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Western Balkan coal plants cut harmful emissions in 2024 but breaches remain extreme

In 2024, Western Balkan governments’ chronic law enforcement failures allowed sulphur dioxide (SO2) pollution from the region’s antiquated coal power plants to exceed legal limits by six times, according to the Comply or Close report. The overall particulate matter (PM or dust) and nitrogen oxides (NOx) pollution from coal plants continued to exceed legal limits.

Emissions of the three pollutants were actually the lowest since at least 2018, altogether, but the legal upper limits were reduced as well. Serbian coal plants released almost a third less SO2 than in 2023 thanks to desulfurization units. The drop was greater than the total decrease in the region.

Seven years since pollution control rules came into force under the Energy Community Treaty, SO2 emissions from coal plants included in the national emission reduction plans (NERPs) of Bosnia and Herzegovina, Kosovo*, North Macedonia and Serbia were still collectively six times as high as allowed, Bankwatch said in its Comply or Close annual report.

Region-wide, SO2 emissions decreased 12.1% year over year, to 518,248 tons, but it’s only 14.5% down from 2018. The limits were more stringent in 2024 than in previous years, as is the case with PM pollution and NOx, which widened the compliance gap.

BiH becomes biggest SO2 polluter in Western Balkans

For the first time, Bosnia and Herzegovina’s NERP coal plants were the highest SO2 emitters, with 212,840 tons altogether – an increase of 17.1% from the previous year – and 11.3 times as high as allowed. The group excludes the Stanari facility, built in 2016. It has complied with the European Union’s Large Combustion Plants Directive since the start.

Serbia followed, with 205,925 tons, or 4.6 times as high as allowed. The total amount of SO2 emissions fell 30.1% on an annual basis, landing at the lowest level since at least 2018. The decrease in the country was higher than in the whole region. Of note, Serbia has a new coal plant, too – Kostolac B3.

The Kostolac B coal plant has a desulfurization unit, but its SO2 emissions in 2024 were 2.3 times more than allowed

The (insufficient) drop in SO2 emissions from the NERP facilities in the country is due to desulfurization units. Some of the other improvements in the region regarding air pollution came from a decrease in production.

Kostolac B finally started to decrease its emissions in 2024 with its desulfurization system, but it still emitted 2.3 times as much as allowed.

In April 2024, the EUR 215 million desulfurisation system at Termoelektrane Nikola Tesla (TENT) A3-A6 was commissioned. It was 13 years after securing funding. The units still emitted more than twice as much sulphur dioxide as allowed in 2024. Another desulfurization facility, at TENT B, was 91% complete at the end of the year.

Ugljevik accounts for over one fifth of SO2 emissions in region as desulfurization unit is idle

For the fifth time since 2018, the biggest individual SO2 polluter in the Western Balkans was Ugljevik in BiH, with 112,943 tons – more than the previous year. It includes a desulfurization unit since 2020, but it hasn’t been working as the operator considers it an “economic burden.”

In 2024, the only potentially significant development regarding pollution control in the region was the signing of a contract for the construction of a desulfurisation unit at Kakanj 6 and 7, the report notes. It is projected to cost just under EUR 63 million. But the authors of Comply and Close pointed to the slow progress in the reconstruction of the Pljevlja coal power plant in Montenegro, which is also conducted by a consortium of China-based Dongfang.

Five coal units operating illegally

Pljevlja is the only coal plant in Montenegro. The facility isn’t under NERP rules, but under a so-called opt-out mechanism. The deadlines have expired for closing the smallest and oldest plants under the opt-out limited lifetime derogation.

Pljevlja has been running illegally since late 2020, and in 2022 was joined by Tuzla 4 and Kakanj 5 in Bosnia and Herzegovina and Morava in Serbia. The Kolubara A plant, also in Serbia, failed to stop operating at the end of 2023.

The Energy Community Secretariat has opened several infringement-type cases against the three countries, but not a single government has imposed penalties on the coal plants in question. Nor do they have clear, updated and realistic plans for compliance or closure.

Montenegro, Serbia and BiH have no clear plans for the coal plants that operate after ther their opt-out deadlines expired

“In six months, the EU’s Carbon Border Adjustment Mechanism (CBAM) will finally limit exports of Western Balkan countries’ carbon-intensive electricity by imposing fees on imports to the EU. This will make their ageing, inefficient coal plants even less economic. But the Balkan governments and utilities seem oblivious, as if they have all the time in the world. Clear, workable plans are urgently needed,” said Balkan Energy Coordinator at Bankwatch Davor Pehchevski.

Six units exceeded their individual ceilings for sulfur dioxide emissions by more than ten times – Ugljevik, Gacko, Tuzla 6 and Kakanj 7 in Bosnia and Herzegovina; Kostolac A2 in Serbia; and Bitola B1 and B2 in North Macedonia.

In 2024, Pljevlja’s SO2 emissions dropped 11.1% to 39,140 tons, the lowest level since at least 2018. Dust emissions decreased to 793 tons from a record high of 1,130 tons, but this was still higher than any other year since the beginning of the period. NOx emissions – 3,682 tons, the second-lowest result, compare to 3,982 tons registered in 2023.

Gacko coal plant tops chart in particulate matter emissions

Dust pollution from NERP coal plants in the region was 1.9 times higher than allowed last year. It dropped slightly from 2023 but remained similar to 2018 levels.

The highest emitter was Gacko in Bosnia and Herzegovina. It emitted 3,339 tons – 13.7 times above the limit. After protests by local people, improvements were announced in autumn 2023, however the plant’s pollution grew last year. Overall, dust in BiH decreased for the third time in a row, landing at 4,146 tons. The emissions in the segment peaked in 2021 at 6,040 tons.

Serbia is the only country in the region with emissions of PM particles within legal limits

Nitrogen oxides pollution in the region totaled 1.4 times above the limit, after 1.3 times more than allowed in 2023. BiH, Kosovo* and Serbia all continued to breach their NOx limits, with TENT B in Serbia emitting the most – 12,418 tons.

Kosovo* had the highest exceedance – 3.1 times as high as its ceiling. The reconstruction and modernization of one of the two units in the Kosovo B coal power plant started recently.

North Macedonia is the only country complying with the rule on nitrogen oxides. Serbia is the only one below the limit for PM particles.

“EU enlargement is back on the agenda, but the harsh reality is that Western Balkan governments are showing no interest in people’s health or the environment. Instead of a robust response to these chronic breaches, the European Commission recently prioritised the Jadar lithium mine in Serbia as strategic, rewarding the regime’s failure to uphold the rule of law. This has to change, and fast,” said Bankwatch’s Southeast Europe Energy Policy Officer Pippa Gallop.

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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Serbia secures EUR 50 million loan for air quality projects

The Government of Serbia has secured a EUR 50 million loan to fund a series of air quality projects across several cities. The funds will primarily go towards replacing coal- and fuel oil-fired boiler rooms in six cities.

For years, air pollution has been one of the biggest environmental issues in Serbia.

Minister of Environmental Protection Sara Pavkov and First Deputy Prime Minister and Minister of Finance Siniša Mali have signed two agreements with the European Bank for Reconstruction and Development (EBRD), which will soon lead to significant investments in air protection projects in multiple Serbian cities, the Ministry of Environmental Protection said.

Mali signed a EUR 50 million loan agreement, while Pavkov inked the project agreement. On behalf of the bank, both documents were signed by Matteo Colangeli, EBRD Regional Head of the Western Balkans.

EUR 50 million will be invested in cities with the highest levels of harmful emissions

Pavkov noted that based on these agreements, EUR 50 million would be invested in cities mapped as those with the largest excesses of harmful emissions. This is good news for residents of Belgrade, Niš, Valjevo, Zaječar, Novi Pazar, and Smederevo, where the projects will be implemented, she added.

In these cities, old, outdated boilers running on fuel oil, coal, and other fuels with an adverse impact on air quality will be replaced. Modern and sustainable heat energy sources, such as heat pumps, biomass, and industrial waste heat, will be installed, she stressed.

The projects will also include, where possible, connection to district heating systems or natural gas networks.

An air protection law is in the process of adoption

“These projects are the culmination of years of work. We have entered a phase where we can expect the launch of construction and intensification of the efforts for cleaner air, which remains one of our top priorities,” Pavkov stressed.

She recalled that an EBRD loan had helped replace 50-year-old coal boilers with state-of-the-art gas boilers at the Kragujevac district heating plant. The second phase, the remediation of the ash landfill, has also begun, she added.

From 2021 to 2024, the ministry has implemented projects to replace 169 boiler rooms in public institutions across 76 local authorities, according to Pavkov.

Under a public call, funds have been allocated for projects in 18 municipalities in 2025, with another call currently underway. An air protection bill is now before the National Assembly, intended to provide a new overarching framework and fresh momentum in the fight for better air quality, Pavkov noted.

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Slovenia’s EUR 150 million smart grid leap

The five electricity distribution firms in Slovenia will invest more than EUR 150 million by the end of March 2026 in upgrading the network and the addition of smart grid components.

Elektro Primorska, Elektro Ljubljana, Elektro Gorenjska, Elektro Celje, and Elektro Maribor will build 1,300 kilometers of low-voltage grid and 838 transformer stations with smart grid elements, Naš Stik reported.

Of note, the five firms are essentially performing the duties of the country’s nominal distribution system operator, ELES.

Out of the total investment, EUR 71 million was allocated from the National Recovery and Resilience Plan (NRRP). In the first public call launched by the Ministry of the Environment, Climate and Energy, the distribution companies won EUR 37.5 million, and EUR 33.5 million in the second one, for projects planned to be conducted through 2026.

Elektro Primorska received EUR 11.4 million, with total investments estimated at EUR 21 million. The firm will build 204 kilometers of low-voltage network and install 132 transformer stations, according to its website.

Among the five firms, the largest investments are planned by Elektro Maribor

Elektro Ljubljana is eligible for EUR 19 million, to build 373 kilometers of low-voltage network and 240 transformer stations. Its investments are estimated at EUR 40 million in total. The construction of 169 kilometers of low-voltage network and the installation of or reconstruction of 108 transformer stations will cost Elektro Gorenjska EUR 18.9 million. Half of the funds are secured from the NRRP.

Elektro Celje got EUR 15.1 million to build 278 kilometers of low-voltage network and install 179 transformer stations. The projects are estimated at EUR 28.5 million overall.

Elektro Maribor was granted EUR 16 million for total investments of EUR 43.5 million. The company plans to build 278 kilometers of low-voltage network and 179 transformer stations.

Ćatić: Investments to provide greater grid visibility

According to Damir Ćatić, business units and investment sector manager of Elektro Maribor, the investments will make the distribution network more reliable for end users.

The company aims to improve the quality of electricity supply and to enable the connection of solar power plants, battery energy storage systems, and chargers for electric vehicles, he emphasized.

By installing smart grid components, Elektro Maribor will gain greater visibility into the network’s condition, which will enable better management and planning, as well as adapt the network to current energy flows.

Conditions are being created for the efficient use of energy storage

They are the key factors for integrating distributed renewable energy production sources such as solar power plants, as well as e-chargers, into the distribution network, Ćatić explained.

Such an approach, in his words, allows for managing the variability of these sources, meaning it creates conditions for the efficient use of energy storage.

The use of technologies such as databases, artificial intelligence, and the IoT will enable Elektro Maribor to achieve greater efficiency, reliability, and resilience of the distribution system, as well as improved data management, Ćatić stressed.

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Spain’s voltage control was insufficient at time of April blackout

The Government of Spain said the total blackout in the Iberian Peninsula, which occurred on April 28, was caused by overvoltage, with several factors contributing to the crash. Notably, the system run by the country’s TSO Red Eléctrica de España lacked sufficient voltage control. Deputy Prime Minister Sara Aagesen even said the point of no return could have been avoided if voltage control action had been taken earlier.

In a long-awaited document, a government committee that investigated the April 28 collapse of the Iberian electricity network ruled out that a cyberattack caused it. The panel analyzed more than 300 gigabytes of data related to the total blackout, which was one of the worst ever in Europe.

“In 49 days, practically half the timeframe established by the EU, the committee has provided a rigorous and verified diagnosis that will allow us to strengthen the electricity system, a solid foundation on which we can work to design rapid responses to prevent this from happening again. Next week’s Council of Ministers will approve several relevant measures,” said Third Vice-President of the Government of Spain and Minister for Ecological Transition and Demographic Challenge Sara Aagesen.

The cybersecurity investigation, the largest ever undertaken in the country, did identify vulnerabilities that could expose networks or systems to future risks, she asserted.

The blame game is continuing as citizens and businesses are demanding accountability for the massive damage. The European Network of Transmission System Operators for Electricity (ENTSO-E) issued a preliminary report two weeks after the incident.

Overvoltage caused the blackout, according to the new analysis. The committee attributed it to multiple factors. The system had insufficient voltage control capacity, there were frequency oscillations, and power plants were disconnected, “in some cases in an apparently improper manner,” the document reads.

Renewables accounted for 82% of power generation mix just before blackout

The Iberian grid crashed at 12:33. Restoration began with energy from France and Morocco and with self-starting hydroelectric plants in the Duero basin and other locations, which formed energy islands. By 22:00, nearly 50% of demand in Spain was met, reaching 99.95% by 7:00 the next day.

At 12:30 on April 28, renewable energy sources accounted for 82% of the electricity generation mix, followed by nuclear power (10%). Gas plants had a 3% share, coal contributed 1%, while cogeneration and waste amounted to a combined 4%.

Data show a drop in solar generation as prices at the power exchange were going negative, and it coincided with a rise in voltages

There was significant voltage volatility in the transmission system in the morning on the day of the blackout, the document’s authors noted, pointing out that such a situation was also registered on April 22 and 24.

The rise in voltages between 10:30 and 11:10 coincided with a drop in solar generation, probably due to the power market signals, as wholesale prices went negative, the report adds. At the same time, the direction of the exchange with France switched from exports to imports.

Voltage control fleet failed to contain chain reaction

At 12:03, there was an atypical frequency oscillation, by 0.6 hertz, causing large voltage fluctuations for 4.42 minutes. Another one, of 0.2 hertz, occurred at 12:16, followed by an equivalent one at 12:19.

Red Eléctrica de España, the transmission system operator (TSO), conducted mitigation measures, which contributed to the rise in voltages, the committee underscored.

Aagesen said the point of no return could have been avoided if voltage control action had been taken earlier. The government controls 20% of the company, which is listed on the Bolsa de Madrid stock exchange.

At 12:32, voltage began to rise rapidly and steadily, and numerous progressive disconnections of generation facilities were recorded. The names of all power plants in the document are blacked out.

A number of units responsible for voltage control produced reactive power, the opposite of what they were supposed to

The chain reaction could not be contained, as each disconnection contributed to further voltage increases, the analysis showed. A drop in frequency resulted in the loss of synchronization with France, tripping the interconnection with the rest of the continent.

The committee stressed that the number of synchronous plants regulating voltage on the day of the incident was the lowest since the beginning of the year. One of the 10 units that Red Eléctrica scheduled the day before experienced an outage on the same afternoon, and the TSO didn’t replace it in time, the analysis reveals.

Moreover, several units in the group did not respond adequately to the TSO’s instructions to reduce the voltage. Some even produced reactive power, the opposite of what was required, contributing to the issue, the committee added.

Some power plants went offline too early

There were disconnections of the generating power plants that occurred before the voltage thresholds in the 400 kV system were exceeded (380 kV and 435 kV), the report finds.

Among the committee’s recommendations is to allow asynchronous installations to apply power electronics solutions to manage voltage fluctuations. The panel proposed boosting demand, flexibility, storage and interconnection capacities.

Photovoltaics with grid-forming inverters, storage can contribute to voltage control

Photovoltaics are already capable of controlling voltage, but regulations did not allow the application of the technology, according to the Spanish Photovoltaic Union (UNEF), Portuguese Renewable Energy Association (APREN), SolarPower Europe, Global Solar Council and Global Renewables Alliance.

In a joint statement that they issued as a reaction to the report, they called for accelerated investment in grid resilience and system flexibility – especially through grid-forming inverters and battery storage.

The associations recalled that Spain ranked 14th last year in Europe in new battery capacity. Less than 250 MWh came online and nearly all were smaller-scale batteries, not at a utility level. It compares to 9 GW of solar power capacity that the country added in 2024.

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Just Transition Young Voices Award: Empowering youth champions in the clean energy transition

In a celebration of youth-led climate action, the Energy Community Secretariat, together with Bankwatch, CAN Europe, RYCO, and CLEW, has launched the Just Transition Young Voices Award, spotlighting the importance of young people’s voices in shaping a just, equitable, and sustainable energy future. Balkan Green Energy News is an official media partner of the initiative.

Young people aged 18 to 30 from the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia), Ukraine, Georgia, and Moldova are invited to submit original, fact-based articles that explore how their communities are navigating the shift away from fossil fuels. Recognizing that youth are essential agents of change, the award provides a platform for creative and solution-oriented journalism addressing the challenges and opportunities of a just transition.

Applications are open until 28 July 2025. The competition aims to showcase innovative thinking and concrete solutions developed by young people who are actively engaging in climate and energy issues.

Foto: Energy Community Secretariat

The award framework

The Just Transition Young Voices Award aims to inspire and support young people with an interest in energy and climate journalism to explore and report on just transition topics. Submissions should be original, fact-based articles in English, between 700 and 1,100 words. Stories may highlight real people, places, or initiatives that reflect the challenges, opportunities, and solutions involved in just transition, particularly in sectors or regions impacted by the green shift.

Three prizes will be awarded:

  • A one-month paid internship at the Energy Community Secretariat in Vienna;
  • A field mission on energy transition in the Western Balkans with Bankwatch;
  • Participation in the Climate Reporting Training with CAN Europe in Ohrid (1–3 September 2025).

Winning pieces will be published on Balkan Green Energy News and other partner platforms, as well as presented at the Energy Community Just Transition Forum. Applications will be evaluated by a jury comprising representatives from Bankwatch, CLEW Network, RYCO, and the Energy Community Secretariat.

The Just Transition Young Voices Award reaffirms a simple truth: meaningful system change requires the leadership of those who will live with its consequences.

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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World’s largest sand battery commissioned in Finland

The world’s first industrial-scale sand battery has been commissioned in Pornainen, Finland. It will use surplus renewable energy to generate heat, which will then be supplied to the local district heating network.

The sand battery, which delivers one megawatt of thermal energy and has a storage capacity of 100 megawatt-hours, was installed for the district heating system in the municipality of Pornainen, operated by Loviisan Lämpö.

A sand battery is a high-temperature thermal energy storage system, first developed by the start-up Polar Night Energy.

Finding ways to store energy from variable renewable sources is one of the biggest challenges of the energy transition. In the case of the battery developed by Polar Night Energy, the storage medium is sand or alternative sand-like materials.

The battery uses renewable electricity to power a heater, which then blows hot air into the sand. The sand is heated to between 500 and 600 degrees Celsius and retains that heat. The stored energy can be used for district heating, but also for industrial processes.

A prototype of the battery was installed in 2022 at the Valkeakoski power plant in the town of Kankaanpää, Finland. The new battery in Pornainen is ten times larger than the prototype and represents the first industrial-scale implementation of this technology.

It is 13 meters high and 15 meters wide, filled with 2,000 tons of crushed soapstone, a by-product from the production of fireplaces by Finnish company Tulikivi. During winter, the battery can cover heating needs for about a week.

Emissions in the district heating sector will be reduced by 70% thanks to the battery

“The Sand Battery means a lot to Loviisan Lämpö. It allows us to drastically reduce our emissions and improve the reliability of heat production,” says Mikko Paajanen, CEO of Loviisan Lämpö.

The company aims to become climate-neutral by 2035, and the battery will help it cut emissions by 160 tons of CO₂ equivalent – a reduction of nearly 70% in the district heating sector.

Thanks to the battery, the company will stop using oil for district heating completely, while the consumption of wood chips will be reduced by about 60%. A biomass boiler will be used as a backup during periods of peak demand, the company said.

“This project is a powerful example that effective solutions for mitigating climate change do exist. Loviisan Lämpö is a great example of a company bold enough to invest in new technologies,” says Liisa Naskali, Chief Operating Officer of Polar Night Energy.

Sand battery stabilizes the power grid and contributes to the circular economy

Advancing the circular economy and energy transition requires cross-sectoral cooperation, which the sand battery clearly demonstrates. It is not just a heat storage system – it’s a tool for grid balancing, emissions reduction, smart energy management, and better resource use.

A key factor in the sand battery’s cost-effectiveness lies in optimizing its operation according to electricity prices set by Finnish grid operator Fingrid. In this way, the battery also contributes to the stability of the power grid, which is essential for the further development of wind and solar power.

Thanks to its large storage capacity, the system enables optimization of electricity use over several days, or even weeks.

The thermal storage material in sand batteries can include by-products from industrial or mining processes, avoiding the exploitation of natural resources.

Polar Night Energy is currently in talks with partners in Finland and abroad about new projects. Earlier this year, it announced a pilot project in Valkeakoski to explore the possibility of converting stored heat back into electricity.