On October 9 and 10, a conference called Western Balkan Energy Week 2024. – one of the most significant events that gathers over 250 decision makers, including state authorities and private sector leaders from the countries of the Western Balkans and Croatia.
Numerous discussions will cover hot topics from the renewable energy sector in the Western Balkans with the aim of jointly shaping the green transition in the region. Panelists will have the opportunity to discuss strategies for regional integration, the transition from fossil fuels to renewable energy sources, increasing the resilience of energy networks, market challenges and many other topics key to the energy transition of this part of Europe.
All discussions are designed to provide practical guidance to decision makers in dealing with the complexities of the energy transition and making the most of the region’s abundant renewable energy (RES) potential.
At the opening of the conference, the President of the Board of Directors of the Electric Industry of Montenegro (EPCG), Milutin Đukanović, addressed the audience, who emphasized the importance of regional cooperation when it comes to developing the capacity of renewable energy sources. Many memoranda of cooperation have been signed, but these documents remain only a “dead letter on paper” until the implementation of the projects starts, Đukanović noted.
When it comes to Montenegro’s potential, Đukanović pointed out that it is especially important to use the hydropower infrastructure for connecting solar power plants because, as he says, “we must not waste a drop of water when the sun is shining”. He adds that it is important to invest in the development of battery systems and proudly points out that Montenegro has mastered the important technologies necessary for the energy transition.
The director of the Agency for the Promotion of Foreign Investments of Bosnia and Herzegovina, Marko Kubatlija, spoke at the opening of the conference, who emphasized that for a successful transition of the energy sector, the cooperation of all institutions and partners from the region is necessary.
“Cooperation in the region is very important because we must not forget that we live in an economically very dynamic world. Two key factors for the development of the Western Balkans are investments and employment. It is necessary to include small and medium-sized enterprises and give priority to renewable energy sources”, Kubatlija said at the opening of the conference.
Cooperation as a key factor for the green transition of the region
On the first day of the conference, a panel titled “Together for Tomorrow: Regional Integration Strategies for the Advancement of Renewable Energy in the Western Balkans” was held, moderated by Nevena Đukić, editor-in-chief of the Energy Portal.
The participants of the panel – Director for Bosnia and Herzegovina and Montenegro at the World Bank, Christopher Sheldon, Minister of Energy and Mining of the Republic of Srpska, Petar Đokić and Minister of Mining, Oil and Gas of Montenegro, Admir Šahmanović, spoke about the importance of regional cooperation, what achieved so far and what are the plans for the future.
According to Minister Đokić, it is important to deepen and develop regional cooperation in order to expand energy capacities, both production and transmission.
“We must be aware of the problems we have, a technical problem happened this year that confirmed how important that cooperation is, which must be improved with other countries as well. At meetings with ministers from the region, we agreed to form operational work teams and to create a common policy that will encourage investments in the energy sector,” said Đokić.
The Minister of Mining, Oil and Gas of Montenegro, Admir Šahmanović, reminded the audience that Montenegro is persistent on its way to become a member of the European Union in the near future and accordingly remains consistent with European values, which include reducing the use of fossil fuels while increasing RES capacity and improving the ecological image of the country.
When asked by the moderator what the new draft law on security of supply of oil derivatives in Montenegro brings, Šahmanović replied that the law provides for the formation of mandatory reserves in the amount of 90 days, that is, three months.
“Reserves will be partly kept as a finished product, i.e. one-third in Montenegro, while the rest of the reserves will be stored through contracts that enable the purchase of derivatives in extraordinary circumstances”, specified Šahmanović.
Decarbonization – an obligation and a challenge for the Western Balkans
The climate crisis, which is becoming more pronounced every year, obliges all the countries of the world, including the countries of the Western Balkans, to reduce the use of fossil fuels as soon as possible and approach the energy transition more decisively.
However, the transition to RES is not at all an easy task for the countries of the Western Balkans, bearing in mind that they have limited funds for the implementation of green energy projects.
Director for Bosnia and Herzegovina and Montenegro at the World Bank, Christopher Sheldon, noted that the region’s potential for green energy production is huge, both for meeting its own needs and for exporting electricity, which can provide the countries of the Western Balkans with a new source of income.
“In order to achieve the goals set for 2050, many investments in the green sector are necessary. We want to support investments both at the government level and in the private sector,” said Sheldon.
However, the centuries-old dependence on coal in the Western Balkans cannot be abolished overnight, especially due to the fact that many people are still employed in the coal industry. The solution to this problem can be severance pay and retraining of workers, and this is exactly what the World Bank is implementing, said Sheldon.
And since Montenegro is also under increasing pressure to implement decarbonization, Šahmanović pointed out that one of the main roles of the Ministry will be to actively reduce the use of fossil fuels, and that Montenegro has committed itself to significantly reduce greenhouse gas emissions by 2030. gardens and increase the share of RES in final consumption.
“We are also working on reducing the use of oil derivatives in transport and industry through the creation of measures under the National Energy and Climate Plan, which is expected to be adopted at the end of this year. The measures mainly refer to the gradual introduction of biofuels, but also to the development of other alternative fuels,” Šahmanović said.
Republika Srpska is also well on its way to stepping into a green future, although Đokić points out that the financing of sustainable energy projects is the biggest obstacle that slows down the energy transition of Bosnia and Herzegovina.
“We are aware that there is a big demand for decarbonization in front of us, and we entered that process with a full understanding of the goals. That’s why I want to emphasize the importance of cooperation, especially with European financial institutions, because we don’t have money and we don’t have the conditions to create money. And that is why we need the help of developed European countries in financing green projects, so that the Balkans do not fall behind on the path of energy transition and become some kind of black hole again”, said Đokić.
He added that about 50 small hydroelectric power plants were built in the Republic of Srpska, as well as a lot of small solar plants that reached a power of about 120 MW, which reflects great progress in the last few years. He also noted that investments in RES are accompanied by great pressure on the distribution network, which can endanger consumers, and expressed the hope that the inflow of finance and further regional cooperation will remove all these obstacles.
Eneretski portal
Source: energetskiportal.rs
