The Government of Kosovo plans to decommission the 40-year-old Kosovo A power plant to comply with the Energy Community Treaty and rehabilitate Kosovo B to comply with EU environmental standards. They also plan to replace the older power plant capacity with renewable energy sources wherever possible and with a modern lignite based power station. With these investments, the Government of Kosovo anticipates marked improvements in air quality.
The Government of Kosovo has requested financing support for these investments from the World Bank. Support to the new power plant is being considered in the form of a Partial Risk Guarantee. The Environmental and Social Impact Assessment for the proposed project is expected to begin in November 2013.
Fundamental to the consideration of this project is the overall environmental impact of the projected works. As part of this process, the World Bank and the Government of Kosovo are undertaking a series of evaluations and assessments. Over the last decade, several studies of Kosovo’s energy situation have been conducted with donor assistance, including the World Bank Group’s Development and Evaluation of Power Supply Options for Kosovo that draws on several reports and models the projected use of the installed capacity of all power supply options by Kosovo - enabling comparisons and evaluation of their respective economic and environmental costs.
This “Options Study” is among several documents and analyses that were reviewed by a panel of independent experts engaged by the Bank to assess the Government’s proposed project against the Bank’s criteria for screening coal projects. This panel, made up of three distinguished energy experts, namely János Beér, Wladyslaw Mielczarski, and Derek Taylor, concluded that the proposed project meets the Bank’s criteria outlined in the Strategic Framework for Development and Climate Change.
The findings of the independent Expert Panel, available here, were discussed with civil society groups in Pristina in mid-February 2012.