January 20, 2026

by AEA in News

EU presents European Grids Package: faster permitting, stronger interconnections, lower energy bills

The European Commission presented the European Grids Package, a comprehensive plan to modernise transmission infrastructure, accelerate permitting procedures, and overcome bottlenecks in Europe’s electricity networks. It also unveiled the Energy Highways initiative, which consists of eight major infrastructure projects critical for energy security, renewable energy integration, and cross-border electricity market connectivity.

Energy infrastructure is the backbone of the energy system. Yet the EU’s energy network remains insufficiently integrated, and investment levels fall short of what is needed, a situation that directly affects household energy bills.

Ageing infrastructure and limited interconnection capacity are creating bottlenecks that slow the energy transition. Although some progress has been made within the existing EU legislative framework, the level of interconnection among member states remains inadequate. Several countries are not on track to meet the 15% interconnection target by 2030.

To address these challenges, the European Commission has presented the European Grids Package and Energy Highways initiative. The aim is to enable a more efficient flow of energy across the EU, integrate greater volumes of renewable energy into the system, and accelerate electrification.

Jørgensen: A truly interconnected energy system is the foundation of a strong and independent Europe

The Grids Package is designed to speed up permitting and ensure a fairer distribution of costs for cross-border infrastructure. It should also improve the use of existing infrastructure and accelerate the development of networks and other physical energy assets across the EU.

Among the measures is a new mechanism that allows the commission to initiate the search for additional infrastructure projects when existing initiatives do not cover identified cross-border needs.

“A truly interconnected and integrated energy system is the foundation of a strong and independent Europe. To achieve it, we need an energy infrastructure network of cables, pipes and grids that is up to date, fully interconnected, and that enables clean, affordable, homegrown energy to flow freely and securely to every corner of our union. This is exactly what we are proposing today: a common European energy project that supports affordable living, economic competitiveness, security, and decarbonisation,” said Dan Jørgensen, European Commissioner for Energy and Housing.

Permitting reform

Slow permitting remains one of the biggest bottlenecks for energy infrastructure and renewable energy projects in the EU.
Obtaining permits for transmission infrastructure currently takes more than five years on average, while renewable energy projects may face delays of up to nine years.

The Grids Package introduces simplified and accelerated permitting procedures. The commissioners have proposed setting time limits within which decisions must be taken for all types of projects. If the competent authority fails to respond within the deadline, the permit would be considered granted.

Permits for smaller projects would be issued through faster and more streamlined procedures

Permits for smaller projects would be issued through faster and more streamlined procedures. All processes would have to be fully digitalised, and national administrations would be required to have adequate staffing and technical capacity to process applications.

The commission is proposing to move away from the current first-come, first-served model and introduce a system that ensures timely and non-discriminatory access to the grid, one that balances social acceptance and industrial competitiveness.

Public and private financing

According to the commission’s estimates, EUR 1.2 trillion in investment will be needed for Europe’s electricity grid by 2040. Distribution networks account for EUR 730 billion within the sum, compared to EUR 240 billion for hydrogen infrastructure.

The commission said additional financing tools are required, including cost-sharing arrangements, arguing that cross-border infrastructure generates benefits that extend beyond the territory in which a project is located.

Another suggested solution is the formation of project firms (special purpose vehicles – SPVs) to attract additional private investment.

Given that grid infrastructure is largely financed through network tariffs, part of the burden falls on consumers. To ease this pressure, the commission announced it would boost financial support through the Multiannual Financial Framework (MFF), the EU’s regular seven-year budget, including a significant expansion of the Connecting Europe Facility (CEF). The tool is designed to support investments in new cross-border energy infrastructure and upgrades or rehabilitation of existing assets.

The current 2021–2027 EU budget contained EUR 5.8 billion for cross-border projects under CEF. For the 2028–2034 period, the commission said the amount would be raised almost fivefold, to EUR 29.91 billion.

On the private side, the EU is working on its Clean Energy Investment Strategy, to launch it in 2026 by outlining measures for private sector participation including institutional investors, as well as additional support from the European Investment Bank (EIB).

Energy Highways

The Energy Highways initiative comprises eight of the EU’s largest and most critical infrastructure projects, essential for energy security, renewable energy integration, and cross-border electricity market connectivity.

They have already been already listed as Projects of Common Interest (PCI) or Projects of Mutual Interest (PMI), but under the new initiative, they would receive elevated political priority, accelerated financing, and faster permitting.

Among the projects are the reinforcement of interconnections across the Pyrenees to improve the integration of the Iberian Peninsula, the connection of Cyprus with continental Europe through the Great Sea Interconnector, as well as an upgrade of electricity links between the Baltic states, including the Harmony Link to Poland, which is essential for the full synchronisation of the region with the European grid.

The commission has also endorsed the establishment of Denmark’s hub on the island of Bornholm, which could, in the coming years, be connected to additional locations in the Baltic Sea.

Among the priorities are strengthening energy storage capacity in South-Eastern Europe

Among the priorities are strengthening energy storage capacity in South-Eastern Europe, as well as the modernisation of the Trans-Balkan Pipeline (TBP) for gas.

The list includes two hydrogen corridors. The southern one would connect Tunisia, Italy, Austria, and Germany, and the south-western corridor is a planned link between Portugal, Spain, France, and Germany. The commission has announced strong coordination and political support for the latter.

The commission views these projects as pillars of Europe’s future energy network, essential for lower electricity prices, greater system stability, and reduced dependence on fossil fuels.

In a regular legislative procedure, the proposals now move to the European Parliament and the Council of the EU for further deliberation.

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January 16, 2026

by AEA in News

EPCG, Masdar sign cooperation agreement

Montenegro’s power utility Elektroprivreda Crne Gore and UAE-based Masdar today signed a cooperation agreement on the sidelines of Abu Dhabi Sustainability Week.

Elektroprivreda Crne Gore (EPCG) said its agreement with Masdar sets the framework for future cooperation in the development of solar and wind projects, as well as other sustainable energy solutions, including the exchange of knowledge and experience and opportunities for joint investments.

The agreement further confirms EPCG’s strategic commitment to actively contribute to the energy transition, strengthen energy security, and support the sustainable economic development of Montenegro through partnerships with global leaders, the update reads.

Abu Dhabi Sustainability Week (ADSW) is a global forum dedicated to the energy transition, climate solutions, and sustainable development.

The agreement was signed during an official visit of the Montenegrin delegation to the United Arab Emirates, led by Prime Minister Milojko Spajić.

Đukanović: Historic agreement

Milutin Đukanović, President of EPCG’s Board of Directors, praised the agreement as historic and its strategic significance for the long-term development of Montenegro’s energy sector.

He stressed that partnering with a renowned company represents a strategic positioning of Montenegro in the modern energy environment and an important step in diversifying energy sources.

montenegro epcg masdar agreement adsw spajic djukanovic — Photo: EPCG

“In the context of the introduction of the CBAM mechanism, it is necessary to accelerate investments in energy, because along with strong development of domestic projects, cooperation with leading international partners is key to faster sector development and greater national competitiveness. Energy development represents a historic opportunity for Montenegro that we must not miss,” Đukanović stressed.

According to EPCG CEO Zdravko Dragaš, the signing of the agreement represents an important advancement in the development of Montenegro’s energy sector and a strong signal of the trust of a renowned global partner in Montenegro’s potential.

Dragaš: Montenegro to become a reliable exporter of green energy

“Our common goal is for Montenegro, in addition to meeting its own consumption, to become a reliable exporter of green energy to the region and beyond, utilizing the existing infrastructure and the country’s strategic position,” Dragaš underscored.

Montenegro and the UAE signed an agreement in November 2025 on cooperation in the energy sector.

Lately, the two countries have had a dynamic relationship in the energy sector. In December of last year, Montenegrin officials and Masdar’s management discussed potential joint projects.

montenegro epcg masdar agreement abu dhabi spajic djukanovic — Photo: EPCG

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January 16, 2026

by AEA in News

EPCG, Masdar sign cooperation agreement

Montenegro’s power utility Elektroprivreda Crne Gore and UAE-based Masdar today signed a cooperation agreement on the sidelines of Abu Dhabi Sustainability Week.

Abu Dhabi Sustainability Week (ADSW) is a global forum dedicated to the energy transition, climate solutions, and sustainable development.

The agreement was signed during an official visit of the Montenegrin delegation to the United Arab Emirates, led by Prime Minister Milojko Spajić.

Đukanović: Historic agreement

Milutin Đukanović, President of EPCG’s Board of Directors, praised the agreement as historic and its strategic significance for the long-term development of Montenegro’s energy sector.

He stressed that partnering with a renowned company represents a strategic positioning of Montenegro in the modern energy environment and an important step in diversifying energy sources.

Dragaš: Montenegro to become a reliable exporter of green energy

Montenegro and the UAE signed an agreement in November 2025 on cooperation in the energy sector.

Lately, the two countries have had a dynamic relationship in the energy sector. In December of last year, Montenegrin officials and Masdar’s management discussed potential joint projects.

Post Views:77

January 4, 2026

by AEA in News

Serbia, North Macedonia seek to build gas interconnector by end-2027

Serbia and North Macedonia aim to complete the construction of a gas interconnector in late 2027 and put it into operation in early 2028, Serbian Minister of Mining and Energy Dubravka Đedović Handanović said following a meeting with North Macedonia’s Minister of Energy, Mining and Mineral Resources Sanja Božinovska. The pipeline’s projected annual capacity is 1.5 billion cubic meters of natural gas.

Following the construction of the interconnector with Bulgaria, Serbia continues to diversify its supply routes, and the gas link with North Macedonia is a priority in that context, according to Đedović Handanović.

Serbia’s portion of the interconnector with North Macedonia will be 144 kilometers long and will cost an estimated EUR 153 million to build, she said. The plan is to obtain a construction permit in mid-2026 and launch works immediately afterward, she added.

Serbia’s portion of the pipeline will cost EUR 153 million

The planned route on Serbia’s territory is Orljane – Leskovac – Vranje – the North Macedonian border, according to her.

Đedović Handanović: Serbia’s goal is a fully diversified gas supply

“The capacity of the gas interconnector with Bulgaria is 1.8 billion cubic meters per year, and with the completion of the interconnector with North Macedonia, as well as the planned interconnector with Romania, whose capacity will be between 1.6 and 2.5 billion cubic meters, we will have a fully diversified gas supply within the next few years,” said Đedović Handanović.

serbia north macedonia gas pipeline interconnection djedovic bozinovska

Photo: Ministry of Mining and Energy/Nenad Kostić

The goal is to have as many supply options as possible, not to depend on a single supplier, and to ensure greater security and a better negotiating position in terms of prices and capacity, she added.

Božinovska, for her part, said the interconnector with Serbia would ensure new gas sources for North Macedonia and strengthen regional energy stability.

Božinovska: The gas link is one of the most important regional infrastructure projects

“This is also one of the most important regional infrastructure projects – important not only for North Macedonia and Serbia, but for all of Europe. With this new energy link, both countries will gain access to alternative sources and routes, and Europe will get a stronger and better connected Balkans,” Božinovska asserted.

The two countries have completed the necessary studies, agreed on the route, ensured the European Union’s support, and defined a clear implementation timeline, according to her.

Joint efforts to secure a postponement of CBAM

The meeting also addressed the coordinated approach to the EU’s Carbon Border Adjustment Mechanism (CBAM), which is scheduled to take effect on January 1, 2026.

According to Đedović Handanović, the two sides agreed to act jointly on this issue and to request a postponement of the mechanism’s implementation.

“Letters from all contracting parties to the Energy Community will be sent next week so that we can continue the dialogue with the European Commission, which is important not only for Serbia and North Macedonia, but also for the other contracting parties,” she said.

The two sides also discussed the possibility of North Macedonia covering part of Serbia’s demand for oil derivatives, primarily in the country’s south, the Serbian Ministry of Mining and Energy said in a statement.

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December 20, 2025

by AEA in News

Serbia is first Energy Community contracting party to enter verification phase of market coupling

Serbia is the first Energy Community contracting party to enter the verification phase of the market coupling procedure, the Energy Community Secretariat said after the annual meeting of the Ministerial Council in Vienna.

At the Energy Community Ministerial Council, ministers addressed energy security, market integration, climate policy, and environmental protection, confirming a shared EU–contracting parties direction for Europe’s energy future, according to the secretariat.

Ministers and representatives of the secretariat also discussed the amendments to the Carbon Border Adjustment Mechanism’s regulation revealed by the European Commission yesterday. The meeting was attended by European Commissioner for Energy Dan Jørgensen.

The secretariat underlined that several contracting parties are now approaching a decisive stage in electricity market integration ahead of accession, having fully or nearly transposed the Electricity Integration Package (EIP).

The two-step verification phase for Serbia kicked off on October 22

Subject to verification of compliance by the European Commission, this progress opens the door to electricity market coupling with the EU internal market ahead of accession, it added.

“Serbia has already entered the verification phase, while Moldova has fully transposed the package. In this context, ministers underlined that the CBAM, entering into force in January, should not pose an issue for cross-border electricity trade,” the update reads.

eu region ministerial council 2025 meeting — Photo: Energy Community Secretariat

Full electricity market integration ahead of accession offers a clear pathway to safeguarding decarbonization gains, supporting fair and efficient cross-border electricity exchanges, and attracting clean energy investment, according to the secretariat.

The two-step verification phase for Serbia kicked off on October 22. The first step is the verification by the secretariat, and the second by the commission.

The secretariat must complete the verification within three months, by January 22. The process is in the final stage, Balkan Green Energy News has learned.

The European Commission has five months to do its part

Once this is finished, the commission has five months to do its part. If the commission’s verification is positive, Serbia could meet the end-July deadline to apply for market coupling. The next phase involves technical activities, and it lasts 18 months.

“We are very deep in the process of verifying what Serbia has adopted. Now we are about to start this process for Moldova. And soon, I hope, after the remaining elements of the legislative package are adopted by Montenegro and North Macedonia, the verification can start in these two cases,” stressed Artur Lorkowski, Director of the Energy Community Secretariat.

He added that it has taken two decades of cooperation to build the momentum toward market coupling that ministers today have consolidated.

Lorkowski: The voice of the Energy Community ministers on CBAM has been heard by the commission

eu region ministerial council 2025 artur lorkowski — Artur Lorkowski (photo: Energy Community Secretariat)

Regarding the European Commission’s amendments to the CBAM regulation, he recalled that, on behalf of the ministers, the secretariat has sent a list of 11 different issues that needed to be addressed.

“The voice of the Energy Community ministers has been heard by the commission, and the progress which has been made in the contracting parties has been recognized. We see that in different amendments which are proposed. The proposal is going in a good direction. If you ask me whether this is satisfactory and whether it solves all of the problems, no, for two reasons,” he underscored.

The first reason is that it requires time, and the damage will be done from January 1, 2026, when the CBAM implementation starts.

Jørgensen: A lot of progress has happened

“We already see that, for example, the allocations of the cross-border power lines between the contracting parties and the EU member states for next year are dropping significantly,” Lorkowski explained.

The second reason is the issue of completeness. “We are still not certain whether, for example, renewables in the contracting parties can be treated equally as those in the EU,” he said, and added that the secretariat is in communication with the commission on these issues.

According to European Commissioner for Energy Dan Jørgensen, it is clear that a lot of progress has been made in what will hopefully be future EU member states or neighbors, especially in the transposition of EU energy law.

Focus on four issues

According to the secretariat, the ministers further committed to advancing a coherent and predictable framework to sustain electricity market integration while creating the enabling conditions for the clean energy transition.

The secretariat highlighted four issues.

First, contracting parties will individually pursue national carbon pricing models according to their domestic circumstances, while work continues to explore coordination possibilities and ensure coherence between national carbon pricing systems in view of their gradual alignment with the EU ETS.

Second, the Energy Community framework will further incorporate core EU legislation on nature conservation, biodiversity, and water protection into the Energy Community Treaty.

Third, to keep momentum behind the rapid growth of renewables, the contracting parties will step up efforts to secure mutual recognition of guarantees of origin with the EU.

Finally, effective coordination and implementation of national energy and climate plans (NECPs) is critical, participants agreed.

The EU’s recent agreement on the 2040 climate targets sets a clear direction, and contracting parties must follow this pathway as they develop their long-term energy and climate policies, the update reads.

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December 16, 2025

by AEA in News

EU presents European Grids Package: faster permitting, stronger interconnections, lower energy bills

The European Commission presented the European Grids Package, a comprehensive plan to modernise transmission infrastructure, accelerate permitting procedures, and overcome bottlenecks in Europe’s electricity networks. It also unveiled the Energy Highways initiative, which consists of eight major infrastructure projects critical for energy security, renewable energy integration, and cross-border electricity market connectivity.

Jørgensen: A truly interconnected energy system is the foundation of a strong and independent Europe

Among the measures is a new mechanism that allows the commission to initiate the search for additional infrastructure projects when existing initiatives do not cover identified cross-border needs.

Permitting reform

Permits for smaller projects would be issued through faster and more streamlined procedures

Public and private financing

Another suggested solution is the formation of project firms (special purpose vehicles – SPVs) to attract additional private investment.

Energy Highways

The commission has also endorsed the establishment of Denmark’s hub on the island of Bornholm, which could, in the coming years, be connected to additional locations in the Baltic Sea.

Among the priorities are strengthening energy storage capacity in South-Eastern Europe

Among the priorities are strengthening energy storage capacity in South-Eastern Europe, as well as the modernisation of the Trans-Balkan Pipeline (TBP) for gas.

The commission views these projects as pillars of Europe’s future energy network, essential for lower electricity prices, greater system stability, and reduced dependence on fossil fuels.

In a regular legislative procedure, the proposals now move to the European Parliament and the Council of the EU for further deliberation.

Post Views:70

December 2, 2025

by AEA in News

Renewables investors are seeking tailored financing services as they add BESS, adapt to risks

Market conditions have become challenging for renewables in the CEE region, alongside uncertainties in the regulatory sphere, which calls for advanced and tailored financing solutions, according to participants in UniCredit Serbia’s workshop on navigating capital flows in the segment, including mergers and acquisitions (M&A). Investors, UniCredit’s clients, highlighted the growing importance of battery energy storage systems – and especially adding co-located storage to photovoltaics.

The renewable energy market is evolving in Central and Eastern Europe, as large players join the game and developers emerge as producers. With its surge in photovoltaic capacity and the revival in the construction of wind power plants, Romania has become a frontrunner. In neighboring Bulgaria, the first power purchase agreements (PPAs) are indicating a strong perspective, while Serbia might become more relevant soon, investors agreed at an event that UniCredit Bank Serbia organized in Belgrade.

M&A and financing trends in the region were the central topics. The idea was to have an open discussion with industry players active in the region about their investment strategies and the bank support, said the Head of Specialized Lending in UniCredit Serbia Svetlana Cerović, who moderated a panel within the conference.

A stable top line and a legal framework is the key driver for investments, with a particular emphasis on grid connections

Cerović pointed out that volatility has been on the rise for the last couple of years, after a huge wave of investments that followed the Paris Agreement and the European Green Deal. Sound and predictable regulatory framework along with stable revenues is key. To assure market flexibility and grid stability, new investments in western Europe and in the region are supported with the government programs including investments in battery energy storage systems (BESS). Thus, one of the prerequisites for the execution of future projects in local market will be certainty regarding the third auction timeline and availability of the longer term PPAs.

The participants at the workshop on navigating capital flows in renewables said a stable legal framework is the key driver for investments – grid connections especially, and permitting as a whole. On that note, developers will lean on the slowly maturing PPA market, though support from banks is necessary in the equation. Battery energy storage systems are a game changer, particularly colocated with solar parks for the optimization of the project returns.

UniCredit is strongest player in renewables financing in Serbia

UniCredit has a wide set of tailor-made project finance loans as well as a full range of services from advisory to various financing solutions, Head of Project and Structured Finance in Serbia Jelena Nestorović said.

The Italy-based bank has financed a string of major wind power and photovoltaic projects in the region, including facilities with colocated BESS, like Sunterra RE’s Galabovo in Bulgaria.

As for Serbia, it is the strongest player in the renewable energy segment. UniCredit financed six wind parks in the country, of 430 MW in total, and of which three as the sole lender. Notably, Čibuk 1 and 2 are the largest in Serbia.

UniCredit Bank Serbia is financing the country’s biggest wind power plants – Čibuk 1 and 2

Some of the participants and winners at the first two domestic auctions for contracts for difference (CfDs) are among the bank’s clients as well. Nestorović stressed that Bank is financing in total 30MW of smaller scale solar power plants .

She pointed to one of the largest industrial rooftop solar power plants in the region. UniCredit provided EUR 3.1 million facility and acts as a hedging and account bank for CWP Europe and Resalta’s project company. It built a PV system of 6 MW on a rooftop of Henkel Serbia facility in Kruševac, under an ESCO (energy service company) model.

Since 2019, the bank has participated in the financing of first waste-to-energy cogeneration plant, located just outside of Belgrade. UniCredit is financing energy efficiency projects in the country, too.

Jelena Nestorovic UniCredit Renewables investors tailored financing services BESS adapt risks — Photo: UniCredit’s Jelena Nestorović presenting

Priority in Europe shifted from energy transition to energy security

Maria Vastola, Managing Director of UniCredit’s Energy Advisory Team covering Power & Utilities across the Group’s core countries, said valuations for renewable energy stocks on public markets are strongly down compared to 2021-2022 period and below the 3Y historical average. Independent power producers (IPPs) are factoring in a great uncertainty related to the permitting process, the regulatory framework in certain countries and the macroeconomic environment, she explained.

The bottom line is the shift in the European paradigm from the energy transition to energy security, due to geopolitical tensions, Vastola underscored. On the other hand, M&A still has good valuations, she said at the panel discussion.

Investors are focusing on operational quality, meaning high-quality assets, returns and value creation, as opposed to growing at any cost, Vastola added.

“There are more investors ready to put capital in projects and in the region. Private capital flow is a good bridge and a complementary tool for banks’ balance sheets,” she asserted and placed an emphasis on large corporations, private equity and M&A.

Scale creates efficiency, and efficiency and flexibility create value in a challenging market, Vastola stressed, highlighting investments in hybrid power plants that include battery storage. Over the past few years, corporates, traders and utilities are flocking into the renewables realm in “a big shift from big oil to big energy,” she said.

Actis to invest in infrastructure projects across region

Vice President for Energy Charles Lachapelle from Actis agreed with the other panelists about the significance of hybrid power plants and underscored that the sustainable infrastructure investment firm is mostly doing very large projects as they are much more competitive.

“Definitely, for solar, I think having a BESS is a must,” he said and added that “it goes without saying at this point.” As for batteries with wind parks, they enable flexibility for offtake, Lachapelle noted.

Actis is a growth market investor in the infrastructure and energy space, best known in the region for Rezolv Energy. In Romania, the company obtained a financing package for the first phase of its giant Vifor wind farm via PPAs with companies in the commercial and industrial (C&I) sector. The second part was secured thanks to the CfD from a renewable energy auction.

The next chapter for Actis could involve more than a billion euros

Among other investments in Romania, Rezolv has the Dama Solar project for 1.2 GW in peak capacity. It would currently be one of the biggest in Europe. The company is also active in Bulgaria.

Actis is looking at a pipeline of projects across the region, including in Serbia, Lachapelle revealed. Asked about the next auction that the country is planning, he said a wind power project in the 200 MW range would be suitable.

Lachapelle specified that the next chapter may involve over EUR 1 billion and that Actis would require support in financing.

On the subject of power purchase agreements, he said the optimal tenure is longer than ten years, with more than 70% of output contracted. “However, we’ve done cross-border PPAs. We’ve looked at solutions, in the past, combining wind, solar and BESS. We can be creative on that front,” Lachapelle stated.

Regulatory stability is essential for investor-friendly countries

While the PPAs of 70% and at least 10 years are necessary for non-EU countries, banks in the EU are more risk-hungry, according to CWP Europe’s General Counsel Jovana Rubežić.

One of the most important factors is how investor-friendly a country is, she added. “When I say investor-friendly, I mean the regulatory framework… The next thing we look at is whether we can connect our project and can the power markets absorb the power,” Rubežić said.

The rules have basically stayed the same in all of CWP Europe’s key markets, except with respect to grid connection, as transmission system operators are becoming stricter, she underscored. The company is transitioning from project development to the IPP sector, Rubežić said. She pointed to the need for support in regulatory matters, especially in sleeved PPAs, both from the government and government-owned utilities such as Elektroprivreda Srbije (EPS) in Serbia.

Structured portfolio transactions are facilitating growth for companies with multiple projects

Bankers generally seem to prefer co-located batteries to standalone ones, UniCredit’s Head of Infrastructure and Export Financing Lazar Nikolić said.

The main reason is the more diversified revenue stack, as a combination of BESS and a renewable electricity plant is effectively a single asset. With global battery storage capacity on a steep growth trajectory, banks and investors will need to look for bankable solutions to enable that.

Firstcomers in the standalone battery segment may have an extremely short payoff period ahead, but the bank needs a revenue stack

Nikolić stressed that developers need advanced capital solutions such as structured portfolio transactions, saying that they pave the way for renewables platforms to grow. Namely, firstcomers in the standalone battery segment may have an extremely short payoff period ahead, however a solid revenue stack remains key for the bank to take on risk. Countries with strong state support schemes will enable standalone BESS faster, he added.

In structured portfolio financing, the client company has different BESS, power plants and projects grouped.

“The assets can be different in terms of technology, they can be different in terms of location, they can be different in terms of offtake, in terms of also the cycle of the assets. We pack them together, bundle assets and structure debt solution on top of them, significantly enhancing portfolio diversification,” Nikolić said.

Lazar Nikolic UniCredit — Photo: UniCredit’s Lazar Nikolić presenting structured portfolio financing options

Battery storage is natural hedge for green power production

Enery, headquartered in Austria, decided at one point to add battery storage across its power plants as well as both mature and greenfield projects in Romania, Vice President for Financing Sebastian Staicu said. BESS is “a natural hedge” and it has become very cheap, he noted.

UniCredit acted as the lead bank for the company’s 230 MW portfolio of wind, photovoltaics and battery storage in the country. “That’s a smart structure where, instead of having to negotiate financing for each project, you have this wholesale facility and you just bring in new projects, which contribute to the diversification element,” Staicu said.

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October 30, 2025

by AEA in News

Several EU member states face uncertainty amid looming Russian gas ban

The European Union’s proposed measures to phase out imports of Russian oil and gas would destroy Hungary’s security of supply, according to Minister of Foreign Affairs and Trade Péter Szijjártó, who spoke at the meeting of energy ministers in Luxembourg. Slovakia is in a similar situation, while Romania pointed to the difficulty of proving the origin of foreign gas.

The draft regulation that the Council of the EU adopted doesn’t explicitly call for a ban on the transit of gas to third countries, while it foresees a temporary suspension for member states in case of supply disruption. The proposal also allows the possibility of importing non-Russian gas through the TurkStream pipeline.

The meeting of the so-called Energy Council highlighted several issues and concerns among EU member states about the proposed ban on Russian natural gas, including liquefied natural gas (LNG). Energy ministers in the Council of the EU adopted their position ahead of negotiations with the European Parliament on measures that they plan to introduce on January 1.

There would be a transition period for existing contracts for Russian fossil gas. Short-term ones concluded before June 17 this year would remain in force until June 17, 2026. Long-term contracts may run until January 1, 2028. It is also the targeted date for ending imports of Russian oil.

Szijjártó: The remaining infrastructure, physically and capacity-wise, is not able to supply Hungary

“The real impact of this regulation is that our safe supply of energy in Hungary is gonna be killed,” the country’s Minister of Foreign Affairs and Trade Péter Szijjártó stressed at the meeting.

He clarified that he wasn’t speaking about prices, and warned of damage from the proposed regulation – in the name of diversification.

“As now we are phasing out supply routes towards Hungary, the remaining infrastructure, physically and capacity-wise, is not able to supply the country. This has nothing to do with politics. This has nothing to do with Russia. This has nothing to do with the war in Ukraine. This is mathematics and physics,” Szijjártó stressed.

He also reiterated that his country would be left dependent on one oil supply route, via Croatia. It would leave Hungary “totally defenseless to a monopoly” as the transit fee doubled since the start of the war and it is five times higher than the current European benchmark, the minister underscored.

Bulgaria asks for protection from arbitration for gas TSOs

Slovak Deputy Prime Minister and Minister of Economy Denisa Saková said the supply of gas to her country is limited. There are interconnections with all neighbors, but external capacity bottlenecks remain, she argued. Bulgaria asked for provisions protecting gas transmission system operators (TSOs) from arbitration and financial penalties.

Romania voted for the draft regulation, but warned that identifying the origin of imported gas would be difficult

Secretary of State in Romania’s Ministry of Energy Cristian Bușoi urged for a workable and harmonized verification system and for the development of clear guidelines.

“This is not a matter of energy policy, but of strategic autonomy and European solidarity. At the same time, as we move from political vision to implementation, we believe it is important that the new authorization and verification system remains practical, transparent and proportionate. The additional requirements to demonstrate the exact country of production represent a new level of responsibility that, while understandable, and we support this in principle, may be difficult to fulfill in practice, particularly for pipeline [and] natural gas traded on hubs, and shipments transport, including LNG cargos that involve multiple sources and blending,” Bușoi told the ministers.

Council of EU proposes suspension clause

Notably, the Energy Council’s position, part of the REPowerEU plan and sanctions against Russia, is that the regulation should contain a suspension clause. The European Commission could temporarily lift the ban on Russian gas and LNG in case of significant disruptions of supply.

Another important element is the possibility of importing non-Russian gas through the TurkStream pipeline if the fuel’s origin is proven.

Gas transit through EU not subject to prohibition

Energy ministers said the EU should ensure that natural gas which crosses the 27-member bloc under a transit procedure is not ultimately entering into free circulation in the union.

It would imply that Serbia, Bosnia and Herzegovina and North Macedonia, non-EU countries, could continue to buy Russian gas that is delivered through Balkan Stream. It is the extension of TurkStream running through Bulgaria and Serbia to Hungary.

“Any gas which, before its import into the EU, was exported from the Russian Federation, either via direct export from Russia to the EU or via indirect export through a third country, should, except in case of transit, be subject to the prohibition”, the document reads.

Serbia still hasn’t signed a long-term gas supply contract with the Russian side, and the previous one expired in May. Moreover, the United States have imposed sanctions on Gazprom-controlled NIS, Serbia’s national oil importer, refiner and operator of a chain of service stations.

On top of it all, hydropower output is at a record low due to chronic drought, while coal is being imported as domestic mines don’t produce enough lignite.

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October 15, 2025

by AEA in News

Šahmanović: Second submarine cable line with Italy to be installed by 2031

The second line of the submarine cable connecting Montenegro and Italy is expected to be completed by 2031, Montenegro’s Minister of Energy and Mining Admir Šahmanović said at the European Union – Montenegro Investment Conference.

The two-day conference, titled Smart Growth, Green Future: Accelerating Investment in Montenegro, was opened yesterday in Luštica, near Tivat, by European Commission President Ursula von der Leyen and Prime Minister of Montenegro Milojko Spajić.

Fourteen cooperation projects between Montenegrin and European companies have been initiated at the conference, including investments in wind farms, solar parks, energy storage, and grids. It shows the great significance of the energy sector for investments.

A panel called Renewables: Scaling Montenegro’s Energy Transition examined the possibilities for accelerating the country’s energy transition and enhancing the sector’s attractiveness for investment in renewables.

Šahmanović: Montenegro strives to position green energy as an export product

Prominent international experts and investors took part in the discussion. Representing the Government of Montenegro, Minister of Energy and Mining Admir Šahmanović outlined the country’s renewable energy priorities and highlighted Montenegro’s role as a regional leader in clean energy.

Montenegro has fully harmonized its legislation with EU standards, creating a stable and predictable investment environment, in his words. Šahmanović highlighted the launch of the first solar power auction as a significant step forward in the development of renewables.

Photo: Đorđe Cmiljanić/Government of Montenegro

“The government invests in battery energy storage systems (BESS), ensuring the flexibility and stability of the grid. Montenegro strives to position green energy as a recognizable export product, thereby strengthening the country’s economic sustainability,” Šahmanović stated.

He revealed that Montenegro is about to sign a memorandum of understanding with Italy that would additionally position Montenegro as an energy bridge between the Western Balkans and the EU.

Montenegro is looking for strategic partners and investors ready to jointly implement capital projects in the energy sector

The government is wrapping up the work concerning the oil and gas sector to close chapter 15 in its accession negotiations with the EU, further strengthening investor trust, Šahmanović said.

“The implementation of the project for the construction of the second phase of the subsea cable link with Italy is expected by 2031, which will further strengthen Montenegro’s role in regional and European energy connectivity. Montenegro is looking for strategic partners and investors ready to jointly materialize capital projects in energy and contribute to regional energy stability,” the minister underlined. The investment is estimated at EUR 500 million, he asserted.

In a message to investors, Šahmanović said Montenegro is open for investments and added: “Now is the time for you to invest. We will be your service 24 hours a day, seven days a week.”

Participants at the panel included Daniel Calderon, Alcazar Energy Co-Founder and Managing Partner, Yann Guinard, EDF Director of Development for Europe, Louis Blanchard, Qair Energy President, and Nemanja Mikać, ElevenEs CEO.

Memorandum with EDF

Admir Šahmanović and Yann Guinard (photo: Ministry of Energy and Mining)

Within the conference, the Ministry of Energy and Mining of Montenegro and EDF International Networks signed a memorandum of understanding. It establishes a framework for future cooperation on modernizing the distribution network, digitizing smart grids, and integrating renewable energy sources, according to the ministry.

The memorandum foresees the implementation of pilot projects and feasibility studies that will contribute to the acceleration of the energy transition of Montenegro.

Admir Šahmanović said the deal is an important step towards strengthening green and innovative energy projects. Cooperation with EDF confirms the position of Montenegro as a country with a clear vision and open opportunities for investors, he underscored.

“EDF International Networks, as part of the global EDF Group, brings international expertise in the sector of power distribution, grid upgrade and digital transformation, which opens up space for new strategic partnerships and capital infrastructure projects,” the minister pointed out.

The memorandum confirmed the joint commitment to sustainability, integrity and energy security, with a clear focus on the well-being of citizens and the economy of Montenegro, the ministry said.

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October 8, 2025

by AEA 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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