Energy Poverty in the Western Balkans

In recent years, energy poverty has emerged as a critical issue across Europe. However, its impact is particularly severe in the Western Balkan region, where aging infrastructure, high energy prices, and widespread poverty intersect to create severe difficulties for many households. Energy poverty, defined as the inability to afford adequate heating, cooling, lighting, and access to essential energy services, is not just a technical issue. It is a question of basic human rights, social justice, and sustainable development.

Recent data indicates that approximately 25-30% of North Macedonian citizens live in energy poverty, struggling to adequately heat their homes and meet daily energy needs. Similarly, Kosovo reports that 40% of households are living in energy poverty, with Albania at 37%, Serbia at 22%, and Montenegro at 15%.​These numbers reflect the scale of the crisis and the urgent need for coordinated solutions.

One of the key drivers of energy poverty in the region is the heavy reliance on solid fuels, such as wood and coal. Nearly half of all households in the Western Balkans still depend on these traditional energy sources for heating. While they may seem affordable, the long-term costs are high, not only for the environment but also for public health. According to the European Environmental Agency, air pollution from burning solid fuels contributed to more than 30,000 premature deaths in the six Western Balkan countries in 2019 alone.

In response to the escalating crisis, the European Union has stepped in with a €1 billion Energy Support Package aimed at helping the Western Balkans navigate the energy transition. By June 2023, €450 million had already been disbursed to help vulnerable households and small and medium-sized enterprises (SMEs) cope with immediate energy costs. The remaining funds are earmarked for longer-term investments in energy efficiency, renewable energy, and regional energy independence.

Despite these efforts, many challenges remain. The energy crisis, exacerbated by the war in Ukraine and rising global prices, has made electricity and heating increasingly unaffordable for households and businesses alike. In countries such as Greece, electricity prices have risen by as much as 40% since 2022, showing that this is a regional problem with deep and far-reaching consequences.

The situation is further complicated by external factors, such as the recent freeze on USAID funding, which has stranded groups supporting marginalized communities in the Western Balkans. This highlights the need for more stable and diversified funding sources that can support long-term energy poverty alleviation efforts.

In conclusion, energy poverty in the Western Balkans is a pressing issue that demands coordinated action from local governments, international organizations, and the broader global community. By prioritising sustainable energy solutions and providing targeted support to vulnerable populations, the region can make significant strides toward reducing energy poverty and its associated health and economic impacts.

RELATED ARTICLES