This thesis describes implementation of the DispaSET model on the Western Balkans power system. The goal is to demonstrate the power sector of four Western Balkan countries, Bosnia and Herzegovina, Kosovo, Montenegro and Serbia in order to accelerate the development and deployment of cost-effective low carbon technologies. With increased energy planning needs and new regulations, environmental agencies, state energy offices and others have expressed more of an interest in electric power sector models. The first step for creating the proper model was to gather all the available data relevant for describing power system of each country. Afterwards, methods of data processing are displayed in order to be compatible with model. The methods were generalised and being used for every country. Secondly, all the input data are described for all four countries, and the simulation process has been carried out simultaneously for the whole region. Three scenarios have been developed. One reference scenario and two alternatives. For the reference scenario the year 2010 has been chosen due to the data availability. Alternative scenarios are made for the year 2020 and 2030. Each of alternative scenarios has three cases, A, B and C. Cases A and B are developed according to the national reports of each country. These two case are identical and the only difference is that the Case B works in the island regime. The Case C is a strategy with high penetration of renewable energy sources in to the power sector. Results from the reference year scenario have been validated as they accurately represent the data from the real world. Main indicator for validation of the additional scenarios was average price of electricity calculated by the model.