“The greenest energy is the energy we don’t use”. This oft-cited sentence succinctly describes the role of energy efficiency in accelerating the green transition. Energy consumption in buildings accounted for 30% of global energy demand in 2022. Buildings are a crucial focus in the energy transition not only due to their already high share in energy consumption, but also because of the following trends and factors: rapidly growing global floor area; rapidly growing energy demand for space cooling; longevity of buildings, heating and cooling infrastructure, and related appliances, which determines that construction and purchasing decisions made today will shape energy use for years or decades to come.
Global energy consumption in buildings has slowly but steadily increased in the past decade (by an average of 1.1% between 2010 and 2022). Space heating represents the largest energy consuming end use in buildings. Although still dominated by fossil fuels, there lies significant opportunity in electrification, especially through progressively more widespread use of heat pumps, both in individual
households and for district heating networks.
Situation in the Western Balkans
To facilitate the integration of Western Balkan countries into the European Union (EU), the Stabilization and Association Process (SAP) framework was established in 1999 (and further strengthened in 2003). Among other objectives, such as political stabilization in the Western Balkans, the aim of the SAP framework is to help the countries build their capacity to adopt and implement EU law and other European and international standards. As of February 2024, Kosovo holds potential candidate status, while Albania is a step further and holds official candidate status.
Compared to countries that joined the EU in the most recent enlargements (Croatia in 2013, Bulgaria and Romania in 2007, and the 10 countries who joined in the “Big Bang” enlargement of 2004), Kosovo and Albania will face a greater legislative challenge. The previous, relatively modest, volume and depth of energy-related legislation has been expanded substantially, with new legislative acts designed to create and integrate not only energy markets per se, but also the strategic visions of the Member States regarding their energy transition toward sustainability.
Kosovo and Albania have both been contracting parties of the Energy Community (EC) since 2006. Membership in the EC holds a significant role in the countries’ paths to EU accession for several reasons:
- Harmonization with EU standards (energy policies, legislation, and regulatory frameworks);
- Access to the EU’s internal energy market;
- Membership in the EC can catalyze infrastructure development in EU candidate countries (transmission and distribution grids, interconnections, pipeline systems);
- Support for energy reforms (the EC offers technical assistance, capacity-building programs, and financial support).
In this report, we provide an overview of existing relevant policies and documents in Kosovo and Albania, including a brief assessment of the extent to which they align with EU-level policies. We have conducted a comprehensive analysis of both primary and secondary data sources. Primary data was gathered through interviews conducted with representatives from public administration bodies and with experts specializing in energy policy. Additionally, secondary data derived from government reports and publications by the European Commission and the Energy Community has been utilized to provide a robust framework for analysis. Furthermore, quantitative data has been incorporated to augment the depth and precision of the findings presented within this report.
