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Millennium Challenge Account Kosovo invited qualified companies to respond to the prequalification call for a battery storage project. The two lots are for 45 MW and 125 MW in operating power, with a duration of two hours.
The United States, acting through its Millennium Challenge Corp. (MCC) and the Government of Kosovo*, entered into a Millennium Challenge Compact in 2022. The project contributes to poverty reduction through economic growth. Within the mechanism, a new prequalification call is on until February 14 for the design and build of utility-scale battery energy storage systems (BESS) and transmission connection infrastructure.
The US participates with USD 202 million and the government in Prishtina allocated USD 34.7 million for the entire endeavor. Kosovo* intends to apply a portion to eligible payments under one or two contracts for BESS, the documentation shows.
The contracting authority in the prequalification process is called Millennium Challenge Account Kosovo (MCA-K). The subproject will be instrumental in enhancing the stability of the power grid and improving the management of energy imbalances, the call reads. It is the biggest investment in BESS in the Western Balkans.
Facilities to provide grid services, conduct energy arbitrage
The first lot will be for batteries with 45 MW in capability and a duration of two hours. It translates to 90 MWh in capacity. The second lot is for 125 MW and 250 MWh, respectively.
According to the project presentation MCC released earlier, the first facility will provide automatic frequency restoration reserve (aFRR) services. It would work for the Transmission, System and Market Operator (KOSTT) of Kosovo* and within the Albania-Kosovo (AL-KS) Control Block.
The site for one BESS facility is next to US Army base Camp Bondsteel
The site, near the city of Ferizaj (Uroševac), is right next to Camp Bondsteel. Led by the US Army, it is the seat of the Kosovo Force (KFOR).
The second BESS system would provide ancillary, balancing and other services and conduct energy arbitrage. It would operate under government-controlled Energy Storage Corp. (ESC or ESCorp). The location is in the municipality of Peja or, in Serbian, Peć.
The two future lithium-ion battery systems have budgets of USD 46 million and USD 125 million, respectively, the document shows.
They will be connected to 400/110 kV substations Ferizaj 2 and Peja 3, via underground cables.
Online conference scheduled for December 23
The current announcement adds there would be a prequalification webinar on December 23.
MCC expects to issue the call for bids in July and that construction would start in May 2026. The targeted commercial operation date is August 2028.
Of note, the Millennium Challenge Compact program includes the Just and Equitable Transition Acceleration (JETA) project. It consists of reskilling and the promotion of an inclusive energy sector workforce.
* 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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