SOLAR ENERGY AS A DRIVER OF SUSTAINABLE DEVELOPMENT AND SOCIO-ECONOMIC CHANGE IN THE WESTERN BALKANS

Abstract

The Western Balkans region faces serious energy and environmental challenges. As the majority of electricity is still generated from lignite, this results in high pollutant emissions and makes the region one of the most polluted areas in Europe. This dependence on fossil fuels is not aligned with the legal framework of the European Union nor with the international obligations stemming from the Paris Agreement. It also may slow down the process of European integration. In addition, energy shortages and high electricity prices create political and socio-economic tensions. In this context, solar energy emerges as a key driver of sustainable development and the transformation of the energy sector. Through a systematic review of the literature and relevant reports of international organizations (IEA, IRENA, OECD), the paper explores environmental benefits (reduction of CO2 emissions and contribution to sustainable development goals), economic aspects (job creation, attraction of investments, development of new industries), and social implications (energy security, improved quality of life, education, and public awareness). Special attention is devoted to the specific challenges of the region, including outdated infrastructure, inconsistent regulatory frameworks, insufficient investment, and limited access to financing. The study demonstrates that solar energy, in addition to reducing coal dependency, has the potential to become a catalyst for broader socio-economic development by strengthening local communities, fostering the creation of green jobs, and enhancing regional cooperation. However, to fully realize this potential, a combination of increased public and private investments, reliable regulatory mechanisms, modernization of energy systems, and international support is required, alongside active involvement of the local population and the promotion of energy literacy. The aim of this review paper is to analyze the role of solar energy in the process of sustainable energy transition and its contribution to socio-economic changes in the region.