February 12, 2026
by in News

Montenegro Approves EIA for 118.8 MW Bijela Wind Farm and 110 kV Line

Montenegro’s Environmental Protection Agency has approved the environmental impact assessment (EIA) study for the construction of the Bijela wind farm, including a 110 kV transmission line. The project is planned at 118.8 MW, with Alcazar Energy Partners listed as the investor.

The Bijela wind project is located near the town of Šavnik in northern Montenegro. It envisages 17 wind turbines installed on hilly terrain across a mountain plateau, with total capacity reaching 118.8 MW.

Study sets mitigation measures for construction and operation

The approved EIA outlines protection and mitigation measures for environmental impacts that could arise during both construction and operation of the wind farm and the associated transmission line. The measures cover impacts on air quality, soil, and biodiversity, as well as noise and visual effects.

Grid and offtake steps already underway

Alcazar Energy signed a grid connection agreement with Montenegro’s transmission system operator CGES in September 2024. The company took over the Bijela project a year earlier, with total investment in the wind farm valued at $200 million.

On the commercial side, Alcazar Energy signed a memorandum of understanding in January 2025 with Montenegro’s state power utility Elektroprivreda Crne Gore (EPCG), launching negotiations on a power purchase agreement (PPA) for electricity from the Bijela project.

Wider expansion plans across the Western Balkans

In October 2025, Alcazar Energy said it would increase its investment in Montenegro from $200 million to $500 million. The plan was presented at the EU–Montenegro Investment Conference by the company’s Co-Founder and Managing Partner, Daniel Calderon.

Alcazar Energy’s Western Balkans portfolio also includes projects in North Macedonia and Serbia. In North Macedonia, the company is building what it describes as the region’s largest wind farm, a 400 MW project backed by a $500 million investment. In Serbia, Alcazar Energy is developing the 200 MW Celzijus 1 wind farm east of Belgrade.

January 28, 2026
by in News

North Seas region signs landmark offshore wind deal

Seven heads of state and government and energy ministers of nine countries gathered in Hamburg today to boost the expansion of offshore wind. Together with industry and transmission system operators, the countries launched the Offshore Wind Investment Pact for the North Seas. They envisage cross-border projects totaling 100 GW.

Nine European countries committed to building 15 GW of offshore wind per year over 2031-2040 and derisking offshore wind investments. The industry, in return, pledged cost reductions, 91,000 additional jobs and EUR 1 trillion of economic activity.

Europe is charting the massive offshore wind buildout it needs to deliver on its energy security and competitiveness objectives, WindEurope said.

At the North Sea Summit in Hamburg today, Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway and the United Kingdom confirmed their ambition to build 300 GW of offshore wind in the so-called North Seas by 2050.

Over one hundred companies participate in offshore wind pact

Governments, the wind industry and transmission system operators (TSOs) signed the Offshore Wind Investment Pact for the North Seas. The agreement is underpinned by separate declarations of the heads of state, energy ministers and the industry. The last of the three is an undertaking by more than 100 offshore wind companies across the value chain, the update adds.

Offshore wind has been a European success story with 37 GW installed across 13 countries, WindEurope stressed.

“That’s more than 6,000 turbines providing homegrown, clean and competitive electricity at scale. But deployment has been dragged by suboptimal auction design, increased costs of capital and lack of visibility for the supply chain due to an uncertain project pipeline,” the organization pointed out.

Two-sided CfDs to be auction standard

In the Investment Pact, governments pledge to provide planning and investment security and derisk offshore wind projects. It involves two-sided contracts for difference (CfDs) as the standard for offshore wind auction design, for visibility on revenue. The countries agreed to remove any regulatory obstacles to power purchase agreements (PPAs) – direct agreements between electricity producers and corporate end-consumers.

A steady pipeline of offshore wind projects will bring the needed confidence to invest in new capacity for manufacturing, ports infrastructure and vessels, according to WindEurope.

In return, Europe’s offshore wind industry pledges to drive down costs of offshore wind by 30% towards 2040 against the 2025 levels. The cost reduction would be driven by scale effects, lower costs of capital and further industrialization underpinned by clarity and visibility on the project pipeline.

The industry vowed to create lasting value for the economy, communities and consumers. It also said it would invest EUR 9.5 billion in the value chain including manufacturing, port infrastructure and vessels.

The TSOs intend to identify cost-effective cooperation opportunities and 20 GW of economically promising cross-border endeavors by 2027 for deployment in the 2030s. It includes offshore projects with interconnections to more than one country. The operators are about to develop cost-sharing principles.

The new partnership will secure 100 GW of joint offshore wind projects, Britain said.

Post Views:53
January 9, 2026
by in News

D.Trading to offtake 200 MW of solar in PPA with Econergy in Romania

D.Trading, the pan-European trading arm of DTEK Group, signed a renewable electricity offtake deal for 200 MW of installed solar power capacity in Romania with renewable energy developer and operator Econergy. The power purchase agreement (PPA) includes the country’s largest photovoltaic plant.

D.Trading announced that it would purchase electricity from solar power plants Rătești and Părău in Romania. The deal for Econergy’s assets is for 200 MW. The PPA reflects growing market demand for structured renewable offtake products and marks an important milestone in the commercialisation of the two photovoltaic facilities, the announcement adds.

“Partnering with leading companies such as Econergy supports our long-term strategy of expanding renewable energy integration across the region. This agreement strengthens our green power portfolio and represents another step more towards becoming the leading provider of solutions for renewable assets and battery storage in Eastern Europe,” said Head of D.Trading Power Desk EU Stanislav Dudka.

The company operates in Central, Eastern, and Southeastern Europe. D.Trading is the pan-European trading arm of DTEK Group, which also owns DRI.

Econergy is planning to add a 120 MW battery energy storage system to its Rătești solar power plant

As Romania’s power market continues to evolve, shaped by price volatility, regulatory development, and the growing need for flexible solutions to support grid stability, Econergy has successfully executed multiple bankable commercial agreements, the update reads.

Rătești, Romania’s largest solar power plant, was completed in late 2023. The facility northwest of Bucharest, in Argeș county, has 155 MW in peak capacity. Econergy is planning to add a 120 MW battery energy storage system.

Părău was commissioned in late 2024. The PV plant of 92 MW is in Brașov county in the central part of Romania.

The Părău 2 project is for 342 MW, together with 150 MW of battery storage. It won a 15-year contract for difference (CfD) at the country’s first round of renewable energy auctions.

Post Views:87
January 8, 2026
by in News

D.Trading to offtake 200 MW of solar in PPA with Econergy in Romania

D.Trading, the pan-European trading arm of DTEK Group, signed a renewable electricity offtake deal for 200 MW of installed solar power capacity in Romania with renewable energy developer and operator Econergy. The power purchase agreement (PPA) includes the country’s largest photovoltaic plant.

D.Trading announced that it would purchase electricity from solar power plants Rătești and Părău in Romania. The deal for Econergy’s assets is for 200 MW. The PPA reflects growing market demand for structured renewable offtake products and marks an important milestone in the commercialisation of the two photovoltaic facilities, the announcement adds.

“Partnering with leading companies such as Econergy supports our long-term strategy of expanding renewable energy integration across the region. This agreement strengthens our green power portfolio and represents another step more towards becoming the leading provider of solutions for renewable assets and battery storage in Eastern Europe,” said Head of D.Trading Power Desk EU Stanislav Dudka.

The company operates in Central, Eastern, and Southeastern Europe. D.Trading is the pan-European trading arm of DTEK Group, which also owns DRI.

Econergy is planning to add a 120 MW battery energy storage system to its Rătești solar power plant

As Romania’s power market continues to evolve, shaped by price volatility, regulatory development, and the growing need for flexible solutions to support grid stability, Econergy has successfully executed multiple bankable commercial agreements, the update reads.

Rătești, Romania’s largest solar power plant, was completed in late 2023. The facility northwest of Bucharest, in Argeș county, has 155 MW in peak capacity. Econergy is planning to add a 120 MW battery energy storage system.

Părău was commissioned in late 2024. The PV plant of 92 MW is in Brașov county in the central part of Romania.

The Părău 2 project is for 342 MW, together with 150 MW of battery storage. It won a 15-year contract for difference (CfD) at the country’s first round of renewable energy auctions.

Post Views:64
December 20, 2025
by in News

Enery obtains financing for 600 MWh battery project in Bulgaria

Austria-based Enery intends to commission a four-hour battery storage system of 150 MW in central Bulgaria by the end of the first quarter of next year. The project relies on a virtual power purchase agreement (PPA) with Vitol.

Enery said it has secured a green financing package from DSK Bank AD for its flagship 600 MWh battery energy storage system (BESS) in Nova Zagora, Bulgaria. It is one of the country’s most advanced storage financing deals to date, supporting its transition toward a more flexible and renewables-powered energy system, the update reads.

The facility would have 150 MW in capability, meaning it can operate at full power for four hours. It would be the biggest BESS in Bulgaria at this moment, according to available data, though there are larger projects underway as well.

The site is in a coal region centered on the Stara Zagora lignite basin, in the central part of the country.

Virtual PPAs, optimization services are key for bankability

Enery scheduled the commissioning for March. The BESS would feature its own substation, linked to a new 33/110 kV substation on the transmission grid.

The Austria-based independent power producer revealed that it has signed an innovative virtual power purchase agreement (PPA) with Vitol.

“Sophisticated instruments such as virtual financial deals, combined with Enery Portfolio Optimization’s best-in-class physical optimization services, are now key to unlocking bankable storage projects. This transaction demonstrates how innovative commercial structures, when paired with disciplined execution, can create long-term value for both lenders and project sponsors,” Chief Commercial Officer Severin Vartigov stated.

Vitol plans many more deals with Enery

Vitol expressed confidence that there would be many more deals with Enery. The global energy and commodity trader, headquartered in Geneva, has experience in developing, owning and optimizing BESS in Australia, Europe and the United States, the update adds.

Enery operates a diversified portfolio of 566 MW, generating 766 GWh of clean electricity per year. Its development pipeline is nearing 10
GW across 10 countries in Central and Eastern Europe.

The firm also manages more than 700 MWh of battery capacity across its own and third-party systems. In Bulgaria, it is present through its Enery Element joint venture as well.

Post Views:35
December 19, 2025
by in News

EU simplifying CBAM exemption for electricity, improving emissions calculation

The European Union is further simplifying the Carbon Border Adjustment Mechanism (CBAM), but with stricter oversight and an extension to 180 steel- and aluminium-intensive downstream products. From January 1, importers of designated goods and commodities will be paying the emissions tax.

Among the novelties, countries in the Energy Community that transposed the relevant EU regulations are getting an opportunity for exemptions for CBAM for electricity earlier than initially planned. The new legislation is tackling the hurdles for electricity transit as well. The calculation of emissions on national levels in the same sector is becoming more favorable for the payers of the cross-border CO2 tax. There is even a possibility, in theory for now, to declare the actual emissions level, which would suit renewable energy producers.

In response to feedback from industrial producers and other stakeholders, the European Commission proposed measures to prevent circumvention of CBAM and strengthen its efficacy. The next step is to expand it to 180 manufactured products with high steel or aluminum content, 79% on average. The list mostly consists of machinery and hardware, and 6% of the items are household appliances.

From January 1, importers will be paying a carbon price within the Carbon Border Adjustment Mechanism, which is tied to the Emissions Trading System (EU ETS). It concerns aluminum, cement, electricity, iron and steel, hydrogen and fertilizers, and the expenses will spill over to their suppliers in third countries such as the Western Balkans and Turkey.

The charge for downstream products is planned to be rolled out in January 2028.

Striving for level playing field

The system gradually levels the field, by the beginning 2034, with producers of the same goods and commodities in the EU. The measures are introduced in the form of delegated and implementing acts. They enter into force if other institutions responsible for them, like the European Parliament, don’t block them.

Hoekstra: Our system was too broad, too clunky and had too many loopholes.

“CBAM makes sure there is a level playing field – that we’re not asking anything more, or asking anything less for those goods that come into the EU. And in doing so, we’re rewarding investments in low carbon… We’re not going to ask anything more from others, than we’re asking from ourselves. During the CBAM transition period, we learned important lessons. Our system was too broad, too clunky and had too many loopholes,” said European Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra.

Thoroughly against evasion

The tax level is envisaged to be proportional to an established quantity of greenhouse gases released in production. However, if the authorities notice attempts to evade the levy, they can make the process of providing evidence stricter and, in the meantime, switch to a charge under the emissions factor of the particular country of origin.

“If I had to summarize these points in a few words, I would say: a simpler CBAM, more robust in its application, and fairer in its scope,” said the European Commission’s Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné.

Shortcut to exemption from CBAM for electricity

One of the measures is intended for easing the administrative burden for countries in the process of electricity market coupling with the EU, namely the Energy Community contracting parties.

There is going to be a possibility to sign an MoU with the European Commission with a detailed schedule

The commission may sign a memorandum of understanding with a third country, once the commission has assessed that the country has fully transposed the electricity market acquis, the proposal reads. The document would lay down details on the timeline for the CBAM exemption, including in relation to technical work still to be carried out between transmission system operators (TSOs), and for implementing a carbon pricing instrument equivalent to the EU ETS as far as electricity generation is concerned.

Hoekstra said technical adjustments to CBAM would be made to facilitate market coupling when the relevant countries are ready.

Import tax for electricity from Energy Community to be 30% lower on average

Stakeholder feedback and the experience with the implementation of CBAM during the transitional period – before the actual charge – demonstrated that the rules for electricity imports are overly rigid, the European commissioners added. In particular, they ascertained that progress in decarbonizing electricity production isn’t sufficiently acknowledged or encouraged.

Unlike with the goods, for electricity there is a default country-specific emissions value. It is based on production from fossil fuels and a five-year average. Coal is mostly dominant in the Western Balkans, except for Albania, which has a completely green mix. In addition, the conditions which must be met to declare actual emissions of electricity have proven to be almost impossible.

The proposed package is introducing solutions for electricity transit and cross-border PPAs

In the new setting, the national value will reflect the carbon intensity of all sources of electricity. The estimated taxes in the Energy Community would be over 30% lower on average.

The procedure is being streamlined for declaring actual emissions. On the other hand, at least in the Western Balkans, there has been almost no progress in that area. The proposed package is also introducing solutions for the hurdles in electricity transit through Energy Community Contracting Parties and cross-border power purchase agreements (PPAs).

Power imports from the Western Balkans account for 1% of the EU’s demand, but their share in Croatia, Bulgaria and Greece is significant, the European Commission explained. Importantly, exports of electricity to the EU represent some 58% of Montenegro’s exports to the EU, compared to 5% for Serbia and Albania.

Funds for maintaining competitiveness of domestic industrial producers in third countries

A fund has been launched to temporarily support EU producers of CBAM goods and mitigate carbon leakage risks. It addresses the competitiveness loss in third-country markets with a weaker climate policy and lower costs. Potential beneficiaries will have to demonstrate decarbonization efforts.

Th European commission is also preparing proposals for limiting scrap aluminum exports and using more scrap metal. Furthermore, it said pre-consumer metals scrap, from manufacturing, would come under CBAM.

Post Views:47
December 16, 2025
by in News

Turkey awards 1.15 GW in wind power auctions – all at just EUR 35 per MWh

The six winners from the latest round of wind power auctions under the YEKA state support mechanism in Turkey will have at least EUR 35 per MWh guaranteed from the sale of electricity in the first six years. It was the floor price in the bidding. After it was reached for each zone, the remaining participants had to compete by offering to pay for the right to sign the contract.

Delays and the lack of money for the construction of high-voltage, transmission lines is one of the main hurdles slowing the uptake of wind and solar power. Turkey’s approach has turned out to be successful, as it allows investors to compete to pay one-off fees for available predetermined projects in auctions. At the same time, the beneficiaries get guaranteed prices for the future sales of their electricity.

The country has earned EUR 530 million overall this year from two rounds for solar and two for wind power, Minister of Energy and Natural Resources Alparslan Bayraktar said. It includes EUR 208 million just from the latest bidding under the Renewable Energy Zones (REZ) state support mechanism, he claimed. It is better known by its Turkish acronym YEKA.

The winners are getting grid connections for 49 years

The ministry awarded zones for six projects for 1.15 GW in total connection capacity. The winners are getting grid connections for 49 years, a minimum price during the six-year open market sale period and power purchase agreements (PPAs) at the same level for another 20 years.

Entire capacity allocated at floor price

In the bidding in the REZ WPP 2025 (YEKA RES 2025) round, the ceiling price was EUR 55 per MWh. With 75 applications altogether, 30 companies participated – between six and 20 per zone.

In all cases, the bottom price of EUR 35 per MWh was reached, so the remaining bidders were switched to the second phase. The YEKA auctions are broadcast live.

The winners need to pay between EUR 56,000 per MW and a stunning EUR 312,000 per MW of capacity, or from EUR 23.8 million to EUR 34.3 million for each zone. Combined, the contribution fees amount to EUR 173 million, or some EUR 470 million for all auctions held this year.

Bayraktar estimated total investments in projects involved in the last wind power round at USD 1.1 billion.

Eksim, Polat among winners

The Kütahya zone of 120 MW went to İçdaş Elektrik Enerjisi, for EUR 222,000 per MW. Stone Enerji snatched the Aydın-Denizli project of 140 MW with a winning bid of EUR 170,000 per MW. The firm was a winner at the recent solar power auctions as well.

For the Sivas area, the largest of all (500 MW), Kanat Rüzgar Enerji will be required to pay EUR 56,000 per MW, which is the lowest level.

Three zones are in Balıkesir province. Eksim Energy (Enerji) committed the most of all winners, EUR 312,000 per MW, for the Balıkesir-3 project. It is for 110 MW. Balıkesir-2, of 120 MW, was won by Balıkesir Elektrik. It offered a contribution fee of EUR 218,000 per MW.

The Balıkesir-1 area is for 160 MW in connection capacity. Polat Enerji’s subsidiary Soma Enerji was the best bidder, with EUR 212,000 per MW.

Turkey hosts wind power plants of more than 14 GW combined, of more than 121 GW in total electricity capacity.

Post Views:59
December 3, 2025
by in News

Turkey earns EUR 84.8 million upfront from solar power auction

Investors in photovoltaic projects were mostly willing to pay large sums at Turkey’s latest YEKA auction to secure a minimum guaranteed price for five years, followed by 20-year power purchase agreements. The government earned EUR 84.8 million overall from the secondary bidding for 650 MW, split into six areas. One zone is for a floating solar power plant.

According to Turkey’s Minister of Energy and Natural Resources Alparslan Bayraktar, domestic electricity demand is on a trajectory to triple to 1.05 PWh in the next 30 years. It follows an almost threefold jump of the last two decades, while natural gas is rising even faster, he pointed out.

The minister has urged investors to keep up the momentum, noting that the national goal for 2035 for solar and wind power is 120 GW in total.

One of the pillars of the government’s measures to incentivize such endeavors are renewable energy auctions. Notably, the obligatory domestic content rates are high, to boost manufacturing in the sector.

The latest solar power auction under the Renewable Energy Zones (REZ) state support mechanism even brought substantial earnings for Turkey, for the second time. The bidding was initiated at the ceiling price, EUR 55 per MWh, and when the floor level was reached at EUR 32.5 per MWh, the remaining competitors were switched to another auction.

They offered so-called contribution shares, starting at a stunning 10,000 per MW of planned connection capacity. The quota for the REZ SPP 2025 (YEKA GES 2025) round was 650 MW, split into eight zones. Two zones were taken off the table after the call, due to delays in permitting.

Highest fee was EUR 285,000 per MW

In total, Turkey cashed in EUR 84.8 million or EUR 130,400 per MW of connection capacity, excluding value-added tax.

The Eskişehir zone, 260 MW, went for EUR 105,000 per MW to Efor Holding. The company was successful at the previous wind power auction as well, early this year.

Stone Enerji won the Erzurum 1 segment, of 100 MW, by pledging EUR 100,000 per MW. Sertaş Turizm took Erzurum 3, at 85 MW, for EUR 120,000 per MW.

The Ministry of Energy and Natural Resources included a floating solar power plant project for the first time

The 50 MW Bolu zone went to Ecogreen Enerji. The company is paying 44,000 per MW, the least of all winners.

Kahramanmaraş, of 40 MW, was awarded to Güçlü GES Enerji. It pledged EUR 285,000 per MW, which was the highest contribution fee. Aydede Enerji has obtained the Mardin zone for EUR 208,000 per MW while Zincir GES Enerji managed to win the Van solar power project for EUR 187,000 per MW. Both are for 40 MW.

The auction also featured the first zone for a floating solar power plant. Demirköprü Yüzer GES in Manisa province, for 35 MW, was taken by a firm with the same name. It is paying EUR 225,000 per MW, the ministry has revealed.

Solar power auction facilitates USD 400 million in investments

There were 77 applications altogether, from 38 companies.

The winners will be able to sell electricity on the free market for five years. However, they are guaranteed at least their contracted price, which in all cases is the floor price – EUR 32.5 per MWh. The second period, 20 years, is with a power purchase agreement.

Bayraktar estimated that the solar power auction facilitated investments worth a combined USD 400 million. The projected annual output is equivalent to the electricity needs of half a million households.

The minister pointed out that 8 GW of solar and wind power would come online this year in total. The combined capacity on the grid from the two technologies amounts to some 39 GW out of 121 GW overall.

Also of note, the Energy Storage Industries Association (EDEDER) has forecasted that 1.5 GWh of storage capacity would be commissioned next year in Turkey.

Post Views:28
December 2, 2025
by in News

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

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

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

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

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

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

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

UniCredit is strongest player in renewables financing in Serbia

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

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

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

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

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

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

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

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

Priority in Europe shifted from energy transition to energy security

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

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

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

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

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

Actis to invest in infrastructure projects across region

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

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

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

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

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

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

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

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

Regulatory stability is essential for investor-friendly countries

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

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

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

Structured portfolio transactions are facilitating growth for companies with multiple projects

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

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

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

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

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

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

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

Battery storage is natural hedge for green power production

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

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

Post Views:95
October 30, 2025
by in News

Renewable electricity should not be subject to EU’s CO2 import tax

The European Commission is collecting evidence to come up with solutions for unintended effects of the Carbon Border Adjustment Mechanism (CBAM) on renewable electricity in the Western Balkans, Director of the Energy Community Secretariat Artur Lorkowski pointed out in an interview with Balkan Green Energy News, as one of the most important developments in the sector. Boosting renewable energy development and trade with third countries such as the Western Balkans was supposed to be accelerated by the European Union’s CO2 import tax.

To reduce the payment obligations of EU importers under CBAM, the contracting parties in the region are planning carbon pricing systems, but under different models. The ultimate goal is eventually joining the EU Emissions Trading System, implying the need for coordination and cooperation between the governments in the process, Lorkowski stressed.

Looking back twenty years since the Energy Community Treaty was signed, it proved to be a successful format of cooperation, the Energy Community Secretariat Director Artur Lorkowski said. On the occasion of the anniversary, Balkan Green Energy News sat down with the head of the international organization to speak about the achievements and benefits for the contracting parties, and the remaining milestones that the Western Balkans need to reach in order to integrate with the EU’s energy union.

“Economic growth depends on energy security and fair pricing. There is visible progress in transformation, clearly seen from the 2024 figures. And the final element is the accelerated energy market integration with the EU, and this is what we can be really proud of,” Lorkowski asserted.

Among the segments with tangible improvements, he also highlighted the convergence on the wholesale gas and electricity markets. It is facilitating competitiveness in the Energy Community, the secretariat’s chief added.

Renewables capacity doubled in four years

Fossil fuels used to account for 60% of electricity production in the contracting parties five years ago, compared to 50% now, Lorkowski noted. The significant results in renewables except for large hydro are illustrated by the fact that the overall capacity in the segment has more than doubled between 2020 and 2024, he stressed. More importantly, the carbon footprint – the CO2 emissions per unit of the nominal gross domestic product, fell 11% last year alone.

CO2 emissions per unit of the nominal GDP fell 11% last year in the Energy Community

As for EU integration, electricity market coupling is progressing very well, as a good example, in Lorkowski’s view. The legislation is mostly aligned, so most countries are just waiting for the process to be concluded, the director of the Energy Community Secretariat explained.

“There are operating wholesale markets everywhere in the Western Balkans except in Bosnia and Herzegovina, which is about to adopt the required law. Serbia is at the forefront of that process. North Macedonia and Montenegro are very close, with small elements yet to be achieved. It is a non-reversible point, point of no return on a path towards EU integration,” Lorkowski said. He recalled that when capacity calculations regions (CCRs), operationalization and verification are cleared from the to-do list, it would take 18 months to join the EU’s market coupling project.

Electricity can be exempted from CBAM at later stage

Energy Community contracting parties may become eligible for exemption until 2030 from CBAM in electricity, if they meet the CBAM requirements. However, the EU is starting to charge the CO2 import tax already on January 1.

“I wish the contracting parties followed my messages from the Belgrade Energy Forum in 2023, because you might remember me saying that CBAM is coming and we have to prepare for that. But unfortunately, we have observed a lot of delays and hiccups in the preparatory process. Fair enough, this is the reality we have to face now – no country of the Energy Community will be exempted on 1 January 2026. But we can still work to be exempted at a later stage,” Lorkowski underscored.

Artur Lorkowski was a keynote speaker at Belgrade Energy Forum 2025, organized by Balkan Green Energy News

European Commission expected to clarify rules by end of year

The second part of the story is that CBAM, in addition to its intended impacts, especially on coal power, also has unintended impacts, Lorkowski explained. For example, electricity transit between EU member states through the contracting parties, in practice, may also be subject to the tax, even if it was not intended by the European legislators.

CBAM was intended to provide equal treatment for products produced inside and outside the EU when it comes to carbon payments. “Renewable energy, not being subject to the EU ETS, would – logically – not need to be subject to CBAM, but with the current rules, even EU off-takers with cross-border power purchase agreements (PPAs) may still be subject to payment obligations, as the implementing rules remain overly complex, effectively treating them in the same way as fossil fuel importers. These are real problems that stakeholders have been raising with us in our targeted outreach to power companies, traders, and other stakeholders both from the EU and Energy Community,” Lorkowski added.

Legislative efforts to further improve trade in renewables with the EU continue under the Energy Community

The Energy Community Ministerial Council reported it in Athens to the European Commission and asked it to find a solution.

Lorkowski said he expects the EU’s top executive body to soon issue implementing and delegated acts, by the end of 2025, clarifying the CBAM implementation rules, and to follow it up in 2026 with a targeted amendment proposal on electricity.

Legislative efforts to further improve trade in renewables with the EU continue under the Energy Community. “The European Commission has presented to the contracting parties a draft decision on the mutual recognition of guarantees of origin and is now awaiting their feedback. I hope that in 2026 we can have a decision. But it does not mean that the guarantees of origin can be used as the currency for paying the CBAM fee. That would require amending the CBAM legislation,” he stated.

Carbon pricing systems need to evolve toward matching EU ETS

For a potential reduction of CBAM payments in other areas as well – iron and steel, aluminum, fertilizers, cement and hydrogen – third countries need to introduce carbon pricing systems. Serbia recently drafted legislation for a CO2 tax and for a tax on imports of carbon-intensive products. It is a good step forward, according to Lorkowski.

“We expect each and every country to make a decision on the carbon pricing. All of the countries of the Energy Community, with the exception of Kosovo*, have communicated to the secretariat which model they will implement. And the models vary: from Serbia’s carbon tax to a domestic emissions trading system of Montenegro, which is already in place,” he revealed.

There is no uniform carbon pricing model for the Energy Community

Namely, the Energy Community Ministerial Council decided not to implement a uniform regional carbon pricing mechanism but opted for individual models. They should all be built with the perspective of aligning eventually with the EU Emissions Trading System (EU ETS), Lorkowski said.

“The key challenge now for the Energy Community is how to maintain the integrity of the electricity market between the contracting parties and the European Union after CBAM enters its definitive phase from next January. We need to figure out how to coordinate among the systems. It implies not only the existence of the domestic carbon markets, but also the cooperation within the region,” he pointed out.

Ministerial Council to announce way forward on carbon pricing coordination

The Ministerial Council is due to conclude on carbon pricing at its regular annual meeting in December, Lorkowski said.

“The three critical elements are how much the CO2 will cost, who will pay – which businesses and sectors are in scope – and when those carbon pricing systems will be introduced. They need to maintain the integrity of the market, the level playing field of the market, and avoid market distortions,” the top Energy Community official added.

Practical policies more important than coal phaseout dates alone

Turning to the coal phaseout, essential for the decarbonization of the economy, Lorkowski acknowledged the significance of political declarations such as the Sofia Declaration and commitments from the national energy and climate plans (NECPs).

“That said, it is critically important to anchor the actions for the future with practical policies. The decisions on the establishment of carbon pricing mechanisms are even more important. In addition, we should focus on monitoring, reporting and verification – MRV systems. The contracting parties need to identify emitters and measure quantities,” the director of the Energy Community Secretariat underscored.

Post Views:137
* 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.