Can Kosovo meet its energy demand growth?

In this brief review, we examine the potential for meeting Kosovo’s energy demand growth, focusing on electricity. 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.

Does Kosovo need a stable base-load power supply?

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.

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.

What is Kosovo's Electricity Supply Chain?

Kosovo’s electricity supply chain (ESC) includes both public and private firms. Electricity production is dominated by a publicly owned enterprise (POE), Kosovo Energy Corporation (KEK), Sources: Kosovo authorities and IMF staff calculations. Note: KOS A and KOS B refer to state-owned coal-based generation plants (“Kosova A and B”).

What energy sources can Kosovo use?

There are three main sources of energy Kosovo can potentially use to satisfy this demand—lignite, gas and renewables. Lignite: We no longer see any realistic prospect for external financing of a new lignite power plant in Kosovo.

Does Kosovo need a power plant?

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.