| Abstract | The energy efficiency represents an international and multi-faceted phenomenon. It is especially important
in the countries belonging to the Balkan’s region of the Southeastern Europe (SE). The research problem
addressed in this paper focuses on the improvements in the inherent energy inefficiency by the means of
quality financing of investment arrangements. This paper utilizes detailed literature review of multi-faceted
sources, journal articles, private and government publications. Furthermore, the obstacles to attracting viable
sources of private financing shall also be researched and addressed. Semi- developed and still developing
Balkan countries have been experiencing severe lack of diversified financial instruments. The financial risks,
energy poverty and low incomes, lack of appropriate understanding of the market and the absence of the
appropriate regulatory framework have been identified as the major obstacles to attracting viable private
financing. There are several issues impacting the attraction of private financing arrangements. These barriers
could be summed up as the lack of appropriate regulatory framework, deficiencies in the proper market
understanding, inherent presence of energy poverty and low incomes, multitude of financial risks, lack of
skilled human resources, the presence of the so-called split incentives and fragmentation issues in common
decision-making process. The so-called multiple benefits approach (MBA) to energy efficiency investments
tend to widen the energy efficiency perspectives beyond the traditional measures of reducing energy demand
and lowering greenhouse gas emissions. This approach looks into multiple spheres by assessing multitude of
different benefits to stakeholders. In conclusion, the big disparity in size and variety or financial supporting
instruments between the EU members and non-member states must be addressed and reduced.
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