Should Kosovo invest in energy transition beyond coal?

We find that Kosovo can seize on the readiness of international financial institutions and development banks to invest in the country’s energy transition beyond coal. Kosovo can use these funds to develop a world-class, energy-efficient, renewables-based economy.

Does Kosovo have enough electricity?

Kosovo is currently unable to generate enough electricity domestically to fully meet demand for energy. Electricity consumption and peak demand in Kosovo grew more than 90 percent between 2000 and 2010, stabilized from 2011 to 2018, but increased by another 20 percent from 2018 to 2021.

How will energy prices affect the energy sector in Kosovo?

The surge in energy prices in Europe in late 2021 and 2022 has increased the urgency to invest in sustainable domestic energy generation and reduce dependence on expensive imports. The vast majority of electricity in Kosovo is produced by two Yugoslav-era lignite-fired thermal power plants, known as Kosovo A and Kosovo B.

What does Kosovo's Energy Strategy look like?

The Government of Kosovo is currently finalizing a long-awaited energy strategy where it is expected to announce the eventual decommissioning of one of the coal-fired power plants, set a renewable energy target for 35 percent of all electric energy consumption by 2031, and further integrate in regional energy markets.

Is Kosovo a member of the Energy Community?

Kosovo is a member of the Energy Community, an international organisation that brings together the European Union and its neighbours in southeast Europe to create an integrated pan-European energy market. The organisation was founded by the 2006 Energy Community Treaty to extend the EU internal energy market to southeast Europe.

Does Kosovo have a power exchange?

Regarding electricity market plans, Kosovo has opted to be a part of an Albanian power exchange rather than a national exchange. Figure 1 compares electricity demand and supply. Demand was flat from 2009 to 2016, but has since grown incrementally, rising 5.8% last year to a new peak of 6,001 GWh.