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occur when generation and import capacity do not meet demand or when there is a service failure at one of Kosovo’s outdated power plants.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.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 estimated | |
| Total Local Production | 5,311GWh | 5,718GWh | 6,301 GWh | 6,207GWh | 6,315 GWh | 6,295 GWh |
| Total Exports | 677 GWh | 905 GWh | 1,283 GWh | 835 GWh | 787 GWh | 489 GWh |
| Total Imports | 825 GWh | 928 GWh
| 839 GWh
| 1,311 GWh | 761 GWh | 1,546 GWh |
| Imports from the US | 0 GWh
| 0 GWh
| 0 GWh
| 0 GWh | 0 GWh | 0 GWh |
| Total Market Size | 5,163 GWh | 5,694 GWh | 6,745 GWh | 5,730 GWh | 6,341 GWh | 5,238 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)