OECD Launches Strategic Initiative to Modernize South East Europe’s Aging Power Grids

The Organisation for Economic Co-operation and Development (OECD), in partnership with the Delphi Economic Forum, has unveiled a high-level initiative aimed at overhauling the energy and digital landscape of South East Europe.

The project, titled “Electricity, Digital and Regional Interconnectivity in South East Europe,” was officially launched in Thessaloniki—a city historically positioned as a strategic bridge between Europe and the Balkans. The initiative arrives at a critical juncture as the region grapples with inefficient infrastructure and the urgent need for energy security amid shifting geopolitical realities.

Addressing the 14% Efficiency Gap

Data presented at the launch highlighted a stark disparity between the Western Balkans and the broader European Union. OECD Secretary-General Mathias Cormann noted that outdated power grids in the region suffer from electricity losses of approximately 14%, nearly triple the EU average.

The infrastructure deficit is compounded by a slow transition to green energy. Despite significant natural resources, the Western Balkans currently harness only 4% of their solar potential and 2% of their wind potential. Furthermore, regulatory alignment remains a hurdle, with only 48% of relevant EU energy standards currently implemented across the region.

Greece and Romania Spearheading Integration

The project is designed and funded by Greece, with additional co-financing from Romania. For Athens, the initiative reinforces its growing status as a regional energy hub and a net electricity exporter.

Nikos Tsafos, Greece’s Deputy Energy Minister, emphasized that modern energy security is built on three pillars: affordability, strategic autonomy, and robust interconnectivity. This regional push is also deeply tied to EU enlargement. Giorgos Pagoulatos, Greek Ambassador to the OECD, noted that Western Balkan EU accession has gained new urgency. He signaled that regional integration will be a cornerstone of Greece’s upcoming presidency of the Council of the EU in 2027.

A Roadmap to 2027

To bridge the gap, Secretary-General Cormann outlined four strategic priorities for the Western Balkans:

• Regulatory Convergence: Full alignment with EU energy frameworks.

• Corporate Governance: Strengthening competition and oversight within state-owned utilities.

• Infrastructure Modernization: Replacing aging coal-fired plants and upgrading transmission lines.

• Digital Transformation: Scaling up smart-meter adoption and renewable energy deployment.

The stakes are high: experts at the event warned that European electricity demand could surge by 60% by 2030. To meet this challenge, the OECD plans to conduct a series of technical workshops across the Balkans, culminating in a comprehensive policy roadmap scheduled for release in 2027.