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Although the countries of the Western Balkans are mostly electrified, there are still regions which do not have access to the electricity network or where the network capacity is insufficient. For the most part such areas are under special care of the state (i. e. underdeveloped, devastated by war, depopulated), on islands or in mountainous regions. Since the decentralized energy generation covers a broad range of technologies, including many renewable energy technologies that provide small-scale power at sites close to the users, such concept could be of interest for these locations. This paper identifies the areas in Western Balkans where such systems could be applied. Consideration is given to geographical locations as well as possible applications. Wind, hydro, solar photovoltaic, and biomass conversion systems were taken into consideration. Since the renewable energy sources data for Western Balkans region are rather scarce, the intention was to give a survey of the present situation and an estimate of future potential for decentralized energy generation based on renewable energy sources. The decentralized energy generation based on renewable energy sources in Western Balkans will find its niche easier for the users that will produce electricity for their own needs and for the users located in remote rural areas (off-grid applications).

Simulation models are becoming important engineering tool that helps in design and adjustment of physical systems. This paper shows application of Modelica programing language through Dymola simulation environment in analysis and discussion on control system in district heating substation. As a central component of heating substation, the model of plate heat exchanger water-to-water was created and implemented in Modelica/Dymola. Verification of that model was done by measurements performed at Laboratory of Department of energy and Process Engineering, Norwegian University of Science and Technology. Beside of the heat exchanger model, the heat substation model was completed using components from Buildings library developed at Lawrence Berkley National Laboratory. Afterwards, the substation model was integrated in system of four buildings connected to the district heating network in order to show potentials for lowering supply and return water temperature. It has been proven to be very promising, with benefits such as opportunity for low temperature heat sources and reducing the heat losses in district heating network.This assignment is realised as a part of the collaborative project Sustainable Energy and Environment in Western Balkans that aims to develop and establish five new internationally recognized MSc study programs for the field of Sustainable Energy and Environment, one at each of the five collaborating universities in three different Western Balkan countries. The project is funded through the Norwegian Programme in Higher Education, Research and Development in the Western Balkans, Programme 3: Energy Sector (HERD Energy) for the period 2011-2013.