January 15, 2026
by in News

Slovenia again uses shortcut to meet national renewables target

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

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

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

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

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

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

EUR 20 million in total went to Czechia and Croatia

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

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

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

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

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

Post Views:71
January 15, 2026
by in News

Slovenia again uses shortcut to meet national renewables target

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

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

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

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

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

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

EUR 20 million in total went to Czechia and Croatia

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

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

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

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

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

Post Views:69
January 9, 2026
by in News

EU’s amendments to CBAM: possibility of relief, but January 1 brought market uncertainty

Long-awaited implementing acts and amendments to the CBAM Regulation brought only a minor relief for the Western Balkans, investors in renewables, and electricity traders. Balkan Green Energy News has analyzed the documents that the European Commission published in December 2025, and the impact of the proposed measures on Energy Community contracting parties – Albania, BiH, Kosovo*, Montenegro, North Macedonia and Serbia.

From January 1, European firms importing aluminum, cement, electricity, iron and steel, hydrogen and fertilizers are obliged to pay a carbon price within the European Union’s Carbon Border Adjustment Mechanism (CBAM).

Last year, the CBAM Regulation was criticized by experts from the Western Balkans (Ljubo Maćić, Zoran Gjorgjievski), European think-tanks (Bruegel), and organizations (Energy Traders Europe). Even the European Network of Transmission System Operators for Electricity (ENTSO-E) requested that the transitional period be prolonged.

They said charging the tax, which started on January 1 as scheduled, would harm countries outside the EU, but also EU member states, market coupling of Western Balkan countries, and electricity trade.

Uncertainty surrounding electricity transit and trade remains high

The analysis showed that the European Commission is proposing changes to the CBAM regulation that would introduce a more favorable method for calculating the national emissions factor and actual emissions values. This benefits non-EU countries that export electricity to the EU, owners of operational renewable energy power plants in these countries, and future green energy investments.

The proposal foresees amendments to the procedure for market coupling, but it is unclear whether these will bring any concrete changes. The commission didn’t propose changes regarding transit, and consequently, electricity trading.

Provided that the proposal is accepted as proposed, it will bring the said positive changes in calculating the national emissions factor and actual emissions values only by the end of the year, meaning that uncertainty in the market will persist until then.

Uncertainty surrounding electricity transit and trade remains high. The impact on the Western Balkans, as well as on the EU member states Bulgaria, Croatia, Greece, Hungary, Romania, and Slovenia, will become clear in the coming weeks and months.

There are two legislative streams

There are two relevant streams currently ongoing in EU legislation for CBAM for electricity. The first are the so-called implementing acts, which are similar to secondary legislation in national law. They further define the technical details of the CBAM regulation.

The other part is the commission’s proposal to amend the CBAM Regulation itself. It will become part of the law when the other co-legislators in the EU – the Council of the EU, which includes the member states, and the European Parliament – together agree on it.

Nobody can say exactly when that process will be finished, but most likely not before the autumn.

National emissions factors, actual emission values: improvement

eu western balkans cbam electricity market coupling amendments
Photo: iStock

There is a proposal to change the way the national emission factors are calculated in the main CBAM Regulation. Currently it only includes the part of the electricity mix based on fossil fuels, regardless of their share in the country’s power generation mix.

For example, for Serbia, a contracting party of the Energy Community, this factor is 1.04. If the national power mix is taken into account, it would go down to 0.7, making the cost of CBAM about 40% lower.

The commission proposed to replace the electricity mix based on fossil fuels, in its accounting system, with one encompassing all energy sources.

The commission also intends to change the requirements for switching to actual emission values

The commission also intends to change the requirements for switching to actual emission values. These are relevant for the producers of renewable energy in non-EU countries. Current conditions are very strict and, to some stakeholders, not achievable.

For example, if a wind farm in the Western Balkans, owned by a domestic or foreign investor, cannot meet these conditions the CBAM payments for the electricity from the facility exported to the neighboring Croatia would be calculated based on the national emissions factor.

The commission suggested that an importer shouldn’t need to have a power purchase agreement (PPA) with a producer directly, which is one of the conditions, but that it could be done through intermediaries. It also proposed the removal of the requirements related to congestion.

These proposals could remove negative impacts on renewable electricity exports and development in non-EU countries, including contracting parties.

Transit: nothing new

The issue of transit hasn’t been addressed in the acts and amendments.

Under the CBAM Regulation, it is unclear how electricity transit costs would be calculated. For example, from Bulgaria to Hungary via Serbia, and who would be required to cover them.

The commission clarified several times that transit isn’t subject to CBAM. However, the physical, practical implementation is the problem.

For example, a trader buys electricity from Greece, transits it through North Macedonia, and puts it on the Serbian SEEPEX power exchange. Somebody else buys it and sells it in Hungary.

It would be very difficult or impossible to say that electricity from Greece was sold into Hungary.

This is why stakeholders take a conservative approach and say that they cannot prove. So, most likely they wouldn’t opt for these countries – non-EU countries, like contracting parties – for transit.

Retroactivity: possibility for improvement

eu western balkans electricity market cbam amendments
Photo: iStock

One of the provisions in the commission’s proposal to amend the CBAM Regulation is that the changes in the electricity sector could apply retroactively, starting from January 2026.

Just as a reminder, EU firms are obliged since the start of this month to pay a CBAM fee for importing designated goods and raw materials and electricity via purchasing so-called CBAM certificates.

Obviously, an importer will try to pass on this cost partly or fully to its counterparts in the third countries. But, importantly, EU firms won’t be able to purchase CBAM certificates yet this year, but only from February 1, 2027.

If the amendment on national emissions factor is adopted, for example in October, this could mean lower CBAM costs for EU importers of electricity from non-EU countries.

Without details on the path forward, market participants lack certainty about the level of CBAM costs

The commission intended to remedy some of the negative impacts on the electricity markets with amendments with retroactive effect. But without details on the path forward, market participants lack certainty about the level of CBAM costs to be paid for 2026.

Based on the current rules, CBAM costs for countries which have lignite in their generation mix could be EUR 70 per MWh to EUR 80 per MWh if the EU ETS price is around 80 EUR per ton of CO2. In some cases, the fee is almost 100% above the electricity price itself.

It is clear that it would rarely make sense to import electricity to the EU from third countries. The price difference, let’s say between Hungary and Serbia, would need to be more than EUR 70 per MWh to EUR 80 per MWh to make the business case.

Market coupling: nothing new or possibility for improvement

eu cbam western balkans electricity market amendments
Photo: Sergio Cerrato – Italia from Pixabay

There are several references to market coupling in the proposal. Energy Community contracting parties are in different phases of market coupling with EU countries.

The commission has proposed signing memoranda of understanding with third countries. It would set out the timeline and conditions for an exemption from CBAM on electricity.

This could be done after the commission approves the so-called verification process of a contracting party’s transposition of the Electricity Integration Package (EIP). It would be a green light for the next stage, which entails the technical tests, leading up to the completion of market coupling.

The current wording in the proposal leaves room for various interpretations

The current wording in the proposal leaves room for various interpretations, one being that the MoU may open the door for an exemption already when the “point of no return” is reached. It is when the contracting party has done all its homework and only the technical tests remain.

However, the commission didn’t propose the other conditions for CBAM exemption to be changed, such as the development of a roadmap on the introduction of a CO2 price that would be equivalent to the level in the EU’s Emissions Trading System (EU ETS).

The question is what the MoU would exactly be about, and if “equivalent” could be defined more precisely.

Why is this important?

No contracting party has yet met the conditions to receive a CBAM exemption in the electricity sector. A critical requirement is to agree to charge an emissions price from 2030 equivalent to the EU ETS.

The CBAM regulation says that the tax cannot technically be implemented on a market which is coupled with the EU internal energy market

If equivalent means the same price, here is the outcome for Serbia, for example: The current CO2 price in the EU is EUR 80 per ton of CO2 equivalent, but is expected to rise to above EUR 100 by 2030, or even reach EUR 150. It would raise prices to consumers by about EUR 75 per MWh and EUR 110, respectively.

The CBAM regulation says that the tax cannot technically be implemented on a market which is coupled with the EU internal energy market. This is why there is a possibility for an exemption for electricity for imports from those countries which are coupled until a technical solution is found how to implement CBAM.

Starting from January 1, any country that is ready to be coupled would in parallel also need to qualify for and receive an exemption from CBAM for electricity. If you fulfil the conditions, you get coupled and get an exemption and CBAM will disappear.

What next?

It could be said that CBAM implementation as of January 1 will certainly affect market integration in the sense that people, businesses would react to market uncertainty.

Trade will be impacted; imports from contracting parties to the EU will be expected to disappear. Of course, contracting parties will continue to import electricity from the EU member states.

The weeks and months ahead will show to what extent the prices and liquidity would be affected in the contracting parties and neighboring EU member states Bulgaria, Croatia, Greece, Hungary, Romania, Slovenia.

For example, Greece would have only the Bulgaria-Romania route to export electricity, and it is already congested. Greece could face curtailments in renewable electricity.

We will also see what the effect on the renewables deployment in contracting parties will be. Are investors going to postpone investments until they see if the changes proposed by the commission are adopted, or are they going to leave for other markets?

Pozsgai: Amendments point in the right direction

Péter Pozsgai, Lead of the EU Carbon Border Adjustment Mechanism Readiness Task Force in the Energy Community Secretariat:

“The European Commission’s proposed amendments point in the right direction, reflecting a consideration of the progress of contracting parties in electricity market coupling, and better outlining the operational details of an exemption via an MoU. The refinement of the rules on national emission factors and the conditions for using actual emission values also demonstrate the intention to minimize the unintended impacts of CBAM on renewable development in contracting parties”.

 

Post Views:115
January 9, 2026
by in News

EU’s amendments to CBAM: possibility of relief, but January 1 brought market uncertainty

Long-awaited implementing acts and amendments to the CBAM Regulation brought only a minor relief for the Western Balkans, investors in renewables, and electricity traders. The documents has been analyzed that the European Commission published in December 2025, and the impact of the proposed measures on Energy Community contracting parties – Albania, BiH, Kosovo*, Montenegro, North Macedonia and Serbia.

From January 1, European firms importing aluminum, cement, electricity, iron and steel, hydrogen and fertilizers are obliged to pay a carbon price within the European Union’s Carbon Border Adjustment Mechanism (CBAM).

Last year, the CBAM Regulation was criticized by experts from the Western Balkans (Ljubo Maćić, Zoran Gjorgjievski), European think-tanks (Bruegel), and organizations (Energy Traders Europe). Even the European Network of Transmission System Operators for Electricity (ENTSO-E) requested that the transitional period be prolonged.

They said charging the tax, which started on January 1 as scheduled, would harm countries outside the EU, but also EU member states, market coupling of Western Balkan countries, and electricity trade.

Uncertainty surrounding electricity transit and trade remains high

The analysis showed that the European Commission is proposing changes to the CBAM regulation that would introduce a more favorable method for calculating the national emissions factor and actual emissions values. This benefits non-EU countries that export electricity to the EU, owners of operational renewable energy power plants in these countries, and future green energy investments.

The proposal foresees amendments to the procedure for market coupling, but it is unclear whether these will bring any concrete changes. The commission didn’t propose changes regarding transit, and consequently, electricity trading.

Provided that the proposal is accepted as proposed, it will bring the said positive changes in calculating the national emissions factor and actual emissions values only by the end of the year, meaning that uncertainty in the market will persist until then.

Uncertainty surrounding electricity transit and trade remains high. The impact on the Western Balkans, as well as on the EU member states Bulgaria, Croatia, Greece, Hungary, Romania, and Slovenia, will become clear in the coming weeks and months.

There are two legislative streams

There are two relevant streams currently ongoing in EU legislation for CBAM for electricity. The first are the so-called implementing acts, which are similar to secondary legislation in national law. They further define the technical details of the CBAM regulation.

The other part is the commission’s proposal to amend the CBAM Regulation itself. It will become part of the law when the other co-legislators in the EU – the Council of the EU, which includes the member states, and the European Parliament – together agree on it.

Nobody can say exactly when that process will be finished, but most likely not before the autumn.

National emissions factors, actual emission values: improvement

eu western balkans cbam electricity market coupling amendments
Photo: iStock

There is a proposal to change the way the national emission factors are calculated in the main CBAM Regulation. Currently it only includes the part of the electricity mix based on fossil fuels, regardless of their share in the country’s power generation mix.

For example, for Serbia, a contracting party of the Energy Community, this factor is 1.04. If the national power mix is taken into account, it would go down to 0.7, making the cost of CBAM about 40% lower.

The commission proposed to replace the electricity mix based on fossil fuels, in its accounting system, with one encompassing all energy sources.

The commission also intends to change the requirements for switching to actual emission values

The commission also intends to change the requirements for switching to actual emission values. These are relevant for the producers of renewable energy in non-EU countries. Current conditions are very strict and, to some stakeholders, not achievable.

For example, if a wind farm in the Western Balkans, owned by a domestic or foreign investor, cannot meet these conditions the CBAM payments for the electricity from the facility exported to the neighboring Croatia would be calculated based on the national emissions factor.

The commission suggested that an importer shouldn’t need to have a power purchase agreement (PPA) with a producer directly, which is one of the conditions, but that it could be done through intermediaries. It also proposed the removal of the requirements related to congestion.

These proposals could remove negative impacts on renewable electricity exports and development in non-EU countries, including contracting parties.

Transit: nothing new

The issue of transit hasn’t been addressed in the acts and amendments.

Under the CBAM Regulation, it is unclear how electricity transit costs would be calculated. For example, from Bulgaria to Hungary via Serbia, and who would be required to cover them.

The commission clarified several times that transit isn’t subject to CBAM. However, the physical, practical implementation is the problem.

For example, a trader buys electricity from Greece, transits it through North Macedonia, and puts it on the Serbian SEEPEX power exchange. Somebody else buys it and sells it in Hungary.

It would be very difficult or impossible to say that electricity from Greece was sold into Hungary.

This is why stakeholders take a conservative approach and say that they cannot prove. So, most likely they wouldn’t opt for these countries – non-EU countries, like contracting parties – for transit.

Retroactivity: possibility for improvement

eu western balkans electricity market cbam amendments
Photo: iStock

One of the provisions in the commission’s proposal to amend the CBAM Regulation is that the changes in the electricity sector could apply retroactively, starting from January 2026.

Just as a reminder, EU firms are obliged since the start of this month to pay a CBAM fee for importing designated goods and raw materials and electricity via purchasing so-called CBAM certificates.

Obviously, an importer will try to pass on this cost partly or fully to its counterparts in the third countries. But, importantly, EU firms won’t be able to purchase CBAM certificates yet this year, but only from February 1, 2027.

If the amendment on national emissions factor is adopted, for example in October, this could mean lower CBAM costs for EU importers of electricity from non-EU countries.

Without details on the path forward, market participants lack certainty about the level of CBAM costs

The commission intended to remedy some of the negative impacts on the electricity markets with amendments with retroactive effect. But without details on the path forward, market participants lack certainty about the level of CBAM costs to be paid for 2026.

Based on the current rules, CBAM costs for countries which have lignite in their generation mix could be EUR 70 per MWh to EUR 80 per MWh if the EU ETS price is around 80 EUR per ton of CO2. In some cases, the fee is almost 100% above the electricity price itself.

It is clear that it would rarely make sense to import electricity to the EU from third countries. The price difference, let’s say between Hungary and Serbia, would need to be more than EUR 70 per MWh to EUR 80 per MWh to make the business case.

Market coupling: nothing new or possibility for improvement

eu cbam western balkans electricity market amendments
Photo: Sergio Cerrato – Italia from Pixabay

There are several references to market coupling in the proposal. Energy Community contracting parties are in different phases of market coupling with EU countries.

The commission has proposed signing memoranda of understanding with third countries. It would set out the timeline and conditions for an exemption from CBAM on electricity.

This could be done after the commission approves the so-called verification process of a contracting party’s transposition of the Electricity Integration Package (EIP). It would be a green light for the next stage, which entails the technical tests, leading up to the completion of market coupling.

The current wording in the proposal leaves room for various interpretations

The current wording in the proposal leaves room for various interpretations, one being that the MoU may open the door for an exemption already when the “point of no return” is reached. It is when the contracting party has done all its homework and only the technical tests remain.

However, the commission didn’t propose the other conditions for CBAM exemption to be changed, such as the development of a roadmap on the introduction of a CO2 price that would be equivalent to the level in the EU’s Emissions Trading System (EU ETS).

The question is what the MoU would exactly be about, and if “equivalent” could be defined more precisely.

Why is this important?

No contracting party has yet met the conditions to receive a CBAM exemption in the electricity sector. A critical requirement is to agree to charge an emissions price from 2030 equivalent to the EU ETS.

The CBAM regulation says that the tax cannot technically be implemented on a market which is coupled with the EU internal energy market

If equivalent means the same price, here is the outcome for Serbia, for example: The current CO2 price in the EU is EUR 80 per ton of CO2 equivalent, but is expected to rise to above EUR 100 by 2030, or even reach EUR 150. It would raise prices to consumers by about EUR 75 per MWh and EUR 110, respectively.

The CBAM regulation says that the tax cannot technically be implemented on a market which is coupled with the EU internal energy market. This is why there is a possibility for an exemption for electricity for imports from those countries which are coupled until a technical solution is found how to implement CBAM.

Starting from January 1, any country that is ready to be coupled would in parallel also need to qualify for and receive an exemption from CBAM for electricity. If you fulfil the conditions, you get coupled and get an exemption and CBAM will disappear.

What next?

It could be said that CBAM implementation as of January 1 will certainly affect market integration in the sense that people, businesses would react to market uncertainty.

Trade will be impacted; imports from contracting parties to the EU will be expected to disappear. Of course, contracting parties will continue to import electricity from the EU member states.

The weeks and months ahead will show to what extent the prices and liquidity would be affected in the contracting parties and neighboring EU member states Bulgaria, Croatia, Greece, Hungary, Romania, Slovenia.

For example, Greece would have only the Bulgaria-Romania route to export electricity, and it is already congested. Greece could face curtailments in renewable electricity.

We will also see what the effect on the renewables deployment in contracting parties will be. Are investors going to postpone investments until they see if the changes proposed by the commission are adopted, or are they going to leave for other markets?

Pozsgai: Amendments point in the right direction

Péter Pozsgai, Lead of the EU Carbon Border Adjustment Mechanism Readiness Task Force in the Energy Community Secretariat:

“The European Commission’s proposed amendments point in the right direction, reflecting a consideration of the progress of contracting parties in electricity market coupling, and better outlining the operational details of an exemption via an MoU. The refinement of the rules on national emission factors and the conditions for using actual emission values also demonstrate the intention to minimize the unintended impacts of CBAM on renewable development in contracting parties”.

Post Views:109
January 4, 2026
by in News

EU4CAET project pre-selects 43 ideas for first renewable energy communities in BiH

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

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

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

A total of 51 municipalities submitted 89 project ideas

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

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

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

The evaluation will begin in January 2026

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

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

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

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

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

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

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

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

Post Views:78
January 1, 2026
by in News

EU4CAET project pre-selects 43 ideas for first renewable energy communities in BiH

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

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

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

A total of 51 municipalities submitted 89 project ideas

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

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

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

The evaluation will begin in January 2026

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

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

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

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

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

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

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

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

Post Views:49
December 20, 2025
by 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 8, 2025
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Bruegel: Without refining or delaying CBAM for electricity, EU risks market integration, security of supply

Unless the rules are refined for the electricity sector, the Carbon Border Adjustment Mechanism (CBAM) risks undermining the European electricity market integration and security of supply, Brussels-based think tank Bruegel warned.

Bruegel has analyzed the impacts of the application of CBAM, set for January 1, 2026. The tax will apply to steel, cement, iron, aluminium, fertilizers, hydrogen, electricity, and also to the cross-border trade in electricity.

The think tank proposes the application of CBAM in the electricity sector to be reconsidered, or at least for it to be postponed until 2028.

“Including electricity from January 2026 risks undermining European electricity market integration and security of energy supply, while the climate benefits are unclear. A delay could form part of a constructive compromise in an ongoing CBAM revision,” Ben McWilliams, Rouven Stubbe and Georg Zachmann wrote.

Ukraine and the Western Balkans will face implied export penalties of EUR 70-80 per MWh

The trading partners affected by CBAM on electricity are the United Kingdom, Morocco, the Western Balkans – Albania, BiH, Kosovo*, Montenegro, North Macedonia, and Serbia – Ukraine, Moldova and Turkey.

According to the analysis, Ukraine and the Western Balkans will face implied export penalties of EUR 70 per MWh to EUR 80 per MWh. It will significantly reduce trade with the EU, the authors stressed.

Ukraine’s electricity exports to the EU are expected to drop more than 60% from the level in a scenario without CBAM – from 6 TWh to 2.5 TWh, they added.

Additional trade barriers on the EU’s eastern borders would slow electricity market integration.

The export of solar power from Greece to other EU countries could also be affected by CBAM

“Falling average electricity prices, lower market values for renewables and increased price volatility would also reduce incentives to invest in renewable assets in these countries. Moreover, the Western Balkans is an important transit region for intra-European electricity trading. The export of solar power from Greece to other EU countries, for example, could also be affected by CBAM,” the analysis reads.

The authors said the policy goal of integrating Energy Community countries into the EU’s internal energy market is strategically more important than addressing carbon leakage and argued that, in the long run, it is more important from a climate perspective, too.

Not clear whether the application of CBAM to the electricity trade will deliver

They recalled that the purpose of CBAM is to reduce the risk of so-called carbon leakage, as well as to encourage third countries to implement domestic carbon pricing.

“However, it is not clear that the application of CBAM, as currently designed, to the electricity trade will deliver on either front,” the authors said. They named two reasons why carbon leakage in the electricity sector is problematic. The free allowances issued to electricity producers under the ETS were already phased out in 2013 – implying that electricity is not considered by the European Commission to be a sector at serious risk of carbon leakage.

The current CBAM legislation is not clear enough

Secondly, the current CBAM legislation is not clear enough. Unless hard-to-fulfil conditions apply, the Regulation (EU) 2023/956, which established CBAM, proposes that default carbon emission values be applied.

The outcome is that the values in question are calculated according to the last five-year average CO2 intensity of electricity produced from fossil fuels. It is problematic because electricity is exported when prices in one grid are lower than in another, which typically happens when renewables output is high, the think tank underlined in its analysis.

It is also unfair because power systems are evolving – production from fossil fuels is decreasing and renewables generation is increasing.

The coupling of the electricity markets of Energy Community countries is unlikely before 2028

Regarding CBAM’s intention to push third countries to introduce carbon pricing, the authors said that the first developments indicate some results.

However, they explained that an exemption for the electricity sectors of third countries is available under certain conditions, including electricity market coupling and the introduction of an ETS with an equivalent price to the EU ETS by 2030.

The CBAM charge sets off in January 2026, and the coupling of the electricity markets of Energy Community countries is unlikely before 2028, which means that an exemption for electricity cannot be secured before that date under current rules, the analysis underlined.

The solution

The authors pointed out that the potential gains from including electricity in CBAM are limited, compared to the frictions it will create. They suggested to the EU to follow the lead of the UK, which doesn’t plan to include electricity in its own CBAM, and thus to drop electricity from its sectoral coverage.

Otherwise, the authors proposed a revision of the calculation of default carbon emissions, and application delay until 2028 with additional analysis on the risk of carbon leakage in the electricity sector.

Regarding the default carbon emissions, five-year average CO2 intensity should be substituted for average grid emission factors calculated on an hourly or 15-minute basis, administered by the European Network of Transmission System Operators for Electricity (ENTSO-E) and national transmission system operators.

The application of CBAM to electricity should be delayed until 2028 to avoid disruption to the electricity trade and to give more time for the introduction of domestic carbon pricing and the coupling of electricity markets, the authors of the analysis concluded.

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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
October 30, 2025
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European Commission: Russian gas ban doesn’t include transit to Serbia, BiH

The proposed ban on importing Russian natural gas to the European Union doesn’t apply to the transit of Russian gas, so it doesn’t affect the supply of Serbia and Bosnia and Herzegovina, the European Commission’s spokesperson Anna-Kaisa Itkonen told Balkan Green Energy News.

After the Council of the European Union on Monday adopted its negotiating position on the European Commission’s draft regulation to phase out imports of Russian natural gas by January 1, 2028, reports emerged that Bulgaria would halt the transit of Russian gas to Serbia from January 1, 2026. The council agreed with the initiative to prohibit imports of Russian gas, starting on January 1, 2026, while maintaining a transition period for existing contracts.

Notably, Bulgaria’s Prime Minister Rosen Zhelyazkov announced in late September that his country would suspend Russian gas transit for short-term contracts in 2026 as part of EU plans to cut off Russian gas imports completely, Reuters reported.

Serbia receives natural gas from Russia via the Balkan Stream. The pipeline is an extension of TurkStream that passes through Bulgaria and Serbia. TurkStream delivers gas from Russia across the Black Sea to Turkey.

Bosnia and Herzegovina and Hungary, Serbia’s neighbors, are also supplied via Balkan Stream.

With regards to transit via EU territory, the EU proposal only requires more transparency on transited volumes to third countries

Balkan Green Energy News asked the European Commission to clarify if the supply of Russian gas to Serbia and BiH via Bulgaria would be halted as of January 1, 2026, but also how the EU could assist Serbia and BiH in that case.

The European Commission’s spokesperson Anna-Kaisa Itkonen noted that its REPowerEU proposal foresees a prohibition of the import of Russian gas into the EU.

“The EU import prohibition doesn’t concern the transit of Russian gas through the EU territory to third countries – including to Serbia and BiH. It doesn’t therefore affect Serbia’s or BiH gas supply,” she stressed.

With regards to transit via EU territory, in her words, the EU proposal only requires more transparency on transited volumes to third countries.

EU candidate countries are expected to progressively align their legislation with the EU acquis and rules

However, EU candidate countries are expected to progressively align their legislation with the EU acquis and rules as part of the accession process, Itkonen pointed out and added that it includes REPowerEU regulation once it becomes EU law.

Of note, the draft regulation to phase out imports of Russian natural gas constitutes a central element of the EU’s REPowerEU roadmap to end the EU’s dependency on Russian energy.

According to Itkonen, as a way to ensure security of supply, candidate countries including Serbia should diversify away from unreliable energy suppliers such as Russia. Following Russia’s war of aggression on Ukraine, it became evident how important this is and what problems it can create for any European country, she asserted.

“The EU is supporting the WB countries for diversifying their energy supplies”

Anna-Kaisa Itkonen (photo: European Commission)

“The EU is supporting the Western Balkan countries for diversifying their energy supplies and for closer integration into the EU’s energy networks, both for electricity and gas, as well as through investments in renewable energy and decarbonization efforts,” Itkonen underlined.

After energy ministers in the Council of the EU have agreed on the institution’s negotiating position on the European Commission’s draft regulation, the next step is the adoption of the European Parliament’s position.

The council and the parliament would then start negotiations on the regulation. When the two institutions approve a regulation, it directly applies to all member states.

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.

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October 30, 2025
by in News

Serbia warns of gas crisis as EU transit ban threatens Balkan Stream supply

Serbia is in a very difficult situation because, as of January 1, 2026, it won’t be able to receive Russian natural gas via Bulgaria, according to the Ministry of Mining and Energy.

Serbia receives natural gas from Russia via the Balkan Stream. The pipeline is an extension of TurkStream that passes through Bulgaria and Serbia. Bosnia and Herzegovina and Hungary, Serbia’s neighbors, are also supplied via Balkan Stream. TurkStream delivers gas from Russia across the Black Sea to Turkey.

Serbia is facing a very difficult and almost dead end situation due to the European Union’s ban on the transit of Russian gas through the EU to third countries, which will come into effect on January 1, 2026, according to Serbia’s Minister of Mining and Energy Dubravka Đedović Handanović.

Đedović Handanović: Bulgaria won’t allow the flow of Russian gas through the Balkan Stream

Bulgaria won’t allow the flow of Russian gas through Balkan Stream, which will negatively impact Serbia, she stressed.

The European Commission set out a plan in May to phase out the purchases of Russian natural gas, including in liquefied natural gas (LNG), and oil, by the end of 2027. The council now confirmed that imports of Russian gas will be prohibited from January 1, 2026, while maintaining a transition period for existing contracts.

Đedović Handanović: We are doing everything in our power, but the situation is almost hopeless, considering the current situation regarding NIS

Yesterday, the Council of the European Union agreed on its negotiating position on the European Commission’s draft regulation to phase out imports of Russian natural gas. When the European Parliament adopts its own position, it can start negotiating with the council.

When the two institutions approve a regulation, it directly applies to all member states.

Đedović Handanović expressed hope that a solution would be found due to, as she put it, President Aleksandar Vučić’s excellent relations with world leaders.

“We are doing everything in our power, but it is an almost dead end situation, considering the current situation regarding Naftna industrija Srbije [NIS]. Our country, which is not involved in any conflict, has found itself affected through no fault of its own. Despite everything, we will do our best, as we have so far, so that citizens don’t feel the problems we are facing,” Đedović Handanović underlined.

Namely, the United States imposed sanctions on October 9 against NIS, Serbia’s national oil importer, refiner, and operator of a chain of service stations.

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