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In 1962, the Kosovo A Power Station was inaugurated. EPS Surface Mining Kosovo and EPS TPP Kosovo ran it until the end of the Kosovo War. Elektroprivreda Srbije (EPS) lost access to the local coal mines and power plants, notably Kosovo A and Kosovo B, after the UNMIK authority took over Kosovo on July 1, 1999.
Kosovo Energy Corporation has been in charge of it since then. The power station burst on June 6, 2014, killing two individuals and wounding 13 others. After that, the station was turned off. The explosion was caused by a hydrogen tank explosion that occurred in a separate portion of the power station from the generator.
Background
The plant had five units that were built between 1962 and 1975. The first two units have been decommissioned, leaving only three units with approximately 200 MW apiece capacity. Kosovo Energy Corporation manages it (KEK). Kosovo’s second-largest power station uses coal from the Mirash coal mine.
Chronic technical problems, including a lightning strike in July 2002, have limited the output capacity of Kosovo A and Kosovo B power stations. Kosovo has been importing electricity to compensate for its shortfall. Despite imports, electricity was not guaranteed 24 hours a day for much of 1999-2002.
Kosovo Electricity
Kosovo electricity Consumption has been steadily increasing. Commercial losses are primarily to blame. In addition, the steady growth of the economy and population has raised energy consumption. Power plant energy generation has climbed year after year, but hydroelectric power plant energy generation has declined. Kosovo imports electricity during specific times of the year (mainly during the winter) to meet the demand. The Kosovo Electricity Agency for Energy Efficiency (KAEE) is an executive agency of the Ministry of Economic Development in Kosovo. KAEE executes energy efficiency programs by assessing energy savings opportunities and putting energy efficiency measures in place across the board. This agency has produced legal frameworks for energy efficiency, intending to implement the best EU practices. The World Bank is proposing a $32.5 million project to fund investment and provide technical support to improve renewable energy policy and regulations.
Kosovo Energy
Kosovo is one of the poorest countries in Europe, with almost a third of the population living below the poverty line and one in 10 people living in extreme poverty. The average per capita income is about one-tenth that of the EU, and Kosovo has one of the highest unemployment rates in Europe. The overall unemployment rate is about 33 percent, and unemployment for youth aged 15-24 years is about 60 percent. Job creation, therefore, is a major priority for the country.
Kosovo energy needs affordable and reliable energy to boost employment, increase growth, reduce poverty, and improve people’s lives. The country’s electricity system is outdated, inadequate, and undependable, posing significant economic growth and development challenges. Frequent power outages hinder investment and disrupt manufacturing, education, and health services. Many citizens still burn firewood and coal for heating and cooking, which generates air pollution that causes respiratory and other health problems. Without a reliable, affordable, and sustainable electricity supply, foreign and domestic firms are reluctant to invest in Kosovo and create jobs.
Two steps forward and one step back
The Kosovo Powerstation government signed a series of contracts with ContourGlobal, a UK-based company, in December 2017 for a 20-year concession to develop and operate a plant with a net capacity of roughly 450 MW.
The World Bank, the project’s long-time supporter, was having cold feet just as the project appeared to be taking a huge step ahead. In October 2018, Bank President Kim ended years of conjecture by confirming that the project had been shelved since the Bank’s analysis revealed that it was no longer the most cost-effective option for Kosovo.
The EBRD reaffirmed its decision not to sponsor the project a month later.
Kosovo’s two largest power facilities are also the country’s biggest pollutants, with locals living near coal-fired power plants linking the emissions to major health problems. According to certain officials, the country is poised to transition to renewable energy sources. However, environmental groups claim that Kosovo’s issues extend beyond power plants, claiming that lax industry restrictions have allowed pollution to continue unabated.
Conclusion
In March 2020, ContourGlobal finally announced its exit from the project. The company stated that it would now be impossible for the project to meet the required milestones, citing, among other things, the fact that the new government in Kosovo had publicly opposed the contract. Around the world, energy supply conditions vary, and each country determines how best to meet its own energy aspirations. Kosovo’s electricity supply options are highly constrained due to the modest availability of feasible renewable resources, ageing and unreliable lignite-fired generation plants, and supply shortages in neighbouring countries. Given this background, the Government of Kosovo has prioritised the modernization and improvement of the country’s Kosovo energy sector and has asked its development partners, including the World Bank, European Commission, KfW, USAID, and other donors, for support and assistance.
