BAKU, Azerbaijan, December 28. Strategic investments are key to the energy transition in the Western Balkans, Damien Sorrell, Head of the Regional Hub for the Western Balkans at the European Investment Bank (EIB), told Trend.
"Given the current geopolitical turmoil and uncertainties, it is crucial to focus on strategic investments. Among these, energy transition is a top priority for the Western Balkans, which remains heavily dependent on fossil fuels," Sorrell noted.
He emphasized the need for a comprehensive approach to achieve a low-carbon economy. "Transitioning to a low-carbon economy will require expanding and modernizing the energy transmission and distribution network to accommodate a larger intake of renewables, as well as a robust legal framework, energy efficiency measures, and greater regional energy market integration," he explained.
As the EU's climate bank, EIB Global plays a pivotal role in supporting sustainable energy investments through financial and technical assistance. "EIB Global promotes sustainable investments in the energy sector through financial and technical support, including EU grants channelled through the WBIF," Sorrell highlighted.
He cited the Vlašić wind farm in Bosnia and Herzegovina as a prime example of the EIB’s efforts in the region. "The EU provided a financial package comprising a 36 million euro loan from the EIB, complemented by a 21 million euro grant. This wind farm is expected to produce 115 GWh/year of electricity, equivalent to the energy demand of 20,000 households, while displacing 140,000 tons of CO2 annually".
Another significant project is a solar facility in Pristina, which will have a capacity of up to 100 MWac. "The construction of this solar project will benefit from a 33 million euro EIB loan and a 32 million euro grant. These blended financial arrangements can help regional economies advance their energy transition ambitions, despite economic constraints and limited fiscal space," the bank's rep remarked.
Sorrell also stressed the importance of private sector involvement in clean energy production. "The private sector should be encouraged to invest in clean energy production, which EIB Global and other international financing institutions can support".
He noted that small and medium-sized enterprises (SMEs) are already benefitting from dedicated EIB loans in the region. "SMEs can decarbonize their production lines by installing solar panels, for example, thereby also fostering their competitiveness on the global market".
