CHANGES IN THE ENERGY POLICIES OF EU CANDIDATE COUNTRIES: ANALYSIS OF CASES IN THE WESTERN BALKANS

Abstract

Changes to the energy policies of EU candidate countries in the Western Balkans have been analysed. Three areas of change in these countries' energy policies have been identified: 1) the liberalisation of electricity and gas markets, 2) the development of renewable energy sources, and 3) integration with the EU energy system. It is noted that meeting EU decarbonisation requirements is problematic due to these countries' continued reliance on fossil fuels. The Western Balkan countries are reforming their energy sectors at different speeds, with varying degrees of dependence on hydrocarbon energy sources and Russian energy supplies, and thus have different starting conditions for synchronisation with the EU's energy and climate policy. Albania, Montenegro and North Macedonia are performing better than Bosnia and Herzegovina and Serbia. The high proportion of coal-fired power generation, especially in Serbia and Bosnia and Herzegovina, poses a significant challenge to the transition to a carbon-free economy. The efforts of EU institutions to provide Western Balkan countries with access to financial instruments for developing renewable energy sources, modernising infrastructure and improving energy efficiency are highlighted. The geopolitical nature of energy in the Western Balkans region was emphasised. Dependence on Russian energy imports, as well as Chinese financing of coal and infrastructure projects, creates competition between the EU, Russia and China. According to the author, changes in energy policy in the Western Balkan states are shaping not only the region's new energy architecture, but also testing the EU's ability to influence other states through soft power reforms.