Why is Energy Efficiency (IR)Relevant for Western Balkans Countries

Abstract The fact that per capita energy consumption in non-OECD (The Organisation for Economic Co-operation and Development) countries makes up only 30% of average consumption in OECD countries, as well as the fact that highly efficient technologies and equipment have been available for many years in developed countries where energy efficiency is one of the top priorities, has often been cited as an argument in favour of the claim that energy efficiency is relevant only for highly developed countries. In this chapter, we attempt to establish if and why this opinion is wrong in the case of Western Balkans (WB6). Evident lack of interest in this area which we identified through analysis of available literature was an important motive for the consideration of the issue of energy efficiency in WB6 countries. Analysing the basic macroeconomic and energy indicators for WB6 countries and their comparison with indicators for European Union (EU) member countries, we found that all countries have the potential benefit from implementation of energy efficiency and conservation projects. Besides the possible energy savings, wider socio-economic benefits in WB6 countries include harmonization with EU regulations, reduced dependence on import and thus reduced risk of price shocks and potential reduction of trade deficit, creation of jobs, health benefits, better productivity and improved competitiveness. However, realizing the full potential of energy efficiency requires removal of many financial, institutional, technical and behavioural barriers, whereby WB6 countries can use the help of institutions which provide technical assistance and funds, beside measures which fall under jurisdiction of governments.