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

Voltalia breaks ground Albania biggest solar park Western Balkans Karavasta

Voltalia breaks ground in Albania for biggest solar park in Western Balkans

01 July 2022 - The site for the Karavasta solar park spans 196 hectares in Fier county in Albania's west. The planned capacity is 140 MW.

net-loss-eps-q1

Serbia’s power utility EPS posts Q1 net loss of EUR 254 million

30 June 2022 - The state-owned power utility is blaming the poor result on a drop in output, electricity imports, and capped prices for end-consumers

EU agrees fossil fuel car ban as climate package talks are starting

EU agrees fossil fuel car ban as climate package talks are starting

29 June 2022 - The Council of the EU and European Parliament are set for talks on the Fit-for-55 package. Both agree new combustion engines should be banned by 2035.

G7 reverses climate policy support LNG gas nuclear power

G7 reverses climate policy with support for LNG, gas, nuclear power

29 June 2022 - The G7 reaffirmed its commitment to climate goals, but it backed the deployment of gas, particularly LNG, and of nuclear power