Implications of EU Accession for Renewable Energy Investments in the Balkans: The cases of the Republic of Bulgaria and the Republic of Serbia
2018
Lucic, Antoine
The topic of energy, and particularly, the growing role of renewable energy sources in decarbonizing the economy dominates European political and research agendas. Similarly, a revived political interest in Western Balkan countries from the European Union (EU) sheds light on the longstanding efforts of legislative harmonization and the modernization, decarbonization and integration of the regional energy infrastructure. This thesis investigates the impact of EU membership on energy investments in the Balkan region, using Bulgaria and Serbia as case studies. Energy investments are dependent on the investment climate and the investor type. By identifying the key factors in the literature that influence these two variables, this thesis provides an in-depth overview of the socio-economic context, the legislative frameworks in place, and the contemporary energy profile in a comparative format. Supplemented with insights from regional experts, this thesis compares an EU member state (Bulgaria) with a non-EU member state (Serbia) while factoring the influence of characteristics, such as a historical centrally planned economy, coal-fueled electricity production, a level of perceived corruption and a techno-economic potential for renewables. Nonetheless, the findings show distinctive features that consequentially help explain the difference in the energy investment landscape. While significant legislative and investment involvement from the EU is not without its faults and contradictions, this thesis concludes that EU membership has previously, and may further provide the financial mechanisms and policy frameworks necessary to enable a considerable growth in renewables deployment in the Balkan region.
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