Electricity, Digital and Regional Interconnectivity in South East Europe

This high-level event formally launched the new OECD project Electricity, Digital and Regional Interconnectivity in South East Europe, funded by Greece with co-financing from Romania. Through September 2027, the project will contribute to identifying areas for improving the energy policy framework, focusing on electricity, for a smarter, better connected and more efficient South East Europe.  It will provide a mix of analytical work and capacity-building activities to enhance the electricity sector in the South East Europe region, focusing on four Western Balkan economies: Albania, Kosovo*, North Macedonia and Serbia.

The Western Balkans (WB6) are undergoing a transition toward EU integration including in the energy sector, driven by the Green Agenda for the Western Balkans and the commitment to develop integrated National Energy Climate Plans. However, progress in energy reform remains slow due to weak institutions and delayed implementation. The region faces major challenges from ageing, coal-based infrastructure, high electricity losses, low energy productivity, and limited cross-border connectivity. Heavy reliance on fossil fuels and hydropower, insufficient renewable diversification, and slow digitalisation of grids hinder decarbonisation and energy security. While policy alignment with the EU has advanced—through market liberalisation, renewable auctions, and organised electricity markets—investment gaps and structural inefficiencies persist.

Greece and South East Europe are accelerating the energy transition, with Greece committing to coal phase-out by 2028, major emissions reductions, and large-scale renewable deployment. Significant investments in grid modernisation, interconnections, offshore renewables, and digital technologies (including AI-based system management) position Greece as a regional leader. Stronger electricity interconnectivity between Greece, the Western Balkans and South East Europe could enhance energy security, market integration, and support the region’s green transition.

The event officially launched the OECD project Electricity, Digital and Regional Connectivity in South East Europe. The event has been hosted by Mr. Stavros N. Papastavrou Minister of Energy of Greece, and gathered ministers and high-level level representatives from Greece, Romania, Bulgaria and the Western Balkan economies, and from selected OECD Members. 

The event offered the opportunity to:

• Share global and regional insights on improving energy connectivity and sustainability in South East Europe;
• Establish regional policy priorities and key reform areas in the electricity sector; and
• Assess current barriers to developing the green, digital and infrastructure investments needed in the electricity sector in the Western Balkans.

This event was hosted by the Government of Greece in partnership with the OECD, in collaboration with the Delphi Economic Forum.

For more information on the project, please contact:

Marzena Kisielewska, Head of Division - Project Lead

Hana Aljevic, Policy Analyst - Project Manager

Dafina Marashi, Policy Analyst - Project Manager