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Himara Opens EU-Funded Plant to Protect Ionian Sea

A year ago, the view from Argjileo hill told an uncomfortable story. Across the bay from Himara’s port, the Ionian Sea was visibly darkened by a plume of untreated wastewater flowing into the water. Today, that stain is gone—and so are the lingering signs of coastal pollution.

Himara has inaugurated a new Wastewater Treatment Plant, a major infrastructure upgrade designed to stop untreated sewage from reaching the Ionian Sea. Local officials and project partners say the facility is a decisive step for environmental protection, public health, and sustainable coastal development in one of Albania’s most visited seaside destinations.

EU and German Funding Drives a “Flagship” Coastal Investment

The plant was built under the Rural Water Supply Programme IV, financed by the European Union and the German Government, and implemented by KfW in close coordination with the Albanian Development Fund.

Ms Mara Drochner, Director of the KfW Office in Albania, said the project shows how targeted investments in water and sanitation can improve quality of life while protecting the environment. She added that the facility supports alignment with EU environmental standards, contributing to Albania’s broader EU accession path.

Capacity for 16,000 Residents—Expandable to 24,000Located outside the city on the site of a former septic tank, the plant currently serves a population equivalent of 16,000 residents. A second phase is planned to expand capacity to 24,000 inhabitants, reflecting Himara’s growth and seasonal influx.

Project Manager Endrit Mullalli from “PWT Wasser und Abwassertechnik” said the plant uses a fully biological treatment process that meets EU standards, removing carbon and nitrogen without relying on chemicals.

How the Treatment Process Works

The system follows several stages, starting with pre-treatment before biological purification begins:

  • Coarse screening: Mechanical screens remove large debris carried through the sewer system, such as bottles, wood pieces, and textiles.

  • Removal of fats and oils: Grease is extracted to prevent disruption to the biological process.

After pre-treatment, wastewater enters two large aeration tanks, where biological purification takes place through aeration and denitrification. In these tanks, bacteria and microorganisms (biomass) feed on organic matter, breaking down carbon compounds and enabling nitrogen removal.

Sludge Handling and Safe Discharge Into the Sea

Following biological treatment, the water moves into sedimentation tanks where sludge settles. The sludge is then thickened and mechanically pressed to reduce water content, creating a soil-like dry mass. It is transported to Pilur, Himara’s waste management site, where solar drying further reduces moisture.

According to Mullalli, the final sludge product can be used safely for fruit trees and flowers, but not for vegetables.

Before discharge, the remaining treated water undergoes a final step: chemical-free ultraviolet (UV) disinfection. The goal is to protect swimmers, marine life, and sensitive coastal ecosystems, including Himara’s Posidonia seagrass. The outflow is released at a depth of 25 metres through roughly 200 metres of underwater piping installed under the project.

Real-Time Monitoring With SCADA

The plant is monitored online via a SCADA system, supported by regular laboratory analyses. Sensors continuously track dissolved oxygen levels, while blowers are automatically adjusted through SCADA to maintain target values.

Sewer Network Upgrades and Pumping Stations Added

The project also rehabilitated and expanded Himara’s sewerage network, including:

  • New pressure and corrugated piping

  • Household connections and manholes

  • Septic tank improvements

  • Six pumping stations to channel wastewater to the plant

  • Electrical works and grid connections

  • Two vacuum trucks—one for septic tank emptying, another for cleaning and flushing

Built for Seasonal Tourism Peaks

Himara’s population surges in summer, and the plant is designed to match that demand. It treats a minimum of 1,800 cubic metres per day in winter and up to 5,000 cubic metres per day in summer.

It operates with two parallel treatment lines—one sufficient for winter operations, with both lines used during the summer peak.

Municipality: Cleaner Sea, Fewer Odours, Stronger Tourism

For the Municipality of Himara, the change is already visible. Thimjo Gjinuci, an administrator in the municipality, said the plant has eliminated sea pollution and unpleasant odours, helping improve the experience for residents and tourists alike. He noted that two nearby campsites now benefit from a cleaner environment.

The municipality plans to connect Livadh’s sewage system to the facility and is also considering smaller plants for Qeparo and possibly Dhërmi.

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Concession agreement signed for 50 MW Vlašić wind farm in BiH

State-owned power utility Elektroprivreda Bosne i Hercegovine (EPBiH) and the Central Bosnia Canton have signed a concession agreement for the Vlašić wind farm near Travnik, along with annexes to the concession agreements for solar power plants Gračanica 1 and Gračanica 2 in the municipality of Bugojno.

The Vlašić wind farm will have up to nine wind turbines with a total capacity of 50 MW, installed at an elevation of 1,850 meters. The projected annual electricity output is between 112 GWh and 116 GWh, and the investment is estimated at EUR 90 million, according to a statement by EPBiH.

Wind farm Vlašić is expected to generate up to 116 GWh of electricity annually

Germany’s KfW Development Bank is providing a loan and grants for the project totaling EUR 38.43 million, and the Council of Ministers of Bosnia and Herzegovina, the country’s central government, adopted draft agreements for the arrangement in late December 2025.

The concession agreement, signed by EPBiH General Manager Sanel Buljubašić and Minister of Economy of the Central Bosnia Canton Sedžad Milanović, covers the construction, operation, and maintenance of the Vlašić wind power plant, reads the statement.

The first wind farm in Bosnia and Herzegovina, Mesihovina, was inaugurated in 2018, followed by Jelovača in 2019 and Podveležje in 2021.

Last year, wind farms Ivovik and Ivan Sedlo were put into operation. In addition, EPBiH plans to build a 90 MW wind park called Bitovnja, while Elektroprivreda Republike Srpske (ERS), the state-owned power utility of the Republic of Srpska, has reactivated the 60 MW Hrgud wind farm project.

Bosnia and Herzegovina consists of two entities: the Republic of Srpska and the Federation of BiH, which controls EPBiH.

Solar plants Gračanica 1 and Gračanica 2 will have a total capacity of 45 MW

The statement recalls that the Gračanica 1 and Gračanica 2 solar power plants would have a combined capacity of 45 MW and notes that a building rights agreement was concluded in December 2025. It also states that activities related to grid connection are currently underway, alongside procedures concerning land expropriation and repurposing.

EPBiH has secured loans for the project from the European Bank for Reconstruction and Development (EBRD) and UniCredit Bank’s subsidiary in BiH. The sites are at a rehabilitated tailings dump of the Gračanica coal mine.

As part of the EPBiH Solar Transition Programme, implemented in cooperation with the EBRD, the state-owned power utility plans to build 13 solar power plants with a total capacity of around 195 MW.

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North Macedonia’s ESM secures loans for investments in solar, hydro

North Macedonia’s power utility Elektrani na Severna Makedonija has secured EUR 97 million for the installation of the Bitola 3 solar power plant and revitalization of hydropower plants.

Elektrani na Severna Makedonija (ESM) said today it signed the contracts for a state guarantee and loans totaling EUR 97 million for two major energy projects.

This is an important step in strengthening North Macedonia’s energy transition, ESM added.

The company received EUR 87 million for the construction of the largest photovoltaic plant, Bitola 3. KfW allocated EUR 50 million, and the European Bank for Reconstruction and Development approved EUR 37 million.

The Hydropower Plants Revitalization Project is estimated at EUR 47.3 million

Another EUR 10 million from KfW will support the revitalization of ESM’s hydropower plants (HPPs), ESM explained.

According to the utility, the Hydropower Plants Revitalization Project, estimated at EUR 47.3 million and supported by a EUR 10 million EU grant, will increase annual hydropower generation by 50 GWh.

The agreements were signed by Minister of Finance Gordana Dimitrieska-Kochoska, EBRD representative Fatih Türkmenoğlu, KfW’s director for Kosovo* and North Macedonia Moritz Remé, and ESM CEO Lazo Uzunchev.

The ceremony was attended by Prime Minister Hristijan Mickoski and Minister of Energy, Mining and Mineral Resources Sanja Božinovska.

Uzunčev: We will increase domestic renewable capacity by over 200 MW

“With these capital investments, together with ESM, we are strengthening domestic energy production, ensuring stable electricity supply, and fostering sustainable economic development,” Gordana Dimitrieska-Kochoska underscored.

According to ESM CEO Lazo Uzunčev, the company’s strategic goals are being implemented with strong momentum.

“With ongoing solar and wind projects, including Bitola 3, we will increase domestic renewable capacity by over 200 MW in the next two to three years, while reducing CO₂ emissions by more than 260,000 tons annually,” he stressed.

Petra Drexler, Ambassador of Germany to North Macedonia, recalled that over the last years, Germany and the EU have continuously supported North Macedonia on its path toward a sustainable and resilient energy future.

* 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.
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KEK seeks contractor for 100 MW solar power project near Prishtina

Government-controlled Kosovo Energy Corp. (KEK) launched the prequalifications call for its Solar4Kosovo photovoltaic project. The area is in the municipalities of Obiliq (Obilić) and Fushë Kosovë (Kosovo Polje), northwest of Prishtina.

After more than four years of planning the project, KEK is receiving applications for the design and construction of its first solar power plant, on a former coal ash dump. The government-owned power utility operates coal plants Kosovo A and Kosovo B, which account for some 90% of domestic electricity.

The location for the first part of the Solar4Kosovo project is in the municipalities of Obiliq (Obilić) and Fushë Kosovë (Kosovo Polje). The area, northwest of Prishtina, is in the Sitnica river valley, near Kosovo A.

The facility is planned for a grid connection of at least 100 MW. It translates to 120 MW in peak capacity, according to earlier updates. It would be the biggest PV plant in Kosovo*.

KEK is receiving prequalification bids until January 22, within the process of selecting contractors for the project. Companies apply through the exficon (exfitender) platform. Three months ago, the utility said agricultural activities on the designated land weren’t allowed anymore.

KEK obtained EUR 32 million EU grant

The financing for the Solar4Kosovo facility is part of the European Union’s Economic and Investment Plan for the Western Balkans of EUR 9 billion in grants. The package is aimed at mobilizing a total of EUR 30 billion.

The European Investment Bank is providing a EUR 33 million loan. The EU has approved a EUR 32 million grant via its Western Balkans Investment Framework (WBIF), while Germany’s KfW Development Bank is lending EUR 29 million to KEK. The investment was earlier estimated at EUR 107 million overall.

Annual output estimated at 169 GWh

The proposed solar power plant is expected to produce 169 GWh per year. It would have an underground connection to the existing substation at the Kosovo A thermal power plant.

The other part of the Solar4Kosovo project is for a solar thermal facility of 30 MW for the capital city’s district heating system. The site is in the village of Shkabaj (Orlović) in Obiliq municipality. Another segment of the investment is for a further network extension of 20 MW with supply from Kosovo B.

* 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.
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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.

* 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.
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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.

* 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.
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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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ESM secures EUR 1.5 million grant to accelerate North Macedonia’s energy transition

North Macedonia’s power utility Elektrani na Severna Makedonija has secured a EUR 1.5 million grant to strengthen its capacity and accelerate the energy transition.

Elektrani na Severna Makedonija (ESM) made a major step toward a market-driven green transformation with a grant implementing agreement with Germany’s KfW Development Bank.

The agreement formalizes a EUR 1.5 million technical assistance grant to boost the state-owned utility’s corporate and green transition processes.

The support will strengthen ESM’s institutional and commercial capacities, enable further investments in renewable energy, and prepare the company for integration into the European energy market, according to a social media post by Steffen Hudolin, Head of Cooperation at the European Union’s Delegation to North Macedonia.

Uzunčev: The grant represents a strategic cornerstone for the company’s institutional transformation

The grant is part of a wider EUR 13 million EU programme supporting the market-oriented green transformation of state-owned energy utilities across the Western Balkans and Eastern Neighbourhood, the post reads.

Lazo Uzunčev, EMS General Manager, said that the grant represents a strategic cornerstone for the company’s institutional transformation to a comprehensive, green, and market-oriented enterprise.

Hudolin, Uzunčev, Obrador (photo: ESM)

For ESM, it is a profound commitment to becoming a modern and commercially competitive force within the European energy market, he underlined.

“The funding will be instrumental in bolstering our internal capacities and corporate governance through the financing of critical modeling and strategic planning initiatives,” Uzunčev asserted.

​Hudolin: Accelerating the green transition has never been so close and so possible

According to Steffen Hudolin, accelerating the green transition has never been so close and so possible.

“With the support of the EU and the European Fund for Sustainable Development Plus (EFSD+) guarantees, the country will receive financial means and technical guidance by our partners in KfW to accelerate the transformation and decarbonisation of the energy sector,” he stated.

Pablo Obrador Alvarez, KfW Head of Division Energy and Transport for Southeast Europe and Türkiye, said the energy transition requires fit energy utilities able to cope with challenging conditions.

“With this project, KfW will support ESM’s transformation that will position and help them improve their performance and market readiness,” he added.

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North Macedonia’s ESM needs investments of EUR 3 billion to replace coal power

Power utility Elektrani na Severna Makedonija estimated that it requires EUR 3 billion by 2040 to replace electricity from its lignite-fired power plants. According to member of the Board of Directors Ivan Stojanovski, the state-owned company is preparing investments in gas power plants, solar, wind, hydropower and energy storage. He highlighted its plans for a 300 MWh battery and the Bogdanci hybrid energy park.

North Macedonia’s utility Elektrani na Severna Makedonija (ESM), the country’s main electricity producer, generated 60% of the 2024 output in the Bitola and Oslomej coal plants.

A rough estimate is that ESM would have to invest around EUR 3 billion in the next 15 years to replace its power production from lignite, which is baseload energy, Ivan Stojanovski, a member of the Board of Directors and the company’s Chief Financial Officer, told Balkan Green Energy News on the sidelines of the International Forum on Energy for Sustainable Development (IFESD-14).

He explained that the transition to green energy is quite expensive. ESM needs to replace the 840 MW in baseload production that the Bitola and Oslomej thermal power plants provide, the executive added.

Hydropower is a domestic electricity source, unlike natural gas

The company opted for investments in diverse energy sources to achieve it, Stojanovski stressed.

Gas power plants provide baseload energy, but at the same time, they turn the spotlight on national security as well as the security of supply, in his words.

Lignite is currently mined in North Macedonia while natural gas must be imported, so gas supply interruption is possible, ESM’s CFO added.

Gas power plants are required, but it is necessary to invest in hydropower as it is a domestic resource, Stojanovski said. On the other hand, hydroelectric plants are more expensive and it takes longer to build them, he noted.

ESM launched the Bitola 3 solar power project

ESM is developing wind and solar power projects as well. Stojanovski highlighted the planned expansion of its Bogdanci wind farm. The European Bank for Reconstruction and Development (EBRD) is participating in the development of the Miravci wind power project, of at least 100 MW, he recalled.

The company is working on solar power projects Oslomej 1 (10 MW), Oslomej 2 (10 MW), Bitola 1 (20 MW) and Bitola 2 (60 MW), Stojanovski asserted. Bitola 3 endeavor is underway, too, and the financing contract is expected to be signed by the end of the year, he revealed.

The photovoltaic system will have at least 100 MW, Stojanovski asserted.

“We plan to sign a contract next year with Agence Française de Développement (AFD) for a solar power plant in Bogdanci of at least 30 MW and to create a hybrid energy park there – wind, solar, and a battery,” he stated.

According to Stojanovski, the company is developing a battery energy storage project with the EBRD, for up to 300 MWh in capacity. The site is within the REK Bitola coal complex and the facility will be a systemic solution for all the solar power plants there, he explained.

Blended financing as a solution

“EUR 1 billion to EUR 1.3 billion is needed just for solar, wind and batteries. We will need between EUR 500 million and EUR 700 million for gas power plants. Another EUR 1 billion to EUR 1.3 billion would be for large hydropower plants such as Čebren and Vardar Valley, and some smaller projects,” Stojanovski explained.

Asked how the company plans to secure financing, he pointed to blended financing – own sources combined with some participation from international financial institutions. It is important to diversify the sources by opening cooperation with as many financial institutions as possible, in Stojanovski’s view.

ESM traditionally cooperates with the EBRD and KfW. Stojanovski announced that the company would diversify financing by launching cooperation with the World Bank, Italy’s development bank Cassa Depositi e Prestiti, and AFD.

“It will enable us to access more sources and complement them with financing from local banks. We also tend to obtain support from the state budget over a longer period, 10-15 years, and state guarantees, but also additional funds. This is a financial model that can secure long-term and sustainable financing of infrastructure projects,” Stojanovski said.

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EPBiH receives EUR 2 million from KfW for green, market-oriented transformation

Germany’s KfW Development Bank is donating EUR 2 million to Elektroprivreda Bosne i Hercegovine (EPBiH). The funding is for the acceleration of the energy transition and strengthening market mechanisms in Bosnia and Herzegovina’s state-owned power utility. The grants cover monitoring carbon dioxide emissions and related reporting as well as the development of a decarbonization roadmap and a virtual power plant project.

General Manager of Elektroprivreda BiH Sanel Buljubašić and the company’s Executive Director for Economic Affairs Sanela Jurišić signed an agreement with KfW’s Head of the Division of Energy and Transport in Southeast Europe and Turkey, Pablo Obrador, on EUR 2 million in grants.

Germany’s development bank approved the funds within the program Supporting Market-Oriented Green Transformation in the Eastern Neighbourhood and Western Balkans, on behalf of the European Union. It is supported by European Fund for Sustainable Development Plus.

EPBiH committed to sustainable decarbonization

The deal is aimed at supporting the institutional capacities of EPBiH for managing its green transition and corporate transformation.

The funding is part of the program Supporting Market-Oriented Green Transformation in the Eastern Neighbourhood and Western Balkans

“The project that we are developing with KfW bank represents an important step toward speeding up the energy transition and strengthening sustainable market mechanisms in our company. With this milestone, Elektroprivreda BiH confirms its commitment to sustainable decarbonization as well as strengthening competitiveness through investments in green technology,” CEO Buljubašić stated.

Experts to participate in development of CO2 emissions tracking plan, establishment of virtual power plant

The grants are earmarked for technical support, which includes financing the services of expert consultants for a plan for monitoring CO2 emissions and related reporting, their support in producing a decarbonization roadmap, in corporate sustainability reporting and the establishment of a virtual power plant. Additionally, a part of the funds will be for technical support in the materialization of strategic guidelines defined in EPBiH’s energy transition and decarbonization strategy until 2050.

 

“We have invested in renewable energy sources before, and the signing of the contract represents a new chapter in our cooperation. I express hope that the new systems will be implemented soon and I express the bank’s preparedness to support Elektroprivreda BiH’s new green energy business models,” KfW’s representative Pablo Obrador said, as quoted by Bosnia and Herzegovina’s state-owned utility.

Alongside supporting EPBiH’s corporate reforms, the grant funding will be used for improving the company’s commercial efforts aimed at strengthening market preparedness and the improvement in strategic positioning within the rapidly developing energy sector.

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