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A new report published by the European Commission’s Joint Research Centre examines the main regional challenges and competitiveness pressures linked to the energy transition in the Western Balkans.
The publication, Energy transition in the Western Balkans: Main regional challenges and competitiveness pressures, highlights that the region is entering the energy transition under structurally demanding conditions. High carbon intensity, ageing energy infrastructure, continued reliance on coal and hydropower, and growing pressures from EU climate policy and market integration all shape the region’s transition pathway.
The report analyses the implications of decarbonisation for competitiveness, energy security and economic development across the Western Balkans. It draws on quantitative indicators and qualitative evidence to identify key barriers to implementation, including outdated grid infrastructure, limited institutional capacity and restricted access to finance.
While renewable energy deployment is accelerating, the report underlines that successful decarbonisation will depend on stronger implementation capacity, large-scale investment in energy infrastructure and better alignment between energy transition policies, competitiveness strategies and place-based transformation approaches.
The publication is particularly relevant for ongoing debates on Smart Specialisation, industrial transformation, green transition and the role of strategic policy frameworks in supporting sustainable development across the Western Balkans.
The report was authored by Lazar Živković, Emanuele Fabbri, Dijana Štrbac, Petar Mitić and Isidora Ljumović and published by the Publications Office of the European Union on 27 May 2026.