May 5, 2026

by AEA in News

Zatriq Wind Farm Nears Completion as Kosovo Expands Renewable Capacity

Turkey-based Çalık Renewables, in partnership with Kosovo’s domestic firm Eurokos, is advancing the construction of a 72 MW wind power plant in Kosovo, with commissioning targeted for July.

During a recent site visit to the Zatriq wind park, Acting Prime Minister Albin Kurti and Minister of Economy Artane Rizvanolli reviewed progress on the project. The development is led by Çalık Enerji, part of Çalık Holding, which secured €112 million in financing last year. The project marks the group’s first renewable energy investment outside Turkey and represents the first wind initiative backed by Swiss Export Risk Insurance.

Construction is progressing steadily, with four of the planned twelve turbines already installed. According to Prime Minister Kurti, the Zatriq project underscores Kosovo*’s growing attractiveness for foreign direct investment, supported by an improving legal and regulatory framework. The construction workforce totals 175 personnel, including 130 local workers, highlighting its domestic economic contribution.

The total investment is estimated at €124.4 million, as confirmed by Eurokos. Minister Rizvanolli noted that two additional turbines are expected to be completed within weeks, keeping the project on track for full completion by July. Once operational, the wind farm is expected to enhance energy security, reduce reliance on imports, and generate annual savings exceeding €27 million.

With an anticipated annual output of 185 GWh, the Zatriq wind park will be capable of supplying electricity to approximately 45,000 households. The facility will be connected to the transmission network via a 110 kV overhead line.

Located near the village of Zatriq, the site benefits from one of the strongest wind resources in Kosovo*. The country’s existing wind capacity remains limited, comprising projects such as Selac Wind Farm (104.1 MW), Kitka Wind Farm (32.4 MW), and Golesh Wind Farm (1.35 MW).

For the Zatriq project, Çalık Enerji has partnered with GE Vernova to supply wind turbines featuring 79-meter blades. Beyond Kosovo*, the company operates two wind farms in Turkey with a combined capacity of 72 MW and is developing additional projects in Poland totaling 170 MW.

In the broader energy sector, Çalık Holding, together with Limak, jointly controls Kosovo’s electricity distribution operator KEDS and supplier KESCO.

March 11, 2026

by AEA in News

Balkan power play: why the Western Balkans must ditch Russian fuels and fast-track EU market integration

A short, sharp truth: the Western Balkans sits at the crossroads of Europe’s energy security and its green ambitions, but patchy rules, lingering dependence on Russian fuels and slow market reforms mean the region risks being a weak link rather than a bridge. A new working paper from Bruegel lays out what’s at stake and what needs to happen next.

From leverage to liability: Russian ties still matter

Gas pipeline system in the Western Balkans

The report finds that several Western Balkan states remain exposed to Russian energy influence notably Serbia and Bosnia and Herzegovina on oil and gas which leaves them vulnerable to geopolitical pressure and imported price shocks. Negotiations and occasional extensions of Russian contracts in 2024–25 underline that diversification on paper does not always mean real independence. That dependence isn’t just political theatre: it alters investment choices, weakens bargaining power and complicates alignment with EU rules.

Why this matters beyond the region: the Western Balkans is a major transit corridor for electricity between the EU and Southeast Europe. The paper highlights that as much as “up to 70%” of electricity flows tied to the region actually pass between EU countries a signal that grid interdependence already exists and that isolation is neither realistic nor desirable. Faster regulatory alignment and market coupling would therefore strengthen European system resilience as well as the region’s.

Western Balkan electricity imports and exports (TWh), 2020-2024

Market coupling: planned, stalled, urgent

European market coupling the technical and regulatory merging of power markets is the single policy lever that could deliver immediate gains: better price signals, more efficient dispatch across borders, and a buffer against supply shocks. The Bruegel authors point out that integration planned for the mid-2020s (originally aiming around 2027) is running behind because national rulebooks and market institutions in the Western Balkans are not yet aligned with EU standards. That delay has real costs: lost efficiency, higher system operation expenses, and a slower rollout of renewables.

Day-ahead auction average prices (€/MWh), EU, Norway and Western Balkans, 2024

Uneven green progress leaders and laggards

Not all Western Balkan countries are on the same page when it comes to the green transition. The paper singles out Albania as a regional leader largely because of its hydropower legacy and relatively favorable renewables policies and Montenegro as advanced across several indicators. Meanwhile, solar and wind potential across much of the region remains largely untapped and constrained by underdeveloped grids, weak permitting frameworks and scarcity of private investment. Simply put: the natural resource advantage (sun, wind, hydro) is mostly unexploited.

This mix of actors creates both a challenge and an opportunity. Countries with stronger renewables backbones could become exporters and stabilizers for neighbors but only if cross-border trade is enabled and market rules are harmonised.

Domestic electricity prices (€/MWh), EU, Norway and Western Balkans, 2024 and 2014

Coal’s long shadow political economy vs. emissions

Phasing out coal is politically charged across the Western Balkans. Coal still provides baseload power and jobs in several countries, and switching it off without credible compensation or alternative industrial plans risks social backlash. The paper recommends phased, socially sensitive coal retirement plans tied to clear investment pathways for renewables and grid upgrades. In short: decarbonisation must be realistic and sequenced fast where possible, compensated where needed.

Practical steps the paper recommends (and why policymakers should care)

Accelerate regulatory alignment with the EU. Aligning rules is the low-hanging fruit that unlocks market coupling and immediate efficiency gains. Market reforms are technical, but the payoff — lower costs and stronger security — is political and strategic.
Reduce real dependence on Russian fuels. Diversification must go beyond headline contracts. It requires investments in LNG connections, alternative import routes, and faster roll-out of domestic renewables to reduce import vulnerability.
Design a just coal phase-out. Pair plant retirement timetables with retraining, economic revitalisation, and clean-energy investment envelopes so communities are not left behind.
Mobilise private capital for renewables and grids. Improve permitting, de-risk projects with public guarantees, and create transparent auction frameworks to attract the investors the region needs.

Political and financial headwinds plus a window of opportunity

The paper is candid about constraints: weak institutions, fragmented markets, and geopolitical tensions complicate reform. But it also notes a narrow window where EU enlargement dynamics, conditional funding instruments (the EU Growth Plan for the Western Balkans) and post-Ukraine energy policy realignments create momentum and conditional financing that can be leveraged if countries move quickly and coherently.

Electricity generation mix in the Western Balkans, 2014 and 2024

What success looks like

A successful pathway would see the Western Balkans converge with EU market rules, complete market coupling, significantly reduce Russian fuel exposure, and scale renewables deployment while phasing out coal with social protections. Practically, that means lower wholesale price volatility, better utilisation of regional transmission assets, and an energy sector that attracts investment rather than fears it.

Conclusion integration first, transition faster

The Bruegel working paper’s central message is straightforward: the Western Balkans has the geographic and resource advantages to be a strategic partner for Europe’s energy security and green goals but only if the political will to align rules, diversify supplies and invest in renewables is found. Fast-tracking market coupling and decarbonisation in parallel, not in sequence will deliver both security and economic opportunity. For policymakers in Tirana, Sarajevo, Pristina, Podgorica, Skopje and Belgrade, the choice is clear: remain a transit corridor vulnerable to outside influence, or become a resilient, integrated bridge to Europe’s clean-energy future.

June 7, 2016

by AEA in Publication

Streamlining renewable energy investment process in Macedonia

Due to significant political and economic support for renewable energy technologies in Germany, Spain and other countries over the last twenty years, huge progress in terms of cost effectiveness has been made, mainly in wind and photovoltaic, said Bojan Reščec, RP Global’s Country Manager for Croatia and Western Balkan.He stressed the two segments are proving to be the cheapest form of electricity generation in an increasing number of markets, besides being the cleanest.

RP Global has commissioned its wind park Rudine in the country’s south in April, becoming the largest wind energy investor in the market. It has been directing its focus on Chile, Peru and Georgia. It also has important segments in Austria, Poland, France, Portugal and Spain. “When it comes to our diversification strategy, emerging markets are key, as well as markets with a reliable and trustworthy political framework,” Reščec stated. The company achieved income of EUR 30.55 million last year, on revenues of EUR 38.92 million and total assets of EUR 383.1 million.

How is the company structured? What are the power generation and other assets and where are they located?

RP Global is made up of an operative arm and a development arm, each with respective subsidiaries that are holding individual projects. The company’s headquarters are in Vienna, Austria, as well as Madrid, Spain, and it has operating assets in Portugal (21.5 MW in hydro), Poland (120 MW in wind) and Croatia (78 MW in wind), as well as operations and maintenance (O&M) contracts for three wind farms in France, and a hybrid solar mini-grid in Tanzania. Currently we have wind farms under construction in France with an overall capacity of 49.5 MW, as well as small hydropower plants in Portugal of 10 MW and Chile, 2.9 MW. RP Global has about 100 employees.

What are RP Global’s projects in plan or pipeline and what is its general vision?

The main objective is the further expansion of its current portfolio of generating assets. From a project pipeline of about 1 GW, the company aims to develop an operating portfolio of 300 MW to 400 MW by 2017, which represents an overall investment of EUR 500 million to EUR 700 million. RP Global strives for geographical diversification, concentrating on Western Europe and selected countries in the Central and Eastern Europe, as well as Latin America. The main criterion is a stable legal environment, as well as general political support for renewable energy.

We are now implementing projects in countries without incentive schemes; therefore we need to be competitive in the market, with latest technologies and lowest generation cost.

Planned projects in an advanced stage of development include further electrification of Tanzania’s rural areas, hydropower projects in Chile, Peru and Georgia, as well as a wind power pipeline in France. We are also constantly prospecting new countries, especially in South America and Africa, and are currently looking at investment potential in the Balkan region.

Is there an established practice for segments of operations that are outsourced in the sector where your company works? If so, do you have any specific edge or policy?

A very simple policy is to bring generation cost down in all areas – optimize the structure which will secure the maximum production from the operating assets on a long-term basis, reduce the loss of production caused by failures etc. We have our own O&M management teams, in Croatia we are outsourcing maintenance of the wind energy converters (WECs) through long-term service agreements with producers, periodical inspections, where specific experts are occasionally required, and spare parts storage with a local company, which enables us to monitor the plants 24/7 and react quickly in case of a failure. One day without production can cost us EUR 100,000 so the main criterion is short response time when service is needed.

More on outsourcing in development of green power facilities – what adjoining industries can you see emerging or grouping?

Energy storage is something we will have to deal with; battery storage in the power sector can be employed in a variety of ways over multiple time periods. Decentralized generation (frequently based on photovoltaic) is another area RP Global is looking at. In general, we would also like to see more local content and products in the countries we are investing in to broaden the macroeconomic relevance of the sector in our markets.

Since renewables still depend on state incentives limited by time, how does RP Global envisage the viability for its portfolio or the overall sectors where it operates, beyond current power purchase agreements (PPAs)? Will sustainable energy become mainstream?

With generation cost decreasing rapidly, sustainable energy is becoming “mainstream” and we are adjusting our approach accordingly. RP Global has always strived to find the best sites and to get the very best from them using the most appropriate technology and optimizing the sites. We are now implementing projects in countries without incentive schemes; therefore we need to be competitive in the market, with latest technologies and lowest generation cost. This will be the target not only after PPAs or feed-in tariffs in operating plants expire, but also for our future projects. Our task is to find the technology and sites which will enable us to offer the produced electricity for a lower price. Croatia will adopt an auction system soon, so we have to be ready if we want to implement more projects in the future and we would certainly like to do so.

What is the life cycle like for a small hydropower plant and wind park?

Small hydropower plants have a significantly longer life span; current technology allows for over 50 years without the need for reconstruction. The life span of a wind power plant is usually calculated with 25 years, some producers even achieve beyond 25 years, but as long as the technology is being constantly improved, one might want to repower an existing wind farm sooner than originally foreseen. However, we are taking care of our operating assets, keeping them in good shape thus ensuring a long life cycle.

Did the endeavor of fulfilling procedural requirements simplify over time and what is the situation in the markets where you work? What existing or potential policies would you rate as prudent for the society or different levels of government?

Sadly, not really. Some procedures were simplified, but there is still more than enough room for significant improvements. A decision to give renewable energy the status of strategic interest for the country would be helpful in many ways.

In Croatia, we have been waiting to continue our activities for quite some time, because we have still not received a clear message from decision makers.

What are the effects of the new green energy legislation in Croatia? What is the situation with necessary by-laws?

As you know, the former government adopted the Law on Renewable Energy Sources and Highly Efficient Cogeneration in 2015 and drafted some necessary by-laws, but failed to sign them. The new government is determined to promote renewable energy, but we were recently informed that another public hearing will be held for the enactment on renewable energy sources so, as an investor in Croatia, we have been waiting to continue our activities for quite some time, because we have still not received a clear message from decision makers. We have now been invited to be involved in the procedures more than before, but still – we need answers to some vital questions. We would like to invest more in Croatia if the legal framework motivates us to do so.

By Darko Janevski, Renewable Energy Specialist