The Government of Kosovo* has approved the initiative to negotiate the co-financing agreement of a compact program between Kosovo* and United States development agency Millennium Challenge Corporation (MCC).
The compact program for a grant to Kosovo*, estimated at USD 234 million, consists of two projects: batteries with an installed capacity of 200 MWh, and the development of the workforce and involvement of women in the energy sector, the Ministry of Economy said.
According to the ministry, the first project is to purchase and install high-capacity batteries to serve as energy storage. The system will stabilize the fluctuating frequency of electricity, store energy in the early hours of the morning when consumption is low, and connect with solar, wind, or similar power plants.
Batteries will be used for frequency stabilization, energy storage
Kosovo* will own the facilities, the ministry added.
Economy minister Artane Rizvanolli said the program would back the independence of the national energy system and enable its transformation.
The details will be made known after negotiations between the government and MCC, planned for May. The battery storage capacity will be larger than 150 MW, and it will secure 200 MWh, Rizvanolli said, as quoted by local media.
US grant was initially planned for gas pipeline
Of note, a USD 200 million grant from US agency MMC was planned to develop a gas pipeline from Greece and North Macedonia. But Kosovo* suspended the project in September.
At the time, Minister Artane Rizvanolli said the grant would be used for energy storage, electricity network and smart grid solutions, and skills for the labor force, especially women.
According to MCC, since Kosovo’s selection for a compact program in 2018, the agency has been working closely with the government to identify and develop infrastructure investments to help Kosovo* achieve sustainable and inclusive economic growth. Instability in the energy sector is a crucial barrier to growth and job creation in Kosovo*, causing high costs for firms – as much as USD 400 million per year, MCC said.