Skopje, 30 July 2026 (MIA) 

Biljana Anastasova-Kostikj 

If there is one lesson from the escalation of the conflict in the Middle East, it is that we need to break free of its dependence on fossil fuels and double down on energy, autonomy and accelerating the green transition. The Western Balkans is at a pivotal moment in its energy transition. The region has significant renewable potential and a strong strategic position, but converting that potential into reality requires faster and more coordinated action - the European Investment Bank (EIB) Representative to North Macedonia, Björn Gabriel, says in an interview with MIA. 

According to him, North Macedonia is on the right track, making encouraging progress. Several strategic priority projects have been launched but we all need to do more and faster collectively. 

The focus, he notes, must now shift to modernising the energy system, particularly grids, interconnections, and market integration, to accommodate a higher share of renewables. This, Gabriel points out, is essential not only for scaling up clean energy, but also for ensuring system stability and energy security.

In the full interview below, the Head of the EIB Representation in North Macedonia also discusses the need for more flexible and climate-resilient energy systems, as well as progress on integrating the Western Balkans into the European energy market.    

Mr. Gabriel, thank you for accepting the invitation to this interview for MIA. I will start with the most current issue – the energy crisis. The crisis in the Middle East has shown how vulnerable we are and how important it is for every country to work on energy independence. Experts say that North Macedonia has potential and opportunities. Are we making progress in this area, and what should we do to achieve results? 

If there is one lesson from the escalation of the conflict in the Middle East, it is that we need to break free of its dependence on fossil fuels. We need to double down on energy, autonomy and accelerating the green transition. 

North Macedonia is making encouraging progress. Renewable energy capacity has expanded significantly, now exceeding 50% of installed capacity and around one-third of electricity generation. The country has also advanced well in aligning its legislation with EU standards and benefits from strong international support.

The government’s decision to establish a dedicated Ministry of Energy, Mining and Mineral Resources in 2024 demonstrates a strong commitment to sustainable energy path. Renewable capacity has expanded rapidly since 2022, driven mainly by solar. While wind energy remains underdeveloped, the country has set ambitious targets of 300–500 MW by 2030, subject to grid capacity. At the same time, efforts are underway to expand and modernise the electricity network. The EIB is also supporting energy security through financing the construction of the gas interconnector with Greece, including a 68 km pipeline segment in North Macedonia, forming part of the broader 123 km cross-border project. 

The focus must now shift to modernising the energy system, particularly grids, interconnections, and market integration, to accommodate a higher share of renewables. This is essential not only for scaling up clean energy, but also for ensuring system stability and energy security.

The Western Balkans region, which includes North Macedonia, faces challenges in energy supply and still produces energy from fossil fuels. On the other hand, the Western Balkans is working on aligning its legislation with the European Union. Among the Western Balkan countries, how do you assess North Macedonia’s progress?

As in other countries in the region, progress is evident; however, phasing out coal requires a flexible and well-functioning energy system. Much of the energy infrastructure across the Western Balkans remains outdated, while grid upgrades and digitalisation efforts are still ongoing. These improvements are essential to accommodate higher shares of renewable energy, which are variable. The system therefore needs sufficient flexibility to balance fluctuations, enhance energy efficiency, and integrate distributed generation effectively.

Achieving a stable and balanced energy supply also requires the development of energy storage capacities, particularly battery systems, which are currently deployed only at a limited scale.

Finally, it is essential to ensure that the energy transition is just and inclusive, both in terms of environmental outcomes and its impact on the workforce. This requires well-designed adaptation measures and social policies to ensure that no one is left behind during the transition process.

In a recent interview with MIA, you assessed that outdated energy systems in the Western Balkans are particularly vulnerable to climate change. From today’s perspective, do you see progress in this regard? Are the countries of the Western Balkans working on modernization and resilience of their energy systems? 

Indeed, we are already seeing rising temperatures and increasingly volatile weather patterns across the region, leading to more frequent extreme events such as floods and droughts. This underscores the urgent need for more flexible and climate-resilient energy systems. In practical terms, this means investing in weather-resilient infrastructure, as well as smart grids that can automatically reroute power during disruptions. For hydropower, it also means upgrading dams and improving water management to cope with more variable rainfall.

We can see many positive examples already. For example, we are supporting hydropower rehabilitation projects in Serbia to improve efficiency and strengthen renewable generation capacity. A €100 million investment is helping upgrade major facilities, including the installation of a new 13 MW unit at Potpeć.

However, just adding more renewable power sources is not enough. Electricity grids also need to be upgraded and made “smarter” to integrate more renewable energy sources smoothly. In Serbia for example, we are financing the installation of advanced electricity meters, as part of the country’s wider electricity grid modernisation programme, to increase energy and system efficiency. We are also extending similar initiatives to Bosnia and Herzegovina, reinforcing regional cooperation and accelerating the transition toward a more resilient and sustainable energy system.

Recently, you participated in a panel at the Macedonian Energy Forum held in Skopje, dedicated to mobilizing capital to accelerate the development of renewable energy sources and energy storage. You also discussed the next steps for connecting the Western Balkans region to the European energy market. How close is the Western Balkans to achieving this goal? 

The Western Balkans is at a pivotal moment in its energy transition. The region has significant renewable potential and a strong strategic position, but converting that potential into reality requires faster and more coordinated action. Progress on integrating the Western Balkans into the European energy market is progressing, particularly in regulatory alignment, but unevenly. Physical interconnections are already in place and heavily used, and countries have made significant advances in aligning their legislation with EU rules, which is a prerequisite for market coupling. Deeper integration would also enable more efficient balancing of supply and demand through cross-border trade, while also ensuring more effective use of surplus energy.

At the same time, CBAM entered its definitive regime on 1 January 2026, following a transitional reporting phase from 2023 to 2025. It pushes countries to accelerate reforms, introduce carbon pricing, and align more closely with the EU system.

To help companies adapt, the EIB initiated the country’s first Decarbonisation Guide in 2025, alongside the EU Delegation and the country’s Economic Chamber. This free online tool helps companies measure carbon footprints and adopt decarbonisation strategies.

Further energy market integration will depend on accelerating market coupling, strengthening cross-border infrastructure, and scaling up investments in renewables and storage. The direction is clear, but the pace of implementation now needs to match the ambition.

As the head of the European Investment Bank in the country, what message would you send to the Macedonian authorities and citizens? 

Two important points come to mind. First, the transition succeeds when people experience benefits. Wind and solar are no longer just cleaner, they are now also significantly cheaper than new fossil-fuel power, in some cases by more than 50%.

Second, the international financing tools, policy frameworks and partnerships are largely aligned in their direction and ambition. What we now need is the domestic institutional capacity to deliver a well-planned and executed energy transition.

North Macedonia is on the right track, and several strategic priority projects have been launched but we all need to do more and faster collectively. And here is where the EIB has a very important role to play thanks to financing and advisory capacities it can deliver to our local partners in cooperation with the EU Delegation.

Last year alone, we mobilised over 100 billion euros in clean energy investment in the EU alone. We are financing around half of all ongoing grid and inter-connector projects, one in five solar plants, one in three onshore wind projects and the majority of offshore wind development.

We are also supporting similar projects across the region - from two wind farms in Bosnia and Herzegovina expected to supply clean electricity to around 93,000 households and cutting CO₂ emissions, to solar generation near Priština that will strengthen cleaner energy mixes and resilience.

In North Macedonia, our €100 million green credit line implemented by the Development Bank of North Macedonia is empowering companies to invest in energy efficiency, renewable energy, and sustainable technologies. To date, the initiative has supported 52 renewable energy projects with a combined installed capacity of 105 MW. We are looking for new opportunities to expand our support in the country’s energy sector.

Photo: EIB