MARCH 15, 2021

Kosovo’s electricity is supplied by two lignite coal-fired power plants. Kosovo A has been operational since 1970, while Kosovo B started operating in 1983, with a maximum capacity of 915 MW. Both plants are often unreliable and too inflexible to meet Kosovo’s current and forecasted electricity demand.  Furthermore, Kosovo A is 50 years old, and while intended to be decommissioned in 2017, it is now envisaged to generate electricity until 2023. In the meantime, Kosovo B needs to undergo a complete rehabilitation. With the planned decommissioning of Kosovo A, Kosovo will experience a significant lack of electricity, which needs either to be replaced by new generation capacities, or through expensive electricity imports.


According to the Kosovo constraints analysis conducted by MCC, and seconded by the World Bank’s Doing Business Report, unreliable electricity supplies are among the major constraints for investments in new businesses and expanding existing businesses. Although Kosovo has the cheapest electricity tariffs in Europe, the electricity customers often complain about the high tariffs, mostly due to frustrations about the unreliable electricity supplies. 


Energy efficiency and energy saving measures could directly support Kosovo issues related to energy security, while at the same time reduce the overall cost of electricity for the customers. They may also have a positive environmental impact as most electrical generation in Kosovo comes from lignite-fired power plants. While the government and energy regulator provide information, citizens struggle to understand energy data — which is the first step toward gaining more control over the energy consumption and the bills that they pay.  Furthermore, citizens could benefit from more transparency in whether bills are being fairly collected, to say nothing of whether revenues are being put toward necessary efficiency, anti-pollution, and green improvements in Kosovo’s energy portfolio.

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