Doing Business in Kosovo - US Department of State

capacity, starting with an initial 300 plus 300 MW. Despite extensive delays, the project is back
on track and a new transaction advisor is on board, working with the pre-qualified investors.
The GoK expects to release the final Request for Proposal in early 2012 with selection of the
successful bidder by the end of 2012.
The privatization of the network distribution and supply side of KEK, also part of the energy
strategy, is anticipated to improve and expand the distribution network, increase billing and
collections, reduce electricity losses, and improve the security of supply and overall service
quality. This privatization process is further along than the generation privatization, with bids
due from investors by the end of March 2012.
The GoK, with financial assistance from the World Bank, has also engaged consultants to
conduct preliminary environmental and social assessments for the construction of a new
hydropower plant at Zhur, in western Kosovo. The Zhur hydropower plant is envisaged to
produce a maximum of 305 MW of electricity. The economic analysis for the project is ready
and GoK is set to restart the stalled process.
A World Bank study estimates that the existence in Kosovo of 12 billion tons of lignite coal
would enable Kosovo’s generating capacity to increase an additional 2000 MW. Kosovo has the
5 th largest proven lignite coal reserves in the world, and the World Bank ranked Kosovo first in
Europe in potential cost efficiency of electricity generation. A significant amount of money
would be needed to develop all aspects of Kosovo’s energy sector. However, Kosovo’s power
industry provides enormous potential and a promising starting point for U.S. companies wanting
to enter the Southeastern Europe energy market.
Development of renewable energy and increased energy efficiency: The World Bank has been
studying the potential for the Zhur Hydro Power plant. The GoK has expressed interest in
exploring the potential for solar, wind and geothermal energy. Reliable baseline data are
required for all sources including hydro and development of projects must be coupled with
establishment of a suitable regulated tariff regime that clearly addresses all aspects of system
reliability and any subsidies that may be required. The World Bank has been providing the
Energy Regulatory Office assistance to develop a renewable energy tariff regime. End-use
energy efficiency improvements will become increasingly attractive once collection discipline is
complete and full-cost tariffs provide proper incentives. Several donors are already beginning to
develop programs in this area.
Sub-Sector Best Prospects Return to top
Turbines
Generators
Power systems spare parts
Power operation and maintenance services
Legal and consulting services
Opportunities Return to top
New, independent power plants (coal or hydro powered)
Renewable energy, especially wind and water