Beyond the scoreboard: Energy sector transformation under the Reform and Growth Facility for the Western Balkans

Report    |    5 December 2025

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As part of the European Commission’s Growth Plan for the Western Balkans, intended to accelerate the speed of the enlargement process, a new performance-based financing instrument called the Reform and Growth Facility was introduced in 2024. All Western Balkan countries were invited to develop Reform Agendas where they would commit to completing certain reforms, including on energy and green transition.

This analysis offers an overview of the energy-related reforms from Albania, Kosovo, Montenegro, North Macedonia and Serbia and then evaluates the countries’ progress. It also provides an independent perspective on the completion (or non-completion) of energy-related reforms in each country and recommendations on improving the implementation of this instrument.

Given the likelihood that similar instruments will make up a much bigger share of the next EU budget, it will be crucial to apply the lessons learned from the Reform and Growth Facility to improve the impact of EU funding in the region.