Kosovo* to hold its first wind power auction in 2024

Kosovo 150 MW wind power auction in 2024

Photo: Freepik


October 17, 2023






October 17, 2023





After the current pilot auction for solar power, Kosovo* is planning to conduct a competitive bidding process in 2024 for 150 MW of wind power, its first for the technology.

The International Monetary Fund has conducted the first review of Kosovo’s precautionary stand-by arrangement and the resilience and sustainability facility arrangement. In the statement, which was later mirrored by the Ministry of Economy, the global financial agency said that the government has decided to launch an open and competitive tender for 150 MW of electricity generation capacity from wind.

The call is set to be issued by mid-2024, the update revealed. It would be the first wind power auction in Kosovo*. The authorities have made significant progress to advance their climate policy agenda, according to the IMF.

Renewables bill sent to lawmakers

The international financial institution commended the first solar power auction and noted that the government adopted the draft Law on the Promotion of the Use of Renewable Energy Sources and sent it to parliament earlier this month.

KAK will install filters in the B2 unit of the Kosova B coal plant

The authorities have started implementing programs to increase energy efficiency in residential buildings and taken steps to strengthen regional cooperation, market competition, and functioning by implementing actions conducive to the start of the day-ahead electricity market for Kosovo* in the context of regional electricity market with Albania and the Albanian Power Exchange (ALPEX), IMF pointed out. The government earlier indicated that Kosovo* may join ALPEX by the end of next month.

“To safeguard vulnerable energy consumers, the authorities have prepared a comprehensive plan, with funding in the 2024 budget. Finally, Kosovo Energy Corporation (KEK) has finalized the technical work required for the installation of filters in Kosova B thermal power plant. Moreover, KEK budget plan for 2024 includes a contingent allocation of EUR 12.5 million to complement EU funding to install the first of such filters in the B-2 unit, which upon completion would significantly reduce pollution in Pristina and surrounding areas,” IMF added.

The Ministry of Economy clarified that it would provide subsidies for the winners of the wind power auction.

Wind power auction to be launched after first tender for photovoltaics breaks ice in market

Kosovo* has only two wind farms – Selac, also known as Bajgora (102.6 MW), and Kitka, with a capacity of 32.4 MW, which is planned to be expanded by 20 MW. Bondcom Energy Point’s Budakova system is envisaged at 46 MW. Another advanced project is for the 100 MW wind farm Çiçavica, developed by Akuo Energy.

Air Energy 2 intends to install two wind power plants of 34.8 MW each. StubllaEnergy is working on a hybrid power plant of 170 MW, of which 132 MW would be in wind turbines.

Of note, Kosovo* is conducting a competitive bidding process for 15-year power purchase agreements for photovoltaic projects. It is the first solar power auction and between 90 MW and 105 MW is available. The deadline has just been postponed for the third time, until January 31.

In other news, the government signed an agreement with Germany’s KfW Development Bank for KEK’s 100 MW solar power project for EUR 61 million, of which EUR 32 million is a grant from the European Union’s Western Balkans Investment Framework.

Additionally, Switzerland agreed to donate EUR 9 million for investments in increasing water supply efficiency. The European Union approved, through the World Bank, a EUR 9.1 million grant for water use efficiency in agriculture and the rehabilitation and modernization of the Radoniqi-Dukagjini Irrigation Scheme.

* 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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