Renewables

Kosovo* receives six applications for its first solar power auction

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Published

February 1, 2024

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Published:

February 1, 2024

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The deadline for qualifications for a solar power auction in Kosovo* has expired, but applications sent by mail will be received for two more days. There were six submissions so far. After the first competitive bidding process for renewables is done, 950 MW of solar and wind capacity will be auctioned, Prime Minister Albin Kurti said.

The first phase of the public call for the construction and operation of a photovoltaic facility of between 90 MW and 105 MW in total connection capacity is coming to a close. The auction process, the first for renewable electricity in Kosovo*, was launched in May. The authorities pushed the deadline back several times until lifting the ceiling price recently by 15.4%.

Companies were supposed to submit applications to qualify by January 31. But the government said it would wait until February 3 also for the bids that come through conventional mail.

It said the names of bidders would be published when the period expires and that there are six potential participants so far. In comparison, Minister of Economy Artane Rizvanolli claimed in July that over 140 companies expressed interest.

Next phase is evaluation

After evaluation, qualified bidders are set to proceed to electronic bidding or e-auction. The lowest price wins.

The Ministry of Economy said it expects “many solar and wind auctions” after the current one. It is the first in Kosovo* for renewable electricity. Another 950 MW in wind and photovoltaic capacity will be auctioned, according to Prime Minister Albin Kurti.

A more stable and cost-effective electricity supply will support all households and businesses and reduce seasonal dependency on energy imports, the announcement adds. Kosovo* overwhelmingly relies on two old coal-fired power plants, which often break down, for domestic production. But even at times when they utilize their capacity to the maximum, electricity imports are necessary.

For now there are just two operational wind power plants and some hydropower and photovoltaic capacities.

Day-ahead power market turns PPA into CfD

The participants will bid for a 15-year power purchase agreement (PPA). It needs to be switched to a contract for difference (CfD) upon the establishment of a liquid day-ahead electricity market, the documentation shows. In fact, the first four companies, all state-owned, started trading last week on such a platform on the joint Albanian Power Exchange (ALPEX) in Tirana.

The auctioned capacity has to be installed on designated land in the cadastral zones of Kramovik and Petković in the municipality of Rahovec (Orahovac). Notably, it will be leased for at least 30 years. Potential peak capacity at the site is 117 MW.

* 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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