Authors: Kristijan Trajchov and Erlida Mulaku
The thermal power plants REK Bitola and REK Oslomej In North Macedonia remain the main producers of electricity, making the country one of the most coal-dependent in the region.
Similarly, according to the official website of the Kosovo Energy Corporation (+KEK), the state-owned company responsible for electricity generation and coal production, the current average annual output in the Coal Production Division (CPD) is around 8.0 million tons of coal per year.
The two Balkan countries face growing pressure to cut fossil fuel use as part of global climate efforts and in line with EU standards. Shifting to renewables is key to meeting climate targets, improving health, and boosting economic stability.
The Green & Just Transition has become a key framework, combining environmental goals with social fairness. Unlike a purely green transition, it supports affected workers and communities through retraining, jobs, and protections. Kosovo and North Macedonia must balance climate action with managing social impacts and preventing inequality.
Challenges of moving forward with Green & Just Transition
According to the World Bank’s Climate Change and Country Development Report (CCDR), published on October 7, 2024, North Macedonia must accelerate its energy transition to achieve net zero emissions by 2050 in line with the European Union’s goals.
“The transition away from fossil fuels can strengthen energy security by promoting a more flexible and modern energy system. This change can also yield significant long-term health and economic benefits, primarily by improving air quality and reducing operational costs of the energy system,” the report states.
The strategy also notes that the green transition will put approximately 66,000 workers in North Macedonia at high risk of losing their jobs and requiring occupational changes.
In the Energy Strategy of the Republic of Kosovo 2022–2031, it is stated that coal is planned to be phased out by 2050.
“New capacities of renewable energy sources, using existing and innovative technologies, will gradually replace the use of coal, with coal to be completely phased out by 2050 at the latest,” the strategy states.
Professor Dimitar Nikolovski of the Faculty of Economics in Prilep, North Macedonia, states that the green transition is a process of shifting to a new development model that ensures an ecologically sustainable and fair society.
“It refers to the period between now, when our way of living is unsustainable in the long term, and the time when our activities no longer threaten the planet’s health. In that regard, it is necessary to correct the consequences of human impacts: climate change, environmental degradation, and biodiversity loss,” he said.
Without timely and substantive changes in work processes and resource management, industrial capacities will face serious consequences and even risk closure by 2030.
“The metal industry is traditionally a large consumer of energy and natural resources, making it one of the most vulnerable sectors under strict energy efficiency and sustainability regulations. Rising energy prices and demands for emission reductions create additional financial pressure on their market competitiveness.” he emphasized.
Egzona Shala Kadiu, director of the Prishtina based environmental organization ECOZ, says that Kosovo faces significant challenges in undertaking such a process.
“One of the main challenges is the country’s deep dependence on coal for electricity generation – over 90% of electricity in Kosovo comes from coal-fired power plants. This makes the transition technically, economically, and socially complex,” she said.
According to EU directives, the companies in North Macedonia are required to reduce their carbon emissions and align production with sustainability principles by 2030.
“Companies that fail to adapt to these changes risk becoming noncompetitive and may be forced into partial or complete closure. Companies are aware that without investments in energy efficiency and waste management, their future is uncertain and at risk of closure by 2030,” said Nikolovski.
Shala also highlights the lack of clear and coordinated energy transition policies as a key difficulty in Kosovo.
“Furthermore, the absence of a stable regulatory framework, lack of financing mechanisms, and limited institutional capacity – such as the absence of a designated department and a lack of trust are major barriers in ensuring that the transition is just,” she emphasized.
Professor Nikolovski adds that one of the key challenges companies face is the lack of skilled professionals to meet the growing labor market demands in the context of the green transition.
“This problem stems from the misalignment between the education system and economic needs, especially concerning new professions and skills related to circular economy concepts and green technologies. Educational programs mainly focus on theoretical instruction rather than practical skills required for work in industries transitioning to a green economy,” he said.
According to Marta Schulte-Fischedick, Energy Specialist for Just Energy Transition, the Energy Community Secretariat sees great potential in Kosovo’s natural renewable resources but there are also some steps to take leverage solar and wind energy.
One of these steps is the implementation of key EU Energy Acquis, such as those within the Electricity Integration Package and the Clean Energy Package targets.
“Encompassing nine acts, the package aims at making the markets fit to deliver on cost-efficient clean energy transition while ensuring secure and affordable electricity supply to the citizens.” – she added.
Continued coal use significantly contributes to greenhouse gas emissions and air pollution.
The main electricity producer in North Macedonia is the state-owned company ELEM (Power Plants of North Macedonia), responsible for around 70% of total installed capacity. ELEM owns the two major coal power plants: Bitola and Oslomej.
According to Blazhe Josifov from the Association for sustainable development and environmental protection from Skopje „Go Green“, these coal plants cause heavy pollution in the cities where they are located.
“In Bitola and Kichevo, for example, pollution levels often exceed the WHO’s recommended limits. This negatively affects citizen’s health and accelerates climate change,” he said.
Josifov says that several actions are necessary in this area.
“We need to increase renewable energy production capacities such as solar and wind, improve the electricity distribution network for more efficient energy management, develop retraining programs for green jobs, and involve citizens in the process through education and promotion of sustainable practices,” Josifov stressed.
According to the report “Just Transition in Kosovo – A Green and Economically Viable Solution” published by ECOZ, the shift from fossil fuels to renewable energy sources has deep implications, particularly for workers and communities dependent on the fossil fuel industry.
Meanwhile, the Ministry of Economy of Kosovo has stated that a Just Transition Fund is being planned, aimed at supporting affected workers and communities by financing dedicated retraining and development projects.
Josifov added that every individual plays a key role in the green transition.
Also, Marta Schulte-Fischedick emphasizes that local communities are central to a truly just transition.
To make Just Transition work for everyone, The Energy Community Secretariat recommends an established Just Transition Coordination Group that consists of different stakeholders that are involved in the process as Ministries, local government, community representatives, NGOs, trade unions, academia and others involved in the process.
“Transparent and inclusive governance frameworks, ensuring that communities affected by the energy transition—especially those in coal regions—are not only consulted but co-design solutions.” the specialist said.
However, in order to ensure that workers and communities dependent on the coal industry are not left behind, Shala Kadiu stresses the importance of collaboration between the government, municipalities, civil society, and the communities themselves.
“Our analysis showed that over 84% of workers are neither informed nor prepared for a potential change in employment within KEK,” she said.
“Through conscious decisions about consumption, energy efficiency, and support for sustainable policies, citizens can influence demand for clean energy and drive societal change. Collective actions by individuals can significantly reduce greenhouse gas emissions and improve environmental quality,” Josifov emphasized.
The Green & Just Transition is linked to the EU integration of both countries
The just energy transitions of North Macedonia and Kosovo are linked to the two countries’EU integration process.
In the 2024 European Commission Progress Report on Kosovo, it is stated that: “Kosovo remains heavily reliant on outdated, highly polluting coal-fired power plants, posing serious health and environmental risks.”
The Ministry of Energy, Mining, and Mineral Resources of North Macedonia states that it is actively aligning national policies with the European Green Deal while positioning the country as a regional partner in energy transformation.
“North Macedoniais actively working during the period of one year, since the ministry exists, and is cooperaings with neighboring countries within the Western Balkans Transition Platform, supported by the European Commission and the Energy Community, through initiatives for energy connectivity, electricity trading, interconnections, regional markets, and sharing of experiences and best practices with countries like Greece, Slovenia, and the Czech Republic,” the ministry stated.
For the Ministry of North Macedonia, Green & Just Transition is an inclusive process that requires active involvement of all stakeholders – citizens, municipalities, civil society organizations, trade unions, and international partners.
For Kosovo to support alignment with EU standards, Marta Schulte-Fischedick mentions the importance of developing and enforcing a credible National Energy and Climate Plan (NECP), including clearly defined targets and timelines. She also points to the need for modernizing Kosovo’s energy market, enabling mechanisms such as day-ahead, intraday, and balancing markets to improve efficiency and integration with the regional energy system.
“Strengthening the independence of the energy regulator is equally essential,” she notes, “to ensure effective market oversight and protect consumer rights in line with EU directives.” In addition, she highlights the importance of mainstreaming social and gender dimensions into energy policy to ensure that the transition is not only sustainable, but also inclusive and just.
