Electricity

Energy Community challenges state aid to Kosova e Re

Kosova e Re thermal power Energy Community

Photo: Pixabay

Published

December 24, 2019

Country

Comments

0

Share

Published:

December 24, 2019

Country:

Comments:

0

Share

The Energy Community Secretariat said it has sent a so-called opening letter to Kosovo* with the intention to resolve the dispute regarding the backing for the project of a coal-fired power plant of 450 MW.

The international institution claims the stimulus for Kosova e Re is “per se illegal state aid” as the authority responsible for the matter hasn’t been notified. The report cites energy and availability payments over 20 years under the power purchase agreement, the sale and transfer of the plant site under market value, a state guarantee, an exemption from value-added tax, and coverages of several charges and costs.

The case, launched after a preliminary probe, is filed under ECS-4/19. The Energy Community’s top panel said the initial procedure opens the way for the government in Prishtina to respond in two months at most. At the same time, the secretariat will “establish the full background.”

Interested parties can submit observations about the contracts for Kosova e Re in the early stage of the process. A complaint was filed half a year ago by Balkan Green Foundation, GAP Institute, Group for Legal and Political Studies, INDEP and CEE Bankwatch Network. Environmental activists have been opposing coal exploitation and utilization.

The report cites energy and availability payments over 20 years under the power purchase agreement, the sale and transfer of the plant site under market value, a state guarantee, an exemption from value-added tax, and coverages of several charges and costs

The World Bank concluded in August of last year that ContourGlobal Plc’s agreement with the local authorities for the construction of another thermal power plant mean excessive expenses and the rise in total capacity above the optimal level. The international finance organization later withdrew support for the project in Kosovo*.

In the document, the facility’s electric load is projected at 450 MW, though in other official accounts it is 500 MW. The most affordable strategy would be to phase out coal-fueled power production.

The Kosovo Energy Corporation (KEK) recently got a EUR 76 million grant from the European Union’s Instrument for Pre-accession Assistance or IPA for a project to reduce air pollution from the Kosovo B power plant, which uses lignite. The fuel is abundant in Serbia’s breakaway province.

The new power plant, estimated at EUR 1.3 billion, was supposed to replace Kosovo A, built in 1963. ContourGlobal would transfer ownership to the government in 20 years.

* 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.
Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Greece remains world most attractive renewable energy markets

Greece remains among world’s most attractive renewable energy markets

29 November 2022 - EY kept Greece and Turkey in its Renewable Energy Country Attractiveness Index of 40 countries. In another ranking, Greece is second in the world!

romania popescu minister power storage battery

Romania to grant EUR 103.5 million for battery storage projects

29 November 2022 - The Government of Romania has launched a public call for EUR 103.5 million in grants for investments in electricity storage capacities

EU heavily dependent on solar panels, wind turbines imports Eurostat

EU green technology imports twice as high as exports – Eurostat

29 November 2022 - Buyers in the European Union spent EUR 15.2 billion last year on solar panels, wind turbines, and liquid biofuels from abroad

Coal regions Western Balkans Ukraine funds just transition

Coal regions in Western Balkans and Ukraine lack dedicated funds for just transition

29 November 2022 - The Initiative for Coal Regions in Transition in the Western Balkans and Ukraine held an annual meeting in Brussels