The main aim of this paper is to review of the current state of energy systems in the Western Balkans countries. The paper gives a review of the individual parameters relating to energy development, defines the current state of the achieved level of sustainable energy development as a whole and defines possible strategic directions for energy development in the region. The paper also examines the possibility for implementation of the adopted EU target of 20% RES energy production. The main characteristics in the region are high energy consumption, high values of carbon emission, fossil fuels import dependency, constant production and electric energy supply, and high potential but minimal RES energy production. Further development of regulation framework and market liberalization is are basic preconditions of demanding energy reform in all countries. Increasing energy the second energy development priority. The third long term strategic goal is increasing the amount of the energy obtained from hydro and transition to clean coal technologies. Intensifying RES production is currently the fourth strategic priority. The analysis shows that production of energy from wind is priority for the region, but currently it is constrained by too great investment requirements for developing countries. (C) 2012 Elsevier Ltd. All rights reserved.