Doing Business in Kosovo - US Department of State

Total Local Production
Total Exports
Total Imports
847 MW
4,775 GWh
114 GWh
($3.07 million)
611GWh
($58.2 million)
847 MW
5,108 GWh
(KEK net
generation plus
hydro)
195 GWh
($5.2 million)
685 GWh
($39.7)
Imports from the U.S. N/A N/A N/A
847 MW
5,167 GWh(KEK net
generation plus
hydro)
278 GWh
$12,5 million
785
GWh($54.7million)
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production:
Total Exports:
Total Imports:
Imports from U.S.:
Energy is potentially an attractive sector for U.S. and foreign investment. Kosovo is currently
unable to meet domestic need, and demand for energy is rising both locally and in the region.
The World Bank estimates current demand in Southeastern Europe at 30,000 MW/year, with a
supply deficit of around 15,000 MW. Kosovo’s strategic location in Southeastern Europe, and
vast lignite coal resources, provide solid opportunities for an independent power producer (IPP)
to service Kosovo and the region.
There is a vital need for additional and reliable electricity in Kosovo itself. Power shortages and
outages occur daily due to poor transmission and distribution networks, and antiquated
generation capacity. Electricity in Kosovo is produced by two lignite-fired thermal power plants,
known as Kosovo A and Kosovo B, using 1950s and 1970s technology, respectively, and a small
hydropower plant in the north of the country. Given the current status of energy equipment,
the two thermal power plants are only capable of producing up to 880 MW. The hydropower
plant produces an additional 32 MW. Domestic production can no longer meet demand for
significant portions of the year, resulting in controlled black outs. High import prices, caused in
part by a general regional deficit of energy, inhibit the government’s ability to fully offset the
deficit in domestic production.
In July 2009, the Government of Kosovo developed a new energy strategy, a multi-track
approach to advance sector reform via privatization of the Kosovo Electric Company (KEK)
distribution function, development of a new power plant, and development of a new mine to
meet the needs of the existing and new plants, in consultation with the European Commission,
the World Bank, and the USG. Under this strategy, the GoK will close Kosovo A, privatize Kosovo
B, and tender the right for private investment into the construction of a new thermal power
plant, along with development of renewable energy and increased energy efficiency.
Kosovo decided in December 2009 that the new thermal power plant, “New Kosovo Power
Plant” (NKPP), would consist of a new mine component and phased construction of generation