Blog – Full Width

  1. Home
  2. Blog – Full Width
April 16, 2025
by

Aurora forecasts Western Balkans power capacity growth of 20 GW by 2040

The Western Balkans could see a 20 GW increase in installed capacity by 2040, with nearly 65% coming from renewables, Aurora Energy Research found. Short-term volatility and increased costs of commodities are expected to keep electricity prices near or over EUR 100 per MWh until 2030.

Aurora Energy Research issued its first forecast for the Western Balkans, eyeing investor movement. The firm expanded its market forecasting services, now offering full granularity modeling for Albania, Kosovo*, North Macedonia, Montenegro and Bosnia and Herzegovina, available in its Western Balkans Power and Renewables Market Forecast.

The announcement follows the conclusion of a multiclient study comprising three workshops, the results of which reveal increased investor interest in the region.

Photovoltaics have the fastest growth rate and biggest capacity in the forecast

The combined installed capacity in the Western Balkans excluding Serbia is expected to grow by 20 GW by 2040 and by as much as 35 GW by 2060 from the current levels, leading to tens of billions in investments, Aurora said. Renewables account for the lion’s share with nearly 65% while battery energy storage systems (BESS), interconnectors and hydrogen-fired combined-cycle gas turbines (CCGT) make up the remaining capacity additions.

Solar power shows the fastest rate of growth and absolute capacity value, according to the global power market analytics provider.

Electricity market prices returning below EUR 100 per MWh only after 2030

Looking into wholesale prices, the analysis expects the Western Balkans to follow similar trends as other SEE markets but with regional nuances, based on the local energy system evolution. Short-term volatility and increased commodities are foreseen to keep prices near or over the EUR 100 per MWh mark until 2030 while long-term baseload prices under Aurora’s central scenario are expected at between EUR 70 per MWh and EUR 80 per MWh, driven by high commodity prices, while an increasing renewables’ penetration acts in the opposite direction.

Early movers have an advantage as cannibalization looms

Renewable energy assets capture prices will benefit from lower cannibalization levels in the early years compared to other SEE countries, as there is less capacity in the system, giving early movers an advantage, the analysis reads. Over time, the momentum for storage seen in SEE likely spreads to the Western Balkans.

Coal phaseout seen by 2045

The speed of decarbonization in the region largely depends on the implementation of the European Union’s Carbon Border Adjustment Mechanism (CBAM) or alignment with the EU Emissions Trading System (EU ETS). The shift away from lignite could take time, Aurora’s experts say, with a full exit expected by 2045, but its share in the power system is expected to decrease significantly in the next decade due to pressure from CBAM and carbon taxes.

“The Western Balkans are Europe’s most rapidly changing power markets. Ageing thermal fleets, liberalisation of markets, policy support schemes, and strong fundamental economics are poised to bring the Western Balkans at the forefront of developers’ agendas,” said Panos Kefalas, Research Lead at Aurora Energy Research.

The Western Balkans Power and Renewables Market Forecast provides in-depth insights, detailed market analysis, and data-driven projections for investors, developers, and stakeholders.

Established in 2013, Aurora Energy Research provides power market forecasting and analytics for investment and financing decisions. Headquartered in Oxford, it operates out of 16 offices worldwide covering Europe, North and South America, Asia, and Australia. The firm’s services include market outlook for energy industry participants, advisory support, and software solutions.

Post Views:68
* 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.
April 16, 2025
by

Alcazar joins forces with IFC to develop Štip wind farm project

Alcazar Energy Partners has signed a development support agreement with the International Finance Corporation, a member of the World Bank Group. The company intends to develop the largest renewable energy platform in the Western Balkans.

Alcazar Energy Partners (AEP) said the agreement provides access to development assistance funding for phase 1 of the Štip wind farm, the largest wind power project in North Macedonia, reinforcing both parties’ commitment to mobilizing private capital for sustainable infrastructure in strategic growth markets.

The start of construction of the first phase of the EUR 500 million Štip wind farm is envisaged later this year. The total installed capacity, once all phases are complete, would be approximately 400 MW.

According to Alcazar, the project will provide clean, reliable power to over 100,000 households and mitigate up to 690,000 CO2-equivalent tons emissions each year, marking a significant step towards strengthening North Macedonia’s energy security and renewable energy objectives.

Štip wind farm is AEP’s first project in North Macedonia

Štip wind farm is AEP’s first project in North Macedonia. It reflects the firm’s strategy to expand its presence across the Western Balkans, where it has already acquired a 1.5 GW pipeline of greenfield onshore wind and solar assets, delivering renewable energy infrastructure that supports national ambitions and global climate goals.

The project was launched ten months ago. The sites for more than 50 turbines are on the territories of the municipalities of Karbinci, Radoviš, and Štip, southeast of the capital city of Skopje.

The signing ceremony took place on the sidelines of the ESG Adria Summit in Porto Montenegro.

AEP is currently advancing a detailed project design

“Our continued partnership with IFC is instrumental as we progress with the Štip wind farm. Together, we’re not only advancing the energy transition but also supporting economic development and long-term energy security. We look forward to delivering a project that brings lasting value to communities and reinforces North Macedonia’s sustainability ambitions,” Co-Founder and Managing Partner of Alcazar Energy Partners Daniel Calderon stated.

AEP, currently advancing a detailed project design, has engaged leading engineering, environmental, legal, and social advisors to ensure the project meets the highest international standards.

Avato: The Štip wind Farm in North Macedonia is a natural extension of our collaboration

According to Patrick Avato, IFC’s Manager for Infrastructure and Energy in Europe, the two sides built a strategic partnership over more than a decade, working together to advance sustainable energy projects across emerging markets.

“The Štip wind farm in North Macedonia is a natural extension of this collaboration, aimed at expanding access to affordable, clean energy—essential for economic competitiveness and growth. In addition to strengthening the country’s energy security, the project also reflects IFC’s commitment to supporting sustainable energy solutions that meet international standards and contribute to a just energy transition in the region,” he asserted.

The signing was also attended by Tim Sheahan, Senior Director at AEP.

Alcazar Energy Partners is an independent infrastructure fund manager focused on the development, financing, construction, and operation of utility-scale renewable energy projects in growth markets since 2014. It now has a cumulative renewable energy portfolio of more than 4 GW, reads the press release.

Post Views:73
April 16, 2025
by

Serbia adopts first ever rulebook on standards for wood pellets

Serbia has adopted the rulebook on solid fuels from wood biomass, which for the first time regulates the quality of pellets and briquettes on the domestic market.

The rulebook on technical and other requirements for solid fuels from wood biomass sold on the Serbian market will enter into force in three months. In the meantime, an institution needs to be established for control, compliance, and corrective measures regarding the new requirements.

The rulebook introduces technical standards and mandatory laboratory analysis, defines rules for assessing compliance, and product labeling. It envisages oversight of the levels of substances affecting health and the environment, according to the Ministry of Mining and Energy.

Ministry: Only high-quality pellets will be sold on the Serbian market, in line with the standards set by the EU

“By adopting the rulebook we want to preserve the competitiveness of the pellet industry in Serbia. This document represents a fine example of the cooperation between the authorities and the businesses,” Minister Dubravka Đedović Handanović stated.

The ministry claims that the rulebook secures that only high-quality pellets can be sold on the Serbian market in line with the standards applicable in the European Union.

For the first time, the physical and chemical characteristics of wood pellets will be controlled

According to the Chamber of Commerce and Industry, only pellets with positive results from laboratory analysis and the kinds that meet strict standards on harmful substances will be allowed on the market in Serbia.

“For the first time our authorities would control physical and chemical characteristics of wood pellets such as size, shape, stability, caloric values, moisture, and ash level,” the association of Serbian firms added.

The same will apply to the substances affecting human health and the environment including heavy metals – arsenic, cadmium, chromium, copper, lead, mercury, nickel, zinc, sulfur, and nitrogen.

The association recalled that the ministry established the working group for the preparation of the rulebook upon its initiative.

Post Views:35
April 16, 2025
by

Rörig (E.ON): Croatia charges up to six times higher e-waste fees on solar panels than other EU states

Croatia charges a waste fee on solar panels of EUR 300 per ton, up to six times more than other European Union countries. The levy slows down the expansion of solar energy, Andreas Rörig, president of the Management Board of E.ON Croatia, told Balkan Green Energy News.

In addition to the one-off e-waste management fee, hindering investments, another issue is that Croatia doesn’t have a system for collecting and recycling solar panels.

Andreas Rörig’s post on LinkedIn received a lot of public attention. He wrote that in Croatia high fees and regulatory barriers, including the ones related to waste, are holding back solar’s potential. With a waste fee of EUR 0.3 per kilogram (EUR 300 per ton), the profitability of solar investments is at risk, he added.

The fee in other EU countries ranges from EUR 50 to EUR 150

Rörig explained that a comparison with other EU member states demonstrates that fees in Croatia are significantly higher than in neighboring countries. For example, they range from EUR 50 to EUR 150 in the Netherlands, Belgium, Slovenia, and Hungary.

The fee is paid on total weight, which is more than 20 kilograms per panel, according to E.ON. Even more concerning is the disproportionate taxation: 80% to 90% of a solar panel’s mass consists of easily recyclable materials that aren’t classified as e-waste, yet the fee is charged on the total weight.

“This approach discourages investment, slows Croatia’s progress toward energy transition, and contradicts the country’s goals of reducing emissions and increasing energy efficiency. A practical example of why solar energy accounts for less than 2% of Croatia’s energy mix – far below its true potential,” Rörig stated.

There are signs that things are about to change

Therefore he recommended reducing the electronic waste management fee for solar panels and suspending the obligation until a functional disposal system is in place. He confirmed there is currently no functional system for the collection, processing, and recycling of e-waste from solar panels in Croatia.

“However, there are positive indications that the fee will be reduced and that the system will be established. We believe that the Environmental Protection and Energy Efficiency Fund or FZOEU has recognized the needs of the industry. E.ON supports such measures because we believe that they will fix the problem and enable easier waste management,” Rörig stressed.

Post Views:37
April 15, 2025
by

Upgrade for prosumers to avoid grid curtailments costs up to EUR 1,000

To use electricity from their photovoltaic systems in periods when grid operators disconnect them to stabilize the system, citizens can install equipment that costs EUR 300 to EUR 1,000. Cyprus passed a bill enabling prosumers to switch to a zero-export mode.

Cyprus, the only non-interconnected European Union member state, is struggling to maintain the stability of its electricity system. Rapid growth of solar power capacity is increasing the episodes of overloads, when grid operators have to curtail their production. At the same time, sometimes sudden weather changes push production to a critically low level, which can also cause outages before oil-fired power plants step in to cover the deficit.

Still, the island country passed amendments last week to protect the right of prosumers to an interrupted power supply for their own needs. On the other hand, implementation isn’t cheap, and for some of them it would not be cost-effective.

Upgrading a PV system with a zero-export mode is not cost-effective if no one is usually home during work hours

Minister of Energy, Commerce and Industry George Papanastasiou said prosumers need to upgrade their photovoltaic systems to be able to keep consuming their electricity during curtailments. A switch for cutting off the solar panels from the grid, and leaving them directly connected to the home, costs some EUR 300, he added. But a prosumer will need to pay EUR 1,000 if the inverter doesn’t support the conversion, the minister explained.

Owners of PV systems need to calculate the curtailment costs and compare them to the investment that enables operating them in a so-called zero-export mode.

If no one is home on weekdays during work hours, when solar panels generate electricity, there are no substantial benefits, unless there is also a battery. And it makes the intervention much more expensive. Conversely, the new option is much more useful for most businesses.

Cyprus is rushing to introduce energy storage capacities and expand the curtailment systems throughout the power system.

Post Views:16
April 15, 2025
by

Eurowind Energy completes its 60.2 MW solar park in Romania

Eurowind Energy’s 60.2 MW photovoltaic park in Transylvania will be put into operation in late April, Minister of Energy Sebastian Burduja said. The facility is joining the almost 600 MW in new capacity funded from the National Recovery and Resilience Plan. In addition, the ministry prepared a EUR 450 million package of grants for companies for energy efficiency and self-consumption.

After 14 years of doing business in Romania, Denmark-based European Energy is materializing its first major endeavors in the country. Minister of Energy Sebastian Burduja revealed that the company’s solar power plant in Teiuş would be commissioned by the end of the month.

The location is in the Transylvania region. Eurowind Energy received EUR 15 million from the government for the project. It costs EUR 47.2 million in total, or EUR 55 million with value-added tax. Construction began a year ago. The system in Alba county will generate an estimated 104 GWh per year.

Burduja said almost 600 MW of capacity has been commissioned within the projects that Romania funds through the National Recovery and Resilience (NRRP or, in Romanian, PNRR).

Eurowind Energy has major renewables projects lined up in Romania, Bulgaria

Eurowind Energy, based in Hobro, Denmark, is one of the biggest wind and solar power developers in Romania.

The Danish company recently signed a 12-year virtual power purchase agreement (PPA) with Autoliv in Romania, for the supply of electricity from the Pecineaga wind park. Eurowind Energy is preparing to put the facility into operation.

It is also building a 238 MW solar power plant in Yambol in neighboring Bulgaria, with Renalfa IPP. They plan to add wind turbines and batteries.

EUR 450 million available for firms for energy efficiency, self-consumption

At the same event, Burduja said the ministry is launching two calls worth EUR 450 million combined. They are intended for support to the energy-intensive industry.

The package for is for companies. It consists of EUR 150 million for energy efficiency – the replacement of outdated equipment – and more than EUR 300 million for the production of electricity for self-consumption.

The Ministry of Energy has set an extremely ambitious target of 2.5 GW of new capacity to be put into operation this year, Burduja stressed. It is two times more than in 2023. Active energy storage capacity is nearing 400 MWh, he added.

In the energy efficiency call, fims can receive as much as EUR 30 million each from the Modernisation Fund. The self-consumption segment is for the ones with available land and projects for photovoltaic parks or even wind farms and micro hydropower plants.

According to the International Renewable Energy Agency (IRENA), Romania increased its solar power capacity at the end of last year by 57% to 4.7 GW. Most of it is from prosumers. The wind power segment is picking up, but slowly, after a stagnation that began a decade ago.

Post Views:23