January 20, 2026
by in News

Bulgaria to host renewable electricity plants on Luxembourg’s behalf

Bulgaria joined Finland as a host country for the 2026 call through the EU Renewable Energy Financing Mechanism (RENEWFM). Luxembourg intends to fund renewable energy projects there, which will enable it to statistically attribute 80% of output to itself.

In the European Union, a member state that missed its renewable energy target can arrange a so-called statistical transfer, for a fee, from a fellow country that surpassed its own target. Another way is to fund power plant projects in another member state, via the EU Renewable Energy Financing Mechanism (RENEWFM).

In the first round, Finland agreed to host seven solar parks on behalf of Luxembourg. The grants amounted to EUR 27.5 million. Next time, also for Luxembourg, it got seven photovoltaic projects and Estonia got two for wind power. The beneficiaries won EUR 52 million in total.

This year, Bulgaria decided to participate with Finland, again on behalf of Luxembourg. Conveniently, the plan is for photovoltaic plants with battery storage in the country’s coal regions in transition: Pernik, Kyustendil and Stara Zagora. The investments are aimed at ensuring long-term employment and energy security. They complement the so-called territorial just transition plans (TJTPs) for a smooth coal phaseout.

The budget for the forthcoming round amounts to EUR 55 million

Bulgaria applied through the call that the European Commission’s Directorate-General for Energy (DG Ener) published. The overall budget is EUR 55 million.

The facilities must operate for at least 15 years. Bulgaria provides land instead of Luxembourg, which gets 80% of the green energy certificates from production.

As for Finland, solar farms are planned again, for the upcoming round.

The European Climate, Infrastructure and Environment Executive Agency (CINEA) is responsible for conducting the calls and monitoring project implementation.

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January 16, 2026
by in News

Montenegro to renew first solar power auction call as soon as possible

After rejecting all bids within its first auction for market premiums for solar power projects, the Ministry of Energy and Mining of Montenegro vowed to tackle the shortcomings in the conditions for participation and renew the public call as soon as possible. The country intends to hold the competitive bidding process by the end of the first quarter, followed by a wind power auction in the third quarter.

Montenegro’s Ministry of Energy and Mining declined, in mid-December, all four bids in the country’s first solar power auction, for a quota of 250 MW. A report that the government adopted three weeks ago revealed that 11 entities have expressed interest by purchasing the tender documentation.

The failures in fulfilling the conditions included submitting documents that were too old and not meeting the requirements for spatial planning and grid connections, the ministry said. On the other hand, it acknowledged shortcomings regarding the auction qualification terms, vowing to tackle them and issue another call as soon as possible.

Namely, the main obligatory documents can’t be older than the public call itself. They are the urban planning and technical conditions, which the government issues, and the grid connection contract, but they are signed only once, becoming acquired legal rights.

Winners can sign 12-year CfDs

The call to auction was published in July. Under Montenegro’s legal framework, auction participants compete for market premiums in the form of 12-year contracts for difference (CfDs) for their projects.

The beneficiary has a guaranteed price, approved through the auction. When the firm sells electricity in the market at a higher price, it must return the difference. And vice versa: when the beneficiary gets less per megawatt-hour than the contract price, it is reimbursed.

Eligible projects don’t or didn’t benefit from government incentives. They can participate if construction works haven’t begun and the developers haven’t secured financing for their completion.

The lowest bids win, and the maximum allowed price was EUR 65 per MWh.

First successful projects from auctions seen for completion in 2028

Per the official plan, the solar power auction needs to be held in the first quarter of this year, followed by a wind power round, for 200 MW. Minister Admir Šahmanović earlier said that he expected the power plants to come online from 2028 to 2030.

Conducting renewable electricity auctions is one of the commitments toward the European Union that were defined by the Reform Agenda of Montenegro 2024-2027. It contains the conditions for the approval of up to EUR 383 million from the Growth Plan for the Western Balkans and the Reform and Growth Facility (RGF).

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January 16, 2026
by in News

Eurowind Energy presents solar-wind hybrid project in Romania

Eurowind Energy plans to build its Siminoc hybrid power plant in southeastern Romania by 2028. It would consist of 24.8 MW of wind power and a matching photovoltaic capacity. The company is considering battery storage as well.

Danish renewable energy developer and operator Eurowind Energy unveiled a EUR 65 million investment in Romania. The Siminoc wind and photovoltaic park project is for 49.6 MW in total.

The site for the hybrid power plant is in Constanța county in Dobruja (Dobrogea). The historical region is Romania’s wind power hub.

Eurowind Energy said it has obtained state support for the project through the country’s contracts-for-difference (CfD) mechanism.

Annual production estimated at 120 GWh

The wind and solar power segments of the future facility in the country’s southeast would each have 24.8 MW in capacity. Siminoc’s annual output is estimated at 120 GWh, equivalent to the consumption of over 50,000 households, the company said.

The company also plans to configure a BESS unit

In its portfolio, Eurowind Energy has wind, battery storage, solar, power-to-heat, hydrogen, biogas and hybrid power plants. Founded twenty years ago, it employs 700 people and is active in 16 markets in Europe, including Bulgaria, and the United States.

Completion date clings on grid connection

According to the schedule for Siminoc, it needs to obtain the construction permit in the first half of this year, and the start of works is planned for 2027. The hybrid power plant would be commissioned in 2028, though adjustments are possible, depending on administrative procedures and the grid connection.

Importantly, Eurowind Energy revealed that it would configure battery energy storage system (BESS) equipment at the procurement phase, when it also needs to select wind turbines and solar panels.

“Siminoc is our first hybrid park in Romania and marks an important step in the evolution of the local portfolio. We no longer view projects as mere production capacities, but as assets that provide real flexibility to the energy system. Combining wind with photovoltaics and, most likely, battery storage allows us to align production to demand, reduce local variability and contribute responsibly to the safe integration of renewable energies,” Country Manager Adrian Dobre said.

Eurowind Energy Romania began its activities in 2011. It has four operational solar parks – Hălchiu, Măgurele, Pufești and Teiuș. The project pipeline amounts to 7.5 GW in various stages of development. The company expects operational capacity to reach 124 MW by mid-year.

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January 16, 2026
by in News

Eurowind Energy presents solar-wind hybrid project in Romania

Eurowind Energy plans to build its Siminoc hybrid power plant in southeastern Romania by 2028. It would consist of 24.8 MW of wind power and a matching photovoltaic capacity. The company is considering battery storage as well.

Danish renewable energy developer and operator Eurowind Energy unveiled a EUR 65 million investment in Romania. The Siminoc wind and photovoltaic park project is for 49.6 MW in total.

The site for the hybrid power plant is in Constanța county in Dobruja (Dobrogea). The historical region is Romania’s wind power hub.

Eurowind Energy said it has obtained state support for the project through the country’s contracts-for-difference (CfD) mechanism.

Annual production estimated at 120 GWh

The wind and solar power segments of the future facility in the country’s southeast would each have 24.8 MW in capacity. Siminoc’s annual output is estimated at 120 GWh, equivalent to the consumption of over 50,000 households, the company said.

The company also plans to configure a BESS unit

In its portfolio, Eurowind Energy has wind, battery storage, solar, power-to-heat, hydrogen, biogas and hybrid power plants. Founded twenty years ago, it employs 700 people and is active in 16 markets in Europe, including Bulgaria, and the United States.

Completion date clings on grid connection

According to the schedule for Siminoc, it needs to obtain the construction permit in the first half of this year, and the start of works is planned for 2027. The hybrid power plant would be commissioned in 2028, though adjustments are possible, depending on administrative procedures and the grid connection.

Importantly, Eurowind Energy revealed that it would configure battery energy storage system (BESS) equipment at the procurement phase, when it also needs to select wind turbines and solar panels.

“Siminoc is our first hybrid park in Romania and marks an important step in the evolution of the local portfolio. We no longer view projects as mere production capacities, but as assets that provide real flexibility to the energy system. Combining wind with photovoltaics and, most likely, battery storage allows us to align production to demand, reduce local variability and contribute responsibly to the safe integration of renewable energies,” Country Manager Adrian Dobre said.

Eurowind Energy Romania began its activities in 2011. It has four operational solar parks – Hălchiu, Măgurele, Pufești and Teiuș. The project pipeline amounts to 7.5 GW in various stages of development. The company expects operational capacity to reach 124 MW by mid-year.

Post Views:37
January 15, 2026
by in News

Montenegro to renew first solar power auction call as soon as possible

After rejecting all bids within its first auction for market premiums for solar power projects, the Ministry of Energy and Mining of Montenegro vowed to tackle the shortcomings in the conditions for participation and renew the public call as soon as possible. The country intends to hold the competitive bidding process by the end of the first quarter, followed by a wind power auction in the third quarter.

Montenegro’s Ministry of Energy and Mining declined, in mid-December, all four bids in the country’s first solar power auction, for a quota of 250 MW. A report that the government adopted three weeks ago revealed that 11 entities have expressed interest by purchasing the tender documentation.

The failures in fulfilling the conditions included submitting documents that were too old and not meeting the requirements for spatial planning and grid connections, the ministry said. On the other hand, it acknowledged shortcomings regarding the auction qualification terms, vowing to tackle them and issue another call as soon as possible.

Namely, the main obligatory documents can’t be older than the public call itself. They are the urban planning and technical conditions, which the government issues, and the grid connection contract, but they are signed only once, becoming acquired legal rights.

Winners can sign 12-year CfDs

The call to auction was published in July. Under Montenegro’s legal framework, auction participants compete for market premiums in the form of 12-year contracts for difference (CfDs) for their projects.

The beneficiary has a guaranteed price, approved through the auction. When the firm sells electricity in the market at a higher price, it must return the difference. And vice versa: when the beneficiary gets less per megawatt-hour than the contract price, it is reimbursed.

Eligible projects don’t or didn’t benefit from government incentives. They can participate if construction works haven’t begun and the developers haven’t secured financing for their completion.

The lowest bids win, and the maximum allowed price was EUR 65 per MWh.

First successful projects from auctions seen for completion in 2028

Per the official plan, the solar power auction needs to be held in the first quarter of this year, followed by a wind power round, for 200 MW. Minister Admir Šahmanović earlier said that he expected the power plants to come online from 2028 to 2030.

Conducting renewable electricity auctions is one of the commitments toward the European Union that were defined by the Reform Agenda of Montenegro 2024-2027. It contains the conditions for the approval of up to EUR 383 million from the Growth Plan for the Western Balkans and the Reform and Growth Facility (RGF).

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January 15, 2026
by in News

Slovenia to aid energy-intensive companies with EUR 30 million per year

The Government of Slovenia has adopted a bill on state aid for energy-intensive companies.

Minister of the Environment, Climate and Energy Bojan Kumer said following a government session that the bill on state aid for energy-intensive companies addresses the serious challenges facing this segment of the Slovenian economy.

He added that these companies generate high added value, account for a significant share of Slovenia’s exports, and provide thousands of quality jobs, often in regions which offer no alternative employment opportunities.

According to an analysis from last May, electricity tariffs for Slovenian businesses were among the highest in the European Union.

The law aims to ensure competitiveness for companies exposed to international competition, for which electricity costs are a key factor in business operations.

Around 40 companies should benefit from the state aid

In difficult global economic conditions, support for energy-intensive companies is essential to help them remain competitive in international markets, the minister emphasized.

The subsidies will be limited to electricity consumption over the next three years, including 2026. The ministry expects them to be available to approximately 40 companies in the chemical, steel, and paper industries.

The law defines clear criteria for receiving aid, limits on the amount of support, control mechanisms, and sanctions in case of violations, with the beneficiaries required to allocate at least half of the received aid to sustainable investments, according to the ministry.

The annual electricity consumption threshold is 15 GWh

Funding for the subsidies will come from sources outside the state budget, through companies wholly owned by the government that operate the country’s key electricity generation capacities. The estimated amount of aid is approximately EUR 30 million a year.

The government will send the bill to parliament for consideration under a fast-track procedure, as its implementation will require timely approval from the European Commission.

To qualify for the subsidies, companies will have to meet criteria including annual electricity consumption of more than 15 GWh and a share of electricity costs in the company’s added value of at least 5%, Naš stik reported.

They will also be required to have an established energy management system and to invest at least half of the savings from lower electricity prices in decarbonizing production or improving energy efficiency.

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January 15, 2026
by in News

Spajić: Japanese company Itochu eyes Montenegro’s waste-to-energy project

Prime Minister of Montenegro Milojko Spajić said an incinerator of up to 50 MW is about to be built, resolving the municipal waste management issue. He added that Itochu from Japan is interested in the investment.

Following a public call for a feasibility study for a waste-to-energy facility in Podgorica, Prime Minister Milojko Spajić said Montenegro would soon build the first incineration plant. It will enable up to 50 MW of renewable energy from waste, sorting out the matter of municipal waste management in accordance with the European Union’s directives and in an environmentally friendly way, in his words.

The public-private partnership will facilitate the construction of an incinerator for the capital city, but it would also be an option for other municipalities, according to Spajić. The prime minister revealed that Japan-based engineering giant Itochu is among the companies interested in the project.

Deponija, the utility in charge of waste management in Podgorica, launched the public call in September. The contract was awarded last month to a consortium of local firms Vatreks Rescue CG and Medix, and Slovenia-based GP sistemi.

A consortium has won the contract for the feasibility study for the incineration facility in Podgorica

They are due to deliver the documentation within two months. The job is worth EUR 435,600 including value-added tax.

There was no indication in the project task about the preferred technology for the incinerator. Such facilities are usually cogeneration plants, combined heat and power (CHP).

In the Western Balkans, there is only one municipal waste incinerator that recovers energy. It is located in Belgrade, the capital of Serbia. Utilizing waste to generate energy is a component of the waste management hierarchy. Incinerators are present all over Europe.

Podgorica’s waste utility Deponija runs the city’s landfill. It already captures biogas, but it flares it without utilizing the energy.

Executive director Aleksandar Božović said the firm would soon obtain the licenses and documentation to build a biogas power plant. The study has been completed, and Deponija is working to secure a grant from an international financial institution, he asserted.

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January 15, 2026
by in News

ContourGlobal installs 500 MWh standalone BESS facility in Bulgaria

A standalone battery energy storage system of 202 MW and 500 MWh is fully operational and actively participating in Bulgaria’s day-ahead and intraday electricity markets. ContourGlobal built it at its Maritsa East 3 coal plant, using the grid connection of one of its former units. Acting Minister of Energy Zhecho Stankov, who attended the inauguration, said the country added 5 GWh last year and estimated that the overall BESS capacity would hit 15 GWh by mid-2026.

Bulgaria is, with the Czech Republic, Poland and Germany, in the group of only European Union member states in which more than a fifth of electricity is still generated from coal. But the situation is rapidly changing. One of the biggest standalone battery storage installations in Eastern Europe and among the first in Bulgaria recently came online. Located within the ContourGlobal Maritsa East 3 (Maritsa iztok 3) coal power plant, the facility uses the grid connection of a former unit.

Two remained in operation, supplying electricity during periods of peak demand.

The BESS has 202 MW in operating power and a duration of 2.5 hours, translating to 500 MWh, the company said. It inaugurated the battery system in the presence of Acting Minister of Energy Zhecho Stankov.

Stankov: New BESS creates sustainable pathway for evolution of Maritsa East coal complex

The new facility is actively participating in both the day-ahead and intraday national electricity markets, supporting optimized power dispatch and improved balancing of electricity supply and demand, the update adds.

Such projects signify how innovation and existing industrial infrastructure can work together to strengthen grid stability, improve flexibility, and accelerate the integration of renewable energy sources, Stankov stressed. The investment enhances energy security, supports market-based operation, and creates a sustainable pathway for the evolution of traditional energy hubs such as Maritsa East, in his words.

According to the acting minister, Bulgaria added 5 GWh of BESS capacity last year, nearly matching the Chaira pumped storage hydropower plant. He recalled that the overall level is set to reach 15 GWh by mid-2026.

Project materialized in under nine months

The project in Maritsa East 3 received just under EUR 30 million in support through the European Union’s Recovery and Resilience Facility (RRF) and the Bulgarian National Recovery and Resilience Plan (NRRP). The company participated with EUR 44.7 million.

Spanning 2.5 hectares, the installation is part of ContourGlobal’s 3 GWh operational BESS portfolio. The company is owned by KKR.

BYD supplied the 110 battery skids for the battery system, which also includes 28 power conversion system (PCS) and transformer units. ContourGlobal progressed from the final investment decision (FID) to commercial operation date (COD) in less than nine months.

The company is developing a second BESS on the same site, with a matching capability. It has a project for a battery in combination with a solar power plant as well.

Battery energy systems allow for the storage of electricity generated from various sources, including photovoltaic and wind power plants, during periods of low demand and its release back to the grid during peak demand, which helps balance production and consumption and the stable operation of the electricity transmission system.

Coal plants switching to energy storage

AES Corp. is interested in replacing one of the boilers in its AES Maritsa East 1 (AES Maritsa iztok 1) coal plant with a molten salt reactor.

Greece’s government-controlled Public Power Corp. (PPC Group) is already building BESS facilities at its coal plants.

German utility Uniper is planning to build a battery energy storage system at its Heyden coal power plant site in western Germany with Slovenia-based energy solutions provider NGEN.

Thre months ago, International Power Supply (IPS) opened its Factory X1, with a capacity of 3 GWh per year. It is the first gigafactory in Bulgaria for battery energy storage systems. The same company is building another manufacturing facility.

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January 15, 2026
by in News

Why CEE is one of most attractive regions for investment in new energy projects

Munir Hassan and Thomas Hamerl, partners in CMS’s world-leading energy practice, discussed the most significant developments in the renewable energy market for 2026 with Balkan Green Energy News.

There is great potential for early movers in the segments of battery storage and ancillary services, according to Munir Hassan, global head of the energy and climate change at CMS (London), and Thomas Hamerl, regional head of energy and climate change at CMS Vienna.

Interconnection and interoperability with the EU’s electricity market will enhance the region’s value for established producers and increase its attractiveness for new investors, they told Balkan Green Energy News.

Beyond grid availability and tariffs, potential investors in renewables and storage focus on the target country’s policy direction and the scalability of projects, Hassan and Hamerl explained.

Investors need advisors who are familiar with international contracts and can navigate local energy markets

Potential investors in renewables and storage do not just look for efficient support with time-sensitive grid availability and network tariffs. They appreciate legal advisors who are familiar with international contracts and can also navigate local energy markets. The current policy direction of the target country and the scalability of projects are more interesting than ever, Hassan and Hamerl asserted.

CMS’s regional footprint and its global network enable it to share expertise across jurisdictions, and its local teams contribute to regulatory initiatives. With over 70 offices worldwide, including 17 offices in CEE region, CMS supports renewable energy developers and investors. The global law firm follows policy developments that are shifting from saturated markets to the CEE region, with the aim of applying best practices and overcoming challenges and bottlenecks beforehand.

Speaking to Balkan Green Energy News, Hassan and Hamerl said companies should ride the investment wave and use opportunities as legal frameworks in Southeast Europe and the wider CEE region are advancing rapidly and opening new market segments.

At CMS’s traditional annual CEE Energy Conference (CEE Energy Conference 2025), held in London in October 2025, most investors were seriously considering to add energy storage to power plants and PPAs for industrial customers.

Data center projects are adding to demand growth in green electricity

Hassan pointed to digital infrastructure as the main driver of demand, even more in SEE than the rest of the CEE region, alongside the decommissioning of coal and gas-fired power plants.

Things are starting to move with data center projects in Slovenia, Croatia and Austria, for example, Hamerl stressed.

“Usually, data center developers are international and well-experienced, bringing technical and commercial know-how. These need not be only global hyperscalers such as Amazon, Google and Microsoft. Smaller data centre operators and telecom companies are strengthening their presence in CEE. They may all seek out the expertise and networks of local infrastructure developers,” he added.

CMS is involved in major projects throughout Southeast Europe

The changes are spurring the need for more resilience in the energy sphere and national sources. It is one of the factors behind the nuclear energy program in Poland, for shielding against geopolitical shocks, according to Hassan.

There are also nuclear power projects in Romania, including an advanced one for a small modular reactor (SMR) system, and Bulgaria, and CMS is involved in all of them. It has also contributed to deals for the giant Vifor wind power endeavor in Romania. Slovenia and Serbia are next.

Financing through debt could contribute to nuclear energy and interconnector projects

Hassan said there is a notable appetite for debt financing in CEE and suggested that the model could contribute to nuclear projects including the ones for SMRs.

“Another relevant development that we see is the development of electricity networks and even interconnectors. There’s a lot of private capital that’s looking to build electricity grids in Southeast Europe and Central and Eastern Europe. But the regimes there are designed for the existing system operators to develop these projects. The difficulty, like here in the UK and other parts of the world, is that they are unable to deliver the infrastructure quickly because they don’t have the resources and financial capability,” he asserted.

Western Europe is comfortable with the idea that private companies can own and run such assets, Hassan underscored and added that transmission upgrades in general could be financed the same way. But TSOs would typically take ownership of transmission system infrastructure including interconnectors.

EU funds would have better effect as loan guarantees

Among the investment appeal factors in CEE, Hassan highlighted the grants via the European Union’s Modernization Fund and Recovery and Resilience Facility (RRF).

“Those sorts of funds are very, very important. I think the governments need to find smart ways of effectively using that money to help create conditions in which you can get private international investment into the region, rather than simply as grant funding. If you give it as a way of, let’s say, underwriting debt, in case there’s a risk issue, that’s a better way, that kind of multiplier effect,” he stressed.

Knowhow for navigating legal frameworks in emerging market segments in CEE

The United Kingdom and other parts of Western Europe are experiencing growth of the markets for new system support services. Southeast Europe and Central and Eastern Europe may follow soon. For instance, Austria is about to introduce a capacity market. Serbia is rolling out an ancillary services market in January 2026, enabling a potential revenue stream for standalone battery energy storage systems (BESS).

“It’s not a mature market yet, but market entrants with the required experience and knowhow, will find a lot of possibilities in the region. If you want to be a first mover or an early mover, you must go there now,” said Hamerl. He added it is an opportunity for battery storage, to support the grid through the flexibility market or frequency restoration and new kinds of services, instead of just arbitrage.

It is much more expensive to expand the power grid than to use energy storage capacity available in the market

Regulatory frameworks are either in place or will very soon be in place, Hamerl noted.

“Batteries play an important role in supporting the grids and saving money because building new grids is always much more expensive than storage capacity in the market. I still see a long way to go for alternatives to batteries,” he said.

The fact is that it takes several years to build a pumped storage hydropower plant, while hydrogen and ammonia production and distribution infrastructure are not sufficiently developed yet.

Photovoltaics, BESS in sharply upward trajectory

Locations for photovoltaics in Southeast Europe are much better than in most parts of Europe, Hamerl underscored, adding that the coastal areas are particularly favorable for wind power.

For instance, experts predict the total operational solar and wind capacity in Montenegro to reach 400 MW by the end of this year. For Croatia, RES generation capacity is expected to increase from 4.7 GW in 2025 to almost 12 GW by 2040.

In Bulgaria, PV capacity jumped fivefold since 2019, to 5 GW, the law firm pointed out and emphasized the surge in both co-located and standalone BESS as well. Forecasts see the segment, currently at 600 MW, to hit 5 GW by the middle of 2026.

CMS Sofia has advised on more than 50% of all installed renewable energy capacities in Bulgaria. One of the clients, Renalfa IPP, has an investment program worth EUR 1.2 billion, involving 1.6 GW in electricity generation assets and 3.3 GWh of battery storage in Bulgaria, Romania, Hungary and North Macedonia.

CMS helping optimize regulations to suit governments as well as investors

There are obviously differences in every country of Central and Eastern Europe, but there are similarities drawing investors into the region, according to Hassan.

“They want to see the revenue risk is dealt with, the technical risks are dealt with, the political risk is kind of dealt with, et cetera. So our job as lawyers is to help people understand the frameworks, but also our local teams are helping to design some of these frameworks. To that extent, we can try and design them upfront in a way that achieves not only what the countries want, the governments want, but also what the international investors will be looking for,” he asserted.

The most important factors for investors are a clear direction of law making and scalability

In his view, the most important factors are a clear direction of lawmaking and regulation – strong policy backing, and scalability, in the sense that a company can do many more projects on the back of the first one.

Hamerl said that the waiting time for grid connection remains one of the most important elements, together with network charges. Investors seek stable grid fees or at least clarity about the pace and way of growth, he stressed.

“They are always asking us about the stability of the grid and the grid usage charges. However, in some markets there is a diversity of federal, provincial, and  local laws requiring different permits. Investors ask themselves in which province it is possible to obtain permits in time. Zoning and spatial planning is crucial too. For most of our clients, it’s nice to get subsidies, but those other issues are more important,” Hamerl asserted.

Post Views:136
January 13, 2026
by in News

Why CEE is one of most attractive regions for investment in new energy projects

Munir Hassan and Thomas Hamerl, partners in CMS’s world-leading energy practice, discussed the most significant developments in the renewable energy market for 2026.

There is great potential for early movers in the segments of battery storage and ancillary services, according to Munir Hassan, global head of the energy and climate change at CMS (London), and Thomas Hamerl, regional head of energy and climate change at CMS Vienna.

Interconnection and interoperability with the EU’s electricity market will enhance the region’s value for established producers and increase its attractiveness for new investors, they told Balkan Green Energy News.

Beyond grid availability and tariffs, potential investors in renewables and storage focus on the target country’s policy direction and the scalability of projects, Hassan and Hamerl explained.

Investors need advisors who are familiar with international contracts and can navigate local energy markets

Potential investors in renewables and storage do not just look for efficient support with time-sensitive grid availability and network tariffs. They appreciate legal advisors who are familiar with international contracts and can also navigate local energy markets. The current policy direction of the target country and the scalability of projects are more interesting than ever, Hassan and Hamerl asserted.

CMS’s regional footprint and its global network enable it to share expertise across jurisdictions, and its local teams contribute to regulatory initiatives. With over 70 offices worldwide, including 17 offices in CEE region, CMS supports renewable energy developers and investors. The global law firm follows policy developments that are shifting from saturated markets to the CEE region, with the aim of applying best practices and overcoming challenges and bottlenecks beforehand.

Speaking to Balkan Green Energy News, Hassan and Hamerl said companies should ride the investment wave and use opportunities as legal frameworks in Southeast Europe and the wider CEE region are advancing rapidly and opening new market segments.

At CMS’s traditional annual CEE Energy Conference (CEE Energy Conference 2025), held in London in October 2025, most investors were seriously considering to add energy storage to power plants and PPAs for industrial customers.

Data center projects are adding to demand growth in green electricity

Hassan pointed to digital infrastructure as the main driver of demand, even more in SEE than the rest of the CEE region, alongside the decommissioning of coal and gas-fired power plants.

Things are starting to move with data center projects in Slovenia, Croatia and Austria, for example, Hamerl stressed.

“Usually, data center developers are international and well-experienced, bringing technical and commercial know-how. These need not be only global hyperscalers such as Amazon, Google and Microsoft. Smaller data centre operators and telecom companies are strengthening their presence in CEE. They may all seek out the expertise and networks of local infrastructure developers,” he added.

CMS is involved in major projects throughout Southeast Europe

The changes are spurring the need for more resilience in the energy sphere and national sources. It is one of the factors behind the nuclear energy program in Poland, for shielding against geopolitical shocks, according to Hassan.

There are also nuclear power projects in Romania, including an advanced one for a small modular reactor (SMR) system, and Bulgaria, and CMS is involved in all of them. It has also contributed to deals for the giant Vifor wind power endeavor in Romania. Slovenia and Serbia are next.

Financing through debt could contribute to nuclear energy and interconnector projects

Hassan said there is a notable appetite for debt financing in CEE and suggested that the model could contribute to nuclear projects including the ones for SMRs.

“Another relevant development that we see is the development of electricity networks and even interconnectors. There’s a lot of private capital that’s looking to build electricity grids in Southeast Europe and Central and Eastern Europe. But the regimes there are designed for the existing system operators to develop these projects. The difficulty, like here in the UK and other parts of the world, is that they are unable to deliver the infrastructure quickly because they don’t have the resources and financial capability,” he asserted.

Western Europe is comfortable with the idea that private companies can own and run such assets, Hassan underscored and added that transmission upgrades in general could be financed the same way. But TSOs would typically take ownership of transmission system infrastructure including interconnectors.

EU funds would have better effect as loan guarantees

Among the investment appeal factors in CEE, Hassan highlighted the grants via the European Union’s Modernization Fund and Recovery and Resilience Facility (RRF).

“Those sorts of funds are very, very important. I think the governments need to find smart ways of effectively using that money to help create conditions in which you can get private international investment into the region, rather than simply as grant funding. If you give it as a way of, let’s say, underwriting debt, in case there’s a risk issue, that’s a better way, that kind of multiplier effect,” he stressed.

Knowhow for navigating legal frameworks in emerging market segments in CEE

The United Kingdom and other parts of Western Europe are experiencing growth of the markets for new system support services. Southeast Europe and Central and Eastern Europe may follow soon. For instance, Austria is about to introduce a capacity market. Serbia is rolling out an ancillary services market in January 2026, enabling a potential revenue stream for standalone battery energy storage systems (BESS).

“It’s not a mature market yet, but market entrants with the required experience and knowhow, will find a lot of possibilities in the region. If you want to be a first mover or an early mover, you must go there now,” said Hamerl. He added it is an opportunity for battery storage, to support the grid through the flexibility market or frequency restoration and new kinds of services, instead of just arbitrage.

It is much more expensive to expand the power grid than to use energy storage capacity available in the market

Regulatory frameworks are either in place or will very soon be in place, Hamerl noted.

“Batteries play an important role in supporting the grids and saving money because building new grids is always much more expensive than storage capacity in the market. I still see a long way to go for alternatives to batteries,” he said.

The fact is that it takes several years to build a pumped storage hydropower plant, while hydrogen and ammonia production and distribution infrastructure are not sufficiently developed yet.

Photovoltaics, BESS in sharply upward trajectory

Locations for photovoltaics in Southeast Europe are much better than in most parts of Europe, Hamerl underscored, adding that the coastal areas are particularly favorable for wind power.

For instance, experts predict the total operational solar and wind capacity in Montenegro to reach 400 MW by the end of this year. For Croatia, RES generation capacity is expected to increase from 4.7 GW in 2025 to almost 12 GW by 2040.

In Bulgaria, PV capacity jumped fivefold since 2019, to 5 GW, the law firm pointed out and emphasized the surge in both co-located and standalone BESS as well. Forecasts see the segment, currently at 600 MW, to hit 5 GW by the middle of 2026.

CMS Sofia has advised on more than 50% of all installed renewable energy capacities in Bulgaria. One of the clients, Renalfa IPP, has an investment program worth EUR 1.2 billion, involving 1.6 GW in electricity generation assets and 3.3 GWh of battery storage in Bulgaria, Romania, Hungary and North Macedonia.

CMS helping optimize regulations to suit governments as well as investors

There are obviously differences in every country of Central and Eastern Europe, but there are similarities drawing investors into the region, according to Hassan.

“They want to see the revenue risk is dealt with, the technical risks are dealt with, the political risk is kind of dealt with, et cetera. So our job as lawyers is to help people understand the frameworks, but also our local teams are helping to design some of these frameworks. To that extent, we can try and design them upfront in a way that achieves not only what the countries want, the governments want, but also what the international investors will be looking for,” he asserted.

The most important factors for investors are a clear direction of law making and scalability

In his view, the most important factors are a clear direction of lawmaking and regulation – strong policy backing, and scalability, in the sense that a company can do many more projects on the back of the first one.

Hamerl said that the waiting time for grid connection remains one of the most important elements, together with network charges. Investors seek stable grid fees or at least clarity about the pace and way of growth, he stressed.

“They are always asking us about the stability of the grid and the grid usage charges. However, in some markets there is a diversity of federal, provincial, and  local laws requiring different permits. Investors ask themselves in which province it is possible to obtain permits in time. Zoning and spatial planning is crucial too. For most of our clients, it’s nice to get subsidies, but those other issues are more important,” Hamerl asserted.