energy impact delays transition of Balkans, among the most polluted places on Earth

Since the Russian invasion of Ukraine, rising energy prices have been the subject of government measures to protect consumers, as in France or Spain. But other poorer countries in Europe are reduced to keeping their extremely polluting power stations.

Since the war in Ukraine and the energy crisis, Europe must carry out its energy transition while taking care of consumers’ wallets. A difficult challenge for governments who must deal with political opposition and internal resources that favor certain types of energy.

In Spain as in France, anti-crisis shields are struggling to end and the end of certain exemptions is seen as unfair tax increases in these times of inflation. Meanwhile, countries with the cheapest electricity in Europe are paying a heavy price in terms of pollution. The capitals of the Balkan countries are among the most polluted cities on the planet and often exceed the large Chinese or Indian metropolises.

Spain ends tax cuts on electricity and gas

In Spain, part of the anti-crisis system will be extended for at least six months, particularly for foodstuffs and public transport. This will not be the case for tax cuts on electricity and gas. These provisions will gradually disappear in 2024, “taking into account the gradual decline in energy prices, which has fortunately been taking place over the past year“, said the head of the Spanish executive, Pedro Sánchez, at the end of December 2023. The Spanish government wants to guarantee social justice, but it wants to reduce Spain’s public deficit to 3% in 2024.

Spanish consumers will therefore see their gas and electricity bills rise. Meven if they knew that the measure was temporary, they fear this return to normal in the middle of winter. The main opposition party, the Popular Party, has criticized these tax increases, as have certain consumer associations who are calling for VAT on electricity to be maintained at 5% permanently in order to protect Spanish households. .

In the Balkans, pollution peaks every winter

There is one place in Europe where electricity prices have not yet reached peaks, and that is the Balkans. Dn the different rankings which compare electricity prices, we find almost all the countries in the region among the least expensive on the continent. According to the latest data from Eurostat, the price per kilowatt hour is two or even more than three times lower than that of the average of the 27 countries of the European Union. In Bosnia-Herzegovina and Serbia, the kilowatt hour is around 9 euro cents, compared to 23 cents in France. Kosovo wins the prize for the cheapest electricity in Europe with a kilowatt hour costing just 6.7 cents.

In Kosovo, electricity prices are subsidized for households and the average salary in Kosovo is just €450. But this cheap electricity is far from guaranteed: in 2023, in the midst of an energy crisis linked to international tensions, the country will have to import up to 40% of its electricity. Authorities were forced to impose daily cuts, and they also doubled prices for the biggest consumers.

But this Electricity is far from green. Dn the countries of the region, the vast majority of electricity is still produced from power plants built in the 1960s and 1970s, during the era of socialist Yugoslavia. These dilapidated power plants use lignite, a poor quality coal that is extremely polluting. As a result, every winter, Sarajevo, Belgrade or Pristina experience pollution peaks and are among the most polluted cities on the planet. They often exceed the large Chinese and Indian metropolises.

Agreements difficult to respect to enter the EU

According to studies by various NGOs, the 16 coal-fired power plants in the region emit as much sulfur dioxide as the 250 power plants in the rest of Europe. The European Environment Agency estimates that this air pollution is responsible for more than 30,000 premature deaths per year.

The Western Balkan countries, all candidates for the European Union, have signed international agreements and committed to reducing their emissions. But for the moment, the transition to greener energies is having difficulty getting underway. In addition, in the current context of wars and tensions on the energy market, governments in the region do not want to give up this inexpensive electricity, especially since most countries have significant mineral reserves. . The subsoil of Kosovo, for example, is home to the 5th largest lignite deposit in the world.