can move from transposition to transformation,” Lorkowski stated.

In his view, Greece is the window for the Energy Community contracting parties to the liquefied natural gas (LNG) market and the access point to the European electricity system. Close cooperation with the Western Balkans has economic benefits for Greece – but beyond the economy, it is also about security and stability, Lorkowski said at the event.

Energy Community pioneered extension of EU energy market

Over the past two decades, the Energy Community has brought the EU closer to its neighbours, pioneering the extension of the trade bloc’s energy market across its borders, promoting integration, reforms and investments across the region, according to European Commissioner for Energy and Housing Dan Jørgensen.

“Now it is time to look ahead at our shared future based on a greener, sustainable and resilient system which will bring cheaper energy and more security to all,” he said.

Separately, in an interview with Kathimerini, Jørgensen noted that Southeastern Europe experienced electricity price spikes last summer, mainly in the evening hours, due to a lack of cross-border capacity and sufficient flexibility. The only solution is further infrastructure and market integration, as costs are separated and benefits are multiplied, he opined.

For every EUR 2 billion invested annually in cross-border infrastructure, the potential benefits reach up to EUR 5 billion, the commissioner added.

Papastavrou: Southeastern Europe’s is at disadvantage as its electricity market is not fully integrated with EU

Southeastern Europe is still not fully integrated with the EU, which is a structural disadvantage for citizens, said Minister of Environment and Energy of Greece Stavros Papastavrou.

“I am very optimistic after the first session of the meeting, because all the contracting parties expressed commitment, a strong commitment, to market coupling,” he stated. Papastavrou said a lot of work is required in the electricity sphere to bridge the gap for the prosperity of citizens and the entire region.

Energy integration is one of the pillars of EU accession

Energy integration is not just a technical issue – it is one of the fundamental pillars of the EU accession process, the minister told his counterparts from the Energy Community.

“Greece, too, has faced the same challenges that many of you are experiencing today. Back in 2005, our energy system was almost entirely dependent on lignite, by more than 60%. Today, we have reduced lignite use by an impressive 91% – a clear demonstration of our strong commitment to a clean, sustainable, and resilient energy future,” he stated.

Serbia’s Đedović Handanović sees possibility for market coupling with Hungary already next year

Serbia was the first in the region to fulfill the conditions for market coupling with the EU, the country’s Minister of Mining and Energy Dubravka Đedović Handanović said. She urged for the verification process to be accelerated, so that Serbia can connect with the Hungarian market in 2026 and, through it, with the other EU member states.

The minister acknowledged the challenge of the upcoming full implementation of CBAM.

Photo: Minister Dubravka Đedović Handanović (Nenad Kostić / Ministry of Mining and Energy)

Serbian institutions analyzed the available options from the study that the European Commission published. “We think that carbon pricing should be introduced gradually, in phases and fairly, with support from funds from the European Union,” she said.

The minister stressed that revenues from carbon taxes would be directed, like in the EU, to decarbonization, renewables, energy efficiency, just transition and support to companies.

“Without an adequate period of time for the transition from coal to renewable energy sources, without modernizing the network, increasing RES capacities and adjusting the industry, higher carbon costs can only increase the financial pressure on our industry and consumers, which is already happening in the EU, instead of resulting in a significant emissions reduction in the short term. Solving these issues requires careful planning, a phasein and the EU’s targeted financial support, so that climate goals would be aligned with the economic reality,” Đedović Handanović said.

She recalled that EU member states had more than two decades to gradually adjust to carbon emission levies. Đedović Handanović affirmed that Serbia is willing to continue its alignment with the EU’s energy and climate policy.

“All the reform measures that we are conducting are primarily for the benefit of our citizens and companies, and we won’t make decisions overnight that would jeopardize our energy stability,” she said.

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June 19, 2025
by in News

Just Transition Young Voices Award: Empowering youth champions in the clean energy transition

In a celebration of youth-led climate action, the Energy Community Secretariat, together with Bankwatch, CAN Europe, RYCO, and CLEW, has launched the Just Transition Young Voices Award, spotlighting the importance of young people’s voices in shaping a just, equitable, and sustainable energy future. Balkan Green Energy News is an official media partner of the initiative.

Young people aged 18 to 30 from the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia), Ukraine, Georgia, and Moldova are invited to submit original, fact-based articles that explore how their communities are navigating the shift away from fossil fuels. Recognizing that youth are essential agents of change, the award provides a platform for creative and solution-oriented journalism addressing the challenges and opportunities of a just transition.

Applications are open until 28 July 2025. The competition aims to showcase innovative thinking and concrete solutions developed by young people who are actively engaging in climate and energy issues.

Foto: Energy Community Secretariat

The award framework

The Just Transition Young Voices Award aims to inspire and support young people with an interest in energy and climate journalism to explore and report on just transition topics. Submissions should be original, fact-based articles in English, between 700 and 1,100 words. Stories may highlight real people, places, or initiatives that reflect the challenges, opportunities, and solutions involved in just transition, particularly in sectors or regions impacted by the green shift.

Three prizes will be awarded:

  • A one-month paid internship at the Energy Community Secretariat in Vienna;
  • A field mission on energy transition in the Western Balkans with Bankwatch;
  • Participation in the Climate Reporting Training with CAN Europe in Ohrid (1–3 September 2025).

Winning pieces will be published on Balkan Green Energy News and other partner platforms, as well as presented at the Energy Community Just Transition Forum. Applications will be evaluated by a jury comprising representatives from Bankwatch, CLEW Network, RYCO, and the Energy Community Secretariat.

The Just Transition Young Voices Award reaffirms a simple truth: meaningful system change requires the leadership of those who will live with its consequences.

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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.