With over €1 billion invested in energy efficiency and growing demand for more investments, the Regional Energy Efficiency Programme (REEP), established by the Western Balkans Investment Framework, remains a key instrument for the region's green transition. 

This was the conclusion of a meeting held on 19 November in Skopje, gathering key programme stakeholders and financiers, including representatives of the European Commission, the EU Delegations in the region, the European Bank for Reconstruction and Development, the German Development Bank (KfW), and the Energy Community Secretariat. 

The stakeholders met to take stock of the programme's achievements to date and discuss its continuation, the growing demand for investments and future grant funding from the EU. 

Since its launch in 2013 at the initiative of the European Union, the programme, which combines EBRD and KfW loans with EU-funded investment grants, incentives, and technical assistance, has supported the six Western Balkans countries in drafting and transposing around 90 EU energy regulations. 

Furthermore, more than 34,000 households and 2,000 small businesses have invested or will invest in energy-saving measures and renewable energy sources, improving their living standards while reducing energy use and associated costs. In addition, 540 public buildings, such as student dormitories, schools and health institutions, will be refurbished with improved energy efficiency standards. 

Steffen HUDOLIN, Head of Cooperation in the EU Delegation to North Macedonia, welcomed the participants, emphasising that "the 12 years of the successful implementation of the REEP would not have been possible without the commitment of all the parties involved, including countries of the Western Balkans. Boosting energy efficiency by investing in new green technologies, supporting energy savings, are the focus of the REEP interventions.” Once completed, these investments are estimated to reduce CO2 emissions by the equivalent of removing 190,000 cars from the streets and, for Skopje and other capitals in the region, this directly contributes to decreasing air pollution and creating a more sustainable and green urban living.

Mauro DI VEROLI, Head of WBIF, DG NEAR underlined that “REEP is a programme of strategic importance for the EU, contributing to the implementation of the Renovation Wave flagship of our Economic and Investment Plan, the Green Agenda for the Western Balkans and the Reform and Growth Facility. REEP helps our partners in the Western Balkans achieve the targets set up by our strategic documents while greening and decarbonising their economies.” The Western Balkans region's energy productivity continues to be significantly below the EU-27 average, indicating a need for structural energy efficiency investments and a persistent need to align national legislation and policies with EU standards (updating energy efficiency laws, implementing by-laws, adopting long-term building renovation strategies, etc). While many investment projects supported by EU WBIF grants are already completed or ongoing, the EU remains committed to continue supporting the Western Balkans region in scaling up energy efficiency investments in the future.

Pablo Obrador, Head of the Division of Energy Southeast Europe and Türkiye at KfW, stressed that “REEP has shown to be an effective instrument to promote energy efficiency and renewable energy and is contributing to accelerate the implementation of the Green Agenda and energy transition in the Western Balkan countries but still there is a huge demand for funding. Therefore the financial institutions and the EU Commission shall join efforts to mobilise additional funds for the REEP programme."

Matteo Colangeli, EBRD Regional Director for Western Balkans: "We see a growing demand for investments in the energy efficiency sector, and we are very keen to support the countries in delivering on their commitments and fulfilling conditionalities agreed under the Reform and Growth Facility. We are also keen on scaling up investments in decarbonising energy sources because these investments improve air quality, which is critical for this region."

See more photos from the event in the gallery:

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About the Regional Energy Efficiency Programme (REEP):

The Regional Energy Efficiency Programme in the Western Balkans (REEP) aims to create a sustainable energy efficiency market in the region. The programme provides a combination of financial instruments for private sector and individual households, technical assistance and policy dialogue support for public institutions to overcome market obstacles and stimulate long-term market growth. 

REEP is implemented by the European Bank for Reconstruction and Development (EBRD) and the German Development Bank (KfW) with the support of the EU and other bilateral donors. To date, REEP has provided more than €300m in credit lines and €150m in direct lending for 1,000 SMEs, more than 12,700 households and 290 public buildings. This has contributed to almost 1 million MWh/yr in energy savings.  

REEP is identified in the European Commission's Economic and Investment Plan for the Western Balkans as one of the flagship projects within the "Renovation Wave" under the investment window "Clean Energy". These projects contribute significantly to the reduction of greenhouse gas emissions and improve the living standards and health of citizens.