Solar power auction in Kosovo* draws interest from over 140 companies

The deadline for the submission of bids for the first renewable energy auction in Kosovo* was pushed back by 45 days. The call drew a massive response, according to Minister of Economy Artane Rizvanolli.

More than 140 companies, including some from Southeastern Europe, have expressed interest in the upcoming solar power auction in Kosovo*, for a 15-year power purchase agreement (PPAs) for 90 MW to 105 MW in connection capacity. The number came from Minister of Economy Artane Rizvanolli, who added that the deadline for sending bids would be September 29.

In the public call launched in May, the government said it would receive bids until August 15. The first renewable energy auction in Kosovo* is for a solar power plant on land in the cadastral zones of Kramovik and Petković. It would be leased by the selected bidder for at least 30 years, the documentation shows.

The selected company will take the land on lease for at least 30 years

Of note, connection capacity – in alternating current or AC terms – for utility-scale photovoltaics can be lower by 20% or more than installed capacity in direct current. The spread depends on the type of solar power modules, whether they are static or on trackers and on other technical solutions and geographic orientation.

140+ companies are already interested in our 1st 100 MW solar PV auction, including companies from:

🇨🇭🇩🇪🇫🇷🇺🇸🇬🇧🇹🇷🇮🇱🇭🇷🇬🇷🇦🇪🇪🇸🇦🇹🇸🇮🇵🇹🇳🇱🇦🇱🇲🇰🇭🇺🇩🇰🇧🇦

Auction deadline: September 29, 2023

Info: https://t.co/ssnuiAAzWI

— Artane Rizvanolli (@Artane_R) July 29, 2023

Some of potential investors are from Croatia, Greece, Slovenia, Albania, Turkey, North Macedonia, BiH

Rizvanolli said the companies interested in participating in the auction are from countries including Switzerland, Germany, France, the United States, United Kingdom, Turkey, Israel, Croatia, Greece, United Arab Emirates, Spain, Austria, Slovenia, Portugal, the Netherlands, Albania, North Macedonia, Hungary, Denmark and Bosnia and Herzegovina.

The investment is valued at EUR 75 million. The renewable electricity auction model was developed with the European Bank for Reconstruction and Development. Its Director for the Western Balkans and Head of Serbia Matteo Colangeli wrote in an op-ed for Balkan Green Energy News that auctions for utility-scale renewable energy projects have been central to the acceleration of the green energy transition in the region.

PPA to be converted into contract for difference

The selected bidder will have two years to commission the solar power plant in Kramovik. The PPA shall be converted into a contract for difference (CfD) upon the confirmation of the Energy Regulatory Office (ERO) that a liquid functional day-ahead market has been established in Kosovo*, the notice from May reads.

Two weeks ago, Kosovo* and Albania awarded the status of a nominated electricity market operator (NEMO) to the ALPEX exchange in both regulatory zones. The bourse launched operations in April by introducing a day-ahead market for Albania. The latest decision paved the way for rolling out such a platform for Kosovo*, too.