Kosovo Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in kosovo, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Energy
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Overview

Kosovo has one of the world’s largest lignite-coal reserves and it remains dependent on two depreciated and inefficient Yugoslav-era power plants which do not meet Kosovo’s energy needs. 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. There is a vital need for stable, base-load power generation in Kosovo that can meet demand. Power shortages and outages have grown less frequent but can still occur when generation and import capacity do not meet demand or when there is a service failure at one of Kosovo’s outdated power plants.

The surge in energy prices in Europe in late 2021 and 2022 increased the urgency to invest in sustainable domestic energy generation and reduce dependence on expensive imports. The Kosovo Assembly passed the National Energy Strategy in March 2023, laying out the government’s vision for the energy sector in the coming decade and committing to increase generation from renewable energy sources to at least 35 percent of the generation mix, reduce greenhouse gas emissions by 32 percent, and phase out at least one lignite-fired generation unit by 2031. The strategy also foresees Kosovo having completed all preparations for the introduction of a carbon pricing system by 2026.

The U.S. government works closely to support Kosovo’s transition by enhancing regional market integration, building resilience in the energy sector, and promoting transparent investment in renewable energy projects. 

Kosovo has previously offered feed-in tariffs for a quota of renewable energy projects, which has been fulfilled.  Kosovo launched its first solar auction in May 2023, which will provide prospective bidders a guaranteed purchase price for 100 MW of solar energy. 

 

Table: Total Market Size for Energy Sector
 201820192020202120222023 estimated
Total Local Production5,311GWh5,718GWh6,301 GWh6,207GWh6,315 GWh6,295 GWh
Total Exports677 GWh905 GWh1,283 GWh835 GWh787  GWh489 GWh
Total Imports825 GWh

928 GWh

 

839 GWh

 

1,311 GWh761  GWh1,546 GWh
Imports from the US

0 GWh

 

0 GWh

 

0 GWh

 

0 GWh0  GWh0 GWh
Total Market Size5,163 GWh5,694 GWh6,745 GWh5,730 GWh6,341 GWh5,238  GWh

 

Unit: Gigawatt hour (GWh)

Total market size = (total local production + imports) - exports

Data Source: ERO measured and estimated data

Kosovo’s energy use is driven by households, primarily for wintertime heating. Kosovo’s housing stock is largely inefficient and uninsulated. Energy-efficiency improvements will become increasingly attractive for consumers as gaps in energy bill collection are resolved and full-cost energy tariffs are established, though progress toward full liberalization of the electricity market continues slowly. The Millennium Challenge Corporation (MCC) and several donors are implementing programs in energy efficiency and district heating energy expansion.

Leading Sub-Sectors:

  • Turbines
  • Generators
  • Mining equipment
  • Power system spare parts
  • Power operation and maintenance services
  • Legal and consulting services

Opportunities:

  • Providing equipment for wind farms
  • Renewable energy
  • Energy efficiency, especially in residential dwellings

Resources:

Kosovo Energy Corporation (KEK) (http://kek-energy.com/kek/en/)

Kosovo Energy Distribution Service (KEDS)

Kosovo Energy Supply Company (KESCO) (http://www.keds-energy.com/)

Kosovo Energy Regulatory Office (ERO)

Kosovo Transmission System and Market Operator (KOSTT)

Ministry of Economy

World Bank Kosovo Office