Reform of public administration and public policy is not only an essential requirement for good governance and sustainable development but also one step forward in the route to join the European Union. This publication examines the Europeanization capacity of the Western Balkan states and proves their Europeanization potential to absorb the imported EU rules and institutions in the energy sector. The core part of the publication demonstrates that Europeanization can explain the variation in the reform of energy policies across states of this region. The reason why some countries have over performed, while some have under performed, are explained with the incentives states have received from EU bureaucrats.