Transforming the Western Balkans’ power system: Robust pathways for a lignite phase-out by 2040

The Western Balkans region is the last major frontier for new lignite-fired power plants in Europe. Currently, about six Gigawatt of new lignite capacity is being planned – either with Chinese or unclear financing but generally, in contradiction with the State aid rules and air pollution limits that apply to EU countries, but also to the Western Balkans. There is therefore an urgent need to develop ways to redirect this investment from coal to clean technologies. In this light, Agora Energiewende has commissioned a study to Enervis Energy Advisors to derive pathways for a lignite phase-out in the Western Balkans region by 2040. The study shows that building new lignite plants is financially not viable and that a lignite phase-out that is based on a lignite-to-renewables switch is economically feasible and ensures security of supply and clean air. On May 27, Christian Redl and Sonja Risteska, both from Agora Energiewende, as well as Rita Kunert from enervis presented the main results of the study