IFC to help Kosovo* design, tender its first solar PPP project

International Finance Corporation (IFC), a member of the World Bank Group, will assist the government, as transaction adviser, in defining the parameters and requirements to design and tender the first solar public-private partnership (PPP) project in Kosovo*, IFC told Balkan Green Energy News.

Private partners will participate in the open-bidding, competitive tender where the offered price will be the auction parameter, IFC said in an emailed response when asked to clarify a September 24 statement by the Ministry of Economic Development.

“Companies that participate in the bidding process will be pre-qualified for that purpose,” according to the response.

The planned solar power plant’s location has not been decided yet.

The Ministry of Economic Development said in the September 24 statement following the signing of a cooperation agreement with IFC that the financial institution is advising the government on the development of a 50 MW solar power plant.

According to the statement, the project will help meet part of Kosovo’s* obligations towards the EU concerning the diversification of its energy mix.

In September, the European Bank for Reconstruction and Development (EBRD) invited expressions of interest in providing it with consultancy services in order to support the Government of Kosovo* in developing and implementing a competitive scheme for the award of future support to renewable energy generators.

The deadline to file expressions of interest expired on October 10.

A year ago, the ministry announced that it aimed to transfer the quota of 100-120 MW for hydropower projects to solar and wind power projects.

25% renewables share targeted by 2020

Kosovo* currently generates almost all of its electricity from coal-fired power plants with a combined installed capacity of 1,000 MW.

The current renewables capacity amounts to approximately 70 MW of small hydropower plants and a 32.4 MW wind farm in eastern Kosovo*, which reached commercial operation in October 2018. A 105 MW wind farm in northern Kosovo* is under development and expected to commence commercial operations in 2021.

Two solar projects with a capacity of 6 MW have been put into operation.

Kosovo* is estimated to have a strong solar potential given its average of 278 sunny days and 2,000 hours of sun per year.

As a member of the Energy Community, Kosovo* has committed to reaching a 25% share of renewable energy sources in final gross energy consumption (currently at approximately 20%) by 2020. The Kosovo* Energy Strategy has set the target of introducing around 400 MW of renewables into the system by 2026.