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Balancing energy security and decarbonization: Challenges for Southeastern Europe

The issue of decarbonization has taken on new significance due to high energy security requirements. A key challenge is how to balance the growing demand for energy security with the need to advance decarbonization efforts.

While the EU is committed to achieving net-zero greenhouse gas emissions by 2050, Southeastern European (SEE) EU member states still face significant challenges, including dysfunctional energy markets, inadequate long-term planning and a heavy reliance on fossil fuels. These issues hinder the region’s decarbonization goals.

The “Clean Energy for All Europeans” package introduced the Regulation on the Governance of the Energy Union, which requires standardized national energy and climate planning, with binding targets set at the EU level. Each country must submit a National Energy and Climate Plan (NECP) for 2021-2030 and update it by 2024. These plans must include long-term strategies, revised every five years, to address energy security and decarbonization.

For SEE countries, this framework offers both opportunities and challenges. While the absence of binding national targets provides flexibility, there are concerns that countries with vulnerable energy systems may adopt less ambitious plans to protect their energy security.

The energy mix in SEE is heavily reliant on coal and lignite, but transitioning to a higher share of renewable energy is feasible with strategic planning, investments, and transparent energy markets. A successful decarbonization in the EU requires understanding the unique challenges of SEE countries and providing targeted policy interventions and funding.

Key factors hindering the energy transition in SEE include:

  1. State control and lack of accountability: State-owned utilities have undue influence, and non-transparent energy deals with countries like Russia and China persist.
  2. Outdated energy system views: There is often a lack of understanding of the speed of necessary changes and poor policy decisions.
  3. Inadequate implementation of EU rules: Many SEE countries do not fully adhere to EU environmental, climate, and energy regulations.
  4. Lack of political will to close coal mines: Political pressures, especially from coal mining unions, prevent commitment to a coal phase-out.
  5. Resistance to market reforms: Opening energy markets and adjusting tariffs is politically difficult in many countries.
  6. Political instability and lack of capacity: A shortage of skilled staff in governments hinders progress, despite political support for energy transition in some countries.
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