Energy Infrastructure Improvements Critical for Balkan Market Integration, Say Experts

Infrastructure improvements across the Western Balkans are urgently needed to support the region’s energy transition, experts revealed at Energy Week Western Balkans 2024. Panellists stressed that while market coupling initiatives, such as Montenegro’s upcoming integration with Italy’s power market, are essential, these will be ineffective without robust transmission and distribution infrastructure. Montenegro’s CEO of the Power Exchange, Dejan Drašković, noted that high-quality infrastructure is critical to ensuring market stability and reducing reliance on fossil fuel imports. 

The European Investment Bank (EIB) has already made significant investments to support grid improvements in the region. A representative from EIB shared details of their projects to modernise outdated grid systems, such as upgrading analogue to digital meters and funding transmission enhancements to reduce grid losses. Yet, experts warned that achieving a fully integrated market requires even greater cooperation and coordination on transnational grid projects. 

Participants also pointed to the potential benefits of additional cross-border interconnections, such as Montenegro’s planned cable link with Italy, which would enable increased power trade with the EU. Analysts argue that a well-connected grid can attract more investments, stabilise energy prices, and increase grid resilience, which is essential for supporting the region’s growing renewable energy capacity. With billions of euros in renewable investments at stake, infrastructure will remain a top priority to unlock the Balkans’ renewable energy potential and bolster energy security.