Providing a secure and reliable energy supply has been critical to sustaining economic growth in the Western Balkan region. The region heavily relies on imported hydrocarbons that put a strain on producers to meet demand and, when this is not satisfactorily met, aggravates end-users who suffer from undersupply. The electricity sector is largely dominated by coal, predominantly highly polluting lignite, except for Albania which gets almost all of its electricity generation from hydropower. The region is experiencing significant electricity shortages and rationing during peak times in winter. This is due to insufficient investments and maintenance of aging infrastructure and the widespread use of electricity for space and water heating.
Responding to this problem, WBIF has provided a grant for a regional sector study on biomass-based heating in the Western Balkans. Biomass is the most important heating energy source in the Western Balkans, accounting for over 40% of the energy required for heating. However, a significant share of biomass has been used inefficiently because of outdated equipment and the lack of wood drying before use. To address these challenges, improvements in policy and regulatory frameworks, an increase in the volume of sustainable biomass supply accessible to the market, and investments in efficient biomass-based heating technologies are all needed.
The WBIF-funded sector study presented a comprehensive roadmap of recommended actions in the short-term (until 2020), and medium to long-term (until 2030). Indeed, the study concluded that there are significant economic opportunities for investments in increased and more efficient use of biomass in the region, and the benefits outweigh the costs.
