Energy Efficiency in the Western Balkans: The Case of Kosovo

In light of the growing energy demands and the need for sustainable development, this study aims to assess the current state of Kosovo's energy system and evaluate potential pathways for its modernization and integration into the European energy market. The case study analysis was carried out to contextualize the emergence and development of the Western Balkans’ energy system and suggest strategies for its improvement, with a special focus on the Republic of Kosovo. The case study analysis was guided by industry reports and peer-reviewed journal articles published since 2020 and selected based on their relevance and credibility. The contextual assessment revealed that after Yugoslavia’s breakup in the early 1990s, its former members inherited a fragile and outdated system that did not meet quality and safety standards. The cost-benefit analysis, which was carried out as a part of this study, revealed that the potential advantages of modernizing Kosovo’s energy system and integrating it into the pan-European market outweigh existing limitations. The identified benefits included accelerated economic growth, as reflected in the gross domestic product; rapid industrialization and urbanization of the country; participation in the European Union projects aimed at diversifying the energy portfolio, creating new jobs, and shifting toward clean energy sources; and liberalization of the energy sector to improve the quality of services received by different population groups and sectors of the economy. To take advantage of the mentioned benefits, the Republic of Kosovo recommended several short-term, mid-term, and long-term interventions, including efficient use of electricity to reduce demand, diversification from lignite coal, and a shift towards renewable energy sources.