Renewables

Kosovo* initiates solar power auction for up to 105 MW

Kosovo solar power auction up to 105 MW

Photo: Thomas Coker on Unsplash

Published

May 15, 2023

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Published:

May 15, 2023

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Kosovo* issued a contract notice for investors interested in building and operating a solar power plant on public land. The location in Kramovik was determined for 95 MW to 105 MW in connection capacity.

The Ministry of Economy of Kosovo* vowed to expedite the legal procedure for a solar power plant for which it would award a 15-year power purchase agreement, PPA, under its first competitive procedure in the sector. Investors can send bids until August 15 for 90 MW to 105 MW in connection capacity for a location in the municipality of Rahovec (Orahovac).

Connection capacity – in alternating current or AC terms – for utility-scale photovoltaics can be lower by 20% or more than installed capacity in direct current. The ratio depends on geographic orientation, inverter size and other factors. The ministry said the site faces south and southeast and that it has high solar irradiation.

More renewable energy auctions to come

The land in the cadastral zones of Kramovik and Petković will be leased by the selected bidder for at least 30 years, according to the contract notice. The terrain is favorable for construction and a grid connection is nearby, the document reads. The bids are scheduled to be opened on August 18.

The government in Prishtina intends to lease out public land in Orahovac to to the selected investor for at least 30 years

The location was selected in cooperation with local and international experts, Minister of Economy Artane Rizvanolli said. “Adding more renewable energy is critical for our green transition. And, most importantly, building a solid foundation for a bright and secure energy future,” she stressed.

It is the first auction of its kind in Kosovo*. The authorities “anticipate many more to come for both solar and wind energy development,” Rizvanolli added. The tender dossier can be obtained upon written request from May 16.

Selected company has two years to put facility into operation

The selected bidder will have two years to commission the solar power plant in Kramovik. The PPA shall be converted into a contract for difference (CfD) upon the confirmation of the Energy Regulatory Office (ERO) that a liquid functional day-ahead market has been established in Kosovo*, the notice adds.

The PPA will be converted into a CfD when a domestic functional day-ahead electricity market is established

Albanian Power Exchange, ALPEX, launched regular operations two weeks ago with the introduction of a day-ahead market. It should include the market in Kosovo* in the summer, according to announcements.

The government in Prishtina is making efforts “to decarbonize through competitive, private sector-led market solutions that increase its long-term energy security and sustainability,” the United States Agency for International Development (USAID) said. It noted that Kosovo’s energy strategy has set a goal of a 35% share of renewables in its energy mix for 2031.

The investment is valued at EUR 75 million.

The renewable electricity auction model was developed with the European Bank for Reconstruction and Development.

* 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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