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 possesses the world’s fifth largest lignite coal reserves but remains reliant on two depreciated and inefficient Yugoslav-era power plants that fail to meet the country’s growing energy needs. Electricity consumption and peak demand in Kosovo increased by more than 90 percent between 2000 and 2010, stabilized from 2011 to 2018, and then rose by another 20 percent from 2018 to 2021. There is a critical need for stable, base-load power generation in Kosovo to meet demand. While power shortages and outages have become less frequent, they still occur when generation and import capacity fall short or when service failures occur at one of Kosovo’s outdated power plants.

The surge in energy prices across Europe in late 2021 and 2022 heightened the urgency for Kosovo to invest in sustainable domestic energy generation and reduce dependence on costly imports. In March 2023, the Kosovo Assembly passed the National Energy Strategy, which outlines the government’s vision for the energy sector over the next decade. The strategy commits to increasing renewable energy generation to at least 35 percent of the energy mix, reducing greenhouse gas emissions by 32 percent, and phasing out at least one lignite-fired generation unit by 2031. Additionally, the strategy foresees Kosovo completing all preparations for the introduction of a carbon pricing system by 2026.

The U.S. government supports Kosovo’s energy security by enhancing regional market integration, building resilience in the energy sector, and promoting transparent investment in coal, natural gas, and renewable energy projects.  

Kosovo’s energy use is driven by households, and much of that energy use is for wintertime heating. Kosovo’s housing is largely inefficient and uninsulated. Energy-efficiency improvements will become increasingly attractive for consumers as gaps in energy bill collection are resolved and market-based energy tariffs are established, though progress toward full liberalization of the electricity market continues slowly. The Millennium Challenge Corporation and several donors have implemented 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:

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