The European Commission proposed to the WBIF Operational Board a support package of €87.7 million for clean-energy investments in the Western Balkans worth a total of €487.3 million. These investments, focused on electricity, hydropower and solar heating, will be the first to be financed by the Reform and Growth Facility under the EU’s Growth Plan for the Western Balkans, and will be rolled out through the WBIF in cooperation with Western Balkan partners and international financial institutions.
Investments in three projects in Montenegro:
- Herceg Novi – Vilusi Overhead Transmission Line
This investment project builds a 38 km 110kV overhead transmission line between Vilusi and Herceg Novi, increasing the networks’ transmission capacity and reducing energy losses.
- SCADA Introduction in the Montenegrin Distribution System
This investment project updates Montenegro’s grid with smart metres and an advanced management system to improve efficiency, cutting losses by 30 GWh per year and supporting renewable energy.
- Trans-Balkan Electricity Corridor: Brezna Substation
This investment project upgrades the Brezna substation to 400/110/35 kV to strengthen the grid, support renewable energy investments and reduce energy losses by 13 GWh per year.
Background
The Growth Plan for the Western Balkans was adopted by the Commission on 8 November 2023. The Plan aims to integrate the Western Balkan partners into the EU’s Single Market, advance regional economic cooperation, deepen EU-related reforms and increase pre-accession funding to accelerate socio-economic convergence of the Western Balkans with the EU.
The Growth Plan incentivises enlargement partners’ preparations for EU membership, by bringing forward some of its benefits ahead of full integration into the EU. This in turn should significantly speed up the enlargement process and the growth of their economies.
The Growth Plan has the potential to double the size of the Western Balkan economies within the next decade. To support this process a new €6 billion financing instrument, the Reform and Growth Facility for the Western Balkans was adopted for the period 2024-2027. The Plan is based on four pillars, aimed at:
1. enhancing economic integration with the European Union’s Single Market;
2. boosting economic integration within the Western Balkans through the Common Regional Market, based on EU rules and standards;
3. accelerating fundamental reforms, including on the fundamentals cluster, supporting the Western Balkans’ path towards EU membership, improving sustainable economic growth including through attracting foreign investments and strengthening regional stability; and
4. supporting convergence with the EU through increased financial assistance.
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