The carbon intensity of Western Balkans and SEMED economies is high and the energy demand is growing steadily in both regions. Most countries of the regions rely on fossil fuels for their electricity. The potential for RE applications is high but remains largely untapped, despite significant decreases in prices and improved energy storage solutions. Auctions emerged lately as the most cost efficient and transparent instrument to support investments in renewable energies. The proposed Program, co-financed with EBRD, aims to assist countries in designing and implementing RE auctions to foster investments in renewable energies.

The overall objective of the Program is to scale-up renewable energy investments by building capacity in designing and implementing RE auctions in the Western Balkans and the SEMED region. The Program will focus on 1) enhancing the overall regulatory and institutional framework- 2) providing transaction advisory support for RE auctions up to financial close and 3) building capacity and transferring knowledge according to best practices. The program will mobilise private funds for climate change and these will be accounted for, according to OECD rules. SECO’s contribution is planned to be of 5 mio CHF and to target five countries. Three countries have been already identified, namely Kosovo, Serbia and Egypt. The remaining two countries will be chosen among the following: North Macedonia, Bosnia Herzegovina, Jordan and Lebanon.

Outcome 1: Greenhouse gas (GHG) emissions saved or avoided in t CO2eq

Outcome 2: Private sector investments in sustainable energy markets is leveraged. EUR 250 million are mobilized in the countries supported by the Program

Outcome 3: The power capacity (MW) of RE installed thanks to auctions is increased within the countries supported by the Program. A total of 250MW is installed in the countries supported by the Program

Outcome 4: National authorities of the countries supported by the Program have increased their capacity to design and hold auctions.

Expected results:  

Output 1: 5 Western Balkans and SEMED countries are supported in the Program

Output 2: 5 auctions are designed and successfully closed

Output 3: Number of people trained to design and implement auctions (tbd in the first year of the Program)

Output 4: The regulatory framework for renewable energy is improved through the development/refinement of regulatory documents