When Congress passed the Western Balkans Democracy and Prosperity Act as part of the 2026 National Defense Authorization Act (NDAA), it sent a clear signal: energy security in Southeastern Europe is no longer a peripheral economic issue — it is a core U.S. national security concern.

The Western Balkans sit at a geopolitical crossroads between Euro-Atlantic institutions and sustained Russian and Chinese influence. For years, energy dependence has been an effective tool used by unscrupulous powers to exert pressure. Control over supply, opaque infrastructure deals, and corruption linked to energy contracts have undermined democratic governance and regional stability. Congress recognized a basic reality: countries that lack control over their energy are easier to pressure, manipulate, and destabilize.

The new NDAA establishes a long-term US strategy for the region with energy at its center. It mandates cooperation with Balkan countries to diversify energy sources, reduce reliance on Russian energy, accelerate the transition to renewables, and modernize infrastructure to withstand cyberattacks and external interference. It also strengthens sanctions measures that can be used against individuals and entities that employ corruption — often through energy deals — to threaten regional stability.

Markets: Regulatory reform can help ensure market transparency through modernized energy markets. Russian ownership of critical energy assets, including midstream and downstream companies, presents a serious challenge in some countries (for example, the Russian-owned oil refinery in Serbia). US and European energy and infrastructure investment in these countries can help drive sector modernization and a competitive investment environment where transparency and market-based decision-making counter malign Russian and Chinese foreign investment.

Diversification: Advancing diversification in the Balkan gas, electricity, and oil sectors counters Russian dominance and political leverage. Existing and/or new pipelines and liquefied natural gas (LNG) terminals can be better used and coordinated to diversify gas imports. Greek and Croatian LNG infrastructure already delivers alternatives to Russian gas throughout the Balkans. Investments in renewable energy, energy efficiency, and expanded grid integration will reduce wholesale energy prices and subsidies and boost resilience.

Mobilization of Public/Private Investment: The U.S. must continue to make energy diplomacy a priority. Low investment has long plagued the Balkans. Opportunities now exist to modernize energy systems to optimize the electricity and heating sectors, including through gas-to-power and energy efficiency methods. By focusing diplomatic engagement and facilitating financing through the US Development Finance Corporation (DFC), the US can boost investment in an energy sector that increases competitiveness and ensures security, including cyber security and investment screening mechanisms that uncover attempts by malign actors to gain influence.

Albania provides a good example. In the country’s north, the 600-megawatt Tropojë Wind Renewable Energy Park is moving forward as one of the largest renewable energy projects in the Western Balkans. Developed by CWP, a leading American renewable energy company, the project illustrates how US-aligned investment can deliver both economic and strategic returns.

For Albania, Tropojë represents a decisive step toward energy sovereignty. The country has historically relied almost entirely on hydropower, leaving it vulnerable to droughts and volatile international energy markets. In dry years, Albania has been forced to purchase large quantities of imported energy at inflated prices, exposing the economy to shocks and external pressure.

By diversifying into wind and solar, Albania is reducing that vulnerability and insulating itself from supply disruptions. By the end of this decade, renewables such as wind and solar are expected to account for roughly 30% of Albania’s energy mix — enough to ensure domestic self-sufficiency and generate surplus energy for export to European markets. Energy demands that once drained national resources through electricity and fossil fuel imports will be replaced by revenues and economic resilience.

The broader implications extend beyond Albania. By expanding clean energy capacity, Albania is positioning itself as a net contributor to Europe’s energy security at a time when the continent is actively working to reduce reliance on Russian fossil fuels. Every additional source of reliable energy in Europe strengthens the transatlantic alliance and reduces the strategic space available to adversaries.

For the US, this matters because energy-secure partners are more stable partners. Equally important, American companies bring more than capital. They bring transparency, competitive procurement, and compliance with rule-of-law norms. Countries that can meet their own energy needs are less susceptible to coercion and better positioned to sustain democratic institutions.

Congress explicitly addressed this risk in the NDAA by requiring reporting on foreign influence in the energy sector and authorizing assistance to secure infrastructure against cyber and physical threats. Energy systems are strategic targets. Protecting them is essential to regional stability and alliance security.

This is why energy investment in the Western Balkans belongs within the national security conversation. It lowers the risk of instability on NATO’s southeastern flank, reduces the need for crisis-driven US engagement, and reinforces democratic governance through economic resilience.

Sustained US engagement in Balkans energy investment will not only support economic growth — it will strengthen America’s national security and the stability of Europe as a whole. We have a strategic opportunity, if we take it.

David J. Kostelancik is a Nonresident Senior Fellow at the Center for European Policy Analysis (CEPA). He was a career member of the US Senior Foreign Service, holding the rank of Minister Counselor. David served as deputy coordinator for terrorism prevention and detention in the State Department’s Bureau of Counterterrorism from 2024 to 2025. From 2021 to 2023, he was foreign policy adviser to the chairman of the Joint Chiefs of Staff. His overseas postings as deputy chief of mission and chargé d’affaires at the US Embassy in Hungary and two postings to Russia. He holds a bachelor’s degree in mathematics and political science from Northwestern University, a master’s degree in Russian and East European studies from the University of Michigan, and a Master of Science degree in national security strategy from the National War College.

Europe’s Edge is CEPA’s online journal covering critical topics on the foreign policy docket across Europe and North America. All opinions expressed on Europe’s Edge are those of the author alone and may not represent those of the institutions they represent or the Center for European Policy Analysis. CEPA maintains a strict intellectual independence policy across all its projects and publications.

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