Solar and Wind Ukraine big

/15th August 2019, RENEWABLE MARKET WATCHTM/ Energy Strategy of the Republic of Kosovo 2013-2022 is the main document outlining energy policies and development objectives of the energy sector, in line with international standards on sustainable development, environmental protection and social wellbeing, which aims to maximize profits from the use of the country’s energy resources. The Energy Strategy aims to establish effective mechanisms for implementing requirements set in this strategy, taking into account the effective management of existing energy resources and environmental protection. It focuses on enhancing the security of supply in line with European standards and diversification of energy sources. This strategy aims to encourage rational use of energy and increased energy efficiency, utilization of renewable energy sources, the introduction of new technologies while respecting international standards of environmental protection and community care. Kosovo has solar, wind, hydro and biomass resources available that are more than sufficient to meet the country's energy supply needs, has been mentioned in the regular update of 'Western Balkans Solar Photovoltaic (PV) Power Market Outlook 2019÷2028'.

Renewable Energy Incentives in Kosovo

The main scheme supporting renewable energy sources in Kosovo is a feed-in tariff. The public energy supplier must pay a regulated tariff for the electricity generated from renewable energy sources. The grid operator is obliged to connect to his system any energy generating plant meeting the connection conditions. Renewable energy is given priority in the assessment of the grid connection application. In July 2019, the EBRD received a request from the Ministry of Economic Development of Kosovo to assist in the design and implementation of competitive procurement for renewable energy capacity. In the context of the Framework the Bank now wishes to engage a consultant (the “Consultant”) to in order support the Government of Kosovo to develop and implement a competitive scheme for the award of future support to renewable energy generators (the “Assignment”).

The Assignment involves conducting a review of existing materials relevant to renewable energy development in Kosovo, designing a competitive bidding process for supporting renewable energy (including solar photovoltaic), preparing the documentation needed for the country’s first renewable energy tender, and providing implementation support to Authorities to administer the tender.

Kosovo’s Minister of Economic Development, Valdrin Lluka announced in October 2018 for pv magazine he intends to transfer between 100 MW and 120 MW of licenses from hydro, to solar and wind-powered energy, “bearing in mind that there is a greater potential of both foreign and local investors for this type of energy source.” Kosovo recently raised its renewable energy target to an additional 400 MW of capacity by 2026. That would be enough to meet a quarter of its power demand and reduce dependence on ageing coal power plants. The previous plan for renewables development, put in place in the summer of 2016, stipulated the addition of just 10 MW of solar while targeting around 250 MW of overall clean energy capacity.

Key Renewable Projects in Kosovo

Local brewer Peja Beer invested 5 million euros into Kosovo’s first solar photovoltaic power plant. In a sunny day in late October, the 6 MW park outside the western town of Gjakova was producing 3.6 megawatt-hours of electricity.

International Finance Corporation (IFC), a member of the World Bank Group, will assist the government, as transaction adviser, in defining the parameters and requirements to design and tender the first solar public-private partnership (PPP) project in Kosovo, IFC told Balkan Green Energy News. The Ministry of Economic Development said in the September 24 statement following the signing of a cooperation agreement with IFC that the financial institution is advising the government on developing a 50 MW solar power plant. According to the statement, the project will help meet part of Kosovo’s obligations towards the EU concerning the diversification of its energy mix.

The current renewable energy capacity of the country amounts to approximately 70MW small hydropower and a 32.4MW wind farm in Eastern Kosovo which reached commercial operation in October 2018 and solar photovoltaic capacity is only 7MW at the end of 2018. A 10 MW wind farm in Northern Kosovo is under development and expected to commence commercial operations in 2021.

The more information about the renewable energy market in Kosovo, including full contact details of renewable energy project owners, developers and stakeholders, you may read here: ’Western Balkans Solar Photovoltaic (PV) Power Market Outlook 2019÷2028’. Furthermore, you may receive up to 4 quarterly updates.

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