Kosovo’s current electricity system requires investment, upgrading, and redevelopment—posing significant challenges to economic growth and development. Power limitations hinder investment and disrupt manufacturing, education, and health services. Many citizens continue to utilize firewood and coal for heating and cooking, which generates air pollution that in turn causes respiratory and other health problems.
Kosovo is committed to resolve its energy shortages through a comprehensive strategy that includes increased energy efficiency, development of renewable sources of energy, integration into regional power markets, and support for a new power generation that is reliable, sustainable, and affordable for citizens.
Around the world, energy supply conditions vary, and each country determines how best to meet its own energy aspirations. Kosovo’s electricity supply options are highly constrained due to modest availability of feasible renewable resources, ageing and unreliable lignite-fired generation plants, supply shortages in neighboring countries (especially during peak demand, which limits Kosovo’s ability to import electricity), and an absence of any natural gas resources or infrastructure to import gas.
In recent years, demand for electricity has far exceeded supply—a challenge that is expected to worsen with the decommissioning of one of the major lignite plants (Kosovo A), which provides about one-third of local electricity generation. Winter months prove particularly difficult as demand outweighs supply.
The Government of Kosovo aims to put its energy sector on a sustainable path by developing renewable energy potential, improving energy efficiency, transitioning from its 50-year-old power plant, and temporarily rehabilitating another older power plant. The Government also wants to ensure that the affordability of electricity is maintained, given the country’s high poverty and unemployment rates.
