Projects of Policy and Regulation Sector

Western Balkans Sustainable Heating

Organization: DHInfrastructure


The World Bank wanted to identify cleaner, more efficient, and cost-effective space heating options for three urban areas in the Western Balkans: Sarajevo (Bosnia and Herzegovina), Pristina (Kosovo), and Skopje (North Macedonia), focusing on areas not covered by the district heating network. The World Bank also wanted to identify financing mechanisms and regulatory and policy reforms to promote more sustainable heating systems in these areas.

Service Provided

DHInfrastructure reviewed the national heating policy and regulatory frameworks in each country and compared them with applicable European Union legislation and international good practice. We identified possible policy and regulatory reforms that could lead heating customers, particularly single family homes, to switch to more sustainable heating systems and/or fuels. We also analyzed possible financing mechanisms to support switching to cleaner heating; we identified institutions and financing models that could provide incentives for switching in each country. Finally, we identified policy and regulatory reforms to disincentivize the use of polluting heating options and to incentivize the adoption of cleaner heating options.