Western Balkans can skip gas and move straight to renewables, says Bankwatch

Western Balkans can skip gas and move straight to renewables, says Bankwatch
NGO CEE Bankwatch says anticipated solar and wind projects in the region are expected to generate four times more electricity over their lifetimes than prospective gas-fired power plants.
By bne IntelliNews July 18, 2024

A new report from the CEE Bankwatch Network says that the Western Balkans countries have the potential to leapfrog gas power in favour of solar and wind energy, advancing on their clean energy transitions. 

The region, which includes Albania, Bosnia & Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia, has a prospective 23 GW of utility-scale solar and wind capacity. This figure represents a nearly 70% increase over the past year and is comparable to Germany's prospective capacity.

The anticipated solar and wind projects are expected to generate four times more electricity over their lifetimes than prospective gas-fired power plants, effectively making gas power redundant in the region. This shift could prevent 103mn tonnes of CO2 emissions – equivalent to 87% of the region’s emissions in 2022 – and save over €9bn in energy costs.

"The Western Balkans are in a unique position because the region isn’t already shackled to gas infrastructure," said Zhanaiym Kozybay, co-author of the report and researcher for Global Energy Monitor. "Wind and solar are low hanging fruit, and choosing renewables is a greener move that makes economic sense. But more political will is needed domestically, and the EU and US should champion the region’s clean energy potential rather than backing expensive, polluting gas."

Data from the Global Wind and Solar Power Trackers indicate that Serbia currently leads in operating and prospective utility-scale solar and wind capacity. However, Albania, Bosnia and North Macedonia have surpassed Serbia in new capacity additions over the past few years. 

Despite this growth, the region's operational utility-scale solar and wind capacity only accounts for 7% of its electricity mix, with just 6% of prospective capacity under construction.

To unlock this potential, the report stresses the need for governments to address planning and permitting barriers, develop supportive legal frameworks and build complementary infrastructure for a flexible grid. Renewable energy zoning must include rigorous environmental safeguards to minimise impacts on nature and biodiversity, and local communities should be actively involved in and benefit from these projects.

"This accelerated shift to renewables is a very welcome step, but we must ensure that it is done democratically," said Chris Vrettos, project manager at the European Federation of Energy Communities, REScoop.eu. "Governments should create enabling frameworks to facilitate the growth of energy communities. Project developers should also open part of their projects to shares by local citizens and communities. This would offer a new source of revenue to many households, providing much needed economic prospects especially to communities in ex-coal areas."

Pippa Gallop, Southeast Europe energy policy officer at Bankwatch, said: “After years of over-reliance on climate-vulnerable hydropower, it’s gratifying to see solar and wind finally accelerating in the Western Balkans. The challenge now is to speed up improvements in spatial planning, environmental assessments and public participation, to prevent biodiversity damage and build public support.”

The report says that the EU and US need to support the Western Balkans in prioritising solar and wind over gas to achieve its full clean energy potential, positioning the region as a leader in the global energy transition.

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