About 97% of power
generation installed capacities in Kosovo is based on two lignite fired power plants
of KEK: Kosovo A (5 units) and Kosovo B (2 units). Total installed capacity of
both plants is 1,478 MW, which could have been sufficient to fulfill current
Kosovo’s demand for electricity if they were totally available. But, due to
age, net generation capacity of these plants has been significantly reduced.

The current situation of
electricity supply in Kosovo is not satisfactory, in different time periods
there is lack of electricity imposing interruption of electricity for
customers. Illegal use of electricity and use of electricity for heating, as
well as the limited availability of power generation capacities doesn’t guarantee
stable and sufficient electricity supply to all consumers.

The need for investment in
electricity sector in Kosovo, particularly in electricity generation, requires restructuring
of the sector, market liberalization and growth of competition in the
electricity market.

In order to attain these
objectives a number of measures are undertaken: amendments of the energy laws,
approval of new market design and market rules. Such documents and the
increased activities for their implementation will determine necessary measures
to accommodate commercial arrangements in order to attract necessary domestic
and foreign investments to develop the electricity sector in Kosovo.

Electricity consumption
during 2015 ‐ 2024 will be met by domestic production and also by
imports of electricity. In order to meet the growing demand in the country and
potentially to export electricity surpluses, investments in the following
projects are planned:

 Development of two units
in a new TPP “Kosova e Re” with installed capacity of about 2*300 MW. The first
unit (300MW) is expected to be operational in 2020, while the second unit in 2021;

 Construction of HPP Zhur
in 2020. This project is considered very important for balancing and optimizing
the work of the Power System;

 Construction of small
power generation units (mainly from RES) by private investors with planned
capacities: about 240 MW ‐ small HPP, 165 MW – Wind turbines, 14 MW –
biomass fired plants and 15 MW – solar (photovoltaic);

During 2014 there have been
certain developments with respect to Kosova e Re project, resulting in evaluation
of the bid for this project. TPP Kosova e Re will represent the main component
of domestic electricity production on lignite ensuring the base energy for the
system. ERO has been a participant in the steering committee and in the working
group of the project.

Almost all consumption of
oil products is covered by imports. Since Kosovo has no domestic oil sources
nor oil pipelines or domestic production, oil products are imported mainly by
trucks and to lesser extent by rail. Current oil legislation obliges all
petroleum product storages and sale points to possess at least 5% of the
storage capacity for state emergency purpose.

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