In Southeast Europe, the primary challenge for renewable energy is no longer the availability of resources but rather issues related to spatial planning, environmental considerations, and grid compatibility. A recent analysis in Montenegro exemplifies a trend observed throughout the Western Balkans: the potential for renewable energy generation significantly surpasses the amount that can be deployed without encountering conflicts. However, only a portion of this potential is necessary to achieve decarbonization goals set for 2030 to 2035, provided that projects are strategically located.
Montenegro’s assessments reveal that the potential for low-conflict solar and wind energy exceeds the current installed capacity by more than tenfold. This situation is similar in neighboring countries such as Serbia, Bosnia and Herzegovina, North Macedonia, Albania, and parts of Bulgaria and Romania. Despite abundant wind and solar resources, deployment is hindered by factors such as biodiversity protection areas, fragmented spatial planning, limited grid capacity, and local opposition stemming from inadequate site selection rather than opposition to renewable energy itself.
A key takeaway from the regional analysis is the necessity of conducting spatial pre-filtering prior to permitting and grid applications. In Montenegro, excluding protected areas, valuable agricultural land, and culturally sensitive zones has significantly minimized development conflicts while still allowing for sufficient capacity to exceed national targets multiple times over. This approach is applicable across Southeast Europe, especially as EU accession requirements tighten regulations around Natura 2000 areas and national parks. Without predefined low-conflict zones, developers face increasing sunk costs and permitting risks that are difficult to finance.
The focus on utilizing brownfield sites holds particular significance for Southeast Europe. Locations such as former mining sites in Serbia and Bosnia, industrial zones in Romania and Bulgaria, as well as underutilized state-owned lands represent substantial areas suitable for renewable energy projects. Montenegro’s findings indicate that brownfield solar installations could replace a significant portion of coal-based energy generation. This presents a scalable solution for coal-dependent regions like Kolubara and Tuzla while also minimizing environmental, social governance (ESG) risks for investors.
From a broader system perspective, Montenegro’s case illustrates an important reality in Southeast Europe: proximity to the grid is more crucial than merely having high-quality resources. Many prime wind and solar locations are situated in remote or mountainous areas with weak connections to the grid. Conversely, medium-quality sites located near substations are likely to yield better financial returns. Thus, smart siting redefines renewable energy development as an infrastructure challenge constrained by grid limitations rather than simply resource acquisition.
Public participation in spatial planning also plays a significant role. In Montenegro, early municipal-level engagement helped identify socially sensitive areas, thereby reducing resistance during later project phases. This proactive approach contrasts with practices in some Southeast European jurisdictions where public consultation tends to be more procedural than meaningful. Engaging communities early can help mitigate risks associated with project opposition in sensitive coastal or agricultural regions.
On a policy level, Montenegro’s smart-siting framework highlights a notable gap across the region: many Southeast European countries still depend on reactive permitting processes rather than establishing proactive renewable energy zones. As EU Renewable Energy Directive III requirements come into effect—either directly or through alignment with accession processes—countries lacking clearly defined renewable zoning may experience slower deployment rates and increased litigation risks while struggling to access EU funding.
The implications for capital providers across Southeast Europe are clear: the region possesses ample opportunities for renewable energy development but often misallocates efforts. Smart siting strategies shift investment focus from speculative land acquisition to developing infrastructure that aligns with grid capabilities and environmental standards. As regulatory pressures related to carbon border adjustments (CBAM), grid congestion, and biodiversity protections intensify, projects developed outside low-conflict frameworks may face challenges in securing financing.
Ultimately, Montenegro’s experience illustrates that Southeast Europe can achieve its renewable energy targets by leveraging only a small fraction of its technically feasible land if development is conducted with careful spatial planning and environmental considerations. This shift reframes renewable energy development from a conflict over land use into a manageable planning issue that can be addressed using existing tools and data within the region’s institutional capacities.
