Regional Exchange March 2026

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Conference Background

The Western Balkans is entering a pivotal stage in its energy transition, marked by increasing integration of renewable energy sources and growing alignment with European Union energy frameworks. While notable progress has been achieved in recent years, the region continues to face structural challenges, including grid congestion, limited infrastructure investments, regulatory complexities, and the need for enhanced regional coordination.

In this context, the launch of Phase II of the GIZ regional project “Decarbonisation of the Electricity Sector in the Western Balkans” funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) under the Regional Climate Partnership (RCP) between Germany and the Western Balkans builds on previous achievements and responds to the evolving needs of the electricity sector. The first phase established a strong foundation through regional cooperation, capacity-building, and technical assistance, contributing to improved knowledge exchange and strengthened institutional dialogue across the region within the electricity sector.

The second phase, with a planned duration from 2025 to 2028, places a stronger emphasis on implementation, aiming to support partners in addressing concrete challenges related to renewable integration, grid modernisation, system flexibility, and market integration, both with a regional and country-specific solutions. It also introduces tailored support mechanisms, enabling partner institutions to request targeted technical and regulatory assistance. A third and new project pillar is introduced to the new phase, which also was discussed in the launch conference, focusing on empowering vulnerable consumers in the context of energy transition.

The conference, held under the theme “Building on Progress: Advancing the Energy Transition Pathway of the Western Balkans”, was organised as a key milestone to launch this new phase. It provided a platform for over 80 project partners, mainly Energy ministries and regulators, DSOs, TSOs to reflect on progress, exchange experiences, and jointly define priority areas for future cooperation. Through expert inputs, panel discussions, and interactive working sessions, participants contributed to shaping a shared regional vision for advancing a sustainable, integrated, and inclusive electricity sector in the Western Balkans.

Conference Summary

The conference highlighted that the energy transition in the Western Balkans has entered a more complex and implementation-focused phase, where technical progress must be matched by legal certainty, market alignment, and social considerations. While momentum in renewable deployment and regional integration is evident, key challenges remain in grid capacity, investment readiness, and regulatory coherence. At the same time, emerging factors such as CBAM and increasing exposure to investment arbitration risks underline the importance of predictable, transparent, and well-coordinated policy frameworks.

Project partners across the Western Balkans countries, such as energy ministries, TSOs, DSOs and regulators, find this project a fundamental platform to enhance regional coordination and enhanced cross-border cooperation for electricity reforms and investments. German development cooperation underlines its commitment to the green transition in the Western Balkans, understanding that cooperation in the energy sector creates win-win situations on both sides. GIZ’ assistance to the power sector partners will be on eye’s level with the partners – to deliver targeted support, utilizing regional cooperation is main theme of the project, all to maximize the impact of this project.

Against this backdrop, a common message across all inputs was that the region is no longer lacking strategies, but must now ensure effective and coordinated implementation. This includes accelerating grid modernisation, aligning with EU market and legal frameworks, safeguarding investment stability, and ensuring that reforms are socially balanced for those consumers under vulnerable and energy poor conditions.

Moving forward, success will depend on the ability to integrate infrastructure, regulatory, and social dimensions into a coherent approach, positioning the Western Balkans as a reliable and competitive part of Europe’s clean energy system.

Presentations

Building on Progress Advancing the Region's Energy Transition Pathway

This presentation gives an overview on the agenda and the general background of the conference.

Legal disputes in the Energy Sector (Armela Ramić, Attorney, Ramic Law)

This key expert input highlighted that the energy transition in the Western Balkans is not only a technical and financial process, but also a legally sensitive one. Since 2022, a significant share of global investment arbitration cases has been linked to renewable energy, often triggered by retroactive changes to support schemes such as feed-in tariffs or premiums. A key legal concept discussed was the principle of “legitimate expectations,” under which investors may claim damages if policy frameworks on which they relied are altered retroactively. While governments retain the right to regulate in the public interest, such changes must be transparent, proportionate, and non-discriminatory. Weak internal coordination, including between national and subnational levels, further increases legal risks, as illustrated by cases where permitting and contractual responsibilities are not clearly aligned. To mitigate these risks, the expert highlighted several priority actions.

CBAM and the Western Balkans (Rouven Stubbe, Energy and Climate Policy Advisor, Helmholtz-Zentrum Berlin für Materialien und Energie)

This key expert input explains the core functioning of the Carbon Border Adjustment Mechanism (CBAM), focusing on its role in applying a carbon cost to electricity exports to the EU and giving some insights into methodological discussions. Presenting early market evidence, he highlighted that electricity price spreads between the EU and Western Balkans have already increased following CBAM introduction. This indicates that expected carbon costs are being priced in, affecting cross-border electricity flows, increasing volatility on interconnectors, and influencing short-term market behaviour. CBAM sends a strong signal for the Western Balkans to accelerate decarbonisation, align with EU market rules, and consider the introduction of carbon pricing mechanisms to maintain competitiveness and secure continued access to the EU electricity market.

Future Grids: Outlook and Strategic Perspectives (Goran Levačić, HOPS Croatian Transmission System Operator Plc.)

The speaker highlighted that the energy transition is reshaping power systems through rapid renewable expansion and a shift toward more distributed generation. He pointed out that power grids are evolving from passive infrastructure into active enablers, but face challenges such as ageing assets, limited capacity, and increasing stress from high renewable penetration and cross-border flows. The Western Balkans are characterized by high demand for grid connections, outdated assets, and increasing system pressures, while investment levels remain below what is required to support the transition. The expert concluded that without timely and coordinated upgrades, grids will remain a critical bottleneck for decarbonisation and system security.

Community and Local Benefits in the context of Electricity Grid Development (Dr. Ira Shefer, Renewables Grid Initiative (RGI)

Presentation of the Renewables Grid Initiative, unique collaboration of NGOs and Transmission System Operators (TSOs) from across Europe. RGI fosters knowledge exchange, discussions on the grid infrastructure needs, and the implementation of best practices about Grids & Energy Systems, Energy & Nature, and Energy & Society. The speaker pointed out to the relevance of Community and local benefits (CLB) in the electricity grid development. CLB are measures that bring added value to local communities affected by the infrastructure in their locality in order to enhance project’s acceptance, and to empower communities in decision-making processes as well as support the revitalisation of rural areas. To increase the legitimacy of CLB, addressing the community and engaging it early in project planning as well as clear, transparent and accessible information is key along with in-person contacts.

Decarbonisation of the Electricity Sector in the Western Balkans II (Mario Jasic, Advisor, GIZ BiH)

Presentation about the project and its new call for tailored support projects for partners.

Agenda

Arrival Day - 24 March 2026

Time
19.00-21.00	Welcoming reception, networking & market of opportunities Dinner will be served from 19:00 to 20:00. The welcoming reception will take place at Hotel Balcony and will also include the participation of two private companies, from 20:00 to 21:00.

Day 1 Conference - 25 March 2026

Time
08:45 – 09:15	Registration of participants
09:15 – 10:30	Welcoming panel – Advancing the Region’s Energy Transition Pathway Nicolas Heger, Project Director, GIZ Davor Bajs, Electricity Infrastructure Expert, Energy Community Secretariat Milica Knezevic, Regional Project Coordinator, KfW Jan Sedlacek, Legal Advisor System Operations, ENTSOE
10:30 – 10:50	Building on Results: Transitioning from Phase I to Phase II Presentation by: Nicolas Heger, Project Director, GIZ Overview of Phase I achievements and milestones Strategic direction, workstreams, and implementation roadmap for Phase II
10:50 – 11:20	Coffee Break
11:20 – 11:50	“Renewable Energy Disputes and Investment Arbitration in the Western Balkans” – key expert input Armela Ramić, Attorney, Ramic Law
11:50 – 12:20	“CBAM Outlook for the Western Balkans Electricity Sector” – key expert input Rouven Stubbe, Energy and Climate Policy Advisor, Helmholtz-Zentrum Berlin für Materialien und Energie
12:20 – 13:45	Lunch break
13:45 – 16:45	Co-Creating the Next Phase: Regional Pathways for Energy Transition Working sessions Coffee break will be served from 14:55 to 15:20 during the session.
16:45 – 17:00	Wrap up and closure of day II.
19:00 – 21:00	Dinner

Day 2 Conference - 26 March

Time
09:00 – 09:20	“Future of the grids in EU“- key expert input Goran Levačić, HOPS Croatian Transmission System Operator Plc.
09:20 – 10:20	Panel Discussion: Inclusive Prosumerism: Designing On-Grid Solutions that Work for Energy-Poor and Energy-Vulnerable Communities Ira Shefer, Manager Energy Systems, Renewable Grid Initiative   Aleksandar Macura, Co-founder, Programme Director, RES Foundation Ajla Cisija, Muncipality of Kakanj, Bosnia and Herzegovina Sebastian Jasim, Head of International Projects, German Renewable Energy Federation (BEE)
10:20 – 10:40	Coffee break
10:40 – 11:30	From Insights to Implementation: Defining Regional Action Areas Working sessions
11:30 – 11:40	Overview of the Tailored Support Call for Technical and Regulatory Partners Mario Jasic, Advisor, GIZ BiH
11:40 – 12:00	Wrap up and closure
12:00 – 13:00	Lunch and departure
19:00 – 21:00	Dinner for guests with a confirmed third-night stay.