The effect of JI and CDM investment on development of distributed generation in the Western Balkans

The Western Balkan (WB) countries have been analyzed in terms of potential distributed generation development in the context of the climate change initiatives and development of the Regional Energy Market (REM). The analysis focused on the potentials for participation in projects of the Kyoto Protocol (KP) mechanisms and the complimentary trading of renewable energy and energy efficiency certificates. This paper provides a brief overview of the regional energy sector focusing on potential developing of distributed generation (DG). The most efficient DG in the region are expected to be using hydro, solar, geothermal, wind and biomass/bio-diesel energy. The analysis recognises importance of local distribution network issues such as possible load flow congestions and bottlenecks. The project requirements should include consideration of issues such as fault level and load flow for all credible scenarios as well as voltage variations and frequency change. The paper also briefly addresses the capacity building needs for identifying and generating potential DG options.