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August 12, 2025

by AEA

Water shortages in Southeastern Europe point to desalination as strategic approach

Former Minister of Environment and Water of Bulgaria Borislav Sandov is urging the country’s authorities to deploy alternative water supply solutions, including desalination, to counter shortages. Greece is preparing a radical change in its water management model. Turkey got its first floating seawater purification platform, running on solar and wind power.

Southeastern Europe is among the most jeopardized regions in the world in the context of global warming. The lack of water has the most drastic effect on everything from wildlife to food production, energy and public health. Bulgaria’s former Minister of Environment and Water Borislav Sandov warned that over half a million people in the country are at risk of water shortages.

Eastern and northeastern Bulgaria have a persistent issue with droughts and lack of water, necessitating a switch toward alternative forms of supply in the next five to 10 years, including seawater desalination plants, he recently told bTV.

In addition to climatic factors, there are serious shortcomings in water management, together with theft and corruption, Sandov claimed. He pointed to an example where drastically undersized pipes of poor quality were installed in one area, resulting in constant breakdowns and supply interruptions.

Sandov attributed some of the water stress to fragmented management between different local, regional and national institutions. In his words, as much as 10% of all settlements in Bulgaria, though mostly small ones, aren’t covered by waterworks and sewerage systems. Moreover, 44% of the water in the network isn’t measured in volume terms at the entry point and 50% of the water sources don’t have a valid permit from the competent authority, he added.

Notably, a quarter of the population in neighboring Serbia occasionally or permanently lacks safe drinking water from waterworks systems.

Greece to radically change its water management system

Greece decided to get ahead of the droughts and heatwaves. The government has promised radical change in water management: a more functional system with more investments and new technologies, including desalination, but also recycling.

Tourism in the summer months exacerbates the water stress. On some islands, demand surges by up to 30 times. It creates conflict with the needs for irrigation for food production. Greek islands mostly use underground aquifers with easily exhaustible capacity.

Rainfall and snowfall in the country are gradually decreasing.

Similar to Bulgaria, water management is spread across hundreds of operators and institutions, lacking coordination. Losses in drinking water supply amount to as much as 40%, in comparison with up to a staggering 60% in irrigation.

The government in Athens promised water would remain a public good

According to a study by Deloitte with data from 2022, more than EUR 10 billion is necessary for investments in the two segments, excluding Attica. It is where Athens is located. Another EUR 500 million to EUR 700 million is needed for the peninsula.

Government-controlled power utility Public Power Corp. (PPC) will reportedly enter the game, not least because municipal water and sewerage firms owe it more than EUR 400 million. The company would convert debts into minority stakes in three centralized entities: for the regions of Athens and Thessaloniki and the rest of the country, the media learned.

PPC can contribute with its knowhow and experience in the construction and operation of dams and hydropower plants.

Importantly, the government vowed to keep water a public good.

Floating desalination platform with hybrid power plant put into operation in western Turkey

Right opposite the Greek island of Kos, offshore Bitez Marina, the Bodrum Municipality inaugurated Turkey’s first floating seawater purification platform. It runs entirely on renewable energy, producing 20 cubic metres of clean, non-potable water every day.

The project was developed in partnership with Istanbul-based company Blue Hybrid Solutions. The facility is powered by solar panels and two small wind turbines. It delivers water to an onshore tank for irrigation, emergency needs and, when required, public consumption, the local authority said.

Greece is already conducting a massive project for energy independence of numerous non-interconnected islands, including investments in desalination powered by renewables. It is also working to link other islands to the mainland grid.

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August 12, 2025

by AEA

Greek coal region of Megalopolis opens new chapter after lignite

Last year, for the first time in decades, no smoke rose out of coal plants in the Peloponnese peninsula. The last two units had 500 MW together. Megalopolis is one of the two coal regions in Greece, along with Western Macedonia in the country’s north.

According to Public Power Corporation (PPC or DEI) the units Megalopolis-3 and Megalopolis-4 have now been permanently retired. Under the government-controlled utility’s plan to phase out coal completely next year, all such power plants stopped operating by now, with the exception of Ptolemaida 5, of 660 MW, which entered into operation last year. To maintain the security of supply, two units are kept in reserve, also in Western Macedonia in northern Greece.

PPC has produced a study for the reconstruction of the Megalopolis thermal power station, intending to accommodate other activities. Similar works are already underway in the local lignite mine.

New energy investments underway

The group’s investment plan involves various renewable energy and storage projects in Megalopolis to support the area’s energy transition. It is building two photovoltaic farms of 125 MW each, as part of a 490 MW cluster in the area.

The plan includes a 181 MW pumped storage hydropower station in the former lignite mine.

Based on the government’s Just Transition Development Program, Megalopolis will also host a battery factory, by Enercells, as well as two data centers, by Eunice and Kiefer, of 5 MW each. The investments have been approved by the Ministry of Economy and Finance, to seek funding from the European Union’s Just Transition Fund (JTF).

PPC expressed the belief that data centers are important for coal regions. Earlier this year, the group’s CEO George Stassis said they are ideal for such investments as the land and grid connections are already available. PPC is planning a 300 MW data center in Western Macedonia, but it hasn’t announced anything similar for Megalopolis yet.

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August 12, 2025

by AEA

EU donates EUR 240 million to Serbia for environment, energy efficiency

The European Union approved EUR 240 million in non-repayable assistance to Serbia from pre-accession funds for projects worth an overall EUR 325.2 million. The investments, intended for the period through 2032, are for waste and wastewater management, energy efficiency improvement and the transition to renewable energy sources.

Serbia and the European Union signed a financing agreement for the Multiannual Operational Programme on Environment and Energy, worth EUR 325.2 million. It includes EUR 240 million in non-repayable funds from the Instrument for Pre-accession Assistance, and Serbia is providing the rest.

State institutions will run the mechanism under an indirect management system, in accordance with the way that EU member states conduct programs within the cohesion and regional development funds. The agreement is another type of support in EU accession, the Ministry of European Integration said.

Grants also intended for green energy, waterworks

Serbia’s National IPA Coordinator and State Secretary at the Ministry of European Integration Mira Radenović Bojić said the agreement enables significant financial support for improving environmental protection and further developing the energy sector.

“This way we secured support for sustainable waste management, improvement of wastewater treatment infrastructure and the promotion of energy efficiency measures in public buildings and households,” she stressed. Radenović Bojić added that the assistance package also covers the development of capacities for the transition to renewable energy sources as well as the improvement of public waterworks and sewerage systems.

The program involves measures to protect air quality, aiming to lower harmful emissions and improve public health.

“In addition to renewing or building infrastructure, the program will support the development of strategic documents and plans for the harmonization with European Union standards. We will invest in capacity building of local and national institutions and in the development of technical documentation. Ultimately, the program will enable better cooperation with the relevant national and international stakeholders including civil society organizations and the private sector, in order to secure integrated implementation and improvement of the sustainable development policy,” Mira Radenović Bojić pointed out.

Von Beckerath: Our joint future depends on green, just transition

The agreement is another example of the EU’s strong and long-standing commitment to supporting Serbia on its path toward the EU, said the new Ambassador of the EU in Serbia Andreas von Beckerath.

“Environmental protection and sustainable energy are not only the core of the European Green Deal, but they are key to improving the quality of life of all citizens. With this significant investment, in synergy with the new Growth Plan for the Western Balkans, our goal is to accelerate Serbia’s alignment with EU standards and help the materialization of tangible benefits for citizens and the environment. Our joint future depends on this green and just transition, and we are delighted that we will go down that path together,” the chief of the Delegation of the EU stated.

The plan includes EUR 141.9 million for waste and wastewater and EUR 140 million for air quality and energy efficiency

The program, which covers the programming years 2024-2027, will be implemented from 2025 to 2032. It consists of EUR 141.9 million for waste and wastewater management and waterworks, EUR 140 million for air quality and energy efficiency and EUR 43.3 million for technical support.

There is EUR 44.9 million in the program earmarked for 2024, followed by EUR 108 million for the current year and EUR 76.8 million and EUR 95.5 million for the next two.

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August 11, 2025

by AEA

Romanian bourse BRM joins power auctions within European Single Intraday Coupling

The Romanian Commodities Exchange – Bursa Română de Mărfuri (BRM), the country’s second nominated electricity market operator (NEMO), has joined intraday auctions (IDAs) under the European Single Intraday Coupling (SIDC) framework. With this move, BRM becomes part of the operational IDA system, launched across Europe in June 2024, according to a press release from European power exchange EPEX Spot.

Other partners involved in the Regional Integration Project (RIP) are the Hungarian Power Exchange (HUPX), the Independent Bulgarian Energy Exchange (IBEX), the Romanian Electricity and Gas Market Operator (OPCOM), Bulgaria’s Electricity System Operator (ESO), Hungary’s Independent Transmission Operator Company (MAVIR), and Romanian transmission system operator Transelectrica, said EPEX Spot.

BRM’s integration marks the second wave of the European IDA rollout, which began on June 13, 2024, when NEMOs and transmission system operators (TSOs) introduced the pricing of intraday cross-zonal capacity through three pan-European auctions, it added.

It is another key milestone in enhancing Europe’s single power market

By integrating BRM, the SIDC framework has reached another important milestone, increasing the efficiency of the single European electricity market, EPEX Spot said. The market has become more liquid and increasingly competitive, in line with its core objectives of ensuring efficient, fair, and non-discriminatory functioning.

Future waves of the IDA rollout will expand its geographic scope

The European power exchange added that future waves of the IDA rollout would continue to expand its geographic coverage and product scope, further enhancing the EU’s internal electricity market.

The SIDC is a market mechanism within the intraday timeframe based on continuous trading and complemented by three intraday auctions, or IDAs. It enables market participants to trade electricity continuously across Europe on the day it is needed. Additionally, IDAs enable pricing cross-border capacity within the intraday timeframe, according to the press release.

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August 11, 2025

by AEA

North Macedonia raising capacity threshold for prosumers, speeding up permitting

North Macedonia has prepared legislative changes to increase the capacity threshold for prosumers and speed up rooftop solar permitting and grid connection.

Under the proposed amendments to the Law on Energy Efficiency, the capacity threshold for rooftop solar installations would be increased to 10 kilowatts (kW) for households and 70 kW for legal entities, according to a statement from the Ministry of Energy, Mining and Mineral Resources. The current threshold is 6 kW for households and 40 kW for firms.

The threshold should go up to 10 kW for homes and 70 kW for businesses

The amendments should also introduce a one-month deadline for the permitting procedure for installing solar equipment with a capacity of up to 100 kW. This includes prosumers and energy communities, according to a draft law on renewable energy use.

According to the North Macedonian office of law firm CMS, the country’s parliament has already introduced amendments to the rulebook on renewable energy sources, increasing the capacity thresholds for both household and business prosumers, among other things.

One-month deadlines are proposed for rooftop solar permitting and grid connection

The ministry noted that a legal deadline for issuing permits for rooftop photovoltaics for prosumers is being introduced for the first time.

The same deadline is being proposed for grid connection: the distribution system operator would be required to connect the installation to the grid within one month of officially confirming that the submitted documentation is complete.

According to the proposed amendments, if connection to the requested location is not possible, the operator is obliged, within 15 days from the date of submission of the connection request, to notify the applicant in writing and propose an alternative connection point.

Installing solar collectors for hot water in new public buildings will become mandatory

The proposed legislative changes will also make the installation of solar collectors for hot water mandatory in new public buildings, or in cases of significant reconstruction of existing ones, if technically and economically feasible.

Renewable energy sources account for more than half of North Macedonia’s total generation capacity, with over 616 MW of new renewables capacity installed in the past two years, DW reported, citing data from the country’s Energy, Water Services and Municipal Waste Management Services Regulatory Commission (ERC or RKE).

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August 9, 2025

by AEA

Green Energy or Green Corruption? Inside Voltalia’s Controversial Solar Concessions in Albania.

The Ministry of Infrastructure and Energy of Albania signed the Project Development Agreement with Voltalia for the construction of the photovoltaic plant in Remas – Karavasta (near the Lushnja area) with an installed capacity of 140 MW, where the power generation from 70 MW will be offered as part of the support measures at a price of 24.89 euros/Mwh to state owned company ( OSHEE GROUP , public company) for 15 years and 70 MW will be traded on the free market, supported by EBRD with 33M Euro loan. The Karavasta Solar Park entered production in January 2024.

Karavasta Solar PV 140MW farm production for year 2024

The concession agreement in question leaves numerous concerns unsettled. Beyond its significant social and environmental consequences—strongly opposed by local communities due to its proximity to the Divjaka-Karavasta National Park—the project represents Voltalia’s expanding and contentious presence in Albania. This development looks to follow the trend of so-called “green” efforts in the country, which have long been marred by suspicions of green corruption.

For 2024, the Karavasta solar power plant reported total electricity generation of 258.38 GWh. Yet the Energy Regulator Authority’s (ERE) report does not disclose the destination of roughly half of that output — 129.19 GWh — which should be sold under a contractual tariff of €24.89/MWh (towards OSHEE group). That unexplained 50% gap in the balancing is striking. The same report shows that FTL sh.a the Free Market Supplier, purchased only 67.7 GWh from domestic photovoltaic producers, while the other amount of the total of 2,596 GWh were supplied including hydropower generation and purchased on the free market. Taken together, these figures reveal inconsistencies in market reporting and raise serious questions about transparency, corruption, contractual compliance, and the adequacy of regulatory oversight.

FTL sha Free Market Supplier part of OSHEE Group, 2024, purchasing electricity.

The Karavasta Solar PV plant site is adjacent to Divjaka-Karavasta National Park, a Candidate Emerald Site under the Bern Convention encompassing Karavasta Lagoon Ramsar Site. The project site also partially overlaps with the Karavasta Lagoon Key Biodiversity Area (KBA) and Important Bird Area (IBA) designated for globally threatened bird species, important congregations of wintering and breeding waterbirds, and the endemic Albanian Water Frog.

The Ministry of Infrastructure and Energy Albania held an international bid procedure to build also the 100 MW Spitalla photovoltaic park in Durrës, which Voltalia SA won. According to the tender, 70 MW of the capacity would get subsidized compensation of €29.89/MWh for 15 years, with the remaining 30 MW sold on the free market. The Project Agreement and Power Purchase Agreement (PPA) were signed in June 2021, and the project is currently being implemented again by Voltalia SA.

Karavasta Solar project location. Other PV farms in new located into the protected areas and river bank.

In the case of the Spitalla Solar project, Voltalia SA has proceeded with internal tenders and begun constructing high-voltage lines, a substation bay, and the plant itself, despite failing to provide formal communication to stakeholders or local residents. No environmental and social impact assessment (ESIA), restoration plan, or archaeological survey has been presented, nor has any meaningful public hearing been conducted to date. The company is reportedly working with a well-connected local firm linked to government and political circles to produce the required reports and assessments—documents that, critics allege, exist largely on paper. Local communities, facing limited possibilities for recourse, describe the project as shielded by a network of political protection and systemic corruption.

Spitalla Solar Project 100MW in Durres, Albania

Voltalia SA established two local businesses — “Spitalla Solar” and “Karavasta Solar” — through its Dutch vehicle, Voltalia Management International B.V., which is registered in a country that may hinder transparency. Spitalla Solar has two foreign administrators, Bertrand Pierre Francis Tournier and Gustavo Manuel Ferreira Fernandes; the same people also run Karavasta Solar, the concessionaire for the Karavasta solar park, which has a 30-year concession. The fact that both Albanian companies are subsidiaries of a Dutch holding company raises valid concerns regarding ultimate beneficial ownership, corporate transparency, and regulatory control.

It appears that Prime Minister Rama may have steered these projects toward associates tied to President Macron — a move critics describe as a political favour rather than a transparent procurement outcome. The 2020 Albanian Law on the Beneficial Ownership Registry was intended to reveal company shareholders, but its 25% disclosure threshold leaves room for concealing minority owners; consequently, a convicted individual or someone embedded in politics could remain undeclared if they hold under 25% of a company’s shares, even when that company wins public contracts. The planned 100 MW photovoltaic park is covered to be developed alongside the new Durrës Port and the Reconstruction zone — developments likely to reshape the local real-estate market. In this sensitive corridor, a French firm and a Dutch entity with opaque ownership structures were granted 121 hectares by the government for 30 years, a deal that raises serious questions about transparency, accountability and the protection of the public interest.

The financial advantages and drawbacks of concession agreements, compared to new production capacity outside such arrangements, are closely tied to contractual provisions defining the allocation of financial risk. According to a statement by Voltalia SA, concession contracts can shift this burden onto the Albanian state budget, effectively exposing public finances to potential liabilities—often without the public’s awareness.

By Ranier della Vecchia