Alcazar Energy is an independent sustainable infrastructure fund focused on renewable energy in emerging markets. It has been present in the Balkans since 2022 and is developing projects in Serbia, Montenegro, and North Macedonia. Maja Maćić, Balkans Platform Head of Alcazar Energy, said at Belgrade Energy Forum (BEF 2025) that the company expects to launch construction activities for some of its projects later this year.
Alcazar plays a significant role in the development of the renewable energy sector in MENAT (Middle East, North Africa, and Turkey) and the Balkans, including projects in Montenegro, Serbia, and North Macedonia.
The company’s presence in the Western Balkans began with the Bijela wind farm project in Montenegro, planned at 118.8 MW. According to Maja Maćić, Alcazar Energy is in the final stages of preparing the technical and other required documentation for the construction permit.
The Bijela wind farm will be in operation by the end of 2028.
“We expect to have the fully permitted project in the third quarter of this year and to close financing by the end of the year, to initiate some early construction activities within this year, but to have construction in 2026 and 2027, with the main aim to have the operational project by the end of 2028,” Maćić said.
The Celzijus wind farm project is one of the largest in the region
By acquiring the largest wind power project in North Macedonia, for the Štip wind farm, Alcazar Energy has expanded its regional presence by 400 MW.
According to Maćić, the company expects to secure all required permits by the end of the year and begin construction. “Due to an improved legislation framework, we have made significant progress in North Macedonia and Montenegro, and we are proud that soon we will have construction activities and engage local companies on the sites,” she stated.
Last year, Alcazar Energy acquired the Celsius 1 wind farm project in Serbia, for 200 MW in capacity. It signed a deal with RP Global, which was developing the project before that. Their transaction includes a portfolio of additional wind and solar projects, totaling 768 MW. The investment in Celsius 1 is estimated at USD 300 million, which would make it one of the largest wind farms in the region.
“We believe that we will also manage to make significant progress in Serbia in order to deploy local companies and international companies, fulfilling the highest international standards and our local policies,” Maćić said.
Turkish company Egesa Enerji has launched a project to build two solar power plants in Vojvodina, with a total peak capacity of 8.6 MW. The investor has signed an agreement with the contractors, and construction is slated to begin in the coming months, according to a statement by Serbian company Solarna energija budućnosti (SEB), which will supply the equipment.
One of the two solar power plants will be built in the village of Aradac near Zrenjanin, with a peak capacity of 4.2 MW, while the other one, of 4.4 MW, will be located in Odžaci. Both will be connected to the distribution grid, in line with a strategy for developing localized and decentralized electricity generation, according to the statement. Vojvodina is Serbia’s northern province.
The solar power plants will help decentralize power generation
The main contractor for the two turnkey projects is Serbian firm Electric Power Construction (EPC). The contractor consortium also includes Bey Han from Turkey, which has built over 250 MW of solar capacity in its home country.
The investor, Egesa Enerji, has completed a large number of projects in three countries and currently operates solar power plants with a total peak capacity of 170 MW, according to the Turkish company’s website.
Egesa Enerji operates solar power plants of 170 MW overall
The project is being carried out through Egesa Enerji’s subsidiary Temo Power, registered in Belgrade.
Vojvodina seen as priority area for investment in solar
In the statement, SEB said that Vojvodina, the part of Serbia with the lowest installed solar capacity, has been identified as a priority area for this type of investment.
“Such projects are exactly what Serbia’s distribution network needs most at this moment – local, stable production with clear timeframes and well-known technologies,” said Danilo Drndarski from the contractor consortium.
It is particularly important that the capacities are being deployed in Vojvodina, where there is a substantial imbalance between electricity consumption and local production, he added. Drndarski is the founder of SEB and EPC.
An agreement between the Green for Growth Fund (GGF) and Swedish International Development Cooperation Agency (Sida) enabled the expansion of green lending in the Western Balkans and the European Union’s Eastern Neighborhood. With the new unfunded guarantee of EUR 60 million, GGF can provide EUR 120 million in loans through financial intermediaries and directly to companies.
The Green for Growth Fund established a new partnership, with the Swedish International Development Cooperation Agency. It facilitates GGF’s first risk-sharing, unfunded guarantee. The Luxembourg-based fund and Sweden’s development cooperation agency said they both support real economies and acceleration of the green transition in the Western Balkans and the countries of the EU’s Eastern Neighborhood.
The signed unfunded guarantee amounts to EUR 60 million. It enables GGF to provide EUR 120 million in loans to private businesses and households through financial intermediaries and directly to companies. The package is for urgently needed investments in the decarbonization of the economy – expanding renewable energy generation and improving energy efficiency.
With unfunded portfolio risk-sharing facilities, international financing institutions or similar lenders and agencies accept a share of risk in an investment instead of committing capital.
New funding approach is major milestone for Green for Growth Fund
The Green for Growth Fund promotes energy efficiency and renewable energy in Southeast Europe, the Caucasus, Middle East and North Africa. By providing refinancing to local financial institutions, it helps businesses and households access sustainable energy solutions, fostering energy efficiency and reducing carbon emissions.
GGF was initiated as a public-private partnership by the European Investment Bank and Germany’s KfW Development Bank, with financial support from the European Union, the German Federal Ministry for Economic Cooperation and Development (BMZ) and other international investors. Finance in Motion serves as GGF’s advisor.
“We are excited to welcome Sida as a new guarantee partner to the Green for Growth Fund. This innovative funding approach, being the first of its kind for us, represents a major milestone. We are grateful to Finance in Motion for their exceptional work in structuring this deal. This partnership not only strengthens our capacity to support green initiatives but also enhances our ability to prepare financial institutions and businesses for future opportunities in the EU market,” GGF’s Board Chairperson Simon Gupta stated.
Bridging investment gap in high-risk markets
The Swedish International Development Cooperation’s Agency’s Assistant Director General Kjell Forsberg, responsible for trade, private sector and financial instruments, said the partnership is aimed at supporting countries highly prioritized by Sweden. The guarantee collaboration between the agency and the Green for Growth Fund bridges the investment gap in high-risk markets while complementing other Swedish official development assistance (ODA) contributions as well as the European Union’s programs.
“We are grateful to Sida for their partnership and support. This collaboration is crucial for the Green for Growth Fund, enhancing our efforts in promoting energy efficiency and renewable energy projects,” said Borislav Kostadinov, Fund Director of GGF at Finance in Motion.
The development of grid infrastructure in the Western Balkans is a crucial step in the region’s energy transition. In support of the Green Agenda for the Western Balkans, GIZ, in cooperation with the Energy Community Secretariat, organized a Strategic Workshop on Power Grids, with a focus on a concrete action plan for the entire region.
Without the development of grid infrastructure, large-scale electrification based on clean energy sources is not possible. The process requires significant investments and new solutions for operating the grid. Existing power lines will need to be reinforced, while new infrastructure, especially on low and medium voltage levels, as well as interconnectors, must be built over the next ten years.
The recent large-scale power outage in Southern Europe, and the one in the Western Balkans in 2024, are a stark reminder of the importance of ensuring system stability amid the growing use of renewables and the need for preventive safety measures. A functional and reliable electricity supply is key to gaining broad public support for alternative energy sources and green policies.
The Strategic Workshop on Power Grids, organized by GIZ in Vienna as part of the project Green Agenda: Decarbonization of the Electricity Sector in the Western Balkans, in cooperation with the Energy Community Secretariat, brought together representatives from transmission and distribution system operators, along with experts from the Hrvoje Požar Energy Institute (EIHP), intending to develop the Action Plan for Power Grids in the Western Balkans.
The action plan provides a clear roadmap for grid development in the Western Balkans
Electricity networks in Western Balkan countries were not designed to meet the challenges of the 21st century. Although the countries in the region have adopted very ambitious decarbonization and renewable energy integration targets, around two thirds of electricity generation comes from coal-fired power plants, according to Goran Majstrović, Deputy Director and Head of the Energy Transmission and Distribution Department at EIHP.
“Regional power networks remain constrained by outdated assets, insufficiently utilized interconnection capacities, administrative bottlenecks, and inadequate digitalization. Without urgent and coordinated action, the power network in the Western Balkans will become a serious bottleneck to secure operation and progress rather than a platform for transformation and development,” Majstrović explains.
Without urgent and coordinated action, the electricity network in the Western Balkans could become a serious obstacle to secure operation and progress, instead of being a platform for transformation and development, he warned.
The Western Balkan Action Plan for Power Grids directly addresses the root causes of recent blackouts, including extreme weather events, aging infrastructure, and the growing share of variable renewable energy sources, particularly wind and solar, as their output is sensitive to any changes in weather conditions.
By focusing on grid modernization, regional coordination, and system resilience, the plan offers a concrete roadmap for preventing future outages. It also promotes investment in smart grid technologies, cross-border interconnectors, and digital system monitoring, all of which are essential for adapting to growing demand and fluctuations in electricity production.
The action plan is a strong expression of regional cooperation in the power sector
Crucially, the plan strengthens operational cooperation among system operators across the Western Balkans region, enabling a more flexible and integrated regional grid. In doing so, it lays the foundation for a stable and secure energy transition based on renewables, helping the region become a reliable supplier of clean electricity to Europe.
According to Goran Majstrović, the Action Plan for Western Balkans Grids provides a forward-looking and regionally harmonized strategy to address the challenges. It is built on the vision of the European Union’s Action Plan for Grids and aligns closely with the Sofia Declaration on the Green Agenda for the Western Balkans, the Energy Community framework, and each country’s national energy and climate plan (NECP).
The document is a strong expression of collaboration of the Western Balkans power sector in a matter of high mutual interest – mobilizing attention, human and financial resources for a rapid energy transition, enabled by sustainable, interconnected, and resilient power infrastructure.
Energy Community contracting parties are doing their best to meet the challenging requirements and use the opportunity to couple their electricity markets with the European Union in Q4 2026 or Q1 2027. Apart from other benefits, coupling could represent a strong incentive for investment in renewables. However, the introduction of CBAM could be a step back for electricity markets, investments and energy transition in the region, according to representatives of transmission system operators, regulators, and power exchanges who spoke at Belgrade Energy Forum 2025.
The third Belgrade Energy Forum, BEF 2025, organized by Balkan Green Energy News, welcomed four hundred participants from more than 30 countries from the region, Europe, and beyond.
Participants in the panel called Integration of Western Balkans electricity markets into internal European market through market coupling were:
Anže Predovnik, ADEX Group, CEO,
Jasmina Trhulj, Energy Community Secretariat, Head of Electricity Unit,
Ivan Asanović, TSO Crnogorski Elektroprenosni Sistem (CGES), CEO,
Marko Bislimoski, Energy, Water Services and Municipal Waste Management Services Regulatory Commission of the Republic of North Macedonia (RKE or ERC), President,
Zoran Vujasinović, EU Agency for the Cooperation of Energy Regulators (ACER), Policy Officer.
They discussed very hot topics including market coupling, the Carbon Border Adjustment Mechanism (CBAM), and blackouts.
Market coupling: The first go-live window scheduled for Q4 2026 or Q1 2027
Dejan Stojčevski and Jasmina Trhulj (photo: Balkan Green Energy News)
In his opening remarks, panel moderator Dejan Stojčevski, CTO of the SEEPEX power exchange, emphasized the importance of integrating the electricity markets of the Energy Community contracting parties (EnC CPs) with the EU internal electricity market as a key element in the energy transition process.
“Market coupling, which is a prerequisite for a successful energy transition, brings about greater transparency, increased competition, the establishment of a unified regional reference price, and stronger incentives for investment in renewable energy sources,” he stressed.
However, in his words, the integration is not without challenges. Countries in the region must address several issues, including the transposition of relevant regulations, the designation of nominated electricity market operators (NEMOs), and the operational connection process through the implementation of local projects, Stojčevski underlined.
Trhulj: The transposition of EIP enables accelerated electricity market integration into the single EU electricity market
The most important regulation is the Energy Integration Package (EIP). Jasmina Trhulj, Head of Electricity Unit of the Energy Community Secretariat, recalled that the transposition of EIP by the contracting parties enables their accelerated electricity market integration into the single EU electricity market before accession into the EU takes place.
To achieve that, EnC CPs have to adopt and implement the laws in a compliant manner, including extending ACER’s jurisdiction to the cross-border issues between EU member states and EnC CPs, she noted.
With regard to regional methodologies, ACER is competent to the extent that neighboring EU countries are involved, which is most often the case.
The preparation of the Market Coupling Operator Integration Plan is underway
Another important piece of the puzzle is the Market Coupling Operator Integration Plan (MCO IP), which will set guidelines and timelines for the implementation of the day-ahead and intraday market coupling of EnC CPs. Trhulj confirmed that the preparation is currently underway.
According to the draft MCO IP, the first go-live window is scheduled for Q4 2026 or potentially by Q1 2027, provided that the following prerequisites are met, she revealed.
The prerequisites are the transposition of the EIHP completed and its compliance verified; NEMO designated in a compliant manner; operational readiness of transmission system operators (TSOs) and NEMOs confirmed; and full contractual adherence completed.
“Provided that the legislation is transposed and its compliance verified and MCO IP approved by ACER, a NEMO may submit requests for accession to market coupling. This is followed by an accession process lasting up to 18 months,” Trhulj explained.
Serbia, Montenegro “locked and ready” for the first go-live window
Anže Predovnik and Zoran Vujasinović (photo: Balkan Green Energy News)
ADEX Group CEO Anže Predovnik shared Slovenia’s experience in various market coupling processes within the internal European electricity market, including different products such as day-ahead, intraday continuous, and intraday auction market coupling.
He particularly emphasized the importance of market coupling and its impact on liquidity, transparency, competition, and increased investments in renewable energy sources.
Predovnik presented HUPX’s integration into the ADEX Group, which was completed in late 2024, and highlighted the benefits ADEX brings to the market and its participants through the unification of the power exchanges of Slovenia, Serbia, and Hungary.
Enhanced transparency, the use of a unified trading and clearing technology, a single market operation, a harmonized market access process across the ADEX markets, alignment of rules, and improved client services are just some of the advantages offered by the formation of ADEX Group, he pointed out.
One immediate benefit already implemented is that market participants active in one ADEX market do not pay entry fees when accessing another market within the group.
Predovnik: Market participants active in one ADEX market don’t pay entry fees when accessing another market within the group
“Additionally, all resources within the group are contributing to the implementation of the local project for coupling the Serbian and Hungarian day-ahead markets, with the project expected to be completed at the first available slot, anticipated for Q4 2026 or Q1 2027,” Predovnik noted.
CEO of Montenegro’s TSO Crnogorski Elektroprenosni Sistem (CGES) Ivan Asanović also spoke about the market coupling project timeframe.
After compliance of the transposition of EIP is verified and provided that the necessary adaptations of the Day-ahead Operations Agreement (DAOA) and the Intraday Operations Agreement (IDOA) regarding the extension to the price zones of EnC CPs are adopted at the Market Coupling Steering Committee (MCSC) level, CGES and power exchange BELEN could sign these contracts, becoming non-operating parties in the MCSC, he revealed.
According to Asanović, obtaining the status in MCSC is a precondition for the submission of a request for change, and it is extremely important to carry it out in a timely manner, to complete the process, which lasts 18 months, until Q4 2026 or Q1 2027.
Of note, a week ago, North Macedonia’s Minister of Energy, Mining and Mineral Resources Sanja Božinovska said it is realistic to aim for coupling in the fourth quarter of 2026 or the first quarter of 2027.
CBAM and blackouts are looming
Anže Predovnik, Zoran Vujasinović and Ivan Asanović (photo: Balkan Green Energy News)
Apart from market coupling, the stakeholders in the region are also concerned about the developments regarding the Carbon Border Adjustment Mechanism (CBAM) as well as about blackouts.
Dejan Stojčevski (SEEPEX) sees the potential effect of CBAM on the electricity sector, starting on January 1, 2026, as a major issue.
The mechanism could pose a serious threat to the overall energy transition in the region, he added.
In addition, it is crucial to discuss system security and the root causes of the blackouts that recently occurred across Europe, Stojčevski pointed out.
“As there was no announcement that the application of CBAM will be postponed, we are operating under the assumption that it will apply to electricity as of January 1, 2026, given that the contracting parties will not be ready for market coupling by that date,” Jasmina Trhulj (Energy Community Secretariat) underlined.
Trhulj: There is a risk that certain stakeholders may shift their trading activities and renewable investments away from the region
In her words, it creates a number of risks to the functioning of the regional electricity market and the energy transition process that the secretariat has been raising on behalf of the contracting parties, electricity traders, power utilities, renewable energy developers, and other stakeholders.
She warned of a risk that certain stakeholders shift their trading activities and investments in renewables away from the region, thereby potentially undermining integration and decarbonization efforts.
Dejan Stojčevski, Jasmina Trhulj and Marko Bislimoski (photo: Balkan Green Energy News)
In addition, market participants are raising the issue of the considerable uncertainty regarding the exact technical implementation of CBAM for electricity – inherently unique within a group of goods, Trhulj recalled.
It is crucial for the countries in the region to speak openly with Brussels, said Marko Bislimoski, president of the Energy, Water Services and Municipal Waste Management Services Regulatory Commission of the Republic of North Macedonia. In addition, they need to come up with an action plan, together with the Energy Community Secretariat, defining the phases for the introduction of carbon pricing, in his view.
Bislimoski: We need to define the items for which we need financial assistance from the EU
“We need a serious approach and to say what we can do ourselves, and then immediately make it happen. At the same time, we need to define the items for which we will need financial assistance from the EU,” Bislimoski asserted.
The panelists agreed the region needs to present a single coordinated position on CBAM at an upcoming meeting on July 1 in Brussels.
Bislimoski recalled that North Macedonia recently adopted the new Law on Energy and added that bylaws would follow. The end goal is to provide security and stability in the transmission and distribution of electricity like in the EU, but also to lower the prices of electricity for consumers, he added.
Asanović: It is necessary to take urgent measures to improve coordination in the region
Regarding the issue of blackouts, Ivan Asanović (CGES) emphasized the importance of coordinating transmission capacities and maintenance plans for transmission lines across the wider Balkan region.
He recalled the challenging operational conditions experienced last winter, when exchanges planned along the Greece-Bulgaria-Romania-Hungary corridor were largely physically realized via the southwestern Balkans, leading to significant network stress. Such situations must be avoided through more comprehensive coordination, he warned.
It is necessary, in his words, to take urgent measures to improve coordination in the region to alleviate the current problems until the establishment of the mechanisms and structures prescribed in the CACM and SOGL regulations.
“These rules will fully harmonize the operation of the system in the region with the rest of Europe and significantly improve the security of functioning and create the necessary preconditions for connecting the markets of the WB6 countries with the single European market,” Asanović stressed.
Vujasinović (ACER): Full operational readiness of CCRs is not a prerequisite for market coupling
Zoran Vujasinović and Ivan Asanović
TSOs made a breakthrough in December. They agreed on a Joint Declaration on Regional Coordination. The declaration, facilitated by ENTSO-E, outlined a new comprehensive cooperation framework for the Western Balkans TSOs within South-East Europe.
Zoran Vujasinović, Policy Officer at the EU Agency for the Cooperation of Energy Regulators (ACER), mentioned that in January the body submitted a request to the TSOs to propose the configuration of capacity calculation regions (CCRs), incorporating the bidding zone borders of EnC CPs within the framework of the EU CCR methodology.
The TSOs’ proposal is expected by the end of July, after which ACER will issue a decision within six months, he said.
The current TSO proposal envisions:
the inclusion of the southeastern bidding zone borders in the Balkans into the South East Europe (SEE) region, which already includes the borders between Romania, Bulgaria, and Greece.
the formation of a separate region in the northwestern part (covering the mutual borders of bidding zones of Serbia, Bosnia and Herzegovina, and Montenegro, as well as their bidding zone borders with the EU), with a perspective of integration into the Central Europe region.
the Italy-Montenegro region and the Eastern Europe region (including Ukraine, Moldova, Poland, Slovakia, Hungary, and Romania) to remain unchanged, as defined by the CACM Regulation of the Energy Community.
According to Vujasaninović, ACER’s position is that the entire region should, over time, transition to flow-based capacity calculation and allocation methodologies. However, the initial step will be participation in market coupling based on Net Transfer Capacity (NTC) values.
“It is important to note that full operational readiness of CCRs is not a prerequisite for market coupling. The coupling can proceed based on existing NTC calculation procedures, provided that regional operational security is not compromised at any time and that maximum coordination in capacity calculation is ensured,” Vujasinović stressed.
Global installed energy storage is on a steep rise and is expected to increase ninefold by 2040, to over 4 TW, driven by battery energy storage systems (BESS), which saw record growth in 2024, according to a report by Rystad Energy. In recent years, the cost of storing electricity has dropped significantly thanks to the declining cost of battery projects, coupled with technological advancements.
Last year, a record 200 GWh of new BESS projects came online globally, bringing the world’s total operational battery storage capacity to 375 GWh. China maintained its leading position, with over 100 GWh of new capacity, followed by the United States, which added 35 GWh. Germany, Australia, and the United Kingdom were among the top five.
Energy storage will play a key role in integrating renewables as power demand grows
As power demand is expected to continue its strong growth in 2025 and after, the growth rate of low-carbon energy sources is now close to covering the entire demand increase. Energy storage will play a key role in integrating the increasing share of intermittent renewable energy and providing the needed flexibility for the secure operation of the power systems, according to Rystad’s report.
The increasing share of intermittent renewables, combined with low flexibility in supply and load, creates price volatility in the liberalized power markets, making energy trading (arbitrage) a good source of revenue for BESS, according to the report.
Solar energy is projected to grow more than all other energy sources combined between 2025 and 2050, expanding tenfold over the period, Rystad noted.
The cost of BESS projects has fallen below USD 300 per kWh in recent years
The global average cost of BESS projects fell below USD 300 per kWh in 2024. If it were to decline to USD 250 per kWh, the cost of storing electricity could be as low as USD 60 per MWh, allowing BESS operators to retain a larger portion of the price spread as profit, Rystad said.
The lower costs of electricity storage are also driven by technological advancements, as battery manufacturers currently guarantee over 10,000 charge-discharge cycles and more than 80% battery health during that lifespan.
