December 10, 2025
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EU considering Montenegro’s proposals for changes to CBAM

Minister of Energy and Mining of Montenegro Admir Šahmanović met with several senior officials of the European Commission. The messages in Brussels regarding the Carbon Border Adjustment Mechanism (CBAM) were encouraging – changes in the regulation are being considered, including Montenegro’s demands, according to the ministry.

Minister of Energy and Mining of Montenegro Admir Šahmanović led a delegation that visited the European Commission’s headquarters. They met with Director General for Taxation and Customs Union Thomas Gerassimos, Deputy Director-General for Climate Action Jan Dusík and Director for Western Balkans Valentina Superti and Head of the Unit for Bosnia and Herzegovina and Montenegro Barbara Jésus-Gimeno, both from the Directorate-General for Enlargement and Eastern Neighbourhood.

The focus of the discussions was on key processes in the energy sector and especially on the Carbon Border Adjustment Mechanism (CBAM), which is currently Montenegro’s main priority, the ministry said. Šahmanović presented the reforms that the country conducted and stressed that the government is almost entirely aligned with its European requirements in the legal and strategic sense.

CBAM is now Montenegro’s priority

Over the last eight months, Montenegro adopted a new Law on Energy alongside dozens of bylaws, including some tied to the Law on the Use of Energy from Renewable Sources. The government launched the first renewable energy auction, for solar power, and signed a memorandum of understanding on market coupling with Italy, with which talks continue on the construction of the second wire in the undersea cable. Laws on cross-border energy exchange and the construction of cross-border energy assets are drafted, the update adds.

The minister said Montenegro is finalizing its National Energy and Climate Plan.

More flexible models for CBAM to be considered

The European Commission’s representatives acknowledged Montenegro’s progress and asserted that it is in the lead in the region as concerns the degree of compliance in the energy sphere, the ministry said.

“Within the same context it was agreed that discussions would be continued on a technical level in the following weeks to consider the possible, more flexible models of applying CBAM and to enable candidate states to adjust to the mechanism faster and more efficiently. A special focus will be on the elaboration of compromise solutions – especially the ones that enable a gradual, just and predictable implementation, with a minimal burden on the Montenegrin energy sector, which is significantly reliant on electricity exports,” the update reads.

EU’s cross-border tax on greenhouse gases to have weaker impact than in earlier projections

The European Commission conveyed encouraging messages: a smaller impact from CBAM is expected than in earlier projections, and amendments to the regulation are being considered, including demands from Montenegro from the consultations, according to the ministry.

Minister Šahmanović said Montenegro is remaining fully dedicated to its European obligations, but that it expects an acknowledgment of the results that it achieved, so that the implementation of CBAM is harmonized with the realities of the country’s energy system and its strong renewables investment cycle.

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December 8, 2025
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Greece’s first municipal energy community to be launched in its coal capital Kozani

The city of Kozani in northern Greece, home of the country’s dwindling lignite industry, is seeking a contractor for seven photovoltaic systems of 7 MW overall. The municipality said the power plants would supply its buildings, public lighting, pumps and drilling rigs as part of the country’s first energy community led by a local authority. Under a virtual net metering scheme, the facilities are also intended for combating energy poverty.

Energy communities are present all over Greece, but private capital is dominant – instead of individuals, local institutions and small firms. The concept can be especially beneficial for local authorities in coal regions, which are undergoing rapid decarbonization and turning toward cutting-edge technologies.

Job losses and a lack of skills jeopardize communities in such areas. The Municipality of Kozani, the capital of Greece’s coal land, the region of Western Macedonia, is one of them. It was among the first in the country that launched initiatives for energy communities led by local authorities.

Deadline for applications is January 12

Kozani has opened a tender for the selection of a contractor that would build seven photovoltaic plants. The municipal solar power units would operate under a virtual net metering scheme.

It would enable supplying municipal buildings, street lighting, schools, sports facilities, pumps and drilling rigs, but also the means to fight against energy poverty. The municipality received funding via the European Union for the project, under a just development and transition program.

The city claimed that it would be the country’s first energy community of its kind. Prospective candidates can apply by January 12, and the selection is scheduled for January 16. The budget amounts to EUR 6.25 million including value-added tax, and the local authority participates with 20%.

Kozani already invested EUR 650,000 in its energy community

The project is placing the Municipality of Kozani in the lead in energy self-sufficiency and autonomy in the country, Mayor Yiannis Kokkaliaris said.

He revealed that the local authority managed to secure grid connection terms in time not to lose the EUR 650,000 that it spent so far for the purpose.

The Kozani area is already hosting some of Greece’s largest photovoltaic plants and projects. It is envisaged for one of six waste incinerators in the country. Government-controlled Public Power Corp. (PPC Group) plans to build pumped storage hydropower plants on its depleted open pit coal mines in the region.

Of note, Greece recently lost EUR 100 million from the European Union’s Recovery and Resilience Facility (RRF) for the Apollo program. It was aimed for self-consumption for vulnerable households through forming an energy community.

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December 8, 2025
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Serbia rolls out taxes on greenhouse gas emissions, imported carbon-intensive products

The Serbian Law on Greenhouse Gas Emissions Tax and Law on Carbon-Intensive Product Imports Tax, both at EUR 4 per ton of CO2 equivalent, are coming into effect on January 1. It is the country’s answer to and equivalent of, respectively, the European Union’s Carbon Border Adjustment Mechanism (CBAM). Notably, several bylaws are still required for the new legislation to be enforced.

The National Assembly of Serbia passed the Law on Greenhouse Gas Emissions Tax and Law on Carbon-Intensive Product Imports Tax today, without accepting any of the opposition’s proposals for changes in the two bills.

On January 1, importers of electricity, cement, iron and steel, aluminum, hydrogen and fertilizers to the European Union will start paying the CBAM carbon dioxide tax. If the country of origin also has a CO2 pricing system and the EU recognizes it, the sum will be deducted from CBAM.

The domestic greenhouse gas emissions tax is Serbia’s answer to the cross-border levy, while with the new import tax it is establishing a corresponding mechanism. Both are EUR 4 per ton of CO2 equivalent, covering also nitrous oxide (N2O) and perfluorocarbons (PFCs).

They are intended to lower pollution, improve energy efficiency, incentivize the deployment of renewable energy and secure a more equal position for the Serbian industry in the domestic and international markets, according to the sidenotes.

Both laws to enter into force on January 1, when EU also starts charging CBAM

The first of the two taxes is for big industrial emitters in the sectors of cement, fertilizers, iron and steel, aluminum and electricity. Both laws are coming into effect on January 1, just like the CBAM charge. However, several bylaws are still required for Serbia to enforce the new legislation.

The CBAM tax is envisaged to rise every year until in 2034 it becomes equal as the prices of greenhouse gas emission certificates in the EU’s Emissions Trading System (EU ETS). Electricity is different, as the amount will from the start correspond to the carbon intensity of the country of origin’s entire production mix.

According to Special Advisor at Serbia’s Economics Institute Ljubo Maćić, charging CBAM will prevent power market coupling between Serbia, other Energy Community contracting parties and the European Union, and discourage investment in renewables.

Of note, the administration in Brussels plans to expand the mechanism to other segments that EU ETS covers.

No electricity in carbon imports tax

The Law on Carbon-Intensive Product Imports Tax doesn’t cover electricity because of technical limitations and a lack of a precise taxing methodology.

The tax on imported carbon-intensive products covers only the entities that import five or more tons of the designated products per year

Importers are taxed based on emissions embedded in the production of the goods from abroad, but they will be able to use tax credits if an emissions levy has already been paid in the country of origin, similar to the EU system. The obligation is only for companies importing five or more tons of designated products per year.

Serbia imports an estimated 3.5 million tons of carbon-intensive products per year.

CO2 tax scope limited to larger producers

The CO2 tax law will be applied to firms obligated to have a license for emissions from their plants. Mostly they are large and medium-sized companies. Fifty companies have obtained such licenses for 92 facilities. They measure emissions data, in line with the Law on Climate Change, and send them to the Ministry of Environmental Protection.

The production of synthetic fertilizers and nitrogen compounds, cement, pig iron, steel and ferroalloys, aluminum and electricity accounts for over 57% of emissions in Serbia and more than 90% within the national monitoring and reporting system.

Tax deductions for large electricity producers that invest in decarbonization

A payer of the greenhouse emissions tax that predominantly generates electricity, accounting for at least 80% of its income in the previous annual tax period, is eligible for a tax credit amounting to 20% of the sum that it invested in decarbonization measures, the law stipulated.

The deduction can’t exceed 80% of the due tax. The government determines the said measures.

The greenhouse gas emissions tax envisages incentives for the taxpayers to finance green projects, the just transition and protection of vulnerable households

In addition, entities that pay the tax are eligible for incentives, from the state budget, for financing climate and energy transformation through investing in renewables and energy efficiency, innovative low-carbon technologies, decarbonization of industrial production, green construction and support to the just transition and protection of vulnerable households.

Proceeds from the tax “can be invested in green transition projects,” the sidenote reads, while there is still no dedicated decarbonization fund.

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December 3, 2025
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GGF’s new partnership powering sustainability of SMEs in Turkey

The Green for Growth Fund (GGF) has partnered with ING Leasing Türkiye, a subsidiary of ING Türkiye, through a EUR 20 million financing agreement to help small and medium-sized enterprises (SMEs) invest in cleaner, smarter, and more efficient technologies, from energy-efficient equipment and machinery upgrades to self-consumption photovoltaic systems and other low-carbon solutions.

GGF’s first collaboration with ING Leasing Türkiye is marking the start of a new strategic relationship. In addition, it is ING Leasing’s first direct access to international development financing supported by funding from international financial institutions and development finance institutions through the Green for Growth Fund, the update adds.

The deal is expected to deliver around 21,000 MWh of primary energy savings and avoid approximately 5,800 tonnes of CO₂ emissions each year, according to GGF.

The signing was attended by Onur Gul, General Manager of ING Leasing Türkiye, and Pınar Cumalı, Treasury and Financial Institutions Manager at ING Leasing Türkiye, alongside, representing GGF through its advisor Finance in Motion, the company’s Regional Director Burcu Karpuz and Investment Associate Mehmet Sena Bakar.

Luxembourg-based GGF has become one of the largest green blended-finance funds. It ended last year with EUR 1.09 billion in assets under management and an outstanding investment portfolio of EUR 1.03 billion.

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December 2, 2025
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Just Transition Forum unites regional leaders to tackle energy poverty, shape fair energy future

Governments, partners, civil society and community leaders from across Europe gathered in Tbilisi for the Energy Community’s Just Transition Forum to explore how energy efficiency can help end energy poverty and strengthen public trust in the clean-energy transition.

The forum delivered a clear message: a just transition cannot succeed without meaningful dialogue with diverse civil society and non-governmental partners, whose expertise and perspectives must be integrated into planning. As contracting parties begin preparing their new national energy and climate plans (NECPs), embedding just transition in transparent frameworks and long-term strategies is key to turning decarbonization commitments into real benefits for people and communities.

This principle is further reflected in the Energy Community’s newly published Just Transition Policy Guidelines, which guide governments in integrating just transition elements into energy and climate planning – ensuring that decarbonization goes hand in hand with social protection, local opportunity, and public trust, while supporting alignment with the European Union’s clean energy and climate objectives.

Lorkowski: New NECPs should tell story of just, sustained transition

Opening the forum, Energy Community Secretariat Director Artur Lorkowski underscored the importance of the current moment for regional energy and climate planning. The new NECPs, he stressed, should tell the story of a just and sustained transition.

“We are entering a pivotal moment for the region’s energy and climate future. With just transition principles at the core, they can pave the way toward EU energy market integration and turn the green transition into an engine of investment, inclusion, and shared prosperity,” Lorkowski stated.

Critically, the Energy Community’s Governance Regulation requires contracting parties to assess and address energy poverty in their NECPs. It is an opportunity to ensure that energy-poor households receive targeted support and remain central to energy efficiency and decarbonization efforts.

Just Transition Forum unites regional leaders energy poverty fair energy future

Energy Efficiency First for Energy Poverty

To drive the agenda forward, forum participants drew on insights from the secretariat’s study Energy Efficiency First for Energy Poverty. It reveals that 30% to 40% of households in Kosovo*, Albania, North Macedonia, and Georgia face energy poverty, and shows how targeted energy efficiency investments can transform lives across the region – making homes warmer, healthier, and more affordable to run.

By prioritizing vulnerable households, establishing renovation funds, and applying the Energy Efficiency First (EE1st) principle, contracting parties could cut household energy demand by more than 60%, create up to 19 local jobs for every EUR 1 million invested, and triple the wider benefits through improved well-being, comfort, and productivity.

Energy Community contracting parties could cut household energy demand by more than 60%

Emphasizing the importance of a people-centred transition, Head of EU Delegation to Georgia Paweł Herczyński stated: “For the European Union, a just transition is not only an environmental goal. It is a commitment to people, fairness and long-term resilience. This transformation must be built through dialogue, transparency and the active participation of communities. Ensuring that this transition succeeds, it will depend on transparent governance, democratic credibility and alignment with the EU standards.”

The forum also celebrated the winners of this year’s Just Transition Young Voices Awards. Their work highlighted how listening to those most affected by the transition — and youth, who will carry it forward — is essential to understanding the diverse realities of communities navigating the shift to a greener economy.

Cooperating partners for the forum included the Delegation of the European Union to Georgia, KfW on behalf of the German government, AFD – Agence Française de Développement, and the Federal Ministry for European and International Affairs of Austria.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
December 2, 2025
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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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December 2, 2025
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GGF ushers in new wave of energy transition investments in Western Balkans with eight deals

The Green for Growth Fund has signed a series of agreements on green lending and support for major solar power and energy storage projects throughout the Western Balkans. The new commitments, backed by an investment from KfW, will lift its green financing portfolio in the region by up to EUR 176 million.

At the EU–Western Balkans Investment Forum in Tirana, held in October, GGF announced the European Union’s EUR 20 million investment in its class C shares, via Germany’s KfW Development Bank. It was accompanied by a EUR 4 million donation to the climate action fund’s capacity building and advisory facility, its advisor Finance in Motion said.

The proceeds are set to mobilize more private capital for renewable energy, energy efficiency and climate resilience across the region, the update revealed.

The Green for Growth fund signed a series of agreements at the forum for green lending, and for financing solar power and battery projects in North Macedonia, Kosovo* and Albania.

Von der Leyen: The time to invest in the Western Balkans is now

The event was attended by European Commission President Ursula von der Leyen and Albanian Prime Minister Edi Rama.

“Your economies are already set to grow rapidly in the coming years. We established the Western Balkans Growth Plan for exactly that. The EU opens sectors of its economy for your business. Together, we work on reforms for a level playing field. And alongside reforms comes investment. The Western Balkans Growth Plan aims at doubling regional GDP in the next decade. So my message to investors today is straightforward: Do not let this opportunity pass by. The time to invest in the Western Balkans is now,” Von der Leyen said.

The commitments signed within a special segment of the Tirana conference are boosting the fund’s cumulative investments into the region to more than EUR 850 million. Earlier it provided over EUR 675 million overall in green finance in the Western Balkans in support of climate action, energy security and sustainable industry.

The new commitments are expected to avoid emissions of some 175,000 tons of CO2. It is equivalent to 400,000 barrels of oil not being burnt.

Trailblazing investments ahead in photovoltaics, BESS

The Green for Growth Fund intends to provide funding for one of the first grid-scale battery projects in North Macedonia and the Western Balkans.

Renalfa IPP is about to expand its 50 MW photovoltaic plant in Oslomej, on the site of a former coal mine, with a 200 MWh battery energy storage system (BESS). GGF has already provided debt financing for the solar installation, and the two sides signed a mandate letter for EUR 24 million for the BESS investment. It is one of the investments for the transformation of the REK Oslomej coal mine and power plant complex.

Renalfa IPP’s pioneering PV plant Oslomej on coal land will get a battery facility

GGF also signed a term sheet for Quant Renewables’ solar power project in Kosovo* for 142.2 MW in peak capacity. It comprises PV plants Tucep (98.5 MW) and Veriq (43.7 MW) on land previously designated for lignite mining.

The Green for Growth Fund would support it with up to EUR 12 million in preferred equity, complementing senior debt financing led by the European Bank for Reconstruction and Development (EBRD). Set to become Kosovo’s* biggest solar park, its estimated annual output would match the electricity needs of 63,000 households.

The facility would save an estimated 168,138 tons of carbon dioxide equivalent per year (22,529 tons prorated to GGF’s investment).

The third renewables project is HD Solar Park in Albania. Through a letter of intent, GGF expressed its goal to provide up to EUR 30 million in senior debt financing. Bindi, the developer, has envisaged 60 MW of peak capacity and a co-located 120 MWh battery system. It would be one of the first large-scale solar-plus-storage initiatives in the country.

Five new deals with financial institutions for as much as EUR 110 million in total

The partner financial institutions that signed agreements with the Green for Growth Fund will channel the financing to their clients for investments in renewables, sustainable mobility, and energy and resource efficiency in buildings and industrial production.

There are five new deals for as much as EUR 110 million in credit lines and subordinated loans.

Two credit lines for partners in Kosovo*

The KRK microfinance institution in Kosovo* aims to utilize a new credit line, of EUR 5 million, for efficiency refurbishments and retrofits of the residential sector as well as small-scale renewable energy. It would be its sixth investment with the Green for Growth Fund since establishing the partnership in 2017.

BpB, the first bank in Kosovo* founded with fully local capital, finances households and small and medium-sized enterprises. Building on a previous partnership, it will channel GGF’s senior credit line of EUR 5 million into energy efficiency and renewable energy.

It will particularly benefit SMEs, including clients in the agricultural sector seeking to upgrade energy systems or invest in low-carbon vehicles, efficient equipment and modern irrigation systems, the fund added.

EUR 95 million in total for Serbian lenders

The Green for Growth Fund signed a loan agreement with UniCredit Bank Serbia for a EUR 50 million senior credit line. The focus is on commercial-scale solar and wind power, helping decarbonize Serbia’s coal-dependent electricity system.

GGF expects it to become one of the fund’s most impactful investments, by avoiding 84,550 tons of emissions in CO2 equivalent terms – equivalent to taking 44,500 cars off the road. The fund has invested EUR 115 million in UniCredit Bank Serbia to decarbonize the country’s electricity system.

Another Serbian lender in the group is AikBank, eligible for a EUR 45 million subordinated loan. The deal is for financing renewables and energy efficiency projects of corporate clients.

The bank will additionally benefit from GGF’s technical assistance for technical due diligence and environmental and social assessments, for the implementation of green energy projects in line with the best practices, the partners stressed.

ProCredit Bank in BiH is eyeing solar power projects

ProCredit Bank in Bosnia and Herzegovina is getting a subordinated loan of up to EUR 5 million, following two such facilities in 2022 and last year. The Green for Growth Fund’s investment is for maintaining the partner’s capital position and supporting the expansion of its green portfolio. The bank especially sees opportunities in solar power, where there is significant potential for BiH to catch up with regional leaders.

“We thank our investors for their continued confidence. This kind of catalytic capital drives tangible impact in Southeast Europe and shows how aligning investment with ambitious climate goals accelerates the green transition,” Finance in Motion said.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
December 2, 2025
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Energy Community calls for nominations of PECI energy infrastructure projects

Developers of cross-border energy infrastructure investments within the Energy Community or internal ones with significant cross-border dimensions can nominate them by January 19 within the selection process for projects of Energy Community Interest (PECI). In line with the Trans-European Networks for Energy (TEN-E) regulation, the mechanism is for electricity transmission and energy storage including protection, monitoring and control systems, together with smart power and gas grids, hydrogen and carbon dioxide.

The Energy Community Secretariat opened a call for promotors to submit their projects for evaluation within the 2026 PECI selection. EU regulation 2022/869 – revised TEN-E, which the Energy Community Ministerial Council adopted as 2023/02/MC-EnC, stipulates the approval of the second list of projects of Energy Community Interest (PECI) by December 31, 2026.

Nominations are received until January 19. The proposals concern the electricity and gas sectors.

In the first group are high- and extra-high-voltage overhead transmission lines and underground and submarine transmission cables. It includes equipment and installations for offshore renewable electricity.

Eligible electricity segment investments are also for energy storage, as well as protection, monitoring and control systems for all of the above and at all voltage levels.

Projects for smart power and gas grids are both in the scope of the PECI selection process. Hydrogen-based technologies, electrolyzers and CO2 projects are within the gas infrastructure list as well, the call reads.

PECIs are for cross-border energy infrastructure within the Energy Community or internal endeavors with significant cross-border dimensions.

Proposal forms are available at the call’s webpage.

Ministries, regulatory authorities and transmission system operators will be among the institutions evaluating nominated projects. The group also consists of the European Commission, Energy Community Secretariat, Energy Community Regulatory Board, the ECDSO-E entity of Energy Community distribution system operators, the European Network of Transmission System Operators for Electricity (ENTSO-E) and European Network of Transmission System Operators for Gas (ENTSOG).

The Energy Community comprises the Western Balkans, Moldova, Georgia and Ukraine.

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December 2, 2025
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Germany’s energy and climate cooperation with Serbia improves people’s lives

Projects implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the KfW Development Bank in Serbia have introduced modern heating systems to many towns, improved insulation in public buildings and promoted renewable energy to benefit citizens and local communities. Anke Konrad, the German Ambassador to Serbia highlighted these achievements during the interview with the Balkan Green Energy News, commemorating the 25th anniversary of the German Development Cooperation in the country. She emphasized that these initiatives enhance people’s quality of life, reduce emissions and contribute to environmental protection.

Ambassador Konrad also pointed out that the long-term Regional Climate Partnership with the Western Balkans is based on shared values and goals, aimed at investing in more secure and climate-resilient future.

Ambitious reductions of harmful emissions go hand in hand with a strong economy, German Ambassador to Serbia Anke Konrad says. GIZ and KfW are supporting the country’s green transition, which includes a rising solar power capacity, she noted and called it an enormous success.

Climate action is not a cost, but a strategic investment, Ambassador Konrad pointed out.

This year marks the 25th anniversary of development cooperation between the Federal Republic of Germany and the Republic of Serbia. What are the cornerstones of this partnership, and what significant achievements have been realised over the years?

This year, we look back with pride on 25 years of successful development cooperation that has delivered tangible benefits to people all over Serbia, has brought our two countries closer together, and Serbia closer to the European Union. From the outset, Germany’s support has focused on strengthening institutions, supporting economic growth, and improving living standards. Together with our Serbian partners, we have achieved progress in training and vocational education, good governance, environmental protection, and infrastructure development.

For example, thousands of students and hundreds of companies participate in dual education programmes every year. In digitalization projects, more than 2,000 small and medium-sized companies improved their productivity and competitiveness through digitalizing internal procedures. Another great example are digital services for individuals, such as the seasonal worker portal or the Register of Administrative Procedures, an online register for all administrative services with over 2.2 million registered “e-citizens”.

We look forward to continuing to implement projects that will improve the lives for people in Serbia and support Serbia on its path towards the EU

In 2022, the installed capacity for solar energy generation was at 6 MW. Now it stands at 84.4 MW. This equals a reduction of 118,000 tons of CO2 emissions per year. Where there were 400 solar energy prosumers in 2022, now there are almost 4,000. This represents an enormous success toward combating climate change and creating a sustainable economy. We have supported this transition both through technical advice by GIZ and investments by KfW.

What makes our partnership special is its continuity, reliability and spirit of co-creation. We work together with Serbian partners and citizens, building on a strong foundation of dialogue, cooperation and shared responsibility. In this spirit, we look forward to continuing to implement projects that will improve the lives for people in Serbia and support Serbia on its path towards the EU.

Let us turn our attention to energy and climate-related matters. Germany plays a vital role as one of Serbia’s primary partners in supporting the country’s energy transition and climate efforts. Which specific areas of collaboration would you like to highlight?

Combatting climate change and the transition to green energy are some of the most pressing questions of our time. As we are following the 30th UN Climate Change Conference taking place in Brazil in November, it’s clear that international partnerships, innovation and practical initiatives to reduce emissions are key to preserving our environment and, with that, our prosperity and security. Reduction of CO2 emissions will lead to significant health benefits as a result of cleaner air.

That is one of the reasons why energy and climate cooperation has become one of the most visible parts of our partnership with Serbia. Together, we are enabling Serbian citizens to use more clean energy from wind, sun and water, and to make homes, schools and businesses more sustainable and more energy efficient.

Through our projects that are implemented by GIZ and KfW, many towns now have modern heating systems, better-insulated public buildings, and new renewable energy projects that benefit local communities.

This work is not only about technology – it is about improving people’s daily lives, lowering harmful emissions, and protecting the environment for future generations.

Germany energy climate cooperation Serbia improves people lives Ambassador Anke Konrad interview
Anke Konrad, the German Ambassador to Serbia delivered a speech at the opening ceremony of the annual event of WISE Serbia network of women in sustainable energy, climate action and environmental protection (photo: Balkan Green Energy News)

What is the current landscape for German companies operating in Serbia’s energy sector? We have noticed a notable presence of technology firms compared to development companies, which raises questions about the level of interest from German investors in Serbia and the wider Western Balkan region. What factors might contribute to this observed reluctance among German investors?

German investors very much believe in Serbia, its business environment and its progress on the path towards the European Union. That is a major factor why over 900 companies with German capital are operating in Serbia.

Altogether, they account for 6% of Serbia’s GDP and provide employment to over 80,000 people. German companies in Serbia are here to stay.

Future investment decisions will depend on a wide variety of factors. Apart from global developments and trends, Serbia’s reform efforts, the efficiency of public institutions, transparency, rule of law and the fight against corruption are important factors when it comes to investment decisions. A predictable and fair investment environment and steady progress towards the EU offer the best prospects for growth and prosperity.

The ongoing efforts to decarbonise the energy sector and transform the economy towards greener and more climate-friendly solutions have been pivotal in the policies of both the European Union and the German government, which is an integral member of the EU. In light of the current economic stagnation and heightened security concerns that are impacting the budget, will Germany continue to uphold its commitment to this crucial agenda to the same extent?

The European Union aims to become climate-neutral by 2050. This binding goal is enshrined in the EU Climate Law and it is the basis for our commitment to reduce emissions and achieve climate targets. Germany will continue to lead by example. We want to demonstrate that ambitious emissions reductions go hand in hand with a strong economy. And we will continue to invest in climate action worldwide because decarbonization offers vast potential for innovation and economic development.

Here in the region, we have partnered with the Western Balkans to establish Germany’s first regional climate partnership in 2022. At the 2022 summit of the Berlin Process, Germany has pledged EUR 1.5 billion by 2030 to support the fight against climate change and the use of renewable energy in the region. Much of this support has already been commissioned.

Much of the EUR 1.5 billion in Germany’s support for climate action and renewable energy has been materialized

We see climate action not as a cost, but as a strategic investment in our future. It contributes to diversification of energy sources and helps with energy security and thus stability. It can have a positive impact on long-term economic competitiveness. Crucially, joint climate action protects our planet as a place where we can all continue to prosper.

Within the Regional Climate Partnership, we have a structured dialogue on carbon-pricing readiness, renewable energy deployment, power market integration and just transition. This long-term cooperation aims to help partners in the region to advance their energy and climate goals in line with EU standards, ensuring that the benefits of the energy transition reach citizens, communities, and businesses. For Germany, this is a long-term partnership grounded in shared values, shared goals, and an investment in a more secure and climate-resilient future considering the need for strong interconnectivity within Europe.

Anke Konrad, the German Ambassador to Serbia (photo: Balkan Green Energy News)

Germany is Europe’s solar and wind energy front-runner. What valuable insights can be gleaned from this experience that may be beneficial for Serbia in its pursuit of renewable energy advancements?

Germany’s experience shows that the energy transition is achievable when there is clear political will, a stable regulatory environment, and strong public participation. Success depends on combining large-scale renewable projects with opportunities for citizens and municipalities to invest and benefit directly.

Serbia has great potential to apply these insights, building on its natural resources, skilled engineers, and growing public interest in clean energy.

GIZ has been actively supporting WISE Serbia, a network dedicated to empowering women in the fields of sustainable energy, climate action, and environmental protection. In your opinion, does the energy sector provide equitable opportunities for both men and women in Serbia and globally? Also, would you advise girls and young women to pursue careers in those industries?

The energy sector is changing rapidly, and this transformation opens new doors for women to take leading roles in technology, management, and innovation. While there is still progress to be made, both in Serbia and globally, we already see many talented women engineers, researchers, and entrepreneurs shaping the transition to clean energy.

To give some perspective, change is already very visible at the university level, where around 40% of power engineering students at the University of Belgrade are women.

Initiatives such as WISE Serbia play a key role in giving visibility, confidence, and networks to women

We can look to role models in this field, such as this year’s recipient of the Female Leader in Sustainable Energy award, Ljiljana Velimirović. Initiatives such as WISE Serbia play a key role in giving visibility, confidence, and networks to women in this field, which still has great further potential.

My advice to girls and young women is clear: follow your curiosity and ambition, the energy transition needs your creativity and commitment just as much as it needs new technology.

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December 2, 2025
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Guarantees of origin: turning renewable ambition into action

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

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

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

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

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

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

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

Empowering consumers and corporates

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

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

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

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

Why mutual recognition matters

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

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

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

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

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

Criteria for recognition

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

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

Way forward

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

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

Conclusion

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

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

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* 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.