The past three to four years have been nothing short of transformational when it comes to the energy transition in the Western Balkans, said Borislav Kostadinov, Finance in Motion’s Fund Director for the Green for Growth Fund, in a keynote address at Belgrade Energy Forum. The region has responded to the energy crisis with innovation, ambition and resilience, he pointed out. The challenge in the energy transition is understood and so is the solution, Kostadinov stressed.
Borislav Kostadinov, a Fund Director at Finance in Motion, gave a keynote speech at Belgrade Energy Forum (BEF 2025). He leads the Green for Growth Fund, or GGF, the company’s flagship green finance fund.
Finance in Motion is an impact asset manager based in Frankfurt with over 20 years of experience and more than EUR 4 billion in assets under management (AUM). It specializes in blended finance vehicles that deliver positive social and environmental impact. GGF has delivered over EUR 500 million in green finance to almost 50,000 beneficiaries in the Balkans. As of the end of last year, it was above EUR 1 billion in size.
Renewables have become mainstream investments
The breadth and flexibility of the fund’s model allow it to support a wide spectrum of the energy transition, which has enabled it to expand to over 19 markets along the European Union’s borders, Kostadinov explained.
The past three to four years have been nothing short of transformational when it comes to the energy transition in the Western Balkans, he underscored.
“I would not be the first to say that we are at a key juncture in the energy transition. At this stage, the challenge is understood and so is the solution. Renewables have become mainstream investments, championed by the public and private sectors, and are the foundation of a future that is not only sustainable but cost-efficient, competitive, and secure. The question now becomes how quickly and how completely we can deliver on this vision over the next five, fifteen and 25 years,” Kostadinov stated. In terms of energy systems and climate change, it is not much time, he pointed out.
Western Balkans are broad-based renewables growth story
For several years now, there has been a broad-based renewables growth story across the region: from utility-scale project finance transactions, to large installations for captive use by industry and manufacturing, to photovoltaics on the roofs of households, Kostadinov recalled.
“What is driving this shift? Certainly, the energy crisis jolted all of Europe, and the Western Balkans have responded with innovation, ambition, and resilience. In a short time, we have improved policy, strengthened regulatory frameworks and prioritized the sector with clearer strategies and market mechanisms,” he said.
GGF’s director praised the countries in the region for embracing transparent, competitive auctions as a foundation for market-based deployment of renewables.
Kostadinov particularly highlighted Serbia for leading the way. “Its recent auctions for wind and solar have been consistent, well-communicated, credible and investor friendly, drawing broad investor participation. Most importantly, they’ve been successful, and we are proud to have contributed to this achievement alongside our longstanding partner UniCredit Bank, through its investment in the landmark Čibuk 2 wind farm,” he told the audience at BEF 2025.
Corporate PPAs, guarantees of origin deepen markets while also expanding them
The public sector must continue strengthening markets and frameworks and develop and roll out mechanisms such as corporate power purchase agreements (PPAs) and guarantees of origin, which deepen and expand markets, Kostadinov said.
“We need more purely private projects, such as the GGF-backed 50 MW Project Blue solar plant in Albania. As the largest non-subsidized solar project in the Western Balkans, and developed without a long-term PPA from the utility, it is the type of investment that we hope to increasingly catalyse in the region,” he asserted.
The three principles for the next five years are speed, integration, and resilience, Kostadinov says
In Kostadinov’s view, the three principles for the next five years are speed, integration, and resilience.
“We must continue to improve the speed, transparency and bureaucratic process when it comes to permitting, approving and bringing projects online. This is true in the EU, and it is true in the Western Balkans, in particular for construction permitting and grid connections,” he said.
The necessary investments in the integration of energy markets in the EU and the region will create scale, meaning larger markets, deeper spot markets, and more varied offtake, Kostadinov added. His message to energy producers in the Balkans is that they would be able to diversify and address a larger market by supplying Europe’s industrial base.
The recent blackout in Spain is a cautionary tale, but the story is not a failure of renewables but rather a failure of grid resilience, Kostadinov said.
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