Photo: Zac Wolff on Unsplash
The Ministry of Economy of Kosovo* invited the three prequalified entities to submit bids for a wind power auction for a targeted capacity of up to 100 MW. The authorities didn’t declare any deadline.
Eight months after the prequalifications process was completed, when Minister of Economy Artane Rizvanolli said the next phase would start soon, eligible bidders can now submit proposals within the first wind power auction in Kosovo*. They are France-based Akuo Energy, consortium of Notus Energy from Germany and domestic firm Stublla Energy, and a consortium led by Güri̇ş, headquartered in Turkey.
The prequalifications call was launched one whole year ago. The Ministry of Economy said it intends to award up to 100 MW. According to earlier updates, the plan is to support 150 MW in total in two rounds. Participants will bid for 15-year power purchase agreements (PPAs) and contracts for difference (CfDs).
Maximum bidding price is EUR 80.2 per MWh
Interestingly, no deadline was published in the announcement. Rizvanolli earlier said the request for proposals would last half a year.
The lowest price per megawatt-hour wins and the upper limit is EUR 80.2 per MWh.
Investments envisaged as public-private partnerships
Wind projects would be run by special purpose vehicles (SPVs), firms where the government would have a share of up to 49%, as per initial documentation. The Ministry of Economy intended to use the funds from the International Monetary Fund’s Resilience and Sustainability Facility (RSF) in the development of the 150 MW.
The purpose of the public-private partnership scheme is to reduce risk for the private investors. They will be obligated to design, build, operate, maintain and decommission wind parks.
Balancing responsibility is limited to imbalance volumes greater than 10%. Curtailment is subject to financial compensation.
Funded by Germany, International Finance Corp. – IFC, which is part of World Bank Group, has provided support for organizing the first wind power auction in Kosovo*, alongside the now defunct United States Agency for International Development (USAID), Luxembourg Development Cooperation Agency – LuxDev, and the European Bank for Reconstruction and Development (EBRD).
Kosovo* hosts just three wind power facilities: Selac, also known as Bajgora (104.1 MW), Kitka (32.4 MW) and Golesh (1.35 MW).
The first solar power auction was held last year.
* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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