Publication Name

BALKAN VITAL GRAPHICS

BACKGROUND

MINING

WATER

NATURE

Blue energy

The region’s political and economic instability has discour-

aged any substantial investment in the energy sector. Ex-

cept for some places such as Kosovo, the Balkans have no

fossil fuel deposits, which are significant on a global scale.

The Balkan countries are neither big energy producers nor

consumers, so the region can rely on renewable energy to

cater for tomorrow’s growing electricity demand. Hydroelec-

tric power covers a significant share of electricity consump-

tion in the region (43 per cent in 2004). Hydroelectric power

dropped noticeably due to lower rainfall in 2002 and 2003,

but the increase in overall electricity consumption neverthe-

less seems likely to continue driving demand upwards.

Further development of hydroelectric power will depend on

several factors, perhaps the most important being market

deregulation. Specific measures are needed to encourage

hydroelectric power. One specific measure would be to

support new investment in production facilities, this being

the best way of meeting environmental challenges and im-

proving the stability of supply. It would also help to frame a

regional energy policy, promoting more sustainable forms

of energy production and consumption. Furthermore, to

develop a free market in the region, it is vital to set up in-

dependent authorities to manage electricity generation,

transmission and distribution.

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