Kosovo is looking for investments in solar energy through auction scheme
Kosovo’s Minister of Economic Development Valdrin Lluka announced that Kosovo will be looking for investments in the solar energy sector through the new auction scheme which is to be set. The expected amount of the investment is EUR 100 million.
Minister Lluka said that his ministry is interested in large-scale solar projects, and will begin to grant licenses for such projects in a near future. Selection process will be based on an auction mechanism, that needs to be designed, pv-magazine reported.
This statement is considered to be the first significant step of the local government to introduce solar energy into the energy mix of Kosovo. It is calculated that Kosovo has a notably large potential in the solar sector given its average of 278 sunny days and 2,000 hours of sun per year.
According to the same source, Lluka expressed hope that the new auction scheme for solar could bring EUR 100 million investments.
At this moment, there is no timeline set and no other details related to the announced procurement process have been revealed.
The World Bank report has recently suggested that the best solution to meeting the energy needs in Kosovo is to develop and add the production of power from renewable energy sources to the existing thermal power plants.
Earlier this year, The European Commission (EC) also pointed out that Kosovo is still largely dependent on coal and electricity imports. With its outdated production capacities and low energy-efficiency, Kosovo’s government has to put more efforts in order to improve its energy system and to provide more support for renewable energy sources, the EC advised.
The current level of investment remains minimal despite the existing legal framework for support schemes for energy produced from renewable sources.
Kosovo’s National Renewable Energy Action Plan (NREAP) for the period 2011-2020 includes renewable energy sources targets by 2020 and the Measures to achieve them. The implementation of the NREAP should enable Kosovo reach its obligatory 25% target by 2020.