January 9, 2026
by in News

Montenegro’s TSO CGES to invest EUR 200 million

Montenegrin transmission system operator Crnogorski Elektroprenosni Sistem plans to invest EUR 200 million over the next five years, according to Ranko Redžić, manager of the company’s national dispatching center.

CGES is constantly improving and modernizing the system, as well as training employees, MINA reported.

According to Ranko Redžić, this yields results. One of them is a very low transmission system loss rate, which ranges from 1.6% to 1.7%, in line with the most efficient European systems, he added.

The most significant capital projects the company completed last year include the reconstruction of the Pljevlja 1 substation and the construction of the 150-kilometer Lastva-Pljevlja transmission line, which is expected to become operational soon.

The power line completes a 400 kV ring that will significantly improve the operational security of both the Montenegrin and neighboring transmission systems, Redžić stressed.

The completion of two 110 kV transmission lines in the north – Brezna-Žabljak and Žabljak-Pljevlja – is also planned

The completion of the project also creates conditions for connecting a significant number of renewable energy power plants, he explained.

Among the major projects is the upgrade of Lastva substation, which resolves the problem of excessively high voltages in the Montenegrin system. The issue is evident throughout the region.

The upgraded substation is expected to be put into operation by the end of January.

Redžić estimated that the total value of investments over the next five years will exceed EUR 200 million.

Among the upcoming projects, there is the completion of two 110 kV transmission lines in the north – Brezna-Žabljak and Žabljak-Pljevlja. CGES also intends to install the 400 kV Brezna substation, which would also enable the connection of significant renewable energy capacity.

The 400 kV link with Serbia would complete the Trans-Balkan Corridor

The reconstruction of the 220 kV transmission line from Bosnia and Herzegovina through Montenegro to Albania is also planned, along with the reconstruction of the substation at the Perućica hydropower plant and the replacement of transformers at Pljevlja 2 substation.

The upcoming construction of a 400 kV interconnection with Serbia, completing the Trans-Balkan Corridor, would create the conditions for a second line of the submarine cable between Montenegro and Italy, Redžić underscored.

The onshore transmission line would allow the installation of a number of new substations, enabling the connection of additional consumers and renewable electricity plants to the distribution network.

Redžić stressed that the expected date for coupling the Montenegrin and Italian electricity markets is the beginning of 2028.

Post Views:72
January 9, 2026
by in News

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

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

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

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

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

Uncertainty surrounding electricity transit and trade remains high

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

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

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

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

There are two legislative streams

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

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

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

National emissions factors, actual emission values: improvement

eu western balkans cbam electricity market coupling amendments
Photo: iStock

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

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

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

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

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

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

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

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

Transit: nothing new

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

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

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

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

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

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

Retroactivity: possibility for improvement

eu western balkans electricity market cbam amendments
Photo: iStock

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

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

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

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

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

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

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

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

Market coupling: nothing new or possibility for improvement

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

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

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

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

The current wording in the proposal leaves room for various interpretations

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

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

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

Why is this important?

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

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

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

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

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

What next?

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

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

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

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

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

Pozsgai: Amendments point in the right direction

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

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

 

Post Views:115
January 9, 2026
by in News

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

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

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

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

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

Uncertainty surrounding electricity transit and trade remains high

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

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

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

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

There are two legislative streams

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

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

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

National emissions factors, actual emission values: improvement

eu western balkans cbam electricity market coupling amendments
Photo: iStock

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

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

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

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

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

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

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

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

Transit: nothing new

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

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

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

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

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

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

Retroactivity: possibility for improvement

eu western balkans electricity market cbam amendments
Photo: iStock

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

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

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

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

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

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

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

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

Market coupling: nothing new or possibility for improvement

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

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

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

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

The current wording in the proposal leaves room for various interpretations

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

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

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

Why is this important?

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

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

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

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

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

What next?

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

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

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

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

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

Pozsgai: Amendments point in the right direction

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

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

Post Views:109
January 8, 2026
by in News

Montenegro’s TSO CGES to invest EUR 200 million

Montenegrin transmission system operator Crnogorski Elektroprenosni Sistem plans to invest EUR 200 million over the next five years, according to Ranko Redžić, manager of the company’s national dispatching center.

CGES is constantly improving and modernizing the system, as well as training employees, MINA reported.

According to Ranko Redžić, this yields results. One of them is a very low transmission system loss rate, which ranges from 1.6% to 1.7%, in line with the most efficient European systems, he added.

The most significant capital projects the company completed last year include the reconstruction of the Pljevlja 1 substation and the construction of the 150-kilometer Lastva-Pljevlja transmission line, which is expected to become operational soon.

The power line completes a 400 kV ring that will significantly improve the operational security of both the Montenegrin and neighboring transmission systems, Redžić stressed.

The completion of two 110 kV transmission lines in the north – Brezna-Žabljak and Žabljak-Pljevlja – is also planned

The completion of the project also creates conditions for connecting a significant number of renewable energy power plants, he explained.

Among the major projects is the upgrade of Lastva substation, which resolves the problem of excessively high voltages in the Montenegrin system. The issue is evident throughout the region.

The upgraded substation is expected to be put into operation by the end of January.

Redžić estimated that the total value of investments over the next five years will exceed EUR 200 million.

Among the upcoming projects, there is the completion of two 110 kV transmission lines in the north – Brezna-Žabljak and Žabljak-Pljevlja. CGES also intends to install the 400 kV Brezna substation, which would also enable the connection of significant renewable energy capacity.

The 400 kV link with Serbia would complete the Trans-Balkan Corridor

The reconstruction of the 220 kV transmission line from Bosnia and Herzegovina through Montenegro to Albania is also planned, along with the reconstruction of the substation at the Perućica hydropower plant and the replacement of transformers at Pljevlja 2 substation.

The upcoming construction of a 400 kV interconnection with Serbia, completing the Trans-Balkan Corridor, would create the conditions for a second line of the submarine cable between Montenegro and Italy, Redžić underscored.

The onshore transmission line would allow the installation of a number of new substations, enabling the connection of additional consumers and renewable electricity plants to the distribution network.

Redžić stressed that the expected date for coupling the Montenegrin and Italian electricity markets is the beginning of 2028.

Post Views:44
January 7, 2026
by in News

Đedović Handanović: Construction of 1 GW solar project to start in 2026

The start of construction of solar power plants in a project for a total capacity of 1 GW is expected in 2026, Minister of Mining and Energy of Serbia Dubravka Đedović Handanović said.

State-owned power utility Elektroprivreda Srbije (EPS) announced that its shareholders’ assembly adopted the Three-Year Business Plan for the period 2026-2028.

Dubravka Đedović Handanović pointed out that the company had good production and financial results for three consecutive years. According to the adopted three-year business plan, this trend will continue in 2026, she added.

EPS will invest EUR 1 billion in 2026

The minister recalled that in 2025 EPS built its first wind farm – Kostolac, and the Petka solar power plant, with a combined capacity of 76 MW. The company also finished the construction of the desulfurization facility at its coal-fired power plant Nikola Tesla B (TENT B), allowing the reduction of sulfur dioxide (SO2) emissions by 20 to 40 times, she added.

“Investments this year have also been at a high level, 97% in fact, considering that due to the scope and complexity of preparatory activities, the start of materialization of the project for the construction of solar power plants of 1 GW is expected in 2026. The focus of investments of around EUR 1 billion in 2026 will be on maintenance and improvement of the reliability of the power system and, primarily, on increasing the share of renewable energy sources in EPS’s energy mix,” Đedović Handanović stressed.

The company will build new solar power plants as well

The largest portion of the investments, in her words, is planned for new renewable energy plants, such as the construction of solar power plants totaling GW and pumped storage hydropower plant Bistrica, as well as the development of a larger number of solar power plants on land owned by EPS.

Of note, the company is developing the 1 GW solar project, which includes batteries, in collaboration with a consortium comprising Hyundai Engineering and UGT Renewables.

EPS yesterday invited bids for a preliminary feasibility study and conceptual design for a solar power plant on the ash disposal site of TENT A.

The minister revealed that next year’s plan includes an increase in employees’ salaries.

The company will continue its transformation activities, she added. Đedović Handanović welcomed the fact that EPS didn’t take out liquidity loans this year.

Post Views:122
January 6, 2026
by in News

Đedović Handanović: Construction of 1 GW solar project to start in 2026

The start of construction of solar power plants in a project for a total capacity of 1 GW is expected in 2026, Minister of Mining and Energy of Serbia Dubravka Đedović Handanović said.

State-owned power utility Elektroprivreda Srbije (EPS) announced that its shareholders’ assembly adopted the Three-Year Business Plan for the period 2026-2028.

Dubravka Đedović Handanović pointed out that the company had good production and financial results for three consecutive years. According to the adopted three-year business plan, this trend will continue in 2026, she added.

EPS will invest EUR 1 billion in 2026

The minister recalled that in 2025 EPS built its first wind farm – Kostolac, and the Petka solar power plant, with a combined capacity of 76 MW. The company also finished the construction of the desulfurization facility at its coal-fired power plant Nikola Tesla B (TENT B), allowing the reduction of sulfur dioxide (SO2) emissions by 20 to 40 times, she added.

“Investments this year have also been at a high level, 97% in fact, considering that due to the scope and complexity of preparatory activities, the start of materialization of the project for the construction of solar power plants of 1 GW is expected in 2026. The focus of investments of around EUR 1 billion in 2026 will be on maintenance and improvement of the reliability of the power system and, primarily, on increasing the share of renewable energy sources in EPS’s energy mix,” Đedović Handanović stressed.

The company will build new solar power plants as well

The largest portion of the investments, in her words, is planned for new renewable energy plants, such as the construction of solar power plants totaling GW and pumped storage hydropower plant Bistrica, as well as the development of a larger number of solar power plants on land owned by EPS.

Of note, the company is developing the 1 GW solar project, which includes batteries, in collaboration with a consortium comprising Hyundai Engineering and UGT Renewables.

EPS yesterday invited bids for a preliminary feasibility study and conceptual design for a solar power plant on the ash disposal site of TENT A.

The minister revealed that next year’s plan includes an increase in employees’ salaries.

The company will continue its transformation activities, she added. Đedović Handanović welcomed the fact that EPS didn’t take out liquidity loans this year.

Post Views:89
January 4, 2026
by in News

Energy Community Secretariat sets up renewables support hub for contracting parties

The Energy Community Secretariat has established a hub to speed up the deployment of renewables in contracting parties with a focus on transforming coal mines.

With the exception of Albania, members of the Energy Community in the Western Balkans generate electricity predominantly by burning coal from domestic mines.

Locations of depleted mines are suitable for renewable electricity plants.

The new Centre for Renewables Acceleration is a regional hub designed to provide technical support to all Energy Community contracting parties in accelerating renewable energy deployment through improved planning and coordination, according to the Energy Community Secretariat.

The center will especially help support the rollout of renewables acceleration areas (RAA) in brownfields, including coal mines.

Strengthening public trust in the energy transition is essential

In these locations, renewable energy projects can move forward more quickly through streamlined procedures grounded in strategic spatial planning that protects sensitive ecosystems, in the secretariat’s view.

It sees strengthening public trust in the energy transition as key to this mission, particularly in regions affected by coal phase-out and undergoing broader structural changes.

In the Western Balkans, the center will be supported through a partnership with the Open Society Foundations – Western Balkans (OSF-WB). The two sides recently formalized cooperation through a memorandum of understanding.

Work is complemented by the secretariat’s cooperation with The Nature Conservancy

Their activities in supporting the region include pilot interventions in contracting parties, expert exchanges, capacity-building initiatives and regional workshops.

The partnership with OSF-WB builds on the secretariat’s ongoing work in Ukraine, supported by the European Climate Foundation, which focuses on developing cross-border renewables acceleration areas in five regions bordering the EU and Moldova.

This work is further complemented by the secretariat’s cooperation with international environmental organization The Nature Conservancy (TNC), whose EU-recognized methodology for designating renewables acceleration areas informed the development of the Operational Blueprint for the Designation of RAAs in the Energy Community region and now serves as a best practice, the update reads.

Back in 2023, the secretariat and TNC formed a partnership to improve the planning and permitting procedures for renewable energy projects. TNC has implemented projects on RAAs in Serbia, Montenegro.

Post Views:97
January 4, 2026
by in News

Turkey to launch carbon market, sign deals for large renewables projects in 2026

Turkey will launch a national carbon trade market, sign intergovernmental agreements on large-scale renewable energy projects and connect 2,000 MW of energy storage to the grid in 2026. These moves will be accompanied by the historic start of electricity production at the country’s first nuclear power plant Akkuyu, and a doubling of domestic natural gas production from the Sakarya field.

These developments represent the core of the 2026 vision for energy and mining in Turkey, revealed by Minister of Energy and Natural Resources Alparslan Bayraktar.

Large-scale projects will be launched next year through intergovernmental agreements, he stressed.

The deals include solar and other renewable energy technologies and storage, Bayraktar explained.

According to the minister, Turkey remains committed to its emission reduction targets. The government plans to launch a carbon trade center and market in 2026 within the Energy Exchange Istanbul (EXIST or EPİAŞ), he said.

Of note, Turkey’s imports of a group of goods and electricity to the European Union will be subject to the CBAM carbon border tax from January 1, 2026.

Energy storage facilities totaling 2,000 MW will be commissioned in 2026

Bayraktar recalled that the country issued permits for the installation of an overall 33,500 MW of energy storage. A very small portion has been implemented so far, but 2,000 MW will be commissioned in 2026, he underlined.

The minister said Turkey is considering the introduction of Storage Resources Zones or Depolama Alanları (DEKA) in 2026.

It would be similar to Renewable Energy Zones mechanism – REZ or YEKA – for support for solar and wind projects.

Bayraktar mentioned that a 5,000 MW solar power arrangement with Saudi Arabia-based ACWA is being discussed. Of note, it is equivalent to between 30% and 40% of Turkey’s current photovoltaic capacity.

Locations for the 2,000 MW solar project are in Sivas and Taşeli

He expressed belief that the agreement for the first phase, which envisages 2,000 MW, would be finalized in the first quarter of 2026. The plan is for 1,000 MW in Sivas and 1,000 MW in Taşeli.

A solar-plus-storage project with another company from a different country in the Persian Gulf is also under consideration, Bayraktar revealed. The investment is estimated at EUR 1.5 billion to EUR 2 billion.

A floating solar power plant of about 3,000 MW will be built as soon as possible, according to Bayraktar

In Bayraktar’s view, there is great potential in floating solar power plants. The country intends to implement a floating solar power plant of about 3,000 MW as soon as possible, the minister underlined.

The partners in this endeavour could be private companies or Turkish government-controlled Electricity Generation Corp. (EÜAŞ), the minister said. He claimed significant plans have been developed for offshore wind projects for 2026.

“We are considering a model similar to YEKA for offshore wind,” he added.

Russia to provide USD 9 billion for Akkuyu

turkey 2026 vision energy Alparslan Bayraktar brifing
Photo: Ministry of Energy and Natural Resources

The Akkuyu project is entering its final stages, according to the minister.

The country secured a USD 9 billion financing package from Russia for the investment, of which USD 4 billion to USD 5 billion is intended to be drawn in 2026.

Simultaneously, the ministry is in talks with South Korea, the US, China, and Russia for nuclear projects in Sinop and Thrace.

The Sakarya gas field is expected to double its current output in 2026, to 7.5 billion cubic meters, Bayraktar underscored.

This surge will prevent approximately USD 3.2 billion in energy imports, he explained.

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January 4, 2026
by in News

Elektroprivreda BiH to invest EUR 885 million over next three years

Government-controlled power company Elektroprivreda BiH plans to invest BAM 1.73 billion (EUR 884.6 million) over the next three years, according to its 2026-2028 business plan.

The investments would be financed through loans, and BAM 538 million (EUR 275 million) from own funds of Elektroprivreda BiH (EPBiH), which operates in the Federation of BiH. Of note, it is one of the two entities making up Bosnia and Herzegovina. The other one is the Republic of Srpska.

In line with available funds and restructuring plans, the company intends to continue investing in coal mines within the EPBiH group over the three-year period.

The goal is a stable and sustainable coal production at the volume needed for the planned operation of the thermal power plants, the utility said.

The previous business plan, for the 2025-2027 period, provided for investments of BAM 2.1 billion (EUR 1.074 billion).

The three-year period should be marked by the construction of a large number of PV plants

EPBiH has highlighted the construction of new renewable energy power plants as a long-term strategic and priority goal. The construction of several solar power plants at already identified locations are particularly significant, the plan reads.

The upcoming three-year period should be marked by the construction of a large number of PV facilities at multiple locations on mining sites, company-owned land, on the roofs of its own facilities and those of its customers, EPBiH explained.

EPBiH also plans to acquire operational renewable energy facilities as well as projects in development. The plan envisages the purchase or lease of land suitable for the construction of solar power plants.

Positive business performance and maintaining the position as the dominant electricity supplier in BiH are also outlined in the business plan, adopted by the company’s assembly.

Desulfurization and denitrification of flue gases projects are planned for two thermal power plants

EPBiH has launched flue gas desulfurization and denitrification projects for its Tuzla and Kakanj coal-fired power plants. It would also upgrade unit 7 in Kakanj, unit 4 in Tuzla, and the Salakovac hydropower plant.

The document envisages the establishment of the distribution system operator (DSO), based on the provisions of the Law on Electricity of the Federation of BiH. It came into force in August 2023.

The law stipulates unbundling the distribution activity from EPBiH and establishing the DSO as a separate legal entity, a 100%-owned subsidiary, the company underlined.

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January 4, 2026
by in News

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

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

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

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

A total of 51 municipalities submitted 89 project ideas

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

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

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

The evaluation will begin in January 2026

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

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

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

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

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

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

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

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

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