The energy future of WB6: Progress is being hampered by political upheavals and a lack of local capacity
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3 year ago
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There are many international organizations ready to help the energy transition in the Western Balkans with expertise and funding, but these countries need a certain level of domestic capacity and planning ability to make the most of this, says Ms. Pippa Gallop, Southeast Europe Energy Expert.
In an interview for KosovaPress, she says that the countries of the Western Balkans should learn from the energy crisis that has gripped many countries of the world not to invest in the construction of gas infrastructure, but instead to move directly to the renewable energy.
Interviewed by: Fadil Miftari
Full interview:
KosovaPress: Prices of natural gas, electricity and oil have risen to record levels worldwide over the past month, raising fears that a new global energy crisis is imminent. Some countries in the Western Balkans are alarmed. Will there be an energy crisis in the Western Balkans? Which countries can be affected more and which less this crisis?
Gallop: I cannot predict the future; however, the crisis is primarily caused by a shortage of gas in Europe during a period of high demand. Because of this, the countries that are most dependent on gas for heating and electricity generation are the most affected. However due to the impact this has on electricity prices on the European market, all countries are affected to some extent because electricity is traded across borders. This is a strong lesson to the Western Balkans not to invest in building up its gas infrastructure but instead to go straight for the renewable energy.
KosovaPress: Why is the Balkans still far from an energetic transition and does it have the power for a fresh start?
Gallop: Although still in the early stages, an energy transition is for sure starting in the Western Balkans, with some countries more advanced than others. North Macedonia is a frontrunner, having pledged to phase out coal power by 2027. Kosovo has started to speed up with wind turbines construction, and Montenegro and Albania have large solar projects underway. But it is true that only a very small percentage of electricity and heat currently comes from solar and wind energy. We recently did a whole study with the Friedrich Ebert Stiftung looking at barriers to transition and it seems to vary by country. Serbia and Bosnia and Herzegovina have strong state capture by the publicly-owned utility companies and a highly clientelist relationship between the companies and the governments. In other countries like Kosovo, North Macedonia and Montenegro we see more political will to speed up the transition, but progress is hampered by political upheavals and a lack of capacity among the authorities.
There are many international bodies willing to help the Western Balkans' energy transition with expertise and funds, but a certain level of domestic capacity and planning ability is indeed needed to make the most of this.
KosovaPress: What role can other external factors play, e.g. The European Commission, to help the countries of the Western Balkans start the energy transition?
Gallop: The European Commission should be playing a key role but we see some issues with their current approach. One is that all of the countries in the region are failing to comply with various obligations under the Energy Community Treaty, but the European Commission is hardly reacting at all, at least in public. In our opinion, funds from the pre-accession instrument, IPA, should be conditioned on complying with the Stabilisation and Association Agreements and the Energy Community Treaty, but they are not.
Now the EU is coming with increased IPA funding and this Green Agenda for the Western Balkans, but there are still no real conditions attached in terms of making sure the countries comply with EU legislation and policies.
Another issue is that the European Commission is clear in its messages that coal is not part of the future, but instead it often promotes gas, which is completely the wrong direction for Western Balkan countries to go. Gas is a fossil fuel just like coal and it will have to be phased out in the next 2-3 decades, so there is no point in building a lot of gas infrastructure and then having to replace it before the end of its economic lifetime. We are very frustrated that the Commission sometimes acts as the gas industry's lobbyist instead of promoting truly renewable solutions.
KosovaPress: What measures should be taken to more easily cope with the announced energy crisis? Due to political problems, the countries of the Western Balkans do not have a legacy of energy cooperation. In order to cope more easily with the announced energy crisis, should these countries start closer cooperation in this field?
Gallop: I'm not sufficiently informed about the impacts of short-term measures to be able to comment. But for the longer term, investing in sustainable forms of renewable energy - and avoiding gas - is a must. If the EU countries had been quicker in implementing their own energy transition, this crisis would not have happened.
In order to use a higher share of wind and solar, closer cooperation among the Western Balkan countries is essential. Electricity needs to be able to be freely traded over borders in order to move flexibly to where it is needed.
KosovaPress: A few weeks ago, at the EU-Western Balkans Summit held in Slovenia, an agreement was reached on an Action Plan for the “Green Agenda for the Western Balkans, you have expressed reservations about this plan. Why?
Gallop: The Green Agenda contains a lot of positive measures and it would be great if they are implemented. But the problem is that it has no fixed deadlines, and there are no consequences for not implementing it. I'm also afraid that it might divert attention from pre-existing obligations that the countries have, eg. to adopt EU legislation under the Energy Community Treaty or the Stabilisation and Association Agreements. Adoption and implementation of legislation is the foundation for the system to function, and additional measures will not work if the legal framework and enforcement is not functioning.
KosovaPress: The Green Agenda for the Western Balkans, in a way, aims to exclude the use of coal for energy production, while Kosovo is completely dependent on coal. Do you believe that Kosovo will be able to fulfill the action plan of the Green Agenda for PB with the foreseen deadlines?
Gallop:The Green Agenda “indicative timeframes” are quite generous so I believe it is quite possible for Kosovo to meet them, with adequate support from the EU. For example, the Climate Law that should be adopted under the Green Agenda only requires Kosovo to stop using fossil fuels by 2050.
This will take some effort e.g., in the transport sector, but in the electricity sector I think it will become uneconomic to use coal or gas long before this. Kosovo's coal plants are anyway old, so the main thing is to quickly replace them with solar and wind and to reduce Kosovo's huge energy wastage in the electricity distribution network. Kosovo's connection with Albania is also very important here so that Albania's hydropower can help to balance the solar and wind generation.
/ Mrs. Pippa Gallop is the research coordinator for CEE Bankwatch Network, a network of civil society organizations working across Central and Eastern Europe to ensure that people and the environment benefit from public money. Based in Zagreb, Pippa is focusing on ensuring that the new energy infrastructure in Southeast Europe is environmentally and economically sustainable. /