Renewables

Kosovo* completes first solar power auction at EUR 48.88 per MWh

Kosovo first solar power auction EUR 48.88 per MWh

Photo: Artane Rizvanolli / X

Published

April 3, 2024

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Published:

April 3, 2024

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A consortium led by Switzerland-based construction company Orllati was selected to build and operate a solar park of up to 105 MW in connection capacity for 30 years including a 15-year contract for difference. The group won the first renewable electricity auction in Kosovo* with a bid of EUR 48.88 per MWh.

Almost a year since the initial public call, the Ministry of Economy in Prishtina completed its pilot solar power auction. Even though it raised the ceiling price in late December to EUR 75 per MWh from EUR 65 per MWh amid repeated delays, it was closed at EUR 48.88 per MWh.

Switzerland-based Orllati leads the winning consortium, consisting of companies from Germany and Kosovo*. The construction firm is led by Kosovar diaspora, officials said.

The victory in the electronic auction translates to the right to take land on lease for a photovoltaic park of 90 MW to 105 MW in total connection capacity and up to 117 MW in peak terms. Orllati agreed to build and operate the facility for 30 years, of which the first 15 years it would sell electricity under a contract for difference (CfD) equalling the winning price.

The government-owned land is in the cadastral zones of Kramovik and Petković (Guri i Kuq) in the municipality of Rahovec or Orahovac.

Auction terms were amended ten times

Two Turkish consortia participated in the auction – Çalik and Limak, and Güri̇ş İnşaat ve Mühendislik (Güri̇ş Construction and Engineering) – together with Akuo Energy, headquartered in France, and Egypt-based Elswedy Electric. It consisted of four rounds, the ministry said. The first one, with 43 bids, drove the price down to EUR 57 per MWh while the final level was reached in the third one.

Kosovo* intends to launch auctions this year for 45 MW in battery storage and 150 MW in wind power

Minister of Economy Artane Rizvanolli said the competitive process is ensuring affordability for citizens, strengthening the security of supply and the sector’s sustainability and enabling private investments. She revealed that the auction terms were amended ten times in line with investors’ suggestions.

The winner will invest more than EUR 70 million, according to the government, which is preparing to issue calls for auctions this year for 45 MW in battery storage and 150 MW in wind power. There is 950 MW in total in the pipeline, Rizvanolli noted, saying the potential investments are valued at an overall EUR 1.2 billion.

Ceiling price at Albania’s next auction will be EUR 59.97 per MWh

The bidding was organized with the support of the United States Agency for International Development (USAID). The renewable electricity auction model was developed with the European Bank for Reconstruction and Development.

Kosovo* hosts just two operational wind power plants and some hydropower and photovoltaic capacities.

For comparison, Romania is preparing its first solar power auction for CfDs with a maximum price of EUR 91 per MWh. Amid weak participation, the lowest price at Serbia’s first solar power auction, held last year, was EUR 88.65 per MWh, just 35 eurocents below the starting level.

The maximum acceptable price in Albania’s upcoming auction is EUR 59.97 per MWh. The two previous auctions, in 2021 and 2020, were similar to the latest one in Kosovo*. The government secured land for one large-scale project at a time and for one investor each. Voltalia was the winner both for Spitalla (EUR 29.89 per MWh) and Karavasta (EUR 24.89 per MWh).

* 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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