2023 year marks another record year for European Union for solar energy with 55.9 GW installed in 27 member states, showing an increase of 40% compared to 2022. This marks the third record-breaking year in a row for the EU market, and the third year in a row with yearly rates of increase of at least 40%. In addition, the total installed capacity was 27% higher at the end of 2023 compared to the previous year and amounts to 263 GW in total.
In the last decade, there was an expansion of the constructed facilities for renewable energy sources in the Western Balkans as well, and this change was especially felt in 2023 in the increase of the installed capacity of solar power plants.
By observing the installed capacity of solar power plants in Bosnia and Herzegovina, it can be noticed that in 2023 the total capacity increased by 60%, in Slovenia by 57%, in Croatia by 50%. A similar trend in other countries of the Western Balkans is observed as well, and in the coming years the greatest expansion is expected in the installed capacity of solar power plants, especially in the sectors of micro, small and medium enterprises, households, and industry in general. The principle of prosumers (producers and consumers of electricity) should significantly increase the participation of RES in gross final energy consumption, i.e. decarbonization of the domestic economy.
| Basic economic indicators | 2020 | 2021 | 2022 | ||||
| Global | Adriatic region | Global | Adriatic region | Global | Adriatic region | ||
| Wind | LCOE (USD/kWh) | 0,041 | 0,072 | 0,033 | 0,075 | 0,035 | 0,076 |
| TIC (USD/kW) | 1.496 | 1.545 | 1.418 | 1.507 | 1.274 | 1.465 | |
| Solar | LCOE (USD/kWh) | 0,059 | 0,097 | 0,051 | 0,093 | 0,049 | 0,102 |
| TIC (USD/kW) | 983 | 927 | 917 | 878 | 876 | 965 | |
| Small hydro (<10 MW) | LCOE (USD/kWh) | 0,090 | 0,092 | 0,090 | 0,105 | 0,090 | 0,107 |
| TIC (USD/kW) | 2.347 | 1.818 | 2.726 | 2.140 | 2.284 | 2.141 | |
Looking at the underlying financial metrics, it becomes clear why wind and solar are the electricity generation technologies experiencing the biggest expansion in recent years. Observing the EBITDA margin in the period from 2020 to 2022 in the countries of the Western Balkans on a sample of up to 5 plants per country, one can observe its growth. In the field of solar power plants in 2022 it is on average 48%, for SPPs it is 55% and for wind power plants 42%. The investment period is still ongoing, the market is still not stable, neither with electricity purchase contracts nor with investments, where prices, for example of photovoltaic panels vary by up to 50% in a few months. One thing is certain, that with the development of all segments in the electric power system, the development of RES management and electric energy storage, this market will experience a real boom.
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