Photo: KOSTT
Transmission, System and Market Operator (KOSTT) of Kosovo* signed a contract with the Ministry of Economy and Municipality of Ferizaj, receiving 2.3 hectares of land for a 45 MW battery project. It is funded through the Millennium Challenge Compact, initiated in 2022 by the United States, acting through its Millennium Challenge Corp. (MCC), and the government in Prishtina.
Almost a year after the prequalification call for potential contractors, KOSTT received 2.3 hectares of land from the Municipality of Ferizaj (Uroševac) for a battery energy storage system (BESS).
The transmission system operator (TSO) of Kosovo* pointed out that the Ministry of Economy is part of the deal as well, within the Millennium Challenge Compact program with the United States.
KOSTT’s battery is for its automatic frequency restoration reserve
The site for the facility for KOSTT’s automatic frequency restoration reserve (aFRR) is near the Sojeva (Sojevo) village and Camp Bondsteel. Led by the US Army, it is the seat of the Kosovo Force (KFOR).
“The batteries will store energy when there is a surplus and return it to the grid when demand increases, for a more stable supply and more affordable costs. The Kosovo-US partnership is turning into another concrete result: infrastructure that makes energy more secure for citizens,” said Acting Minister of Economy Artane Rizvanolli.
Second part of project is for 125 MW, 250 MWh
The BESS project for KOSTT, funded by the US through its Millennium Challenge Corporation (MCC), aims to strengthen energy security, promote the transition to clean energy and reduce energy costs. The battery system would have 45 MW in operating power and a two-hour duration, translating to 90 MWh.
Overall, the agreement is worth USD 236.7 million, of which the Government of Kosovo* is providing USD 34.7 million.
MCC has earmarked more than USD 200 million for the BESS endeavor
Millennium Challenge Account Kosovo (MCA-K), the contracting authority, officially launched the program last year. In September it signed an agreement with KOSTT to implement the project from design to commissioning. The arrangement was initiated in 2022.
The prequalification call was published in late 2024. It included another battery project, for 125 MW and 250 MWh, at a location in Peja (Peć). It is supposed to be managed by a public entity that would provide services such as frequency restoration and energy arbitrage – buying electricity when prices are low, to be used later.
Total investment was estimated at USD 180 million, of which USD 46 million for the smaller BESS.
* 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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