STUDY Energy Transition in South East and Eastern Europe, South Caucasus and Central Asia Challenges, Opportunities and Best Practices on Renewable Energy and Energy Efficiency KOMILA NABIYEVA December 2018 n Countries in South East and Eastern Europe, South Caucasus and Central Asia have enormous potential for renewable energy and energy saving. Energy transition could help in the solution of pressing energy security and health issues, boost economic growth and contribute to democratization and peace building in the region. In the coming years, many countries will have to replace their aging and inefficient fossil fuel and nuclear energy infrastructure, which opens up a great opportunity for ad­vancing the transformation of the energy sector towards clean energy. n Currently, multiple political, financial, technical and social barriers hinder the rapid uptake of renewable energy technologies and energy efficiency measures in the region. These barriers translate into high investment risks and a high cost of capital, which, together with limited access to finance, further delay the energy transition. n With the targeted and concerted technical and financial cooperation of German, EU and international stakeholders, the countries in the region could accelerate their energy transition and decarbonisation processes, improving their own social-eco­nomic situation and contributing to global efforts to stop global warming. Some successful initiatives and best practices on renewable energy and energy efficiency in the region, if scaled up, could have a positive spillover effect in the region.