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BRIEF

Energy Infrastructure in Kosovo

September 26, 2013

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Helping to Modernize Kosovo's Energy Sector

Today, Kosovo’s electricity operating capacity is about 900 MW, almost all of which comes from two, antiquated coal-fired power plants. As the population grows, ongoing constraints on power continue to increase – with energy demand expected to be 4.6% higher in 2020 than in 2010. 

In order to meet this growing demand for energy, reduce power outages, and lower greenhouse gas (GHG) emissions, the Government of Kosovo is working to improve the energy situation in a comprehensive way. These improvements include a plan to rehabilitate the Kosovo B power plant – which is more than 25 years old – to bring it into compliance with relevant European Union Directives, and to build a new, more efficient, lignite-fired power plant to replace the 45-year-old, highly polluting Kosovo A power plant.

Open Quotes

There should be a higher awareness about the energy security issue...that the lack of energy reduces competitiveness of our products and that every euro invested in energy will increase our macroeconomic stability and will improve the position of Kosovo. Close Quotes

Ms. Pranvera Dobruna-Kryeziu
Energy Expert at the Alliance for the Future of Kosovo

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.