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Security of supply prioritized over green power

Published

March 1, 2016

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Published:

March 1, 2016

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Key players of the energy sector met at ‘Security of Energy Supply in Kosovo’s * forum organized by the Ministry of Economic Development and supported by Repower, project by the United States Agency for International Development (USAID). Participants stressed the need for greater involvement of the business community and international partners in the development of this field.

Representatives of Kosovo’s* institutions and international partners agreed that local electricity generation relies on coal, and that based on monetary and fiscal policies in the medium term it is not possible to substantially increase power generation from renewable sources. However, speakers emphasized new initiatives have been implemented by the government to promote renewables, but that green energy projects need subsidies to become profitable, which will ultimately be paid by consumers. In the context of rising energy prices, the Government of Kosovo* should protect its vulnerable consumers, according to participants.

The opening was attended by representatives of Kosovo, Albania and the international community, including prime minister Isa Mustafa, minister of economic development Blerand Stavileci (pictured), U.S. Ambassador in Kosovo Greg Delawie, director of World Bank’s office in Kosovo Marco Mantovanelli, representatives of the Ministry of Energy and Industry of Albania, as well as representatives of the sector, non-governmental organizations, academia, business and the media.

Stavileci said the government’s objectives are based on a balance of four premises: security of supply, affordable energy prices for citizens and businesses, protecting the environment and efficient use of resources, and increased private investment and creation of new jobs.

Participants agreed that a very important component for stability of supply and operation of the system is the single electricity market with Albania. Electricity generated in Albania is mainly based on hydro sources, whereas Kosovo* relies on coal, and these are considered the cheapest and safest alternatives for joint supply of both countries, thus eliminating seasonal shortages.

It was a common conclusion of all participants the recovery of Kosovo’s* economy depends on the success of energy policies, and that international partners should support such efforts by actions, giving Kosovo* discretion in terms of European Union’s environmental standards, the ministry said.

 

* 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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