CONCLUSIONS OF THE FOURTH REGIONAL CONFERENCE “CITIZEN ENERGY COMMUNITIES / RENEWABLE ENERGY COMMUNITIES – PEOPLE AND THE ENVIRONMENT BEFORE PROFIT”

At the 4th regional conference dedicated to citizen energy, attended by more than 70 representatives of local communities, ministries, the expert community, non-governmental organizations, regulatory agencies, system operators, public utility companies and international organizations, the following was concluded:

1. Although countries of the Western Balkans region have made evident progress, they have not yet fully implemented, in their legislation and practice, the directives related to the development of citizen energy. These directives would enable citizens, local communities, and businesses to become equal participants and drivers of the energy transition in a fair, transparent, efficient, and effective manner, thereby contributing to their own well-being and the decarbonization of domestic consumption. The problem is further exacerbated by the fact that EU directives have, in the meantime, been amended and supplemented with new instruments that more strongly support the development of citizen energy within the EU, leaving the region once again lagging behind neighboring countries. Therefore, it is necessary to accelerate the work of legislative and executive authorities.
2. Over the past year, only the Federation of Bosnia and Herzegovina has made significant progress and established a consistent legal and regulatory framework for citizen energy. Montenegro has not yet adopted the necessary laws, bylaws, and regulations that would, in addition to the existing citizen energy program implemented by EPCG, enable the activation of other mechanisms. In Serbia, regulation related to renewable energy communities and citizen energy communities has still not been adopted.
3. Despite the above, the number of prosumers (consumer-producers) in the region is increasing daily, but unfortunately at a slow pace. Their numbers are still measured in the hundreds (Bosnia and Herzegovina) or thousands (Serbia and Montenegro), while in neighboring countries they are already counted in tens or hundreds of thousands, indicating that serious barriers to the development of citizen energy still exist.
4. For the concept of citizen energy to be successfully implemented, state-owned energy companies, transmission and distribution system operators, and regulators must keep pace with the developments and demands posed by the ongoing accelerated energy transition. Unfortunately, it appears that this segment of the electricity system is significantly lagging behind and represents the main bottleneck for an efficient and effective energy transition, particularly in terms of developing capacities to integrate citizen energy. A lack of qualified personnel, insufficient investment in distribution networks, outdated and rigid technical rules and procedures, slow digitalization, a lack of energy storage, and a general resistance to change threaten to undermine all efforts to rapidly integrate the region into the third industrial revolution and energy transition, and already pose a serious risk to energy security.
5. Therefore, relevant authorities in all countries of the region are called upon to urgently redefine policies on access to grid resources and subsidies that currently favor commercial investors at the expense of citizen energy. Renewable energy (RES) fees paid by end consumers should be fully directed toward supporting and stimulating the accelerated development of prosumers and renewable energy communities, as well as addressing the increasingly alarming issue of energy poverty caused by rising energy prices and network service costs. These funds should no longer be directed toward commercial projects, given that such projects in the RES sector are economically viable and financially profitable even without subsidies.
6. Despite all obstacles, inadequate legislative and regulatory solutions, and undefined frameworks for development and support, individuals, non-governmental organizations, and some local communities in the region are actively and successfully advancing the energy transition at the local level through creative solutions and initiatives, working directly with citizens. This demonstrates a strong interest, willingness, and positive momentum for change. These examples can serve as inspiration and guidance for other local communities, organizations, and individuals in the region to follow the same path, even under unfavorable conditions. Unfortunately, education at all levels remains a fundamental challenge for the faster development of citizen energy, which represents the only “no-regret” strategy for low- and middle-income countries such as those in the Western Balkans, where most electricity consumption occurs at the lowest voltage level—households and small businesses. Given that top-down decarbonization policies have not delivered the expected results in the region, it is time to adopt a bottom-up approach, which can yield better outcomes under our specific conditions and significantly accelerate processes. In this context, education of citizens, businesses, and local decision-makers is a key success factor and a prerequisite for local communities to become leaders of the energy transition.
7. Conference participants agreed that energy poverty represents one of the most serious social challenges in Bosnia and Herzegovina, and that citizen energy offers a concrete, fair, and long-term sustainable response to this issue. It enables a direct reduction in energy costs for the most vulnerable households, retains the economic value of generated energy within local communities, strengthens energy literacy, and actively involves citizens in the management of energy resources. At the same time, it contributes to reducing air pollution and health risks that disproportionately affect energy-poor populations. It was concluded that without a clear regulatory framework, institutional support, and targeted integration of energy-poor households, the full potential of citizen energy in Bosnia and Herzegovina will not be realized.