Energy Strategy Of The Republic Of Kosovo 2016

Republika e Kosovës
Republika Kosova-Republic of Kosovo
Qeveria –Vlada-Government
MINISTRIA E ZHVILLIMIT EKONOMIK
MINISTARSTVO EKONOMSKOG RAZVOJA
MINISTRY OF ECONOMIC DEVELOPMENT
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Prishtina
July 2016
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
TABLE OF CONTENTS
Shkurtesat........................................................................................................................................................................................ 4
Kapitulli I ....................................................................................................................................................................................... 5
Përmbledhje ekzekutive............................................................................................................................................6
Kapitulli II....................................................................................................................................................................................... 7
Hyrje
.....................................................................................................................................................................7
Kapitulli III ..................................................................................................................................................................................... 8
Metodologjia .............................................................................................................................................................8
Kapitulli IV ..................................................................................................................................................................................... 9
Sfondi
.....................................................................................................................................................................9
4.1.
Problemet më themelore prezente në sektorin e energjisë..........................................................................9
4.1.1. Ngecjet në ndërtimin e kapaciteteve të reja prodhuese të energjisë elektrike nga linjiti dhe në
rehabilitimin e atyre ekzistuese ................................................................................................................................ 9
4.1.2.
Tejngarkimi i sistemit të energjisë elektrike veçanërisht në sezonën e dimërit .........................................9
4.1.3.
Kufizimet në sigurimin e importit të energjisë elektrike ............................................................................9
4.1.4.
Mungesa e konkurrencës efektive në tregun e energjisë elektrike ........................................................... 10
4.1.5.
Pjesmarrja e vogël e energjisë termike në konsumin fundor dhe mungesa e gazit natyror ..................... 10
4.2.
Gjendja e përgjitshme e sektorin e energjisë ............................................................................................ 10
4.2.1.
Energjia elektrike ...................................................................................................................................... 10
4.2.2.
Linjiti për prodhimin e energjisë elektrike ............................................................................................... 11
4.2.3.
Energjia termike ........................................................................................................................................ 13
4.2.4.
Gazi natyror............................................................................................................................................... 14
4.2.5.
Burimet e ripërtëritshme të energjisë ....................................................................................................... 14
4.2.6.
Efiçienca e energjisë .................................................................................................................................. 16
4.2.7.
Gjendja mjedisore ..................................................................................................................................... 17
4.3.
Krahasimi i gjendjes së sektorit të energjisë me vendet e rajonit ............................................................ 18
4.4.
Faktorët ndikues në problemet e sektorit të energjisë .............................................................................. 18
4.5.
Aktivitetet kryesore ekzizistuese dhe të planifikuara në politikat aktuale për zhvillimin e sektorit të
energjisë .................................................................................................................................................................. 19
4.6.
Analiza SWOT .............................................................................................................................................. 20
Kapitulli V ..................................................................................................................................................................................... 21
Objektivat strategjike për zhvillimin e sektorit të energjisë për periudhën 2016-2025 ........................................ 21
5.1.
Fokusi i strategjisë së energjisë për periudhën 2016-2025........................................................................ 21
5.1.1.
Vizioni dhe misioni .................................................................................................................................... 21
5.2.
Objektivi 1.Sigurimi i furnizimit të qëndrueshëm dhe cilësor me energji elektrike dhe me kapacitete të
nevojshme për një sistem stabil elektroenergjetik ................................................................................................. 21
5.3.
Objektivi 2.Integrimi në tregun rajonal të energjisë ................................................................................ 22
5.4.
Objektivi 3.Rritja e kapaciteteve ekzistuese të sistemeve termike dhe bdërtimi i kapaciteteve të reja
22
5.5.
Objektivi 4.Zhvillimi i infrastrukturës së gazit natyror ........................................................................... 23
5.6.
Objektivi 5.Përmirësimi i shfrytëzimit me efiçiencë të energjisë,burimeve tëripërtëritshme të energjisë
dhe mjedisit sipas kërkesave të Traktatit për Themelimin e Komunitetit të Energjisë dhe MSA-së
......... 23
Kapitulli VI ................................................................................................................................................................................... 24
Alternativat, politikat dhe masat për arritjen e objektivave ................................................................................. 24
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ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
6.1. OBJEKTIVI 1.
SIGURIMI I FURNIZIMIT TË QËNDRUESHËM DHE CILËSOR ME ENERGJI ELEKTRIKE DHE ME
KAPACITETE TË NEVOJSHME PËR NJË SISTEM STABIL ELEKTROENERGJETIK .............................................................. 24
6.1.1. Alternativat e furnizimit me energji elektrike të nevojshme për plotësimin e nevojave të konsumit dhe
plotësimin e nevojave të sistemit elektroenergjetik ............................................................................................... 25
6.2.
Objektivi 2. Integrimi në tregun rajonal të energjisë ............................................................................... 31
6.3.
Objektivi 3. Rritja e kapaciteteve ekzistuese të sistemeve termike dhe ndërtimi i kapaciteteve të reja
32
6.4.
Objektivi 4.Zhvillimi i infrastrukturës së gazit natyror ........................................................................... 33
6.5.
Objektivi 5.Përmirësimi i shfrytëzimit me efiçiencë të energjisë,burimeve të ripërtëritshme të energjisë
dhe mjedisit sipas kërkesave të Traktatit për Themelimin e Komunitetit të energjisë dhe MSA-së
......... 34
Kapitulli VII .................................................................................................................................................................................. 35
Hapat e ardhshëm për zbatimin e strategjisë......................................................................................................... 35
Shtojca 1. Gjendja e sektorit të energjisë.................................................................................................................................... 38
Shtojca 2. Analizat e parashikimit të kërkesave për energji elektrike sipas 3 skenarëve të konsumit .................................. 59
Shtojca 3. Analiza e adekuatësisë së gjenerimit dhe balancës mes kërkesës dhe prodhimit të energjisë elektrike 2016-2025
........................................................................................................................................................................................................ 63
Shtojca 4. Kërkesat për thëngjill për tre skenarët e gjenerimit të energjisë elektrike ............................................................ 74
Shtojca 5. Projeksionet zhvillimore të sistemeve të energjisë termike..................................................................................... 75
Shtojca 6. Gazi natyror ................................................................................................................................................................ 80
Shtojca 7. Projeksionet e zhvillimit të centraleve elektrike nga BRE-të .................................................................................. 82
3
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
ABBREVIATIONS
KEEA
EU
CG
RES
EC
EE
SEE
ENTSO/E
EU
KEK
GWh
HPP
EC
KEK
KEDS
KESCO
kg
kJ
KKDFE
km
KOSTT
ICMM
KfW
kVh
kW
kWh
Ktoe
MF
MIE
MESP
MLSW
MTI
MW
MWh
MED
DH
DSO
TSO
MO
PPP
KEEAP
KRESAP
GoK
REPOWER
ECS
TAP
Kosovo Energy Efficiency Agency
European Union
Cogeneration
Renewable energy sources
European Commisison
Energy Efficiency
Southeast Europe
European Network of Transmission System Operators for Electricity
European Union
Energy Corporation of Kosovo - Public Supplier of Electricity
Giga Watt hour
Hydropower Plant
European Commisison
Energy Corporation of Kosovo
Kosovo Electricity Distribution Company
Kosovo Electricity Supply Company
Kilogram
Kilojoules
Kosovo Electricity Distribution and Supply
Kilometer
Kosovo Transmission System and Market Operator
Independent Commission for Mines and Minerals
Reconstruction Bank (KreditanstaltfürWiederaufbau)
Kilovolt hour
Kilowatt
Kilowatt hour
Kiloton oil equivalent
Ministry of Finance
Ministry of European Integration
Ministry of Environment and Spatial Planning
Ministry of Labour and Social Welfare
Ministry of Trade and Industry
Megawatt
Megawatt hour
Ministry of Economic Development
District Heating
Distribution System Operator
Transmission System Operator
Market Operator
Public Private Partnership
Kosovo Energy Efficiency Action Plan
Kosovo Renewable Energy Sources Action Plan
Government of Kosovo
Project supporting Kosovo in the energy sector, financed by USAID
Energy Community Secretariat
Trans Adriatic Pipeline
4
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
TPP
ECT
AI
Thermal Power Plant
Energy Community Treaty
Administrat5ive Instruction
CHAPTER I
5
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
EXECUTIVE SUMMARY
One of the main factors of economic development of the country and increasing the welfare of the
society is the security of energy supply. Since the development of a sustainable energy system requires
time, the right decisions for the future of the energy sector should be defined much earlier.
The Energy Strategy 2016-2025 sets out the basic objectives of the Government in the
development of the energy sector, taking into account sustainable economic development, environmental
protection, sustainable and quality supply to customers, efficient use of energy, development of new
conventional and renewable generation capacities, creation of a competitive market, development of the
gas system and creation of new jobs in the energy sector.
Some of hte basic problems facing the energy sector in Kosovo includes delays in the
construction of new coal-based electricity generation capacities and rehabilitation of existing plants;
insufficient generation capacities to cover the peak demand in the winter season; lack of secondary and
tertiary power reserves in the system due to lack of flexible generators, since 97% of domestic generation
is based on lignite; limited capacities of thermal energy power systems; lack of natural gas infrastructure;
significant technical and commercial losses in the electricity distribution network; the inability of the
transmission system operator to control cross-border electricity flows; underuse of the energy saving
potential; underuse of potential renewable energy resources; lack of an effective competitive market in the
electricity sector.
The Program of the Republic of Kosovo 2015-2018 puts a high priority on the energy sector,
particularly electricity provides for concrete measures related to construction of new electricity generation
capacities from fossil and non-fossil fuels; measures for efficiency energy use and measures for the use of
renewable energy sources and cogeneration and measures for developing the conditions to bring natural
gas in Kosovo. Particular attention in the program is paid on environmental protection.
The National Development Strategy 2016-2021 adopted by the Government in January 2016, in
Pillar 4: Infrastructure, provides for four priority measures for the development of the energy sector: 1.
Build new and sustainable power generation capacities, 2. Establishment of an open and competitive
energy market 3. Decrease energy consumption through energy efficiency measures, 4. Rational use of
renewable energy sources. Each of these energy objectives has concrete actions. This document served as
a basic reference for the drafting of the Energy Strategy.
Energy sector holds an important place in the Stabilization and Association Agreement which
entered into force on April 1, 2016. Under this agreement, Kosovo is obliged to fulfill obligations related
to the integration of regional common market, which includes the Contracting Parties to the Energy
Community. Implementation of the acquis related to: competition in the energy market; protection of the
environment; energy efficiency; renewable energy sources, is a serious obligation that Kosovo must fulfill
in the energy sector. Energy Strategy 2016-2025 addresses these challenges. The Energy Strategy of the
Republic of Kosovo 2016-2025 addresses these challenges.
The Energy Strategy of the Republic of Kosovo 2016-2025, based on the analysis of problems of
the energy sector and the best way to resolve them, has defined five strategic objectives:
1. Security of sustainable and quality supply of electricity with the necessary capacities for a
stable electricity system
2. Integration in the Regional Energy Market;
3. Enhancing existing capacities of thermal systems and building new capacities;
4. Development of natural gas infrastructure;
5. Improving the targets of energy efficiency and renewable sources and the environment as per
the obligations of the Treaty Establishing the Energy Community and SAA.
For the realization of the strategic objectives, the team of experts tasked to develop the energy
strategy has conducted analysis based on a number of factors that affect the energy sector, such as:
forecasting the demand based on the economic development forecasts according to the National
6
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Development Strategy 2016-20211 and the Economic Reform Program, measures to reduce technical and
commercial losses in the distribution system, the impact of thermal energy system network expansion, use
of renewable resources for sanitary water heating, energy efficiency measures, market integration, etc.
To achieve these objectives, policies and measures have been recommended as assessed by the
team for the drafting of the Energy Strategy for suitability. To create the conditions for the provision of
reliable and secure energy, through the development of generation, transmission and distribution
capacities, capable of smoothly addressing the increased demand for energy, taking into account the
diversification of resources, the purchasing power of consumers, the efficient use of energy, maximal
utilization of renewable energy resources and protecting the environment during energy activities and free
competition.
Key measures to achieve the strategic objectives
- Construction of new generation capacities of electricity and replacement of old ones to cover the
electricity demand of customers and requirements for system regulatory capacities, in operating
conditions within a common market with Albania;
- Improving the distribution network by increasing efficiency and reducing costs;
-
Fulfilling the conditions for the integration of Kosovo in the regional common market of energy
and thus ensuring implementation of obligations to the Treaty establishing the Energy
Community and obligations of SAA as regards the opening of the electricity market;
-
Expanding the capacities of existing thermal power systems and preparing the conditions for the
construction of new systems;
Preparation of conditions for the development of the natural gas system;
Improving efficiency in energy use and fulfillment of obligations under the ECT and SAA for
energy efficiency
Greater use of potential energy sources and renewable energy and fulfillment of ECT obligations
and SAA regarding RES;
Merger of the energy market with the Republic of Albania;
Improving the environmental conditions during activities of operators of the energy sector,
meeting the ECT and SAA requirements, according to a national action plan, harmonizing it as
much as possible with security of supply policies until the entry into operation of rehabilitated
and new capacities.
-
CHAPTER II
INTRODUCTION
The Energy Strategy of the Republic of Kosovo 2016-2025 (hereinafter the “Energy Strategy”) is
a long-term basic document for the development of the energy sector.
The role, importance, content and procedures of developing this document are based on the Law
on Energy and the Administrative Instruction No. 02/2012 on Procedures, Criteria and Methodology for
the Preparation and Adoption of Strategic Documents and Plans for their Implementation.
The Energy Strategy is based on policy documents and strategies of the Government of Kosovo
and the results of tests and studies conducted in the energy sector financed by Kosovo’s institutions or
external donors.
1
National Development Strategy 2016-2021, is the main policy document of the government for economic
development.
7
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
The Program of the Government of the Republic of Kosovo 2015-2018 gives priority to
uninterrupted and sustainable power supply, using local fossil and non-fossil resources and encourages
diversification of sources to supplement domestic energy needs. The development of the liberalized
energy market and environmental protection are also integral parts of this program.
The National Development Strategy 2016-2021 approved by the Government in January 2016
gives a special place to energy, under four pillars of the Government’s priority. This strategic document
of overall strategic development for Kosovo provides for four measures for the development of the energy
sector:
1. Build new generation and renewable energy capacities,
2. Establishment of an open and competitive energy market
3. Decrease energy consumption through energy efficiency measures,
4. Rational use of renewable energy sources.
A high priority of the Government is the implementation of obligations as per the Stabilization
Association Agreement. Energy is addressed separately in article 114, stating, among other.
- In accordance with the relevant EU acquis, the Parties shall develop and strengthen their
cooperation in the field of energy consistent with the principles of the market economy and
the Treaty establishing the Energy Community, signed in Athens on 25 October 20051.
- Cooperation shall be developed with a view to the gradual integration of Kosovo into
Europe’s energy markets. Cooperation may include assistance to Kosovo as regards in
particular:
(a) improvement and diversification of supply and improvement of access to the energy
market, in accordance with the EU acquis on security of supply and the regional energy
strategy of the Energy Community, and applying EU and European rules on transit,
transmission and distribution and restoration of electricity interconnections of regional
importance with its neighbors;
(b) helping Kosovo implement the EU acquis on energy efficiency, renewable energy
sources, and the environmental impact of the energy sector, therefore promoting energy
saving, energy efficiency, renewable energy and studying and mitigating the environmental
impact of energy production and consumption;
(c) formulating of framework conditions for restructuring of energy companies and
cooperation between undertakings in this sector, in line with the EU internal energy market
rules on unbundling.
The drafting process of the Energy Strategy took into account all policies and measures defined in
the aforementioned documents.
CHAPTER III
METHODOLOGY
The Secretary General of the Ministry of Economic Development took a decision to establish the
Working Group to draft the Energy Strategy.
The team includes experts representing government institutions and other stakeholders related to
the energy sector:
- MED;
- OPM;
- MF;
- MTI;
- MESP;
- ERO;
8
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
- KOSTT;
- ICMM;
- KEK;
- KEDS;
- KESCO.
Drafting of the document was done in teamwork, sharing tasks for each chapter.
In the process of conducting the required analysis for the preparation of the document, closer
technical groups have been established for each technical field: electricity, thermal energy, natural gas,
renewable energy sources, energy efficiency and integration into the regional energy market.
After agreements were reached in close groups, the results were then distributed to the working
group and the document was finally adopted and submitted for further approval procedures.
Structuring of the document and its drafting was done in line with the requirements of the
Administrative Instruction (approved by the Government) No. 02/2012.
CHAPTER IV
BACKGROUND
4.1.MAIN ISSUES OF THE ENERGY SECTOR
4.1.1.
Delays in constructing new electricity generation capacities based on lignite and rehabilitation of
existing ones
Power plants Kosovo A and Kosovo B have a joint installed capacity of 1478 MW, but due to their
age, their operational capacity currently ranges at 915 MW. Current generation capacities are outdated,
needing constant repairs and operating with inefficient technology.2.
Although the 2009-2018 Energy Strategy envisages the construction of new generating capacities to
replace Kosovo A, for various reasons the process was delayed and only in 2015 the selection of the
bidder for the construction of Kosova e Re Power Plant took place and the process is ongoing. The
feasibility study for the rehabilitation of TPP Kosovo B is underway with the support of the European
Union.
4.1.2.
Overloads in the electricity system, particularly in the winter season
The electricity distribution network is also a weak link of the electricity system in Kosovo. Technical
and non-technical losses are rather high. Such losses are particularly high during the winter, as a result of
the overload in the system due to increased demand for heating of spaces, in the absence of other suitable
sources for heating of spaces, in particular in collective housing apartments and the services sector.
4.1.3.
Restrictions in securing electricity imports
Kosovo Electricity Transmission, System and Market Operator, KOSTT, which owns the electricity
transmission network, is yet to gain control of electricity interconnection flows. Consequently, the
electricity import for domestic supply cannot be planned freely and with suitable conditions.
2
National Development Strategy (2016-2021)
9
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
4.1.4.
Lack of effective competition in the electricity market
Although the legal framework for the energy sector, adopted in 2010, has enabled the gradual opening
of the electricity market, thus far we have no competitive market in electricity, primarily because the DSO
doesn't have control over all distribution networks and KOSTT doesn't have control over cross-border
electricity flows, as requirements for non-discriminatory market access.
4.1.5.
Small share of thermal energy in the final consumption and lack of natural gas
Despite an improved situation in Pristina with heating, the share of thermal energy from district
heating systems (obtained heat) in the final energy consumption is still very small and has little impact in
reducing the system’s load. The lack of natural gas further aggravates the situation.
4.2. GENERAL OVERVIEW OF THE ENERGY SECTOR
4.2.1.
ELECTRICITY
The origin of the problem of electricity supply in Kosovo starts with the deliberate destruction of
the electricity system in all its elements, from the previous regime, particularly in the last decade of the
last century.
Since 1984, there has been no construction of new electricity generation capacities with the
exception of some small hydro capacities, but without an impact in solving the problem of security of
electricity supply. Currently, the majority of the power plants’ units are at the end of their technical
lifetime. Had there been a normal development with stable power supply, virtually all capacities of TPP
“Kosova A” should have been either decommissioned or rehabilitated (as it happened in similar cases in
SEE countries).
Despite all the problems and difficulties that the energy system faced, there was a steady increase
with the exception of 2014 (see Figure below). A more detailed description of the situation of the energy
sector is shown in Annex 1 of this document.
KËRKESA PËR ENERGJI ELEKTRIKE DHE MBULIMI I SAJ
konsumi
ENERGJIA ELEKTRIKE (GWH)
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
prodhimi
importi
eksporti
5,862
5,584 5,467
5,570
5,275 5,506
5,399
4,944
4,584
5,503
4,259 4,283
5,167 5,314 5,520 4,894
3,908
5,037
4,798
3,541
4,333 4,527
3,105 3,312
3,997
3,999
2,835
3,483
3,152 3,220
1,913
2,569
921
785 572 756 932
627 315 484
458 611 685 278 371 458
553
349 393 540
779 236
80 170 125 114 195
41
1
452 684
553 280 192
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
VITET
10
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Figure 1 Evolution of the electricity demand and its coverage
Despite an increase of the amount of generation over the years, in existing TPPs and HPPs, there
is no evidence of a sustainable generation system and consequently a sustainable security of electricity
supply. Operating with obsolete capacities and without required rehabilitation, the reliability of the
generation system is far from adequate.
Electricity generation faces serious problems in terms of the technical security of the system as a
result of ever greater obsolescence of the plant and there is an urgent need to take measures. Adding the
environmental problems resulting from old generation technology in use on the one hand and
international obligations that Kosovo has to reduce pollution as a result of electricity generation, on the
other, taking of measures to improve the generation conditions is an imperative, however taking into
account the security of supply under the existing conditions of capacity operation.
The electricity demand was largely covered by domestic generation and partially from imports. In
situations of overloads of the power system, there was a planned load shedding (according to the ABC
plan), which have seen an overall decline in recent years. Although not canceled entirely, this plan is not
being applied.
From 2000 until 2015, 538.25 million Euros were spent in electricity imports. In some cases there
was government intervention to subsidize imports. Since 2012 import subsidies were discontinued. After
the privatization of the electricity supply company, the cost of imported electricity has fallen significantly
as a result of more efficient procedures of purchasing electricity.
Infrastructural capacities of the electricity distribution system didn’t follow this increase,
primarily as a result of low investments in the distribution network. Consequently, the distribution system
of electricity was constantly overloaded, especially during the winter season.
In May 2013 the electricity distribution and supply system moved into private ownership. By end
2014 the process of legal unbundling of DSO and supply was completed.
In recent years, especially after the privatization of the distribution network, significant
investments were made in the distribution network (20 million year) and further investments are taking
place in projects planned by the DSO.
Despite improvements in recent years, technical and commercial losses in 2015 were 31.8%3. A
more detailed description of the situation of the energy sector is shown in Annex 1 of this document.
Due to the inability to control the distribution and supply system in some municipalities in
northern Kosovo, around 5% of electricity remains unbilled.
A positive indicator is the fact that the Public Supplier KESCO has managed to continuously
improve its performance (see Annex 1, item 1.1).
The soundest link of the chain of the energy system of Kosovo is the transmission system. Due to
significant investments in this system, today it is considered as one of the most efficient and stable
systems in the region. However, unfortunately, for political reasons, as a result of having no membership
in ENTSO-E, Kosovo performs limited activities as it is unable to control cross-border flows.
4.2.2.
Lignite for generation of eletricity4
Lignite is the most important energy resource of Kosovo, supplying 97% of total generation of
electricity (TPP Kosovo A and TPP Kosovo B).
Most important lignite basins in Kosovo are:
- Kosovo Basin;
- Dukagjini Basin, and
- Drenica Basin.
3
4
Source: KEDS
Draft Energy Strategy 2013-2022, updated with data from KEK.
11
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Figure 2 shows shows the lignite Basins of the Republic of Kosovo.
Figure 2. Lignite basins in Kosovo.
5
Estimated lignite resources in all of Kosovo are given in table 1.
Tab. 1. Lignite reserves in the Republic of Kosovo6
RESERVES (t)
Lignite basins
Geological
Kosovo
10, 091, 000,000
Dukagjini
2, 244, 830,000
Drenica (f. Skenderaj)
106, 631,000
Total
12,442,461,000
Balance7
8,772,000,000
2,047,700,000
73,188,000
10,892,888,000
Non-balance8
1,319,000,000
197,130,000
33,443,000
1,549,573,000
Coal supply from existing mining of existing power plants will be done by 2024, according to the
mining plan and capacity. For safe supply of existing and new generation capacities, a new mine must be
opened with a capacity of over 430 million tons which would allow for the supply of existing power
plants in the next 30 years.
Opening of the new mine will ensure safe and sufficient supply for existing as well as new
generation capacities. The government took a priority decision for the opening of South Sibovc Field with
a capacity of 430 million tons of coal. This project was approved by KKI and the Government.of
Kosovo.9.
From the entire quantity of coal generated, 97.5% of the total amount available is used to supply
Kosovo’s power plants, whereas 2.5% is dedicated to the market for consumption needs in the industry,
household, agriculture and services.
5
Revising clause No. 152, University of Prishtina, 2008, on –”Study to assess researches and geological coal
reserves in Kosovo”, Kosovo Basin, Prishtina 2007, p. 81. Institute INKOS,
6
Source: Mining Strategy of the Republic of Kosovo for the period 2012-2025,
7
Balance reserves are the reserves where the caloric power of coal is over 5.450 kJ/kg,
8
Non-balance reserves are reserves the caloric value of coal is below 5.450 kJ/kg,
9
Single Project Pipeline of Infrastructural Investments - Energy, Project No. 1
12
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
4.2.3.
THERMAL ENERGY
District Heating Sector in Kosovo consists of four systems. DJ “Termokos” – Prishtina, DH
Gjakova, DH “Termomit” – Mitrovica, and DH in Zveçan. This sector has limited coverage domestically,
meeting roughly 3-5 % of the total demand for heating in Kosovo.10
After the war, several projects have been developed in the heating system which have had an
impact in improving the supply for consumers (DH “Termokos”). The Co-generation project for supply of
thermal energy from TPP Kosovo B and rehabilitation of network and substations have allowed a more
quality supply of existing consumers and possibilities for connection of new ones.
The following is a table with data on the thermal energy system from district heating systems of
Prishtina and Gjakova, including total losses for both systems (for more details see Annex 1.2).
Table 2 Presentation of indicators of both obtained heating systems (district heating)11
2010
2011
2012 2013 2014
7.15
4.53
4.66
5.04
5.95
Generation of heating (ktoe)
0.69
0.57
0.46
0.46
0.77
Own consumption (ktoe)
2015
17.29
0.2
Losses in transmission and distribution
(ktoe)
1.08
0.92
0.76
0.91
1.11
3.21
Available for final consumption (ktoe)
Consumption in household (ktoe)
Consumption in services (ktoe)
5.38
3.50
1.88
3.04
1.98
1.06
3.44
2.24
1.21
3.67
2.38
1.28
4.07
2.64
1.42
13.88
9.02
4.86
Figure 3 shows losses in the thermal energy system in both district heatings (Prishtina and Gjakova) for
which there are available data.
Humbjet në bartje dhe shpërndarje të ngrohjes së përfituar në %
25.0
20.0
20.3
16.3
15.1
18.1
18.7
18.6
2013
2014
2015
15.0
10.0
5.0
0.0
2010
2011
2012
Figure 3 Presentation of technical losses in TERMOKOS and DH Gjakova12
In 2012 MED financed a project for a study in district heating in Peja, Prizren, Gjilan and
Ferizaj13. Study on district heating in Peja, Prizren, Gjilan and Ferizaj financed in 2012 by MED.
10
ERO - Official report (non-official) 2015
Source: Annual electricity balance for respective years. This excludes district heating of Mitrovica and Zvecan.
12
District heatings in Mitrovica and Zvecan are yet to submit data.
11
13
Study on district heating in Peja, Gjilan and Ferizaj financed in 2012 by MED.
13
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
4.2.4.
NATURAL GAS
Kosovo is part of countries with no natural gas infrastructure. Despite this, the legal basis is in
placefor natural gas in accordance with the Third Package of EU legislation, as approved by the
Assembly of Kosovo in June 2016.
Kosovo along with Albania have applied with a joint project for natural gas. The gas supply is
expected to come from the TAP pipeline. General data for this project are presented in Annex 6 of this
document. A grant of 300,000 Euros for the pre-feasibility study for this project under the WBIF
platform. The project is expected to be approved under the single pipeline of infrastructure projects of
interest for the Meeting of the Energy Community in October 2016, Ministerial Council of the Energy
Community.
Kosovo gasification project is ranked seventh in the list of priority infrastructure projects energy, approved by the National Investment Council and by the Government.14
Annex 6 describes data required by the Energy Community Secretariat for proposing the gas
pipeline Albania - Kosovo.
4.2.5.
RENEWABLE ENERGY SOURCES
Renewable Energy Sources (RES) represent an important source of energy which Kosovo owns,
with a highly underutilized potential. The use of these resources for energy generation represents a longterm target for the implementation of three energy policy objectives of the country, which are: support of
overall economic development; increased security of energy supply and environmental protection. In
view of these objectives, it is necessary to apply fiscal and financial incentives for all types of RES, as
well as a system of green certificates.
To encourage the use of renewable energy, Kosovo has established a system of feed-in tariffs for
water, wind, photovoltaic and biomass energy resources, including biogas. These incentive measures for
RES aim to fulfill relevant European Union (EU) requirements, transposition and implementation of
which is done under the monitoring of the Energy Community Secretariat.
Renewable energy sources are of particular importance for use for heating purposes, namely for
the generation of thermal energy. As such, they are also part of the Heating Strategy. Since there is a need
to minimize the use of moist lignite and unsustainable use of wood for heating purposes, the use of solar
energy, municipal solid waste and wood waste are seen as the most promising sources for heating of
spaces and sanitary water.
Support for a greater use of renewable energy was provided by development policies of the
forestry sector designed and implemented by the Ministry of Agriculture, Forestry and Rural
Development, which continue to treat wood as an important source of thermal energy. For this reason, the
Forestry Development Strategy (2010-2020), has given priority to supporting the appropriate use of
systems and methods that lead to better utilization of forests for energy production.
Energy sector laws, in particular the Law on Energy, continuously treat renewable energy sources
in terms of promoting the optimization of their use, including the setting of annual and long-term energy
generation targets from these sources. In order to support and promote the use of Renewable Energy,
Ministry of Economic Development has drafted a ten-year action plan for RES, as a policy document for
this important energy sector. In accordance with legal obligations and those taken under the Energy
Community Treaty (ECT), MED has set RES targets for 2011-2020, taking into account the possibilities
and potentials of Renewable Energy that available to Kosovo. The fulfillment of these targets is
monitored by the Ministry of Economic Development, which is responsible for reporting progress on the
Energy Community Secretariat (ECS) in Vienna.
14
Single Project Pipeline of Infrastructural Investments - Energy-
14
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
MED also has adopted secondary legislation concerning specific measures to promote greater use
of RES.
An important role for the promotion of Renewable Energy lies with the Transmission System
Operator and the Distribution Operator. They are mandated by law to give priority to electricity generated
from renewable energy sources, in line wiht the limits specified in the Grid Code. System operators
establish and publish rules regarding the costs for technical adaptations required for the integration of
RES into the system. These rules are approved of the Energy Regulatory Office (ERO). Also, ERO
ensures that transmission and distribution tariffs for RES generator are non-discriminatory, especially to
those from peripheral regions.
ERO is responsible for issuing certificates of origin for electricity generated from RES, which is
responsibility defined in the Law on Electricity.
An incentive measure for Renewable Energy is also the legal obligation that the public supplier of
energy purchases the amount of energy generated from renewable sources from the generator, with a
regulated tariff, as defined by ERO through a prescribed methodology, which takes into account
compensation from the public supplier of additional costs of purchasing electricity from renewable energy
sources.
ERO is legally responsible for regulatory activities in the field of Renewable Energy , developing
methodologies for regulated tariffs and issuing licenses for energy activities and authorizations for the
construction of power capacities from renewable energy sources.
ERO is also obliged to issue certificates of origin for district heating from thermal energy
generated from renewable sources or energy generated in a co-generation process of electricity and
thermal energy. Thermal energy for which a certificate of origin is issued has priority for purchase by the
public supplier in comparison to other amounts of energy for which there is a certificate of origin on the
basis of which the generator of thermal power has the right to issue and sell green certificates.
Support schemes for Renewable Energy Sources
To meet the goals of energy from Renewable Energy, special rule are defined by ERO to determine
the level of required energy capacity and the criteria and procedures for admission to the support scheme,
rights and obligations of generators of electricity from renewables, for which a certificate of origin was
issued, including the rights and obligations of the public supplier in connection with electricity for which
a certificate of origin has been issued, rights and obligations of KOSTT (independent transmission system
and market operator), the financing of the scheme, integration of electricity generated from renewable
energy sources in the electricity system.
Feed-in tariffs and the deadilne of the power purchase agreement for energy from Renewable
Energy Sources
Primary sources of energy from RES used in the generation of electricity admitted in the support
scheme are: Water, wind, biomass and photovoltaics.
RES projects with capacities within the level of planned targets are based on the scheme of Feed-in
tariff which are determined by the Energy Regulatory Office. Feed-in tariffs vary from different
technologies as follows: - Hydro power (small hydro) 67.3 Euro / MWh; - wind energy: 85 Euro / MWh;
- Energy from biomass 71.3 Euro / MWh and photovoltaics 136,4 Euro / MWh.
Upon the review of the incentive feed-in tariff scheme for hydropower and wind power, in 2016, the
Energy Regulatory Office has increased the feed-in tariff for electricity from water, from previous 63.3 to
67. 3 Euros / MWh, whereas for wind energy the deadline for the sale of energy has been extended from
10 to 12 years. The 12-year deadline of the power purchase agreement also applies for photovoltaic
energy, while for HCV energy it is 10 years.
Annex 1, point 1.3 gives a more detailed description of the policies and measures applied by
Kosovo’s institutions to promote the use of RES. Whereas Annex 7 provides projections for the
15
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
development of HCVs which are taken into account upon the analysis of covering the demand for
electricity by 2025.
4.2.6.
ENERGY EFFICIENCY
Energy Efficiency in Kosovo, along with the need and efforts to ensure sufficient energy
generation from existing power plants and other alternative sources, is considered by the Government of
Kosovo an essential component of strategic planning and economic development of Kosovo.
In the field of energy efficiency, important programmatic political, legal and institutional steps
have been taken to promote it. Kosovo Agency for Energy Efficiency has been established as well as the
Certification Commission of Energy Auditors and Managers. Also there have been significant
investments in improving energy efficiency.
The legal framework and projects developed / and under development to improve energy efficiency
in Kosovo
In addition to the basic laws of the energy sector, since 2012 the Law on Energy Efficiency is in
place, as well as a number of Administrative Instructions (AI) and various regulations, including:
- Administrative Instruction for the promotion of energy efficiency of end users and energy
services;
- AI on Labeling of Energy Use;
- AI on Energy Audit;
- Technical Regulation on Energy Audit;
- Regulations on internal organization of the Kosovo Energy Efficiency Agency;
- Regulation on the establishment of the Commission for Certification of Energy Auditors and
Managers.
Strategic plans in the field of energy efficiency:





Kosovo Action Plan for Energy Efficiency (KEEAP) 2010 to 2018, was approved and enivsages
energy savings of 9% or around 92 ktoe, by 2018.
The first medium-term action plan of the Kosovo Energy Efficiency (KEEAP) 2010-2012 is
already implemented and foresees energy savings of 3% or around 31 ktoe by 2012, which has
been achieved.
The report of the first mid-term plan of Energy Efficiency (preliminary results indicate that the
target was reached in the level of 3% from the defined 3.1%).
The second mid-term National Energy Efficiency Action Plan (KEEAP) 2013-2015, envisaged
savings of 3% or about 31ktoe.
Thus far, 18 municipalities have drafted Municipal EE Plans 2014-2020 and also aprproved them
in their respective municipal assemblies.
BRK-funded projects:


Energy audit of public service buildings for 2011-2012-2013-2014-2015-2016, each year with €
144,000.00.
Public Campaign on Energy Efficiency and Renewable Energy Sources (RES), 2011-2012-20132014-2015-2016, € 50,000.00 per year.
Projects funded by donors / borrowings:
16
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025

Supervision, monitoring, verification and evaluation of energy efficiency measures in schools and
hospitals in Kosovo (Funded by the European Commission with 15.6 m Euros. The project
started and measures will be implemented in 63 schools and 2 hospitals.
 The study and implementation of energy efficiency measures in central public buildings (funded
by WBIF / WB. Financing value is $ 31m. Negotiations between MED-MF-WB completed in
May 2014 and in June the WB Board approved the loan. After the signing of the agreement
between the MoF and the WB, the project was ratified by the Kosovo Assembly. For the first 5
buildings, the design was prepared as well as bidding documents for the implementation of EE
measures.
 Implementation of energy efficiency measures in municipal buildings financed by WBIF / KfW.
Financing value is 7,500,000.00 Euros. A pre-agreement was signed between MF and KfW.
 Support for the private and residential sectors with EE measures, financed by the EBRD, with the
amount of funding at € 12M. (Emphasis will be given to the private sector (Small and Medium
Enterprises SMEs), where the first contracts were already made with a commercial bank, TEB
(value € 5M) and Kosovo Rural Crediting KRK (value € 1.5M ). The project is in the
implementation phase. Thus far € 8.2 M was spent, with € 4M for SMEs and € 4.2 M for the
household sector.
 Through UNDP, a series of projects has been developed to promote EE and two municipalities
have been helped in drafting Municipal EE Plans 2014-2020 as well as witth concrete measures
in public lighting in the municipality.
Other details for activities in the field of energy efficiency have been described in Annex 1, item
(1.4.)
Kosovo, as a signatory of the Energy Community Treaty, has an active role in meetings of the Energy
Community in Vienna, and also actively participates in the Coordination Group for EE, harmonizing its
legitimacy with the relevant European directives.
All these activities, plans and measures that have been developed and which are being developed, are
showing significant reduction in consumption and expensive energy imports, enabling better strategic
planning of energy policies and more effective enforcement. However, this is only the beginning of a
good work, but more remains to be done, as there are significant potentials in the implementation of
energy efficiency in Kosovo, along with the need for savings and improving the quality of life of the
citizens of Kosovo, primarily in the residential sector. Annex 1, item 1.4. gives a more detailed
description of the situation in terms of activities in the field of energy efficiency.
4.2.7.
ENVIRONMENTAL STATE
Taking into account that electricity is generated from power plants with an obsolete technology,
designed at a time when there weren't significant environmental protection requirements, we are in a dire
situation in terms of environmental protection. This is best shown in the following table with concrete
indicators of pollution compared to allowed levels with EU requirements.
Table 3 Emissions from power plants of kosovo in the last two years15.
TPP
Kososva
TPP Kosovo
A
15
Dust (mg/Nm3)
2015
2014
44
57
SO2(mg/Nm3)
2015
2014
289
418
KEK- Environmental state report
17
Nox(mg/Nm3)
2015
2014
725
714
Co2(mg/Nm3)
2015
2014
259.67
262.91
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
TPP Kosovo
B
EU* criteria
645
50
860
327
400
511
821
500
814
220.7
216.04
*- Current emissions [(mg/Nm3) 6 (%) dry] and limits as per the European Commission.
According to the upper indicators regarding the situation with dust in Kosovo A is very good
thanks to the significant investments implemented from own budget of KEK in 2013. Also, there are
improvements, thanks to government investment and foreign donations (World Bank), in hydraulic
transportation of ash, but still there is much work and investment needed to bring the situation within the
desired parameters under these operating conditions and in the situation where the generation ability to
ensure a reliable supply is required in these circumstances Annex 1, point 1.5 gives a more detailed
description of the environmental situation in the energy generation sector from thermal power plants.
Taken from the Environmental Status Report on KEK.16
4.3.COMPARISON OF THE SITUATION OF THE ENERGY SECTOR WITH THE COUNTRIES IN THE
REGION
Almost all SEE countries face problems in covering energy demand. Especially in covering electricity
demand all SEE countries are dependent on imports.
Annex 1, pont 1.6. of this document shows comparative data of indicators of energy with other
countries of SEE.
4.4. CONTRIBUTING FACTORS TO THE PROBLEMS OF THE ENERGY SECTOR
Factors contributing problems associated with the energy sector in Kosovo are as follows:
1. Investments in generating capacities. Despite the fact that Kosovo has significant lignite-based
energy resources, since 1984 there has been no investment in the construction of new capacities
or substantial rehabilitation of existing ones that would enable a stable electricity supply. Existing
generation technology doesn't meet the environmental criteria defined by EU legislation.
2. Investments in the distribution network system. Insufficient investments in the electricity
distribution system have led to a situation where the system cannot withstand the increased load,
particularly in the winter season. This led to a level of technical losses which has further
deteriorated the system.
3. High technical and non-technical losses Non-technical losses as a result of unauthorized use of
energy and the delivery of a significant amount of electricity in certain municipalities in northern
Kosovo, where the DSO and the supply company have no control, led to severe problems in the
distribution and supply system.
4. Kontrolli i rrjedhës ndërkufitare nga KOSTT-i. KOSTT, as transmission system operator,
continues to have no control of cross-border electricity flow, which has also impacted on the
ability of suppliers to achieve favorable contracts for electricity import. In 2015, KOSTT has
signed a connection agreement with ENTSO-E but this agreement is not yet in force.
5. Liberalization of electricity market In Kosovo there is still no effective open, free and competitive
energy market. There is only one supplier who supplies all customers with regulated prices and
has long-term power purchase agreements from all domestic producers. If there were more
suppliers in the energy market in Kosovo the supply would be more stable.
6. Use of electricity for heating; Electricity is significantly used for heating of living spaces, water,
cooking and sanitation. This is due to the lack of other alternatives to supply other energy
16
KEK- Environmental state report
18
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
7.
8.
9.
10.
products. Consequently, the household sector is the largest electricity consumer. When we add
the uncontrolled and unauthorized use of electricity, the problem is further worse.
Non-rational use of energy Despite the considerable potential for energy savings, this potential is
not being used sufficiently.
RES The use of renewable energy is also modest in meeting the needs of sanitary water heating in
particular in the household and services sectors. If the energy-saving potential and RES were
exploited better the electricity system would be in a better state and therefore the problems would
be mitigated. Waste is yet to be used as a source of energy, despite the potential identified by
studies carried out to date.
Small participation of thermal energy Despite significant improvements in the supply of heating
from the cogeneration system, the share of heating energy from thermal energy (district heating)
systems in final energy consumption is small compared to the possibilities.
Non-implementation of the feasibility study on natural gas Despite the opening of real
opportunities for the inclusion of Kosovo in regional natural gas projects, we do not have a
feasibility study for the construction of natural gas infrastructure.
4.5. MAIN EXISTING AND PLANNED ACTIVITIES IN CURRENT POLICIES TO DEVELOP THE
ENERGY SECTOR
The Government of Kosovo, with the support of other state and international institutions, has
undertaken a range of activities to improve the situation in the energy sector in Kosovo.
The main activities developed by the Government and other institutions of Kosovo include:
- Harmonization of secondary and primary legislation. After approvals in June 2016 of laws on
the energy sector, which have transposed the requirement of the Third Package of EU legislation
on the energy sector, within 9 months the secondary legislation will be prepared for the
implementation of such laws;
- Support of the construction process of Kosova e Re Power Plant;
- Support for the process of the project for rehabilitation of Kosovo B;
- Study on the need for investments for operation of TPP Kosovo A until the operationalization of
new generation capacities.
- Liberalization of electricity market Activities on implementing soft measures to open the energy
market under the guidelines of the Energy Community Secretariat;
- Approval of the list of priority investment projects in energy infrastructure sector 17 which
included 13 projects of strategic importance;
- Application of the list of projects of common interest for the Energy Community for the natural
gas project (along with Albania);
- Developing the process for the establishment of a common energy market with Albania;
- Approval of action plans for RES and EE and implementation of measures for their
implementation;
- Activities in the process of transposition of EU legislation for energy efficiency, with a focus in
efforts to finding modalities for the establishment of the Energy Efficiency Fund;
- Intensive activities in the establishment of One Stop Shops to facilitate the development of
projects in the field of RES;
- Implementation of Decision No. 04/156 for decommissioning and dismantling of gasification
facilities, fertilizer, heating and other facilities that do not impede the normal operation of active
units of TPP Kosovo A.
- Implementation of measures set out in the National Development Strategy 2016-2021 for the
energy sector.
17
Single Project Pipeline of Infrastructural Investments
19
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
4.6. SWOT ANALYSIS

















Strengths:
Sufficient lignite reserves with wide
opportunities for electricity generation with
competitive prices
Sufficient
transmission
interconnection
capacities to provide for cross-boundary
trade;
Industry experience in production and
exploitation of the lignite in Kosovo
Sufficient human resources for recruitment
and development of skilled staff which may
cover the needs of the sector
Legislative framework in accordance with
EU directives;
Republic of Kosovo is a party to the Treaty
establishing the SEE Energy Community
Adequate institutional mechanisms for the
functioning of the energy sector, in particular
independent regulatory authorities and
independent transmission system and market
operator;
Relatively favorable RES potentials, which
enables the diversity of energy sources;
Development of a common Kosovo-Albania
electricity market.
High potential for energy efficiency













Opportunities:
Increased demand for electricity in Kosovo
and the region with opportunities for fast
sector development
Restructuring and full reforms of the energy
sector in line with EU Directives
Liberalization of the market regionally and
the development of the sector with the
private capital
Potentials for attracting strategic investors
Construction of new lignite-based generation
capacities
Construction of district heating systems in
larger cities
Reduction of technical losses and increased
investments in distribution







20
Weaknesses:
Current generation capacities are old and do
not secure sustainable energy generation;
High level of technical and commercial losses
in the distribution system;
Lack of access to manage the energy sector in
the northern part of Kosovo;
Limited access for self-financing of
investments;
Delays in investments in modernizing and
developing generation and distribution
capacities;
Irregular supply with electrical and thermal
energy;
Low share of RES in electricity generation;
Partial dependence on electricity imports.
Low efficiency in the generation process and
energy use;
Environment pollution from lignite mines and
energy generation;
High use of electricity for heating;
Lack of control by KOSTT of cross border
electricity flows.
Threats:
Unexpected increases of prices of imports of
liquid fuel and unforeseeable obstables of
supply with oild products;
Possible global financial crisis, with negative
impacts in foreign investments
Continued obstructions by Serbia in the energy
sector
Increased prices of electricity and increased
demand for imports, until the development of
new generation capacities
Lack of electricity available in the region
Non-functioning of open and competitive
electricity market in the region
Non-fulfillment of strategic objectives in the
right time, particularly in reference to sufficient
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
 Increased EE in energy generation and
efficient use of energy by end-consumers
Development of renewable of energy
resources with private capital
 Development of renewable of energy
resources with private capital
 Kosovo’s access to international financial
mechanisms for increased EE. .
capacities for electricity supply.
CHAPTER V
STRATEGIC OBJECTIVES FOR THE DEVELOPMENT OF THE ENERGY SECTOR FOR
THE PERIOD 2016-2025
5.1. THE MAIN FOCUS OF THE ENERGY STRATEGY FOR THE PERIOD 2016-2025.
The Energy Strategy is prepared based on the Law on Energy. The scope of the law on energy
includes electricity, natural gas and thermal energy. This law defines the duties and responsibilities in
determining policies and measures for renewable sources and energy efficiency which are outlined in
national action plans as mandatory documents approved by the Ministry responsible for energy, and based
on the strategic objectives of the Energy Strategy.
5.1.1. VISION AND MISSION
VISION
The Energy Strategy aims to create a developed energy sector, which is frinedly to the
environment and health, supporting economic development and social wellbeing in Kosovo, under a free
and competitive market.
MISSION
The Mission of the Energy Strategy is to create the conditions for the provision of reliable and
secure energy, through the development of generation, transmission and distribution capacities, capable of
smoothly addressing the increased demand for energy, taking into account the diversification of
resources, the purchasing power of consumers, the efficient use of energy, maximal utilization of
renewable energy resources and protecting the environment during energy activities.
5.2. OBJECTIVE 1. SECURITY OF SUSTAINABLE AND QUALITY SUPPLY OF
ELECTRICITY WITH THE NECESSARY CAPACITIES FOR A STABLE ELECTRICITY
SYSTEM
Provision of sustainable, high quality, safe and uninterrupted energy is one of the main conditions
for the development of a country. The problem of electricity supply has become an acute problem that
requires a solution, but is very costly due to the nature of the investments needed. Although looking it
21
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
from the standpoint of annual generation and consumption balance of electricity Kosovo is not worse than
the countries of the region, it faces huge problems in terms of securing necessary capacities to cover Peak
demand, particularly in winter season and in meeting the regulatory capacity requirements of the power
system. A big problem for the energy sector is the fact that interventions in the rehabilitation of the
existing and construction of new capacities will require very large and nearly simultaneous investments.
Despite the opening of markets and regional integration are expected to ensure mitigation effects in terms
of supply problem, it is necessary to take measures as soon as possible to develop appropriate capacities,
taking into account the international obligations for environmental protection, climate change and the
fulfillment of the minimum criteria for ENTSO-E power systems states (KOSTT is in the process of
membership in ENTSO-E).18).
To achieve the goal of a reliable supply of electricity and required capacities for a stable power
system, significant challenges must be addressed related to:
- Outdated generating capacities. Insufficient generation capacities to address the demand for
electricity consumption (especially in the winter season) and for balancing the electricity system;
- High environmental pollution resulting from activities of power generation from obsolete thermal
power plants;
- Unsatisfactory utilization of energy renewable resources for the generation of electricity;
- High technical and non-technical losses in the distribution network to increase many system
requirements;
- Failing to control cross-border flows of electricity from KOSTT.
- Lack of control of the distribution system and public supplier with electricity from DSO and
public supplier, in four municipalities of Kosovo.
5.3. OBJECTIVE 2: INTEGRATION IN THE REGIONAL ENERGY MARKET
The government is committed to implement all obligations of the Energy Community Treaty (ECT)
and the SAA, related to the creation of a free and competitive energy market. Creation of a common
energy trading zone between Kosovo and Albania is given priority by the Government.
To achieve the objective of integration into the regional energy market we must address challenges
related to:
-
Creating an effective competitive domestic market of energy with the operation of more than one
supplier, ensuring the removal of obstacles related to the control of the transmission and
distribution network as two of the main conditions for ensuring a level playing field;
Creating a common area of energy trade between Kosovo and Albania;
Creation of an energy stock exchange with Albania;
Effective implementation of requirements related to the deregulation of electricity prices to
generation;
Elimination of cross-subsidies between categories of consumers as well as limiting state subsidies
in the energy sector;
Complete lack of natural gas infrastructure;
5.4. OBJECTIVE 3. ENHANCING EXISTING CAPACITIES OF THERMAL SYSTEMS AND
BUILDING NEW CAPACITIES ;
Construction of collective housing buildings in all cities of Kosovo, but in particular the larger ones,
has taken off in unprecedented levels since the end of the war. New settlements with collective apartment
buildings have been constructed and are under construction. Treatment of thermal energy for heating
18
ENTSO-E European Network System Operators of Electricity
22
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
through central systems is of particular importance, especially in meeting the needs for space heating of
such facilities concentrated in urban areas of major cities.
The use of electricity for heating spaces is a high burden for the power system, moreover in a
situation where large amounts of electricity are used in an unauthorized manner, on the one hand, and the
generation capacities of electricity are limited on the other side. Use of other types of energy such as
firewood, oil and its products, etc., is inconvenient for collective residential buildings and buildings of the
service sector.
To achieve this objective the following challenges must be addressed:
- Significant losses in the distribution network of thermal energy systems;
- Small exploitation of thermal power generation capacities, particularly TERMOKOS, after
connection with the co-generation system, because of inadequate distribution network;
- Large non-technical losses;
- Lack of concrete initiatives for the development of thermal energy infrastructure by
municipalities where there is a large concentration of collective housing facilities;
- Lack of concrete initiatives on the use of thermal systems for cooling of spaces, heating sanitary
water, steam for industrial needs, etc.
- Securing finances for the implementation of funds.
5.5. OBJECTIVE 4. DEVELOPMENT OF NATURAL GAS INFRASTRUCTURE
Offical government policy is to promote and support the inclusion of Kosovo in regional projects
for the supply of natural gas. TAP project19 has offered great opportunities to Kosovo to connect in the
international network of natural gas.
In this regard, depending on the regional developments of gas projects in Southeastern Europe
within the ECT, the Government remains committed to use all opportunities to be involved in joint
projects of the Energy Community on natural gas.
To achieve this objective the following challenges must be addressed:
-
Lack of Gas System Operator;
Lack of feasibility studies, and
Lack of infrastructure.
5.6. OBJECTIVE 5. IMPROVING THE TARGETS OF ENERGY EFFICIENCY AND
RENEWABLE SOURCES AND THE ENVIRONMENT AS PER THE OBLIGATIONS OF THE
TREATY ESTABLISHING THE ENERGY COMMUNITY AND SAA.
Improvement of the energy efficiency will contribute to a reduced demand for energy of all types and
as a result increased security of gy supply for its citizens.
In KEEAP 2010-2018, Kosovo has committed to meeting the savings target of 9% of overall energy
consumption, as set by the EU Directive2006/32/EC.
Also, Kosovo, as a contractual party of the Energy Community Treaty, has assumed the obligation to
implement new EU policies deriving from European Directive 2012/27/EC on energy efficiency.
To promote renewable energy sources, according to this strategy, in the next decade the goal is to
develop the necessary legal, regulatory and programmatic infrastructure to allow for the fulfillment of the
binding target of RES of 25% share of energy from RES in gross final energy consumption by 2020 and
its reviewbased on the results achieved and on the basis of new policies to encourage the use of RES.
19
Trans Adriatic Pipeline from Azerbaijan to Italy via Albania.
23
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Based on the decision of the Ministerial Council of the EC, Kosovo is obliged to draft and adopt
national plans for reducing environmental emissions and limit working hours of old plants.
To achieve this objective the following challenges must be addressed:
- Financing of energy efficiency and renewable energy source programs;
- Barriers related to a number of laws that prevent the establishment of funds other than the Kosovo
budget,
- Lack of experiences in the application of public private partnership projects in the field of energy
efficiency and renewable energy sources;
- Lack of institutional municipal structures, especially for energy efficiency, and lack of necessary
human capacities specialized in municipal institutions.
CHAPTER VI
ALTERNATIVES, POLICIES AND MEASURES CONSIDERED TO ACHIEVE THE
OBJECTIVES
6.1. OBJECTIVE 1. SECURITY OF SUSTAINABLE AND QUALITY SUPPLY OF ELECTRICITY WITH
THE NECESSARY CAPACITIES FOR A STABLE ELECTRICITY SYSTEM
Insufficient generation capacity and the old power system constitute one of the weakest
links of the chain.
Interventions in the rehabilitation and construction of new capacities are necessary to
recover the system and to enable it to address, quantities and quality, of the electricity demand for
all customers and needs for system stability respecting the criteria for operators whose countries are
members of the European Network of Transmission System operators (ENTSO-E).
Kosovo is a Contracting Party to the Energy Community and has signed the Stabilization
Association Agreement and as such assumed international obligations to implement the acquis
communautair on energy, related to environmental protection and climate, competition, renewable
energy, and energy efficiency. Kosovo needs to make radical interventions in the generation system
in these conditions, which is difficult enough for most developed economies, and moreover is
obliged to implement them to create security of supply.
harmonization of security of supply policies with electricity and environmental policieis is
rather challenging for power systems such such as the system of Kosovo. Limiting the operational
hours of old energy capacities, as required for Contractual Parties of the Energy Community for the
period 2018-2023, is a hihgly severe restriction that directly affects the security of supply,
especially in the period 2018-2020. Adding this to the decline of investors’ interests to invest in
small markets such as the market of Kosovo, on one side, and the undeveloped economy of Kosovo,
on the other, finding alternative and adequate policies for the development of the sector energy in
these conditions becomes even more difficult.
Investments in the transmission network system have resulted in a more consolidated
transmission system, able to meet the needs of the common market with the Republic of Albania
and the flows of electricity with other neighboring countries. The problem of the lack of
membership of KOSTT in ENTSO-E is a serious obstacle to be resolved as it represents a serious
barrier to regional integration and opening of the local market for new suppliers. The electricity
supply in terms of the transmission system has no obstacles.
A weak link of the power system is the distribution and supply system. Significant technical
and non-technical losses are a big burden to the system and consumers.
Environmental problems caused by activities of energy supply at all levels of the system are
also problems that require solutions.
24
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
The following text describes alternatives, policies and measures to achieve the objective of
reliable security of supply.
6.1.1.
Alternatives of energy supply needed to meet consumer needs and to meet the needs of the
power system..
Description of the basis of support for the alternatives considered
All three options are based on three scenarios of electricity consumption, while scenarios of
consumption are based on the impact on the demand for electricity from several factors, such as
economic growth according to the strategies and programs adopted by the Government, measures
and efficiency policies energy, including energy efficiency in final consumption of energy,
efficiency of distribution systems of electricity and thermal energy, expansion of thermal capacities.
Thus, the results of the analyzes are based on a combination of major factors contributing to the
electricity demand. Demand analysis are summarized in Annex 2.
All three alternatives have, as a common point, electricity generation from small hydro
power as per RES targets (see Annex 7).
Analysis of adequacy (adequacy of the electricity system) to cope with the load of the
system is based on three scenarios of electricity in Kosovo, in combination with the base scenario of
electricity generation forecast in Albania. However, analysis of the balance between generation and
demand are also made for the separate system when the system operates within a common area with
Albania. Annex 3 shows in detail the analyses and the database of the system adequacy and balance
between generation and demand of both systems.
A. Alternative 1 is based on:
1. Construction of "Kosova e Re” TPP, with net capacity of 450 MW with the
possibility of connecting the co-generation system with a capacity up 10% of net
capacity of the plant. The plant will be constructed in compliance with all
environmental criteria as defined in D 2010/75/EC;
2. Rehabilitation of TPP "Kosova B" to bring it in line with environmental criteria and
energy efficiency requirements as per Directive 2010/75/EC on industrial plants and
increase its generation capacity. Rehabilitation is expected to be completed by 2020;
3. Continuation of the operation of TPP "Kosova A", until the entry into operation of
TPP "Kosova e Re", assuming that Kosovo will be able to negotiate the deferral of
obligations regarding the limitation of hours of operation of old plants, because of
hte major risk to security of supply.
4. Construction of generation capacities from renewable energy sources as per RES
targets (see Annex 7);
5. Operation of two power systems within a common trading zone Kosovo - Albania;
6. Reduction of technical and commercial losses as per the Master Plan of DSO;
7. Efficient use of electricity as per the measures foreseen to achieve Objective 5.
SWOT Analysis - ALTERNATIVE 1
Strengths:

Weaknesses:
More secure supply as a result of
25

TPP "Kosova A" will operate with
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025








the operation of TPP "Kosovo A"
without restrictions (See the
balance of generation scenario 1 in
Annex 3);
Feasibility study of TPP "Kosova
B" is in process and is expected to
be finalized in 2017. The study was
supported
by
the
European
Commission.
Study on funding modalities is
being developed by REPOWER
project funded by USAID;
The construction process of
"Kosova e Re" is being developed
successfully;
Significant
improvement
of
environmental
and
health
conditions as a result of generation
activities of electricity generation
after the rehabilitation of TPP
Kosovo B and Construction of TPP
“Kosova e Re”.
No obstacles for state intervention
in the event of the Company's
inability to find financing for
rehabilitation as the Third Package
allows state aid in cases of risks to
security of supply.
Increased efficiency of the use of
coal and achievement of EE targets
as per the Directive 2012/27/EC.
Sufficient
interconnection
capacities to cope with crossborder flows of electricity;
Increasied interests of private
capital to invest in the potential use
of RES for electricity generation.




Opportunities:


conditions that do not meet the
requirements of the Energy
Community;
There is a lack of own flexible
regulatory system capacities which
risks the fulfillment of technical
requirements of TSO in the future
when it becomes a member of
ENTSO-E;
System reserves are secured from
imports
Continued high emissions of
environmental pollutants
Unstable reliability available of
TPP "Kosova A" units.
Threats:
Support for two projects (TPP
Kosova e Re and TPP Kosovo B)
from IFN
Placing surpluses of the system
after the rehabilitation of TPP
Kosovo B and construction of TPP
Kosova e Re in the common
market with Albania and regional
integrated market.
26


Delays of the process of project
development (construction of TPP
“Kosova e Re” and rehabilitation
of TPP Kosova B);
Delays of the process of KOSTT's
membership in ENTSO-E and
inability to implement ‘soft
measures’ for an effective opening
of the market and integration in the
regional market.
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Note: Analysis of the balance between generation and demand for electricity and
generation adequacy analysis are shown in Annex 3 - Scenario 1 Generation
B. Alternative 2 is based on:
1. Construction of "Kosova e Re” TPP, with net capacity of 450 MW with the
possibility of connecting the co-generation system with a capacity up 10% of net
capacity of the plant. The plant will be constructed in compliance with all
environmental criteria as defined in D 2010/75/EC;
2. Rehabilitation of TPP "Kosova B" to bring it in line with environmental criteria and
energy efficiency requirements as per Directive 2010/75/EC on industrial plants and
increase its generation capacity. Rehabilitation is expected to be completed by 2020;
3. Continued operation of TPP "Kosova A", until the entry into operation of "Kosova e
Re", respecting the obligations to limit operational hours (older plants are allowed to
work a total of 20,000 hours during the period 2018-2023) ;
4. Construction, on the initiative of private investors, of flexible hydro capacities to
meet the regulatory system reserve ;
5. Construction of energy generation capacity from renewable energy sources as per
RES targets (see Annex 7);
6. Operation of two power systems within a common trading zone Kosovo - Albania.
7. Efficient use of electricity as per the measures foreseen to achieve Objective 5.
SWOT ANALYSIS - OPTION 2
Strengths:






Weaknesses:
Existing TPPs will work under the
conditions set by the Energy
Community;
Ensure the necessary capacity
adjustment own reserve system
according to ENTSO-E criteria;
Feasibility study of TPP "Kosova
B" is in process and is expected to
be finalized in 2017. The study was
supported
by
the
European
Commission.
Study on funding modalities is
being developed by REPOWER
project funded by USAID;
The construction process of
"Kosova
e
Re"
is
being
successfully developed at this
stage;
Significant
improvement
of
environmental
and
health
conditions as a result of generation
27



Significant costs of supply as a
result of the need to import the
lacked amount of energy until
the rehabilitation of TPP
Kosovo B and particularly in
the
critical
year
of
rehabilitation.
Insufficient security of supply
until the entry into operation of
new capacities as a result of
the limitation of working hours
of TPP Kosovo A
Unstable reliability available
of TPP "Kosova A" units.
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025



activities of electricity generation
after the rehabilitation of TPP
Kosovo B and Construction of TPP
“Kosova e Re”.
Increased efficiency of the use of
coal and achievement of EE targets
as per the Directive 2012/27/EC.
Sufficient
interconnection
capacities to cope with crossborder flows of electricity;
Increased interests of private
capital to invest in the potential use
of RES for electricity generation.
Opportunities:



Threats:
Support for two projects (TPP
Kosova e Re and TPP Kosovo B)
from IFN
Placing surpluses of the system
after the rehabilitation of TPP
Kosovo B and construction of TPP
Kosova e Re in the common
market with Albania and regional
integrated market.
Possibility to increase investments in
renewable sources


Delays of the process of
project
development
(construction of TPP “Kosova
e Re” and rehabilitation of TPP
Kosova B);
Delays of the process of
KOSTT's
membership
in
ENTSO-E and inability to
implement ‘soft measures’ for
an effective opening of the
market and integration in the
regional market.
Note: Analysis of the balance between generation and demand for electricity and
generation adequacy analysis are shown in Annex 3 - Scenario 2 Generation
C. Alternative 3 is based on:
1. Construction of "Kosova e Re” TPP, with net capacity of 450 MW with the
possibility of connecting the co-generation system with a capacity up 10% of net
capacity of the plant. The plant will be constructed in compliance with all
environmental criteria as defined in D 2010/75/EC;
2. Rehabilitation of TPP "Kosova B" to bring it in line with environmental criteria and
energy efficiency requirements as per Directive 2010/75/EC on industrial plants and
increase its generation capacity. Rehabilitation is expected to be completed by 2020;
3. Reconstruction of 4 units of TPP Kosovo A as per the order (see relevant tables for
generation capacities as per Option 3 of generaiton in Annex 3 20);
4. Construction, on the initiative of private investors, of flexible hydro capacities to
meet the regulatory system reserve ;
20
The data on generation capacities in the case of TPP Kosovo reconstruction are assements from KEK staff based
on installed desig capacity in the 60's and 70's and as such cannot be used as baseline data for decision-making.
28
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
5. Construction of energy generation capacity from renewable energy sources as per
RES targets (see Annex 7);
6. Operation of two power systems within a common trading zone Kosovo - Albania;
7. Efficient use of electricity as per the measures foreseen to achieve Objective 5.
SWOT ANALYSIS - OPTION 3
Strengths:









Weaknesses:

Existing TPPs will work under
the conditions set by the
Energy Community;
Ensure the necessary capacity
adjustment
own
reserve
system according to ENTSO-E
criteria;
Meets the large lack of energy
with the case of rehabilitation
of TPP Kosovo B
Creates
possibilities
for
exports of electricity beyond
the needs of Kosovo and
beyond the needs of the
integrated
market
with
Albania.
Feasibility study of TPP
"Kosova B" is in process and
is expected to be finalized in
2017.
The
study
was
supported by the European
Commission.
Study on funding modalities is
being
developed
by
REPOWER project funded by
USAID;
The construction process of
"Kosova e Re" is being
developed successfully;
Increased efficiency of the use
of coal and achievement of EE
targets as per the Directive
2012/27/EC.
Sufficient
interconnection
capacities to cope with crossborder flows of electricity;



Opportunities:

Lack of a feasibility study for
treating TPP Kosovo A and costs
thereof.
Lack of proper studies of
markets in the case of expanding
generation capacities beyond the
local market needs.
Inability to ensure financial
support from IFN for coal
projects which go beyond
covering the security of supply
needs.
Increased amounts of carbon
emissions and recudtion of
possibilities
for
the
diversification of generation
sources.
Threats:

Support for two projects (TPP
29
Delays of the process of project
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025




Kosova e Re and TPP Kosovo
B) from IFN
Placing surpluses of the
system after the rehabilitation
of TPP Kosovo B and
construction of TPP Kosova e
Re in the common market
with Albania and regional
integrated market.
Increasing the needs of
consumption and encouraging
investors
for
diversified
sources.
Need for security of supply
opens way to project supports.
Diversification of sources



development (construction of
TPP “Kosova e Re” and
rehabilitation of TPP Kosova B);
Delays of the process of
KOSTT's
membership
in
ENTSO-E and inability to
implement ‘soft measures’ for an
effective opening of the market
and integration in the regional
market.
Generating
capacities
from
lignite go beyond the security
demand that has no financial
support from IFN
Significant costs of investments
and increased prices
Note: Analysis of the balance between generation and demand for electricity and
generation adequacy analysis are shown in Annex 3 - Scenario 3 Generation
General conclusion after comparing the alternatives of three SWOT analyses
Considering the:
- advantages, weaknesses, opportunities and threats for the three alternatives;
- energy potential of Kosovo,
- conditions and political, economic, social and environmental circumstances,
to achieve the objective of ensuring stable and quality supply of electricity and capacities
necessary for a stable power system it is wise to follow a policy that supports the construction of
new generation capacity from coal and rehabilitation of those in operation within the lifetime of
their design; promoting the use of energy efficiency; promoting rational use of RES; diversification
of sources; utilization of lignite capacities with an expired lifetime design until the entry into new
production of capacity new, and also carry out feasibility studies as necessary; regional market
integration, starting with the integration of the energy market with Albania, as the two systems are
complementary to each other.
To achieve the objective of security of sustainable and quality supply of electricity with the
necessary capacities for a stable electricity system the following measures are envisaged :
-
Construction of TPP “Kosova e Re” and rehabilitation of TPP Kosova B;
Improvement of operational abilities of TPP Kosovo A to generate reliably a higher amount
of electricity until the entry in operation of TPP Kosova e Re, respecting the obligations of
the Energy Community.
Feasibility study on how to treat TPP Kosovo A, taking into account environmental,
efficiency and competition considerations, as per the third package of EU legislation on the
energy sector;
Security coal to meet the needs for generation of electricity
30
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
-
Replacement of old distribution network and its expansion according to the development of
the projected demand;
Reduction of technical and non-technical losses as per a dynamic envisaged in the DSO
Master Plan
Effective opening of the market, with the operation of more suppliers and where consumers
have a choice of supplier.
Feasibility study to place smart meters;
If deemed feasible, installation (in the long run) of smart meters as per the dynamic plan to
be approved by ERO.
Approval and implementation of legal acts deriving from the primary legislation of energy
sector approved in 2016 which aim to effectively open the energy market and integrate it
with the regional one;
Drafting of curricula of university programs as necessary for the labor market which is
expected to be opened during the process of constructing new generation capacities.
Support for SMEs to be more competitive in various stages of the process of works, during
the construction of new capacities.
Implementation of measures related to other strategic objectives, which have an impact in
increasing the security of supply with electricity (efficiency, RES, district heating, natural
gas, market integration ).
6.2. OBJECTIVE 2: INTEGRATION IN THE REGIONAL ENERGY MARKET
Preparation of conditions of a contractual party of the Energy Community for integration
into the regional energy market implies implementation of the acquis communautaire on energy as
defined in the third package of EU legislation for the energy sector including: directives on the
internal electricity market; internal natural gas market; energy efficiency; renewable energy,
environment protection.
Kosovo is committed to implement the obligations deriving from the Treaty establishing the
Energy Community and the SAA. In practical terms, obligations in question relate to:
 Creating the conditions for a liberalized market within a regional energy market where
discrimination is not allowed regardless of the licensing country within the Energy
Community, on the principle of reciprocity;
 Effective separation of energy activities (generation, transmission, distribution and
supply);
 Regulatory energy independence as per the Third Package of EU legislation on the energy
sector;
 Establishment of energy stock market together with another country (in our case with
Albania);
 Merger of markets with the neighboring countries;
 Clear procedures for the definition of public service obligations;
 Protection of consumers in need without damaging competition;
 Significant restrictions on state subsidies;
 Monitoring by the Energy Community Secretariat of several cases that could impact
competition, such as:
o Setting of public service obligations
o State subsidies of energy enterprises;
o TSO certification;
31
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025

Obligations of the state and of energy enterprises to promote the use of energy efficiency,
use of renewable energy and environmental protection according to the decisions of the
Ministerial Council of the Energy Community;
 Regional cooperation.
Although Kosovo has made sufficient steps towards transposition of EU legislation as well as
reforming the energy sector, through the privatization of the activities of electricity distribution and
supply and legal separation of these activities to open way for access of interested parties concerned
for the use of the distribution network; separation of ownership of TSO as per the requirements of
the Third Package of EU legislation; operationalization of an independent Regulator of Energy;
establishment of state aid office, etc., there is still much work towards the liberalization of the
energy market and implementation of environmental criteria related to electricity generation.
It should be noted that the implementation of the acquis communautaire by EU member states
has had a very high cost, which was ultimately translated in increased prices of energy billed to
customers. However, over the years and with market maturity of all products and services related to
measures for the implementation of acquiscommunautaire, there are clear signals of price stabilization.
To achieve the objective of regional market integration, the following measures are envisaged.
1. Approval and implementation of secondary legislation for the implementation of energy
sector laws approved in June 2016 by the Assembly of Kosovo
2. KOSTT certification and membership in ENTSO-E;
3. Membership of ERO in ACER;
4. Creating a common trading area of energy between Kosovo and Albania;
5. Deregulation of generation prices;
6. Appointing and licensing suppliers of last resort;
7. Strengthening the capacities of the Regulator, the Competition Authority and the Office
of the State Aid to monitor the liberalized market of electricity and natural gas and the
prohibition of subsidies, other than those required and only in cases determined by
requirements Third package of EU legislation on the energy market.
8. Licensing of more suppliers in the energy market after a level playing field has been
established for all parties.
9. Implementation of ‘soft measures’ as per the ECT guidlines
6.3. OBJECTIVE 3 - ENHANCING EXISTING CAPACITIES OF THERMAL SYSTEMS AND BUILDING
NEW CAPACITIES
Increased urbanization of developed cities of Kosovo has created the need for adequate
energy supply for heating spaces of collective building.
Installation of cogeneration in TPP Kosovo B and the plan to develop such system in
Kosova e Re TPP created opportunities for stable supply of thermal energy for a significant portion
of citizens and businesses not only in Prishtina but also in cities in the vicinity of the power plants.
This strategy supports the full utilization of thermal energy potential of TPP Kosova B and Kosova
e Re for new thermal installations, as deemed cost-effective.
Obsolete thermal systems in cities such as Gjakova, Mitrovica and Zveçan are in need of
rehabilitation in all elements, taking into account the need for their expansion to include new and
planned buildings. This strategy also supports the improvement of existing systems and expansion
of their capacity.
The study conducted by MED financing for construction of thermal power systems in some
developed cities in Kosovo: Peja, Prizren, Gjilan and Ferizaj has shown that it is cost-effective to
32
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
develop them, thus this strategy supports such development, but with the involvement of private
capital through public-private partnerships.
To achieve the objective of increasing the existing capacity thermal systems and building new
capacities the following measures are envisaged:
1. Expansion of TERMOKOS network, including expansion into neighboring municipalities
of Prishtina and maximal use of co-generation capacities provided by TPP Kosova B and
TPP Kosova e Re
2. Construction of thermal energy generation plant in the City’s DH in Gjakova and
improvement of the existing network for maximal use of new planned capacity of thermal
energy.
3. Upgrades of thermal energy systems in cities of Mitrovica and Zvecan
4. Institutional involvement for the development of the process, starting from the preparation
of the required documentation including the tender dossier for the construction of thermal
energy systems in larger municipalities of Kosovo (Peja, Prizren, Gjilan, Ferizaj);
5. Feasibility study on the use of existing systems for the provision of other products of
thermal energy in addition to the one for heating spaces;
Annex 5 shows the development projects of existing district heating systems (TERMOKOS
and DH Gjakova), the main results of the study for central heating in Peja, Prizren, Gjilan and
Ferizaj as well as a general description of the Project: Improvement of central heating in Kosovo
through the implementation of the central heating system in municipalkities with a high heating
potential approve by KKI21 .
6.4. OBJECTIVE 4. DEVELOPMENT OF NATURAL GAS INFRASTRUCTURE
Some of the past dilemmas in terms of feasibility of connecting Kosovo with the
international natural gas systems, since 2013, have been eliminated. The approval of the Trans
Adriatic Pipeline (TAP) project 22 has created great opportunities for Kosovo.
In addition to this possibility, being part of the Energy Community on the one hand, and
having a convenient geographical position that enables interconnection of pipelines of other sources
of natural gas, Kosovo is likely to ensure supply of natural gas from more than one direction.
Development of natural gas infrastructure for a small market such as Kosovo represents a
difficult task on one side, but being part of the Energy Community market is conducive to
Kosovo’s, and this strategy fully considers the possible connection of Kosovo to the international
natural gas network in the future ten-year period and supports policies and measures for the
construction of natural gas infrastructure that contributes an increased diversification of energy
sources, primarily for the purposes of industrial development.
Annex 6 gives a description of data of the application for the Natural Gas project, common
with the Republic of Albania (ALKOGAP)
To achieve the objective of infrastructure development of natural gas, the following measures are
envisaged.
1. Feasibility study for the construction of natural gas system infrastructure;
2. Drafting and implementing a master plan for gasification of Kosovo;
3. Development of secondary legislation to implement the law on natural gas, approved in June
2016;
21
Single Project Pipeline of Infrastructure approved by the National Investments established based on the Berlin
Process for the Western Balkans Countries, WB6
22
http://www.tap-ag.com/; http://www.tap-ag.al/
33
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
4. Establishment of the Transmission System Operator of natural gas;
5. Signing agreements necessary connection of Kosovo in the international natural gas
networks.
6. Approval of required acts related to aspects of ensuring the right of property use, as needed
for the pipeline and facilities;
6.5.OBJECTIVE 5. IMPROVING THE TARGETS OF ENERGY EFFICIENCY AND RENEWABLE
SOURCES AND THE ENVIRONMENT AS PER THE OBLIGATIONS OF THE TREATY
ESTABLISHING THE ENERGY COMMUNITY AND SAA.
6.5.1.
Energy efficiency
Kosovo, as a contractual party of the Energy Community and a signatory party of the
Stabilization and Association Agreement, has assumed obligations that require a dedicated
commitment of all its institutions to encourage energy efficiency.
In addition to the implementation of measures envisaged in the National EE Plan 2010-2018
which is under implementation, Kosovo, similar to other contractual parties of the Energy Community,
has committed that by March 30, 2017 (reviewed every 3 years) it will draft a long-term strategy for the
mobilization of investments in the renovation of the stock of residential and commercial buildings, both
public and private. =
In order to reduce the demand for energy and acvhieve the objective to improve energy efficiency
as per obligations of ECT and SAA, the following measures are envisaged:
1. Implementation of the proposed measures and the drafting of new measures under NEEAP 20102018;
2. Revision of the Energy Efficiency Law as per the Directive 27/2012/EC, bylaws and their
implementation;
3. Establishment of the Energy Efficiency Fund;
4. Drafting of the Energy Efficiency Strategy, to be renewed every three years:
5. Adoption of Law on Energy Performance of Buildings (transposition of the EPBD directive) and
relevant implementation regulations
6. Approval of the Energy Code for certification of buildings;
7. Development of programs on:
o renovation of family houses;
o energy renovation of collective residential buildings;
o energy renovation of commercial buildings;
o energy renovation of public buildings,
o development of other co-financing programs for the Energy Efficiency Fund
6.5.2.
Renewable energy sources
Renewable Energy Sources (RES) comprise an important segment of the energy sector, which
improves the security of energy supply, increases economic growth, diversifies sources of usable energy
and reduces CO2 emissions thus protecting the environment. The use of such resources for energy
generation is a long-term objective, which must take into account the obligations arising from the Energy
Community Treaty and the SAA, related to energy. As a party to this Treaty, Kosovo is obliged to meet
targets of the share of energy from renewable sources in gross final consumption of energy for the period
up to 2020, pursuant to Directive 2009/28/EC and in accordance with Decision of the Council of
Ministers of the Energy Community D/2012/04/MC-EnC. This share is in line with the required target of
25% which is projected to be completed by available resources: hydropower; solar energy; solid biomass
and other forms of biomass; wind power, and biofuels used in transport for consumption.
34
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Development of RES projects in order to maximize their use in the economic development and
environmental protection in the period covered by this strategy will be based on the economically and
technically exploitable energy potential of Kosovo, from RES in Kosovo. In terms of long-term
development perspective, the use of RES will be based on the opportunities offered by the development
and advancement of technologies of each type of resource.
In order to diversify energy sources and acvhieve the objective to improve energy efficiency and
use of RES as per obligations of ECT and SAA, the following measures are envisaged:
1. Continued implementation of the Action Plan for Renewable Energy 2011-2020 and its revision
by 2018 in order to achieve the target set at 25% for general end consumption, based on the
strategic objectives defined in this strategy for new generation capacities from RES
2. Implementation of new EU policies to encourage RES
3. Establishment and functioning of One Stop Shops for RES.
4. Supporting generation projects for thermal energy systems using RES as fuel
6.5.3 Environmental protection
Implementation of obligations arising from the Treaty establishing the Energy Community, which are
reflected in the Stabilization and Association Agreement, represents one of the more complex and costly
challenges.
Construction of new generation capacities, rehabilitation or eventual reconstruction of existing ones,
must be consistent with the requirements of European environmental directives.
Drafting of national plans and programs for the reduction of environmental pollution from large
combustion plants, such as thermal power plants and thermal generators, is a short-term priority.
In order to improve the environmental conditions during energy activities and achieve the objective
of implementation of international obligations under the ECT and SAA in the environmental field, the
following measures are envisaged:
1. Completion and harmonization of legislation with the acquis on environmental aspects of energy
activities and their implementation based on the dynamics, ensuring that the construction of new
plants is harmonized as much as possible with security of supply policies in a more affordable
fashion;
2. Approval of plans on reduction of emissions from large combustion plants under the requirements
laid down by the Energy Community;
3. Decommissioning and dismantling of the gasification facilities, fertilizer, heating and other
facilities that do not impede the normal operation of active units of TPP Kosova A, in accordance
with the decision of the Government of the Republic of Kosovo, no. 04/156 “The use of lignite, in
accordance with all environmental protection requirements (construction, rehabilitation and
reconstruction of new power plants must meet environmental criteria as defined within the
Energy Community which are a reflection of the EU criteria); 04/156.
4. Improvement of the environmental component in TPP Kosova A and Kosovo B and the
surrounding area;
Use of lignite, particularl for new generation capacities must be done in line with all EU requirements
adopted by the Energy Community on environment ;
CHAPTER VII
NEXT STEPS FOR THE IMPLEMENTATION OF THE STRATEGY
35
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
For the implementation of the Energy Strategy of the Republic of Kosovo 2016-2025, the Energy
Law requires MED to prepare a three-year implementation program, approved by the Government. The
Implementation Program of the Energy Strategy shall be developed for the period 2016-2018. This
document is developed separately after the approval of the Energy Strategy by the Assembly of Kosovo.
The Program for the Implementation of the Strategy will group actions under each measure,
indicating timelines of implementation, responsible institutions and supporters of the implementation of
actions, time of the action and the overall cost of the plan for the period, as well as the source of funding.
Monitoring of the implementation of the program will be conducted by MED, through regular
annual reports.
END OF DOCUMENT
36
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Republika e Kosovës
Republika Kosova-Republic of Kosovo
Qeveria –Vlada-Government
MINISTRIA E ZHVILLIMIT EKONOMIK
MINISTARSTVO EKONOMSKOG RAZVOJA
MINISTRY OF ECONOMIC DEVELOPMENT
ANNEXES TO THE ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Prishtinë
July 2016
37
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
ANNEX 1. SITUATION IN THE ENERGY SECTOR
1.1. ELECTRIC ENERGY
1.1.1.
Meeting the demand for energy and electric power
The problem of electric energy supply in Kosovo originates from the intentional destruction of
the electric energy system in all its elements from the occupying regime, especially in the last decade of
the last century.
There was no construction of electric energy generation capacities in Kosovo since 1984, except
some minor hydro capacities which had no impact in solving the problem of electric energy security of
supply. Currently most blocs of thermo power plants are at the end of their technical life cycle. Had there
been a development a sustainable development of electric energy supply, practically all generation
capacities of “Kosova A” PP should have been either decommissioned or rehabilitated by now (as was the
case in many similar instances in South East Europe countries (SEE)).
Despite all the problems and difficulties faced by the electric energy generation system, it had a
constant growth, with an exception in 2014 (see the diagram below).
ELECTRIC ENERGY DEMAND AND ITS COVERAGE
konsumi
prodhimi
importi
eksporti
7,000
ELECTRIC ENERGY (GWH)
6,000
5,000
4,000
3,000
2,000
1,000
0
2,835
1,913
3,105 3,312
2,569
921
779
1
236
2000
2001
3,541
3,908
4,259 4,283
3,999 3,997
4,584
4,944
5,275
4,527
4,333
5,506 5,584 5,467
5,862
5,399
5,167 5,314 5,520
5,037
4,798
4,894
5,570
5,503
3,483
3,152 3,220
627
315
484
553
280
192
2002
2003
2004
349
41
393
80
540
170
458
125
611
114
685
195
785
278
572
371
756
458
932
452
684
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
553
VITET
Figure 1. Evolution of electric energy demand and its coverage
In the Figure 2 hereunder, we have presented a history of evolution of maximum electric energy load
(Peak) and electric energy consumption for the past thirty years (1985-2015)
38
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Figure 2. Evolution of electric energy maximum load (Peak) and consumption, over the past three
decades
Although there is an increase in the amount of generation year after year from the existing TPP-s
and HEP-s, it is not an indicator of sustainable generation system or of sustainable electric energy security
of supply. Operation with old capacities in need of rehabilitation makes the reliability of generation
system unsustainable.
Electric energy generation is faced with serious problems from the system’s technical security
point of view, as a consequence of old and outdated devices; therefore, it is required to undertake
measures as soon as possible. If we add to it the environmental problem that comes as a consequence of
outdated generation technology in one hand, and international obligations that Kosovo has in reducing the
environmental pollution as a consequence of electric energy production, on the other, the measures for
improvement of generation conditions becomes even more immediate. This however should be done by
taking into consideration the security of supply as well within the existing conditions of operation of
generating capacities.
The increasing demand for electric energy is covered by the production from two lignite based
thermo power plants (TPP “Kosova A” and TPP “Kosova B”), which accounts for 97% of national
electric energy production, from hydro power plants and imports and in case of inability to provide the
supply, power cuts are applied.
Over the years there were significant improvements in meeting the electric energy demand from
the internal generation capacities. The electric energy imports ranged from 10-14% of the amount of
energy needed to cover the electric energy demand. The electric energy production in 2000 was 1913
GWh while in 2015 it was 5503 GWh. The increase of production during this time period was 287.66%.
The production growth trend continued from 2000 to 2013, while in 2014 there was a decrease in
production, in comparison to the previous year, due to a mishap that occurred in “Kosova A” TPP 23.
The demand for electric energy was mainly fulfilled by the national production and a part from
imports. In situations of electro energy system overload, planned cuts were applied (According to the
ABC plan). Cuts marked an increasing decrease in the recent years. Despite the fact that this plan was not
abolished, it was not used by the public supplier (KESCO)24.
Considering that Kosovo depends on electric energy imports, we have presented hereunder a
diagram of electric energy import prices for period covering 2000-2015.
23
24
Annual reports of the ERO
KESCO – Enterprise licensed for electric energy supply
39
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Çmimi mesatar i importit (€/MWh)
120
100
80
60
40
20
0
112.52
83.66
44.53 39.64
30.43 29.6 32.67
47.87 54.87
75.77
57.91
69.66
79.46
62.14
52.31 51.76
Figure 3. Evolution of imported energy price
The energy import price changed constantly from 29.6 €/MWh in 2001. See figure 3. 25
From 2000 to 2015 538.25 million Euros were used for electric energy import. In some cases
there was intervention by the government for subsidising imports. Since 2012 the import subsidies were
terminated. After privatisation of the electric energy supply company, the cost of electric energy imports
has decreased significantly, as a consequence of efficient procedures for purchasing electric energy.
The biggest remaining problem in electric energy sector is achievement of generation adequacy,
respectively coverage of the peak and energy reserves of the system regulatory power, in line with the
ENTSO-E rules. During maximum system loads, the existing capacities cannot cover the Peak, while on
the other hand the tertiary system reserve, which implies replacement of a bigger unit, in case of
unplanned failure, cannot be ensured from existing generating capacities. This service is usually ensured
from flexible unit (hydro or natural gas) which within minutes from the failure of the big unit can replace
the lost capacity. According to operating rules of ENTSO-E, a regulatory zone is obliged to ensure at least
50% of regulatory reserve capacities (primary-secondary+tertiary) from its national generators, whereas
the rest can be ensured from the market of subsidiary services. Currently, in case of unplanned unit failure
load reduction is applied, for as long as the capacity of the lost unit is not ensured from the regional
market, with the sole purpose of maintaining the electric energy system balance.
During the regime of minimum load, there is a problem of energy surplus, during the night, which
cannot be reduced due to technical characteristics of existing units TPP “Kosova A” and TPP “Kosova
B”.
Activities undertaken, in recent years with regards to integration of energy market between
Kosovo and Albania, when finalised and implemented, will have a significant impact in improvement of
conditions of operation of both electric energy systems. Following the completion of technical
infrastructure of LFC project, KOSTT and OST (Albania) have signed an agreement for securing the
secondary reserve with 25 MW capacity, from hydro units in Albania, which represents the first concrete
step towards integration of both markets with optimal diversity of generators.
25
ERO Annual reports
40
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
1.1.2.
Electric energy distribution and supply system
Together with the growth in economy and wellbeing of citizens, the demand for electric energy
marked a constant increase. The infrastructure capacities of the energy distribution system were unable to
follow this increase of demand to the proper degree as a consequence of little investments in the
distribution network in the past. Consequently, the electric energy distribution system is constantly
overloaded, especially during the winter season. The following tables show the assets of distribution
Transformation
(kV/kV)
Owner
35/10
KEDS
10(20)/0.4
KEDS
10/0.4
KEDS
6/0.4
KEDS
Voltage
(kV)
Owner
35 kV
KEDS
10(20) kV
KEDS
10 kV
KEDS
6 kV
KEDS
3 kV
KEDS
0.4 kV
KEDS
No. of
Sub.St.
No of TR
44
2,158
2,865
65
Aereal
network
(km)
361
1,146
4,584
42
3.5
16,598
Power (MVA)
90
632
2,251
780
2,865
868
65
9
Cable
network (km)
Total
(km)
12
373
393
1,539
917
5,501
8
50
1.0
4.5
2,017
18,615
network.26
Table 1. Electric energy network distribution system lines
Table 2. Transformers installed in the electric energy distribution system
In May 2013, the electric energy distribution and supply system was transferred to private
ownership. At the end of 2014 the process of legal unbundling of DSO from the supply activity was
finished.
In the recent years, especially after the privatisation of the distribution network, many
investments were made in the distribution network (around 20 million per year). Investments are
continuing based on projects planned by DSO.
26
Source: KEDS
41
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Regardless of improvements in recent years, technical and commercial losses in 2015 were
around 31.8% 27 . This was expected because it takes some time until network investments give their
results.
Due to inability to control the distribution and supply system, certain amount of energy in several
municipalities in the north of Kosovo namely around 5% of the entire amount of electric energy with
which the distribution system is charged, remains unbilled.
The graphs in the following figure presents the situation of the supply and distribution system
from the aspect of both technical and non-technical loses.
% OF TECHNICAL AND COMERCIAL
LOSSESS
LOSSES IN THE DISTRIBUTION SYSTEM
60
50
48.1
Humbjet teknike (%)
42.82
Humbjet komerciale (%)
42.8
41.22
40
Humbjet Totale (%)
38.15
36.69
35.54
33.5
31.8
2011
2012
2013
2014
2015
30
20
10
0
2007
2008
2009
2010
Figure 4: Technical and non-technical losses 2007-201528
As indicated in the indicators presented in the figure above in recent years there have been
improvements, but a lot more remains to be done with regards to further reduction of technical and
commercial losses and establishing control, over the entire distribution network system and electric
energy supply.
A positive indicator is the fact that the public supplier (KESCO) managed to constantly improve
the performance with respect to collection of the amount of billed energy. The diagram hereunder shows
the development with respect to collection29.
Electric Energy Collection (%)
120
100
80
74.61
75.52
73.77
2006
2007
2008
80.42
86.39
89.68
89.23
88.67
2010
2011
2012
2013
95.93
95
2014
2015
60
40
20
0
2009
Figure 5. Evolution of collection of billed electric energy
27
Source: KEDS
Source: KEDS
29
Source: KESCO
28
42
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
1.2. THERMAL ENERGY SYSTEM30
The district heating sector in Kosovo is comprised of four systems: DH Termokos – Prishtina, DH
Gjakova, DH Termomit – Mitrovica and Zveqan. This sector has a pretty limited spread in the national
level, and meets around 3 – 5% of the overall demand for heating of premises in Kosovo.
1.2.1.
Developments in DH “Termokos” – cogeneration project
The most important development in 2015 is completion of the cogeneration project TPP “Kosova
B” – DH “Termokos”, as well as continuation of other stages of rehabilitation of network and thermal
sub-stations. This project was developed through WBIF whereas the leading financial institution was the
German Bank for Development (KfW). Through this project, DH “Termokos” is enabled to get a supply
with thermal energy from TPP “Kosova B” with overall nominal capacity of 140 MW TH (2 x 70 MWTH).
The financing of this project was enabled by donations from the European Commission, the German
Government, Governments of Sweden and Luxemburg, Government of Kosovo and Pristina
Municipality. Out of the total mount of the project, 86.54% are donations and 13.46% soft loan.
In May 2015 the cogeneration equipment was also connected to the B2 generator of TPP “Kosova
B” with a nominal capacity of 70 MW TH, whereby the security of operation and supply to consumers with
thermal energy was increased. During this year, stage 3 and 4 of the project was is in the process of
implementation:
- Rehabilitation and modernisation of 50 substations of thermal energy in the distribution
network, which apart from installation of mechanical and electrical equipment, also included
installation of Remote Monitoring and Controlling System (PSC/SCADA) in these substations and their integration with the central system (PSC/SCADA), which enables reception
of data electronically and remote monitoring of sub-stations.
- Rehabilitation of the primary distribution network – installation of new pre-insulated
pipelines with DN 100 – DN 450 [mm] dimension, in a length of around 5 km.
- Likewise, within a short time period, it is planned to expand the distribution system, in order
to enable connection of other parts of Prishtina City which are currently not covered by the
district heating supply service, to the distribution network.
In the following table we have presented the situation of billing and collection from “Termokos”
Enterprise
Table 3. Some indicators of District Heating Plant “Termokos”
Billing and collection in DH Termokos –season 2014/2015
Heating season
Billing with
Collection
Collection
Heating surface (m2)
2014/2015
VAT (€)
(€)
rate (%)
660,444
2,141,448
835,338
39.01
Households
Commercial
458,569
2,413,576
1,749,082
72.47
and
Institutions
1,119,013
4,555,024
2,584,420
56.74
Total
1.2.2.
Developments in the DH of Gjakova – The project of substitution of fuel and cogeneration
30
The situation of the thermal energy sector for 2014/2015 season was described based on the annual report of the
ERO 2015
43
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
With regards to DH of Gjakova, initially it should be emphasised that it did not operate at all
during 2014/2015 season due to financial difficulties that disallowed it to get a supply of fuel (mazut),
which consequently did not allow for production and supply of consumers with thermal energy.
Nevertheless, thanks to subsidies from the Kosovo budget and financial means from Gjakova
Municipality, the DH Gjakova managed to improve its financial situation and at the end of 2015, it started
with production and supply of consumers with thermal energy for 2015/2016 season.
With regards to the project for substitution of fuel and rehabilitation of the district heating system
of the DH Gjakova, it is worth mentioning that, in the beginning of 2015 the feasibility study was
conducted together with the social and environmental impact assessment (SEIA). Throughout this year,
there was a coordination of efforts in order to perform other arrangements related to financial support for
implementation of the project as well as other issues of institutional and legal ownership nature. With
regards to financial support, these efforts were crowned in October 2015 with the approval by the
European Commission – Office in Kosovo of the support for the project with a donation in the amount of
around € 12 million.
The key components of the project for substitution of fuel and rehabilitation of the DH Gjakova
system are:
 Substitution of mazut burners with biomass burners, which includes 2 production units: one with
capacity of 8 MWTH solely for production of thermal energy, whereas the second unit is foreseen to
be a co-generation unit for generating both thermal and electric energy with the capacity of 8 MWTH
and 1.57 MWEL. It also includes overall revamp of equipment for production of thermal energy –
heating facility;
 Rehabilitation of distribution network – more concretely rehabilitation of the northern part of the
network, which amongst other things includes replacement of around 3.3 km of existing pipelines
with pre-insulated pipelines;
 Complete rehabilitation of 20 thermal substations identified as a priority and more important.
1.3. RENEWABLE ENERGY SOURCES
Renewable Energy Sources (RES) represent an important energy source available in Kosovo, with an
a potential that is still untapped sufficiently. The use of such sources for energy production represents a
long term objective for implementation of three objectives of energy policies of the country, such as:
support for the overall economic development; increase of the security of energy supply and protection of
environment. Within the function of these objectives, there is a need to apply fiscal and financial
incentive measures for all types of RES and the green certificate system.
In order to incentivise the use of renewable energy sources, Kosovo established a feed-in tariff system
for water, wind, solar and biomass sources including biogas. These measures of incentivising policies
towards the RES aim to meet the requirements of respective European Union (EU) directives, whose
transposition and implementation is done under the monitoring of the Energy Community Secretariat.
Renewable energy sources are especially important for heating purposes, respectively production of
thermal energy. As such, they have become a part of Heating Strategy. Considering that there is a need to
minimise the use of wet lignite and unsustainable use of wood for heating purposes, the use of solar
energy, municipal waste and waste wood is seen as promising source for heating premises and sanitary
water.
The development policies of forestry sector drafted and implemented by the Ministry of Agriculture,
Forestry and Rural Development gave a support to greater use of renewable energy sources. Such policies
continued to consider wood as an important source of thermal energy. Due to this reason, the Forestry
44
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Development Strategy (2010-2020), gave a proper priority to the support for using systems and methods
leading to a better use of forest fund for production of energy.
The energy sector laws, especially the Law on Energy, constantly treated Renewable Energy Sources
with respect to its promotion, optimisation and use, including determination of annual and long-term
goals of energy generation from such resources. With the view in supporting and promoting the use of
Renewable Energy Sources, the Ministry of Economic Development drafted a ten-year action plan for
RES, as a policy document for this important energy sector. In line with the legal obligations, and those
deriving from the Energy Community Treaty (ECT), the MED has determined the RES goals for period
covering 2011-2020, by taking into consideration the opportunities and potentials of Renewable Energy
Sources available in Kosovo. Fulfilment of such goals is monitored by the Ministry of Economic
Development, which is also responsible for reporting on the progress achieved to the Energy Community
Secretariat (ECS) in Vienna.
MED also monitored the secondary legislation in relation to specific measures for promotion of
greater use of RES.
An important role in promotion of Renewable Energy Sources is also played by the Transmission and
Distribution System Operators. They are bound by the Law to prioritise energy produced by renewable
energy sources, according to limits specified in the Network Code. The system operators determine and
publish rules related to the costs for the necessary technical adaptation for integration of the RES into the
system. Such rules are approved by the Energy Regulator Office (ERO). ERO also ensures that
transmission and distribution tariffs for the producers of RES and non-discriminatory, especially those
from remote regions.
ERO is responsible for issuing certificates of origin for electric energy produced from RES, which is
a responsibility defined in the Law on Electric Energy.
One incentive for Renewable Energy Sources is the legal obligation in the part of the public supplier
of electric energy to purchase the entire amount of energy produced from the RES from producers under a
regulated tariff, determined by the ERO through its determined methodology, which takes into
consideration compensation from the public supplier of additional costs of purchasing electric energy
from renewable energy sources.
ERO is responsible under the law to conduct regulatory activities in the field of Renewable Energy
Sources. It develops the methodology on regulated tariffs and issues licenses for energy activities and
authorisations for construction of energy capacities from renewable energy sources.
Under the Law on Central Heating, the ERO is also obliged to issue certificates of origin for thermal
energy produced from renewable energy sources, or the energy produced in a co-generation process of
generation of electric energy and thermal energy Thermal energy for which the certificate of origin was
issued, has precedence for purchase from the public supplier in comparison to the rest of the energy for
which no certificate of origin was issued. Based on that, the producer of thermal energy has the right to
issue and sell green certificates.
The support schemes for Renewable Energy Sources
In order to meet the objectives for energy from renewable energy sources, the ERO issues special
regulation to determine the level of necessary energy capacities, as well as other requirements and
procedures for acceptance of the support scheme, the rights and obligations of producers of electric
energy from renewable sources for which the certificate of origin was issued and accepted under the
45
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
support scheme, including the rights and obligations of the public supplier in relation to electric energy
for which certificate of origin was issued, rights and obligations of KOSTT, financing of the support
scheme, integration of electric energy produced from renewable energy sources into the electric energy
system.
Feed-in tariffs and the duration of transaction agreement for electric energy from renewable
energy sources
The primary sources of energy from RES used for generating electric energy acceptable under the
support scheme are: water, wind, biomass and photovoltaic.
The RES projects with capacities within the planned goals, are supported under the feed in tariff
scheme which is determined by the Energy Regulatory Office. The applied feed- in tariff is different for
different technologies, as following: - water energy (small hydro power plants): 67,3 Euros/MWh; - wind
energy: 85 Euros/MWh; - biomass energy 71.3 Euros/MWh and photovoltaic energy 136.4 Euros/MWh.
During the review of the support scheme of feed-in tariffs for the energy from water and wind, in
2016, the Energy Regulatory Office increased the feed-in tariffs for the water energy from 63.3 to 67.3
Euro/MWh, whereas for the wind energy the deadline for its transaction was extended from 10 to 12
years. The 12 year deadline of energy transaction agreement also applies to photovoltaic, whereas for the
small HPP is still 10 years.
Studies and assessments of Renewable Energy Sources potential
As the first step for incentivising the use of renewable energy sources for generation of energy, the
Government of the Republic of Kosovo conducted an assessment of the potential of available sources. In
this regard, in 2006, 2009 and 2010, MED conducted preliminary studies and assessments on the
countries potential for small HPP. Development of the HPP is foreseen to be done with investment of
private capital. Acording to these studies, the water energy potential was assessed to be around 130 MW
of new installed capacities with annual average production of 621 GWh.
During 2008, the potential of solar, wind, biomass and geothermal energy was assessed with the
assistance of consultants from the Danish company COWI.
Goals of Renewable Energy Sources
There are three HPP-s in Kosovo as distribution hydro power plants: HPP Dikanci, , HPP
Radavci and HPP Burimi. Whereas HPP Lumbardhi was connected to the transmission network. There
HPP-s were rehabilitated during 2009-2010 and increased their production since they were given with
concession by their title holder, the Kosovo Electro-Energy Corporation.
The HPP Lumbardhi was rehabilitated and commissioned in 2005 by a company which will be
renting it 20+20 years. The installed capacity of this HPP is 8.08 MW.
HPP Dikanci was rented and made operational in 2010, whereas its installed capacities have
increased to 1 MW after its revamp. The HPP Radavci was rehabilitated in 2010 from the company that
took it with concession. The installed capacities of this HPP were also increased to 0.9 MW.
46
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
HPP Burimi was taken with concession and its capacity was increased from 0.56 MW to 0.86
MW.
HPP Ujmani, also contributes in the electric system of Kosovo with installed capacity of 35 MW
and annual production of around 88-90 GWh. This HPP is owned by the Hidrosistemi Iber-Lepenc.
In 2009, the first capacities of wind energy were installed with capacity of 1.35 MW in the
Golesh hill in the vicinity of Prishtina. In the following period ERO received other requests from private
companies for investments in wind energy capacities in Artana, Dardana, Shtime, Rahovec (Zatriq),
Suhareka (Budakovë) and Drenas.
Solar collectors for heating of sanitary water have been installed in series of buildings such as the
University Clinical Centre of Kosovo and the Student Centre in Pristina, with financing from the state
budget (during 200-2009), and in three other public buildings-parts of the project for implementation
energy efficiency, with financing of European Commission (during 2010).
During 2015 a capacity of 102 kv of photovoltaic energy was installed in the vicinity of Klina for
commercial purposes, and HPP Brodi II with the capacity of 3.89 MW was commissioned. Whereas in
the beginning of 2016, the construction of two new small HPP-s was finished: HPP Lumbardhi II with a
capacity of (9.2+8.4) MW and HPP Albaniku III with a capacity of 4.3 MW.
In the meantime, as a result of private investors interest for small HPP-s, ERO issued the final
permits of authorisation for 76 MW; preliminary permits of authorisation for 89.54 MW, and is in the
process of reviewing requests for authorisation of 513 MW of new capacities.
Similar interest of private investors was also with regards to wind energy, where as a result the
ERO issued preliminary authorisation permits for a capacity of 87.75 MW and is in the process of
authorisation for additional 51 MW.
The National Renewable Energy Action Plan
Kosovo is a member of the Energy Community Treaty, therefore like all other member states, it is
obliged to meet the energy targets for RES, based on the Decision of the Council of Ministers of Energy
Community D/2012/04/MC-EnC for implementation of Directive 2009/28/EC, therefore it drafted and
approved the mandatory target for RES by 2020. This target is participation with 25% of energy from
RES in the final gross consumption of energy. A higher target (29.47%) was set by the Administrative
Instruction for the Renewable Energy Sources Target 01/2013.
The RES targets were planned to be achieved from photovoltaic energy; solid biomass; wind;
existing small HPP-s; new small and big HPP-s.
With respect to electric energy and the foreseen capacities, in 2020, according to the promoted target,
the plan is to install 240 MW of energy from TPPs. Whereas in terms of other types of RES, the wind
energy is foreseen to have installed capacity of 150 MW; photovoltaic energy 10 MW and energy from
biomass 14 MW. Installed capacities of thermal energy by 2020 are expected to be as following:
Geothermal energy 10 MW; Solar energy 70 MW and energy from fire wood biomass 264.5 ktoe.
The national renewable energy action plan (NREAP) (2011-2020) with its targets and measures that
are to be undertaken for their fulfilment by 2020 represents the overarching policy of the government for
incentivising the use of RES in Kosovo.
The NREAP was prepared based on the model compiled by the European Commission (EC) and
presented in the Commission Decision 2009/584/EC. It meets all the requirements of Directive
2009/28/EC adopted pursuant to the Decision of the Council of Ministers of the Energy Community
D/2012/04/MC-EnC for implementation of Directive 2009/28/EC and amendment of Article 20 of the
Energy Community Treaty.
47
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
The energy targets determined under the AI 01/2013 and decided under the NREAP have been
determined through a Decision of the Energy Community Council of Ministers D/2012/04/MC-EnC for
implementation of Directive 2009/28/EC. They are an estimation of RES energy participation in the
consumption of electric energy, heating and transportation. Nevertheless, for promotional purposes,
Kosovo has determined another high target of the RES energy which corresponds with participation of
this energy with 29.47% in the final gross consumption of energy by 2020.
In the future for purposes of meeting the RES energy targets beyond 2020, it is expected that different
flexible state mechanisms of cooperation between states will be used for RES, such as statistical transfer
and joint support schemes. In line with the agenda for operation of the Task Force, respectively the
coordination group for RES within the Energy Community Secretariat, where Kosovo is part of, the first
report related to the implementation of the NREAP and fulfilment of the RES energy targets, was
presented at the end of 2014. If other biennial reports for implementation of this NREAP and progress in
fulfilment of energy targets suggests that Kosovo will not be able to fulfil the mandatory targets only
through national generation of energy, we should look into the possibility of undertaking adequate steps
in using the additional mechanisms.
1.4. ENERGY EFFICIENCY (EE)
The feasibility study on Energy Efficiency and measures of its implementation in public buildings in
Kosovo, implemented with the support of the world Bank, has identified a potential in saving energy in:
• Government buildings at the central level: 4.28 ktoe (54% of energy)
• The local/municipal level: 4.28 ktoe (23% of energy)
• Total electric energy consumption Q/L: 8.56ktoe / 99.55 Gwh
• Public Enterprises: 0.774 ktoe
• Rented buildings: 0.274 ktoe
• Sub-stations: 1.15 ktoe
• TOTAL = (8.56+2,17) ktoe= 10.731 ktoe/125 Gwh
Note: The significantly big potential for implementation of EE measures, not only energy savings but
also improvement of quality of life for citizens, as well as creation of new jobs and development of local
businesses in the field of EE, is an indicator of the importance of heaving a Strategy that mainly focuses
on strategic and investment planning in the field of energy efficiency that would be in line with the
European strategic targets and concepts deriving from EU Acquis Communautaire.
Current activities and achievements based on investments in the field of EE in all energy sectors
– both the transformed and final. The achievements have been described and reported at the Energy
Community Secretariat in Vienna according to the NEEAP1 (2010-2018), and those that are on-going
from NEEAP2 (2013-2015), whereas the projected ones will be covered in NEEAP 3 (2016-2018).
The data and predictions presented hereunder show the fulfilment of the savings targets based on
planned measures and those being planed currently.
Assumptions/projections of targets for saving primary energy (the energy transformation
sector):
- A total of long term energy savings by 2017/18 (TPP A/TPP B) for each EE measure
o Total of energy savings for production of lignite from Plan 2: 1.770 (TPP A) + 0.540
(TPPB) = 2.31 GWh/annually = 0.199 ktoe/annually
o Total of energy savings for production of lignite from Plan 3: Are assumed to be higher
that foreseen under Plan 2, since we are not dealing with rehabilitation of existing
excavators but their replacement with new ones.
o Total of energy savings for production of electric energy from Plan 2:
48
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
146 + 264 + 3.2 + 6.96 + 25.6 + 37 + 104 + 155 = 741.76 GWh/annually = 63.78 ktoe/ annually
o Total of energy savings for production of electric energy from Plan 3:
231 + 314 + 5.09 + 8.414 + 6.29 + 1.55 + 4.06 + 5.86 + 246 = 822.26 GWh/ annually = 77.353 ktoe/
annually
o Total of targets for increasing of capacities for electric energy generation from Plan 2:
25 + 25 + 20 = 70 MW
o Total of targets for increasing of capacities for electric energy generation from Plan 3:
25 25 + 34 = 74 MW
- Targets of EE savings for the electric energy transmission system from Plan 2:
 Reduction of losses for 0.06 % of the overall energy demand as a result of implementation
of projects until 2016: 467.67 ktoe x 0.06% = 28.06 ktoe respectively 326.34 GWh.
- Special energy efficiency measures and targeted projections have been included in the
following tables for each energy sector throughout 2016-2018.
Planned and achieved energy savings
The savings target determined under the first NEEAP (31.00 ktoe) has been met – 31.915 ktoe.
Preliminary assessments indicate that energy savings achieved during the first mid-term period (2010012) are even higher than the reported ones, however due to lack of statistical data, energy savings cannot
me assessed and reported accurately. Energy savings achieved in the sectors of transport and industry,
have not been assessed at all in the first NEEAP.
The national indicative target and its achievement (Table below)
Table 4. EE targets
National indicative target for 2018
The middle target for 2012
Division of targets according to
sectors
Households (ktoe)
Services (ktoe)
Industry (ktoe)**
Transport (ktoe)
91.89 ktoe
31.00 ktoe
Rough estimate of
Energy savings in
Sector target
energy savings in
2012
2018
From
From
Total
Total
2012
2018
measures
measures
(TD)
(TD)
(BU)
(BU)
12.40
30.64
28.05 ktoe
46.98
9.30
12.26
3.865 ktoe
18,91
It was not
7.905
24.84
14.00
assessed
It was not
1.395
24.15
12.00
assessed
31.00
91.89
31.925 ktoe
91.89 ktoe
360.53 1068.68
371.17 GWh
1068.68 GWh
Total (equivalent units): ktoe
Total (GWh):
Percentage (%)(compared to
3%
9%
referent consumption ESD)
*The fields highlighted in grey are from first NEEAP
**Agriculture sector was included in the industry sector
3.1 %
9.00%
Note: In the first NEEAP there was no national objective for buildings with almost zero energy
consumption.
49
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Energy efficiency in Kosovo, alongside the need and efforts to ensure sufficient energy from
production from existing thermo power plants and other alternative sources, is considered by the Kosovo
Government as essential component of strategic and economic planning and development of Kosovo.
In the field of EE, important policy-programmatic, legal and institutional steps for promotion of
EE were undertaken. The Kosovo EE Agency and the Certification Commission of Energy Auditors and
Managers were established. Likewise, considerable investments in improvement of EE were made.
The legal framework and EE projects implemented/on-going in Kosovo. In this instance it is
worth emphasising that apart from basic laws of the energy sector, we now have the Law on Energy
Efficiency and series of different Administrative Instructions (AI) and regulations:
 Administrative instruction on promotion of energy efficiency by the end user and energy services;
 AI on labelling equipment that use energy;
 AI on energy audit;
 Technical regulation for energy audit;
 Regulation on internal organisation of the Kosovo Energy Efficiency Agency;
 Regulation on establishment of the Commission for Certification of Energy Auditors and
Managers;
Strategic Plans in the field of Energy Efficiency
 National Energy Efficiency Action Plan of the Republic of Kosovo (NEEAP) 2010-2018, was
approved and projects for energy savings in the range of 9% or around 92 ktoe, by 2018;
 The first mid-term National Energy Efficiency Action Plan of the Republic of Kosovo (NEEAP)
2010-2012, was approved and projects for energy savings of 3% or around 31 ktoe by 2012;
 The first report on the National Energy Efficiency Action Plan of Kosovo, indicates that the target
was achieved by 3.1% from the total projected for these three years 3% or 31.925 ktoe from the
total of 31 ktoe projected for three years. The target was exceeded with a small percentage;
 Drafting and approval of the second mid-term National Energy Efficiency Action Plan (NEEAP)
2013-2015, which projected savings in the range of 3% or around 31ktoe;
 So far, 18 municipalities have drafted Municipal EE Plans 2014-2020 which have been approved
by their municipal assemblies.
Projects financed by the BRK:
 Energy audit of public service buildings, for 2011-2012-2013-2014-2015-2016, € 144,000.00
every year €;
 Public campaign on Energy Efficiency and Renewable Energy Sources (RES), for 2011-20122013-2014-2015-2016, €50,000.00 per year.
Projects financed by donors/loans:
 Oversight and monitoring, verification and assessment of energy efficiency measures in schools
and hospitals in Kosovo (financed by the European Commission, in the amount of 15.6 million
euros. The project includes 63 schools and 2 hospitals.
 Study and implementation of energy efficiency measures in public buildings-central level
(financed by the WBIF/WB. The amount of financing $31 M. Negotiations between MED-MFWB have ended in May 2014 whereas in June the WB Board approved the loan. After signing the
agreement between MF and WB, the project was ratified by the Assembly of Kosovo. The project
started to be implemented.
 Implementation of energy efficiency in public buildings – municipal level, financed by
WBIF/KfW. Amount of financing 7.500.000,00 Euros.
 Support to private and residential sector for undertaking EE measures, financed by EBRD, the
value of financing is 12M. (special emphasis was put on the private sector (Small and medium
enterprises (SME), where the first contracts with the commercial bank TEB were already signed
(amount 5m€) as well as “Kreditimi Rural i Kosovës” (KRK) (amount € 1.5M). The project is in
the implementation stage.
50
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025

Several projects for promotion of EE were developed through the UNDP, by helping two
municipalities draft their municipal EE plans 2014-2020 as well as concrete measures in public
lighting in municipalities.
Being a signatory party to the Energy Community Treaty, Kosovo takes active part in the meetings of
the Energy Community in Vienna. It takes active part in the coordination group on EE, by
approximating its legislation o the respective EU directives.
All these activities, plans and measures developed or being developed, are giving significant effects
in reduction of consumption and the need for import of energy, and give a possibility for better strategic
planning of energy and more effective implementation policies. Nevertheless, this is only the beginning of
an adequate journey, and a lot more work remains to be done, because the potential for implementation of
energy efficiency in Kosovo is great, alongside the need for saving and improvement of quality of life of
citizens in Kosovo, first of all in the residential sector.
The following table gives a summary of data for all three EE mid-term action plans.
Table 5. Summary of data for all three EE mid-term action plans
1.5. ENVIRONMENTL IMPACT FROM ENERGY GENERATION ACTIVITIES31
31
The material was taken from the report on environmental situation in KEK which is an official document
published by KEK annually.
51
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
It is widely known that thermo power plants have an impact in pollution of air t the local, regional
and global level. Thus, the impact of pollution in the local level includes several tens of kilometres from
the source, which is known as local impact in the air quality. In this case, the air pollutant’s concentration
is compared against the air quality standards determined through criteria. We are referring to increase of
concentration of SO2, NOx, CO, organic gases, particles, heavy metals, poisonous organic composition
etc. Thermo power plants emit huge amounts of nitrogen and sulphide oxides (NOx dhe SOx). These are
pollutants which through chemical transformation in the environment turn to sulphates and nitrates, which
form the so called secondary particles. Secondary particles are responsible for the increase of
concentration of particles in the regional level, and as such are responsible for regional pollution with
PM10 and especially with PM2.5. The regional impact is connected with acidification, photo oxidation,
eutrophication (NOx, NH3) and increased concentration of over-earth ozone.
Likewise the pollution of ozone is also linked in the regional level, because the ozone and ozone
precursors such as the NOx, are subjected to transfer in bigger distances.
The impact in the global level mainly from thermos plants is related to the impact of greenhouse
gas emissions, namely emissions of CO2, CH4, N2O, CFC. Small amounts of other materials are also
emitted, such as heavy metals, hydrogen chlorides and hydrogen fluorides, un-burnt carbohydrates,
unstable organic non-methane components. CO2 is a greenhouse gas with global impact in climate and as
such it requires a special treatment.
The “Kosova B” TPP contains analysers for measurement of gas and dust emissions. In the KEK
thermo power plants emission of pollutants in the environment is higher that the allowed emission lines
due to inadequate projection designs of electrostatic precipitators, and lack of plants for reduction of
pollutants such as NOx dhe SO2, high concentration of inorganic materials of lignite and other problems
during the burning process. In “Kosova A” TPP (Unit A3, A4 and A5) we measure the emission of
particles and calculate the emission of gasses.
Dust (particle) emissions: In thermos power plants the exhaust gases go through electrostatic
precipitator where the dust particles are separated. Then gases go through the chimney, where the amount
of flying ash is further reduced before being released to the environment. Other emissions in the air are
mainly the so called mobile emissions, by referring to local emission of dust, by-products of burning
(secondary products), during transportation and so on. It should be emphasised that emission of particles
in “Kosova B” TPP is not in line with strict standards deriving from Directive 2001/80/EU which
determines the limits of dust emission 50(mg/Nm3). After installation of electrostatic precipitators in
“Kosova A” TPP and operation with design that ensures emission of particulars under the foreseen
criteria, we can conclude that a significant environmental improvement was done in this power plant.
Emission of Carbon Dioxide. Carbon dioxide is a significant factor with impact in global
warming. Emission of CO2 is proportional with the content of carbon in fuels and quality of burnt fuels.
There is no commercially available method for capturing CO2 from the discharge source and the best
option for reducing its emission is to increase the efficiency of equipment and rational burn of fuels.
Carbon Dioxide emission in “Kosova A” TPP is based in calculations according to the quality of lignite
and power of blocks based on the stehiometric ratio of chemical reaction, while in “Kosova B” it is
measured.
Emission of Carbon Monoxide: the burning process is followed by emission of monoxide carbon.
Carbon Monoxide (CO) is always present as transitional product in the burning process especially under
the conditions of sub-stoicometric burning. The burning process is followed by carbon monoxide
emission. Power plants always try to reduce formation of the CO, because CO is an indicator of
dangerous corrosive and un-burnable fuel, which is an indicator of reduced efficiency. Such emission
causes increase of fuel consumption and is an indicator of low efficiency of power plant. Thus the
emission of CO is a consequence of bad and incomplete burning process. With coal fuelled thermo power
plants, CO and NOx act with same relationship. If we are to reduce the NOx emissions, the amount of air
supplied in the tank should be reduced, in which case the production of CO increases. Thermo power
plants should maintain the balance of these two parameters of emissions, in order to preserve the allowed
limits. In the “Kosova B” TPP the emission of CO is measured whereas in Kosova A it is not.
52
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Emissions of SOx: in thermo plants SOx is emitted when the coal burns, due to the presence of
sulphur. Most of sulphur oxides is in the form of sulphur dioxide (SO2); the metal acts as catalyst,
whereas 1÷3 (%) of sulphur is oxidized in sulphur trioxides (SO3). SOx is the common denominator for
SO2 and SO3 emissions, thus, SOx is mainly emission of SO2. The sulphur dioxide emission (SO2) is
based in the composition of SO (organic Sulphur) in lignite as well as alcalite character of lignite
respectively self desulphuration that occurs within the furnace. After the burn, a part of sulphur ends up as
ash and scum SO3, and a part of it is transferred with exhausting gases up to the electrostatic filter, and
finally (the remaining part) through the chimney into the atmosphere. Neither Kosova A thermo plant nor
Kosova B have installed De-SO2 (system for desulphuration of exhausting gases). In the Kosova A TPP
the SO2 is calculated while in “Kosova B” they are measured.
NOx emissions: The reason for NOx emissions is the content of nitrogen in lignite and feeding
air. The product of burning fossil components is nitrogen oxide in the form of nitrogen monoxide (NO),
Nitrogen Dioxide (NO2) and nitrogen suboxide (N2O). Emission of NOx is caused from burning of
nitrogen which is contained in lignite and from the presence of nitrogen in the air. When the lignite burns
the NO is mainly created, and production of NO2 comprises some percentages of total volume of NOx.
The amount of N2O is very small. The nitrogen oxides are formed from the chemical reaction of nitrogen
and oxygen dissociated from the air, which is conducted in the flame. Thus the formation of NOx occurs
mainly through the following mechanisms:
- As a result of reaction between oxygen and nitrogen from air (thermal NOx), and
- Nitrogen contained in the fuel.
In case of lignite, it is assumed, based on different sources, that 80% of nitrogen oxides will be
created from nitrogen contained in the fuel, and only 20% from the nitrogen in the air. For oxidation of
nitrogen, it is necessary to have a certain value of temperature in the burner and a certain amount of
oxygen. By undertaking primary measures in the burner, a satisfactory reduction of nitrogen oxides
emissions is achieved in lignite burning thermo plants, such as with burners with less NOx and other good
techniques available (BAT). In the Kosova A and Kosova B TPP-s there are no methods or techniques
used for reduction of NOx emissions. In “Kosova A” NOx emissions are calculated whereas in “Kosova
B” they are measured.
Heavy metals: Lignite contains heavy metals and other elements. Despite small concentrations, they
can cause harm to the environment and human health. Most heavy metals (As, Cd, Cr, Cu, Hg, Ni, Pb, Se,
Zn, V) are released as components (e,g. oxides, chlorides etc.) bound with the particles. Only Hg and Se
are partially present in the stage of steaming. Mercury (Hg) is a heavy metal that causes the biggest
problems, with respect to emission from the coal burning process. A part of mercury and lignite stops in
the stage of steaming, which means that it is not condensed in the surface of ash particles, therefore its
removal by the device for controlling emission of particles fluctuates very much. Most heavy metals are
bound with the flying ash in working temperatures of burner equipment.
The situation of environmental pollutants was presented in Table 6.
TPP Kosova
Electric Energy MWh)
2015
2014
%
Dust (mg/Nm3)
2015 2014
%
TPP KA3
925997
984471
-5.94
52.9
59.2
TPP KA4
773348
403998
91.42
39
53
TPP KA5
357335
249418
43.27
33
54
TPP KA
TPP KB1
TPP KB2
2056680
1986124
1935890
1637883
1597707
2048927
25.57
24.31
-5.52
44
57
SO2(mg/Nm3)
2015 2014
%
10.64
26.42
38.89
22.81
53
282
417
281
392
260
424
289
418
32.37
28.32
38.68
30.86
Nox(mg/Nm3)
2015 2014
%
Co2(mg/Nm3)
2015
2014
%
708
713
0.70
257.66
263.16
749
717
4.46
260.71
263.29
724
715
1.26
260.97
264.95
725
714
1.54
259.67
262.91
2.09
0.98
1.50
1.23
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
TPP KB
EU
requirements*
3922014
3646634
7.55
645
860
-25
327
50
511
-36
821
400
814
0.86
220.7
216.04
500
Table 6. Emissions released from thermo power plants in 2015 and 2014.
1.6. COMPARION OF THE MAIN ENERGY INDICATORS WITH COUNTRIES IN SOUTH
EAST EUROPE AND SOME EU MEMBER STATES
Dependency on electric energy imports32
In Figure 6. We have presented a comparison of countries in the region and some EU member
states with respect to their dependency on electric energy imports.
Dependency on imports (%)
70.0
60.0
50.0
40.0
62.8
30.0
20.0
10.0
0.0
9.9
25.0
23.0
10.9
50.4
39.5
8.9
4.8
33.0
13.4
9.8
6.5
2.2
Figure 6. Comparison of dependency in electric energy imports
All countries in the South East Europe depend on electric energy imports 33 . Kosovo, in
comparison with other countries is not so dependent on imports, however this should be taken with
reserves in terms of sustainability, because its outdated generating capacities do not generate long term
32
33
IEA oficial data from 2013
IEA data for 2013 (www.iea.org)
54
2.16
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
security. The electric energy generation capacities in Kosovo are more unsustainable in comparison to
capacities of other countries.
Comparison of net imports of electric energy
GWh
50000
40000
30000
20000
10000
0
-10000
-20000
-30000
-40000
-50000
-60000
Figure 7. Net imports (Import-Export) (GWh)
Share of sectors in the total of energy consumption of all types.
The percentage of share of economic sectors in the final consumption of energy represents a
qualitative indicator. The following diagram indicators represent comparative data on the distribution of
final consumption of energy in the SEE countries34. The household and transportation sectors are the
biggest consumers of energy in all SEE countries. In Kosovo and Montenegro the household sector
represents the biggest consumer of energy. Participation of industry in the final consumption in
Macedonia is 32% and in Albania this participation is only 13% while in Kosovo is 21%.
34
IEA official data from 2013(www.iea.org)
55
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Comparison of energy consumption in SEE countries
45
40
35
30
25
20
15
10
39
40
38
33
28
28
25
5
21
9 10 9
0
Amviseria
12 13
Shqiperia
26
31
27
24
22
13
4
Sherbimet
Kosova
32
28 27
25
2 3 2 1 1 0
Industria
Serbia
Bujqesia
Maqedonia
Transporti
Mali i zi
0 1 0 0 1 0
3 7 6 3 3 2
Tjera/ Jo te
specifikuara
Konsumi jo
energjetik
Bosnia dhe Hercegovina
Figure 8. Comparison of share of energy sectors in the final energy consumption in SEE countries
While some countries in the region such as Macedonia, Serbia and Bosnia and Herzegovina have
a diversity of supply with different products of energy for fulfilling the main demand of main sectors of
economy, Kosovo, Albania and Montenegro are quire restricted in this respect. She share of oil products
was not presented since its use is in most cases for transportation purposes in all these countries35.
Share of different types of energy in the total of energy consumption
35
IEA data from 2013(www.iea.org)
56
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Gaz natyror
Dru zjarri&mbtje
Energji elektrike
Ngrohje
KOSOVA
SERBIA
32
MAQEDONIA
4
0
1
0
1
SHQIPERIA
2
4
6
8
8
8
0
0
0
0
3
4
7
10
12
12
13
19
23
27
28
% E PJESMARRJES
31
32
40
Thëngjill
MALI I ZI
BOSNIA DHE
HERCEGOVINA
SEE COUNTRIES
Figure 9. Comparison of share of different energy products in SEE countries
Electric Energy Consumption per capita36
Konsumi i energjisë elektrike për banor(MWh/banor)
9
8
7
6
5
4
3
2
1
0
8.52
7.02
6.83
4.44
3
2.53
3.21
3.75
5.12
4.64
5
3.89
2.49
Figure 10. Comparison of consumption per capita in the SEE countries and some of the biggest countries
in the EU.
As indicated Kosovo has bigger per capita consumption of electric energy than Albania and
Romania.
Electric energy prices
36
IEA official data from 2013(www.iea.org)
57
7.38
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
The diagram below shows the electric energy prices for SEE countries and some EU member
states (eurocent/KWh)37.
Electric Energy Prices (Eurocent/KWh)
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Shtëpiak 2015
Industri 2015
Figure 11. Electric Energy Prices for SEE countries and some EU member states
As observed, electric energy prices in the household sector are lower than prices for industry
sector. Thus, Kosovo the burden of cost of the electro energy system falls with the industry.
37
EUROSTAT data belong to 2015
58
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
ANNEX 2. ANALYSIS OF PROJECTION OF ELECTRIC ENERGY DEMAND ACCORDING
TO 3 CONSUMPTION SCENARIOS
2.1.
THE BASIS FOR ANLYSIS OF ELECTRIC ENERGY DEMAND
With the aim of determining strategic policies for the energy sector, we first need to define the
electric energy system demand. This represents a basis for drafting of strategic documents for the energy
sector. For this purpose, the working team for drafting the Draft Strategy on Energy has adopted the
model of projections of electric energy demand based on some variables such as economic growth,
gradual reduction of technical and commercial losses, industrial development, foreseen measures of
energy efficiency, diversification of energy sources for meeting the demand etc.
The projection of electric energy demand was done based on three consumption scenarios by
considering that they represent sufficient options for policymakers to take the right decisions with regards
to energy sector
The electric energy demand represents the gross consumption of electric energy including:
 Electric energy demand from end consumers;
 Electric energy losses in the level of DSO;
 Electric energy losses in the level of TSO;
 Unbilled energy in the north of Kosovo;
 The demand in the area of mining and generation (LLOMAG);
 Impact of GDP in the electric energy demand;
 Energy Efficiency measures;
 The impact of penetration of district heating system.
The demand for electric energy for end consumers (net consumption) was used to project the
electric energy demand. The distinction between the net and gross consumption was done with the
intention of reducing the energy demand as a consequence of:
 Development of thermal systems – Annex 5;
 Energy Efficiency – 11 GWh annual reduction of electric energy demand;
 Use of solar energy for heating sanitary water – 3.65 GWh annual reduction of electric
energy demand as a consequence of use of solar energy for hearing water for household
use.
Development of such elements in the energy sector was considered to play important role in the
amount of electric energy demand as well as its cost, because, with reduction of demand, the amount of
imports is also reduced. All these factors with impact in electric energy demand are considered as inputs
that are included in the model of projection of electric energy demand.
The methodology used to project electric energy demand was presented for each scenario
hereunder.
Projections of economic growth are based in the Economic Reform Program as presented in
Table 7.
Table 7. Projections of economic growth according to the document: Economic Reform Program
Proj.
Proj.
Proj.
Proj.
Proj.
2020Real growth of GDP
2016
2017
2018
2019
2025
Low scenario (1)
2.50%
2.50%
2.50%
2.50%
3.00%
59
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Basic scenario (2)
High scenario (3)
4.0%
7.50%
4.30%
7.00%
4.30%
6.00%
4.30%
5.50%
4.30%
5.00%
Inputs on the impact of energy efficiency measures
 Analysis of impact of EE in reduction of electric energy demand was based on progress analysis
achieved from implementation of mid-term action plans and those planned (see Annex 1 under 1.4.).
 The impact of expansion of current district hearing systems was based in projections described in
chapter 5 of the present Annex.
2.1.1.
Projection of the electric energy demand –Low scenario
a) The projection of electric energy demand for industrial consumers was done by applying %
of GDP based on the lower scenario (1), whereas the projection of demand of commercial
and household consumers was done as following: In years where the consumption is not
realistic, we initially normalised it and continued based on the trend through linear equations
and other impacts in order to reflect a real projection.
b) The level of technical and commercial losses for all scenarios was done bsed on the
Development Plan of the DSO (Master Plan) which was assessed by the Working team for
drafting the Energy Strategy as a real projection.
c) The impact of inputs (expansion of thermal energy systems, implementation of energy
efficiency measures and use of solar energy for heating the water for family needs) in this
scenario is continuation of the trend of recent years which also included the impact of
efficiency measures undertaken under the action plan in recent years.
Table 8 represents a projection of electric energy demand based on Scenario 1 (low).
Table 8. The gross electric energy demand based on the scenario 1.
Konsumi sipas llojit te konsumatoreve
220 kV
110 kV
Total 220 kV & 110 kV
Industria (35kV, 10kV dhe 6/6)
Komercial
Shtepiak
Konsumi
Njësia
GWh
GWh
GWh
GWh
GWh
GWh
GWh
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
586
91
677
249
776
2,171
3,196
601
93
694
255
789
2,208
3,253
616
95
711
262
803
2,245
3,310
632
98
729
268
817
2,286
3,371
651
101
751
276
833
2,329
3,438
670
104
774
285
849
2,375
3,508
690
107
797
293
862
2,410
3,565
711
110
821
302
875
2,446
3,623
732
113
845
311
888
2,483
3,682
754
117
871
320
901
2,520
3,742
Following the inclusion of the impact of losses and other types of consumption, the gross demand will be
as outlined in table 9.
Table 9. Gross electric energy demand
Total konsumi
2.2.
GWh
2016
5,691
2017
5,694
2018
5,700
2019
5,706
2020
5,715
Projection of electric energy demand – Scenario 2 (basic)
60
2021
5,741
2022
5,751
2023
5,776
2024
5,809
2025
5,849
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
a) The projection of electric energy demand for industrial consumers was done by applying %
of GDP based on the scenario 2 (basic), whereas for projection of demand of commercial
consumers we applied 0.8 of the GDP based on the basic scenario.
b) The level of technical and commercial losses for all scenarios was done bsed on the
Development Plan of the DSO (Master Plan) which was assessed by the Working team for
drafting the Energy Strategy as a real projection.
c) The impact of inputs (expansion of thermal energy systems, implementation of energy
efficiency measures and use of solar energy for heating the water for family needs) in this
scenario was taken as realistic based on planned measures of energy efficiency.
Table 10 represents a projection of electric energy demand based on Scenario 2.
Table 10. Demand for electric energy based on scenario 2 of electric energy consumption
2016
Konsumi sipas llojit te konsumatoreve
220 kV
110 kV
Total 220 kV & 110 kV
Industria (35kV, 10kV)
Komercial
Shtepiak
Konsumi
Njësia
GWh
GWh
GWh
GWh
GWh
GWh
GWh
608
91
699
273
832
2,157
3,263
2017
2018
634
95
729
285
861
2,147
3,293
2019
661
99
760
297
891
2,180
3,368
2020
689
103
793
310
921
2,241
3,472
719
108
827
323
953
2,289
3,566
2021
2022
750
112
862
337
986
2,339
3,662
2023
782
117
899
352
1,020
2,379
3,750
2024
816
122
938
367
1,055
2,415
3,837
851
127
978
383
1,091
2,452
3,925
2025
888
133
1,020
399
1,129
2,490
4,017
Following the inclusion of the impact of losses and other measures in the electric energy demand, the
gross demand will be as outlined in table 11:
Table 11. Demand for gross electric energy based on scenario 2 of electric energy consumption
2016
2017
2018
2019
2020
2021
2022
2023
GWh
5,802
5,784
5,826
5,902
5,955
6,024
6,084
6,156
Total konsumi
2.2.
2024
6,238
2025
6,330
Projection of electric energy demand – Scenario 3 (high)
a) The projection of electric energy demand for industrial consumers was done by applying %
of GDP based on high scenario (Scenario 3 of GDP growth), Projection of electric energy
demand for household consumers was done similarly with Scenario 2.
b) The level of technical and commercial losses for all scenarios was done based on the
requirements of the Strategy and Development Plan of the DSO (Master Plan).
c) The impact of inputs in this scenario was taken as realistic based on developments in the
respective sector.
Table 12. Electric energy consumption according to Scenario 3
Konsumi sipas llojit te konsumatoreve
220 kV
110 kV
Total 220 kV & 110 kV
Industria (35kV, 10kV)
Komercial
Shtepiak
Konsumi
Njësia
GWh
GWh
GWh
GWh
GWh
GWh
GWh
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
628
94
722
283
867
2,157
3,307
672
101
773
302
928
2,147
3,377
712
107
819
320
983
2,180
3,483
752
112
864
338
1,037
2,241
3,616
789
118
907
355
1,089
2,289
3,734
829
124
953
373
1,144
2,339
3,856
870
130
1,000
391
1,201
2,379
3,971
914
137
1,050
411
1,261
2,415
4,087
959
144
1,103
431
1,324
2,452
4,207
1,007
151
1,158
453
1,390
2,490
4,333
61
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Following the inclusion of the impact of losses and other measures of consumption, the gross
demand will be as outlined in table 13.
Table 13. Demand for gross electric energy based on scenario III
2016
2017
2018
2019
2020
GWh
5,884
5,942
6,041
6,164
6,253
Total konsumi
2.3.
2021
6,361
2022
6,461
2023
6,577
2024
6,706
Summary of three scenarios
Table 14. Summary of scenarios of electric energy demand
Skenaret
Skenari I
Skenari II
Skenari III
2016
5,691
5,802
5,884
2017
5,694
5,784
5,942
2018
5,700
5,826
6,041
2019
5,706
5,902
6,164
2020
5,715
5,955
6,253
2021
5,741
6,024
6,361
2022
5,751
6,084
6,461
2023
5,776
6,156
6,577
2024
5,809
6,238
6,706
2025
5,849
6,330
6,848
The following figure presents the curves of long term demand projections of electric energy for the three
scenarios.
8,000
Permbledhje e tre skenareve te konsumit
7,500
7,000
6,848
6,500
6,000
5,942
5,784
5,694
5,884
5,802
5,691
6,164
6,041
5,826
5,700
5,902
5,955
5,706
5,715
6,461
6,361
6,253
5,849
5,809
5,776
5,751
5,741
6,330
6,238
6,156
6,084
6,024
6,706
6,577
5,500
5,000
Skenari I
Skenari II
Skenari III
4,500
4,000
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Figure 12. The curved lines of electric energy demand
The electric energy sector, especially distribution faces many challenges which are of political
and institutional nature, among the min ones are, placement of control of the DSO in the North of Kosovo
and reduction of electric energy misuse by irresponsible consumers. Overcoming these challenges
requires an overarching commitment.
62
2025
6,848
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
ANNEX 3. ANALYSIS OF ADEQUACY OF GENERATION AND BALANCE BETWEEN
ELECTRIC ENERGY DEMAND AND GENERATION 2016-2025
3.1. ADEQUACY AND BALANCE BETWEEN ELECTRIC ENERGY DEMAND AND
GENERATION.
Energy adequacy and balance were analysed based on three scenarios of generation capacities in
Kosovo and one basic scenario in Albania.
63
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Table 15. Scenarios for generation capacity development
Generation capacities
Scenario 1
 CONSTRUCTION
“K OSOVA E RE”
CAPACITY OF 450
in Kosovo
OF
TPP
WITH NET
MW WITH
THE
POSSIBILITY
OF
CONNECTION
OF
COGENERATION CAPACITY UP
TO 10% OF ITS NET CAPACITY .
THE
PLANT
WILL
BE
CONSTRUCTED IN LINE WITH
ALL
ENVIRONMENTAL
CRITERIA AS DETERMINED IN



Generation capacities in
Kosovo Scenario 2
 CONSTRUCTION OF TPP
“K OSOVA E RE” WITH
NET CAPACITY OF 450
MW
WITH
THE
POSSIBILITY
OF
CONNECTION
OF
COGENERATION
CAPACITY UP TO 10%
OF ITS NET CAPACITY .
THE PLANT WILL BE
CONSTRUCTED IN LINE
WITH
ALL
ENVIRONMENTAL
CRITERIA
AS
DETERMINED
IN
D
D 2010/75/EC;
REHABILITATION OF TPP
“K OSOVA B” BY BRING IT
WITHIN THE ENVIRONMENTAL
AND
ENERGY
EFFICIENCY
CRITERIA AS REQUIRED BY
DIRECTIVE 2010/75/EC FOR
INDUSTRIAL PLANTS , AND BY
INCREASING ITS PRODUCTION
CAPACITY AT THE DESIGNED
PARAMETERS .
REHABILITATION IS FORESEEN
TO BE DONE IN 2020.
CONTINUATION OF OPERATION
OF TPP K OSOVA A UNTIL THE
TPP K OSOVA E RE IS MADE
OPERATIONAL ,
WITH
THE
ASSUMPTION THAT K OSOVO
WILL MANAGE TO POSTPONE
ITS OBLIGATIONS RELATED TO
RESTRICTION OF LIFE OF OLD
TPP-S DUE TO HIGH RISK OF
SECURITY OF SUPPLY.
CONSTRUCTION
OF
GENERATION CAPACITIES OF
ELECTRIC
ENERGY
FROM
RENEWABLE ENERGY SOURCES
BASED ON THE TARGETS FOR
RES (SEE ANNEX 7).



Generation capacities in
Kosovo Scenario 338
 CONSTRUCTION OF
TPP “K OSOVA E
RE”
WITH
NET
CAPACITY OF 450
MW
WITH
THE
POSSIBILITY
OF
CONNECTION
OF
COGENERATION
CAPACITY
UP
TO
10% OF
ITS NET
CAPACITY.
THE
PLANT WILL BE
CONSTRUCTED
IN
LINE
WITH
ALL
ENVIRONMENTAL
CRITERIA
AS
DETERMINED IN D
2010/75/EC;
REHABILITATION
OF
TPP “K OSOVA B” BY
BRING IT WITHIN THE
ENVIRONMENTAL
AND
ENERGY
EFFICIENCY
CRITERIA AS REQUIRED
BY
DIRECTIVE
2010/75/EC
FOR
INDUSTRIAL
PLANTS ,
AND BY INCREASING ITS
PRODUCTION CAPACITY
AT
THE
DESIGNED
PARAMETERS .
REHABILITATION
IS
FORESEEN TO BE DONE
IN 2020.
CONTINUATION
OF
OPERATION
OF
TPP
K OSOVA A UNTIL THE
TPP K OSOVA E RE IS
MADE OPERATIONAL , BY
RESPECTING
THE
OBLIGATIONS
FOR
RESTRICTION
OF
WORKING HOURS (O LD
PLANTS ARE ALLOWED
TO
WORK
20000
WORKING
HOURS
DURING
THE
PERIOD
2018-2023).
O N THE INITIATIVE OF
38


Generation capacities in
Albania
During
the
adequacy
analysis and electro energy
system balance, one basic
scenario of projections of
developing
production
capacities in the Republic of
Albania based on the data
from the Albanian TSO,
was
taken
into
consideration.
2010/75/EC;
REHABILITATION OF
TPP “K OSOVA B”
BY BRING IT WITHIN
THE
ENVIRONMENTAL
AND
ENERGY
EFFICIENCY
CRITERIA
AS
REQUIRED
BY
DIRECTIVE
2010/75/EC
FOR
INDUSTRIAL PLANTS ,
AND BY INCREASING
ITS
PRODUCTION
CAPACITY AT THE
DESIGNED
PARAMETERS .
REHABILITATION IS
FORESEEN
TO
BE
DONE IN 2020.
RECONSTRUCTION
OF 4 UNITS OF TPP
K OSOVA
A
ACCORDING TO AN
ORDER
(SEE THE
RESPECTIVE TABLES
FOR
PRODUCTION
CAPACITIES UNDER
SCENARIO
3
OF
The data are based on assessments of KEK Staff based on designed capacities of units and experience from
countries with similar technology plants.
64
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025

PRIVATE
INVESTORS
CONSTRUCTION
OF
FLEXIBLE
HYDRO
CAPACITIES
FOR
FULFILLING
THE
SYSTEM
REGULATORY
RESERVE .
CONSTRUCTION
OF
GENERATION
CAPACITIES
OF
ELECTRIC
ENERGY
FROM
RENEWABLE
ENERGY SOURCES BASED
ON THE TARGETS FOR
RES (SEE ANNEX 7).


GENERATION
IN
ANNEX39).
O N THE INITIATIVE
OF
PRIVATE
INVESTORS
CONSTRUCTION
OF
FLEXIBLE
HYDRO
CAPACITIES
FOR
FULFILLING
THE
SYSTEM
REGULATORY
RESERVE .
CONSTRUCTION OF
GENERATION
CAPACITIES
OF
ELECTRIC
ENERGY
FROM
RENEWABLE
ENERGY
SOURCES
BASED
ON
THE
TARGETS FOR RES
(SEE ANNEX 7).
Data on generation capacities
Table 16: Kosovo generation capacities in generation Scenario 1
GENERATION CAPACITIES 2016-2025 SCENARIO I (KOSOVO) (power available on January at
21:00)
Year
2016
2017 2018 2019 2020 2021 2022 2023 2024 2025
Curent Generation
Kosova A
270
270
270
270
270
270
270
0.0
0
0
Kosova B
520
520
520
520
295
600
600
600
600
600
HPP (Ujman+ existing
small)
47.5
47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5
837.5
837.5
837.5 837.5 612.5 917.5 917.5 647.5 647.5 647.5
Total of existing
New
TPP Kosova e Re
450
450
450
HPP Fleksible
(regulatory)
0
0
0
0
New RES
7
15
65
84
94
118
118
125
125
138
7
15
65
84
94
118
118
575
575
588
Total – New
TOTAL KOSOVO
844
852
903
922
706 1035 1035 1222 1222 1236
Table 17. The amount of electric energy produced under generation scenario I
ENERGY PRODUCED FROM GENERATION 2016-2025 SKENARIO I
Year
2016
2017
2018
2019
39
2020
2021
2022
2023
2024
2025
The data on generation capacities in case of construction of TPP Kosova are assessment data made by the KEK
staff based on capacities installed and designed when they were constructed during 60-s and 70-s and as such cannot
be taken as basic data for decision-making.
65
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Current Generation
Kosova A
Kosova B
Existing HPP
Total of existing
New
TPP Kosova e Re
New RES
Total new
TOTALI GWh
1800
3400
200
5400
1800
3400
200
5400
1800
3200
200
5200
1800
3200
200
5200
1800
2000
200
4000
1800
4200
200
6200
1800
4200
200
6200
0
4200
200
4400
0
4200
200
4400
0
4200
200
4400
0
34
34
5434
0
79
79
5479
0
301
301
5501
0
375
375
5575
0
419
419
4419
0
514
514
6714
0
516
516
6716
3370
548
3919
8319
3370
550
3921
8321
3370
613
3983
8383
Table 18. Generation capacities of two systems when applying generation scenario I in Kosovo and
basic scenario of generation capacities in Albania
Year
2016 2017 2018 2019 2020 2021 2022 2023 2024
Existing generation Albania
1220 1228 1228 1228 1228 1228 1228 1325 1325
Existing generation Kosovo
837 837 837 837 612 917 917 647 647
New capacities Albania
5
58
139 237 377 447 474 530 605
New capacities Kosovo
7
15
65
84
94
118 118 575 575
TOTAL ALB. + KOSOVO
2069 2138 2269 2387 2311 2710 2738 3078 3152
the
2025
1325
647
692
588
3253
Table 19. Kosovo generation capacities under generation Scenario 2
GENERATION CAPACITIES 2016-2025 SCENARIO II (KOSOVO) (power available on January at
21:00)
Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Current Generation
Kosova A
270
270
270
270
270
270
270
0.0
0
0
Kosova B
520
520
520
520
295
600
600
600
600
600
HPP (Ujman+ existing small)
47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5 47.5
837.5 837.5 837.5 837.5 612.5 917.5 917.5 647.5 647.5 647.5
Total of existing
New
TPP Kosova e Re
450
450
450
HPP Fleksible (regulatory)
0
200
200
200
New RES
7
15
65
84
94
118
118
125
125
138
7
15
65
84
94
118
118
775
775
788
Total – New
Table 20. The amount of electric energy produced under generation scenario 2
ENERGY PRODUCED FROM GENERATION 2016-2025 SKENARIO II
Year
2016 2017 2018 2019 2020 2021 2022 2023 2024
Current Generation
Kosova A
1800 1800 1300 1300 1300 1300 1300
0
0
Kosova B
3400 3400 3200 3200 2000 4200 4200 4200 4200
Existing HPP
200
200
200
200
200
200
200
200
200
5400 5400 4700 4700 3500 5700 5700 4400 4400
Total of existing
New
TPP Kosova e Re
0
0
0
0
0
0
0 3370 3370
HPP Fleksible (reg.)
397
397
New RES
34
79
301
375
419
514
516
548
550
34.12 79.12 300.6 375.1 419.4 513.5 515.6 4316 4318
Total – New
66
2025
0
4200
200
4400
3370
397
613
4380
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
TOTALI
5434
5479
5001
5075
Table 21. Generation capacities of two systems when
basic scenario of generation capacities in Albania
Viti
2016 2017 2018
Existing generation Albania
1220 1228 1228
Existing generation Kosovo
837
837
837
New capacities Albania
5
58
139
New capacities Kosovo
7
15
65
TOTAL ALB. +KOSOVË
2069 2138 2269
3919
6214
6216
8716
8718
8780
applying generation scenario 2 in Kosovo and the
2019
1228
837
237
84
2387
2020
1228
612
377
94
2311
2021
1228
917
447
118
2710
2022
1228
917
474
118
2738
2023
1325
647
530
775
3278
2024
1325
647
605
775
3352
2025
1325
647
692
788
3453
Table 22. Kosovo generation capacities under generation Scenario 3
GENERATION CAPACITIES 2016-2025 SCENARIO III (KOSOVO) (power available on January at
21:00)
Year
2016 2017 2018 2019 2020 2021
2022
2023
2024
2025
Curent Generation
Kosova A
270
270
270
270
270
270
540 540.0
540
540
Kosova B
520
520
520
520
295
600
600
600
600
600
HPP (Ujman+ existing small)
47.5 47.5 47.5 47.5 47.5 47.5
47.5
47.5
47.5
47.5
837.5 837.5 837.5 837.5 612.5 917.5 1187.5 1187.5 1187.5 1187.5
Total of existing
New
TPP Kosova e Re
450
450
450
HPP Fleksible (regulatory)
0
200
200
200
New RES
7
15
65
84
94
118
118
125
125
138
7
15
65
84
94
118
118
775
775
788
Total – New
TOTALI KOSOVA
844
852
903
922
706 1035
1305
1962
1962
1976
Table 23. The amount of electric energy produced under generation scenario
ENERGY PRODUCED FROM GENERATION 2016-2025 SKENARIO III
Year
2016 2017 2018 2019 2020 2021 2022 2023 2024
Current Generation
Kosova A
1800 1800 1300 1300 2200 2200 3600 3600 3600
Kosova B
3400 3400 3200 3200 2000 4200 4200 4200 4200
HPP (Ujman+ existing small)
200
200
200
200
200
200
200
200
200
5400 5400 4700 4700 4400 6600 8000 8000 8000
Total of existing
New
TPP Kosova e Re
3370 3370
HPP Fleksible (regulatory)
397
397
397
New RES
34
79
301
375
419
514
516
548
550
34.12 79.12 300.6 375.1 419.4 513.5 912.6 4316 4318
Total – New
TOTALI
5434 5479 5001 5075 4819 7114 8913 12316 12318
2025
3600
4200
200
8000
3370
397
613
4380
12380
Table 24. Generation capacities of two systems when applying generation scenario 2 in Kosovo and the
basic scenario of generation capacities in Albania
KAPACITETET E GJENERIMIT NE DISPOZICION 2016-2025 SHQIPERI-KOSOVË (MW)
Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Existing generation Albania
1220 1228 1228 1228 1228 1228 1228 1325 1325 1325
67
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Existing generation Kosovo
New capacities Albania
New capacities Kosovo
TOTAL ALB. +KOSOVË
837 837 837 837 612 917 1187 1187 1187 1187
5
58
139 237 377 447 474 530 605 692
7
15
65
84
94
118 118 775 775 788
2069 2138 2269 2387 2311 2710 3008 3818 3892 3993
Table 25. Kosovo generation capacities under generation Scenario 3
GENERATION CAPACITIES 2016-2025 BASIC SCENARIO (Power available January 21:00)
Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Current generation MW
HPP (Total of big HPP-s)
1050 1050 1050 1050 1050 1050 1050 1050 1050 1050
RES (Small HPP-s, wind,
solar)
170
178
178
178
178
178
178
178
178
178
THPP Vlora
0
0
0
0
0
0
0
97
97
97
1220 1228 1228 1228 1228 1228 1228 1325 1325 1325
Total existing
New MW
HPP (total of big HPP-s)
0
44
109
185
276
307
325
366
415
482
RES (Small HPP-s, wind,
solar)
5
14
30
52
100
139
149
164
189
209
TPP ( Total)
0
0
0
0
0
0
0
0
5
58
139
237
377
447
474
530
605
692
Total – New
TOTAL
1225 1286 1367 1465 1605 1675 1703 1855 1930 2017
Note: The factor of utilisation of installed capacities for both systems, based on recommendations of
ETNSO-E is as following:
For photovoltaic plants: PGsol=0, since it is not in production at the peak time at 21:00.
For HPP -s PGhc=PG (inst)*0.65, based on hydrologic conditions
For wind plants PGera=PG (inst)*0.5, (recommendation of ENTSO-E)
For biomass: PGbio=PG (inst)*1.0
Where:
PGsol – The power of solar power plant
PGhc – The power of Hydro Power Plant
PGera – the power of wind power plant
Table 26. The amount of electric energy in Albania based on the basic generation scenario
ENERGY PRODUCED FROM GENERATION IN ALBANIA 2016-2025 BASIC SCENARIO
Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Current generation MW
HPP (Total of big HPP-s)
4400 4400 4400 4400 4400 4400 4400 4400 4400 4400
RES (Small HPP-s, wind, solar)
769
769
769
769
769
769
769
769
769
769
HPP Vlora
0
0
0
0
0
0
0
0
0
0
Total existing in Albania (GWh) 5169 5169 5169 5169 5169 5169 5169 5169 5169 5169
New in Albania (GWh)
HPP (total of big HPP-s)
0
238
589
999 1489 1657 1752 1973 2239 2600
RES (Small HPP-s, wind, solar)
9
47
104
181
352
488
523
576
663
734
TPP ( Total)
0
0
0
0
0
0 1489 1489 1489 1489
9
286
692 1180 1841 2146 3764 4038 4392 4823
Total – New
68
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
TOTALI
5178
5455
5861
6349
7010
7315
8933
9207
9561
9992
Balance between electric energy generation and demand in generation scenario 1 for Kosovo electro
energy system
In figure 14 we have presented the balance between electric energy production and demand when
the production is implemented based on projections of generation scenario 1 and when it would operate
on its own.
GWh
Balanca e energjisë (gjenerimi I / kerkesa B, L dhe U)
3,000
2,500
2,000
1,500
1,000
500
(500)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
(1,000)
(1,500)
(2,000)
(2,500)
BALANCA E ENERGJISË I-U
Fig. 13.
Kosovo.
BALANCA E ENERGJISË I-B
BALANCA E ENERGJISË I-L
The balance between electric energy production and demand under generation scenario 1 in
In figure 15 we have presented the balance between electric energy production and demand when the
production is implemented based on projections of generation scenario 2 and when it would operate on its
own.
GWh
Balanca e energjisë (gjenerimi II / kerkesa B, L dhe U)
4,000
3,000
2,000
1,000
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
(1,000)
(2,000)
(3,000)
BALANCA E ENERGJISË II-U
BALANCA E ENERGJISË II-B
BALANCA E ENERGJISË II-L
Figure 14. The balance between electric energy production and demand under generation scenario 2 in
Kosovo
69
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
In figure 16 we have presented the balance between electric energy production and demand when
the production is implemented based on projections of generation scenario 3 and when it would operate
on its own.
GWh
Balanca e energjisë (gjenerimi III / kerkesa B, L dhe U)
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
(1,000)
(2,000)
BALANCA E ENERGJISË III-U
BALANCA E ENERGJISË III-B
BALANCA E ENERGJISË III-L
Figure 15. The balance between electric energy production and demand under generation scenario 1
The figure hereunder presents the balance lines between the electric energy production and
demand when the market is integrated with Albania
GWh
10,000
8,000
6,000
Balanca e Energjisë (Gjenerimi I, II dhe III / Kërkesa
B)
Pas
2022
eksport
ues
Deri ne vitin 2020
4,000
Ne vitin
2021 te
balancuar
2,000
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
(2,000)
(4,000)BALANCA E ENERGJISË SHQ+KS(I)
BALANCA E ENERGJISË SHQ+KS(II)
BALANCA E ENERGJISË SHQ+KS(III)
Figure 16. The balance between electric energy production and demand under generation scenario 1
70
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
Adequacy of generation of electro energy system for the integrated system Kosovo-Albania
In figure 18 hereunder you can see the adequacy of generation for the three scenarios of
generation in Kosovo and the basic scenario of generation in Albania.
Adekuacia e gjenerimit AL-KS(I, II dhe III)
MW
600
360
400
423
380
200
0
2016
-200
2017
2018
2019
2020
-400
2021
2022
-252
2023
-800
-917
-1000
-878
-117
2025
-380
-503
-600
-160
2024
-694
-771
-849
Adekuacia e gjenerimit AL+KS(I)
Adekuacia e gjenerimit AL+KS(II)
Adekuacia e gjenerimit AL+KS(III)
Figure 17. Adequacy of the generation system in the integrated market with Albania
Table 27. Comparison of results for the balance and adequacy of generation for the three generation
scenarios when systems operate within a single common market of electric energy (Kosovo Albania)


The
energy
balance
when the
system
operates
alone

Scenario 1
Situation almost the same
as the current one until
2020. The need for import
is 1.5 TWh.
After rehabilitation of
Kosova B and construction
of new capacities of RES,
the system will be almost
balanced until the year
when the TPP Kosova e Re
is
expected
to
be
constructed,
with
a
tendency
of
surplus
depending on the scenario
of demand.
After the construction of
TPP Kosova e Re there
will be electric energy
surplus which will mainly
be realised during the
regime of low loads in the
system,
with
special
emphasis during the night.
In the aspect of coverage
of peak, this scenario is not
so promising, considering


Scenario 2
By 2020, the balance
between production and
consumption will be
similar to Alternative 1,
except for the need for
imports during 2018 and
2019 for 500GWh.
From 2020 to 2023, the
system will be balanced,
whereas following the
construction
of
TPP
Kosova e Re, and addition
of new capacities from
RES, the possibility of
exporting the surplus will
increase to around 2.5
TWh in the subsequent
years.
71

Scenario 3
Until 2020, the balance
between production and
consumption will be similar
to Alternative 2. From 2020
to 2023, the system will be
almost balanced with a
positive tendency, whereas
following the construction
of TPP Kosova e Re, and
addition of new capacities
from RES, the possibility of
exporting the surplus would
be very big
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025

Energy
balance
when the
system
operates
within
the
common
zone
with
Albania
Adequac
y
of
system
when the
system
operates
within
the
common
zone as a
joint
regulator
y block,
by
respectin
g
the
ENTSOE
requirem
ents.
the decommissioning of
Kosova A after the
construction of Kosova e
Re TPP, which only
implies replacement of
capacities not addition.
In the aspect of electric
energy
production,
replacement
of
TPP
Kosova A with the TPP
Kosova e Re would have
an addition of 1.5 TWh of
electric energy.
Until the end of 2020 the integrated systems KOSOVO + ALBANIA for the three generation
scenarios in Kosovo, will be importers of electric energy, where almost until 2020 both unified
systems will need an import of 2TWh of energy. In 2021 in all three scenarios of generation in
Kosovo, will be the years with balanced system of electric energy production and consumption,
whereas after 2022 the unified system will have a pretty positive balance of electric energy.
-
-
-
-
-
Adequacy is negative for
the entire 10 year period.
Until 2019 the unified
system needs around 850
MW of additional power,
whereas after 2020 this
power revolves around
550MW, out of which
120 MW should be
ensured from imports
The need for regulatory
reserve is small for the
Albanian and Kosovo
Electric Energy System
The
primary
and
secondary reserve is
ensured
within
the
unified system, whereas
around 150 MW of the
tertiary reserve by 2025
should be ensured from
the regional market of
support services.
KOSTT does not meet
the
requirement
of
ENTSO/E for heaving
50% of its regulatory
reserve
within
its
regulatory zone
Operation under the
modus: one regulatory
-
-
-
Until 2021 the adequacy
of generation remains
the same as in scenario
AL+KS(I), whereas the
construction of flexible
HPP in Kosovo with a
capacity of 200 MW
significantly improves
adequacy of generation,
with special emphasis
on the Kosovo System,
a unit that will allow
ensuring half of the need
for tertiary regulation.
The flexible unit and
unification of systems
will allow integration of
capacities
from
renewable sources
Generating capacities of
both countries after
2023
will
allow
ensuring
of
the
regulatory reserve of
unified systems
KOSTT with a flexible
unit of 200 MW will
meet the requirement of
ENTSO/E because 50%
of regulatory reserve
will ensured within its
72
-
-
-
Until 2021 the adequacy
of generation remains
the same as in scenario
AL+KS(I)
Construction of unified
systems is enabled from
one nearly balanced
system into a system
with high potential.
After 2023 the adequacy
of generation is very
positive
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
-
bllock/two
regulatory
zones, enables reduction
of costs as a result of the
possibility of optimising
the work of generators in
both countries
Diversity of generation
and
bigger
number
thereof creates favourable
conditions
for
a
competitive market.
-
regulatory
zone,
considering that in the
unified system the need
for tertiary reserve for
Kosovo from 450MW
will
reduce
to
337.5MW,
and
for
Albania from 150MW
to 112MW
Cost reduction as a
result of possibility to
optimise the work of
generators
in
both
countries.
73
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
ANNEX 4. DEMAND FOR COAL UNDER THE THREE ELECTRIC ENERGY GENERATION
SCENARIOS
The following tables present the calculated amounts of demand of TPP-s for coal.
Table 28. Generation Scenario I
KERKESA PER THENGJILL(MILION TON) 2016-2025 SKENARI I
Viti
Kosova A
Kosova B
TC Kosova e Re
TOTALI
2016
2.83
4.25
0.00
7.08
2017
2.83
4.25
0.00
7.08
2018
2.83
4.00
0.00
6.83
2019
2.83
2.50
0.00
5.33
2020
2.83
5.25
0.00
8.08
2021
2.83
5.25
0.00
8.08
2022
2.83
5.25
0.00
8.08
2023
0.00
5.25
3.37
8.62
2024
0.00
5.25
3.37
8.62
2025
0.00
5.25
3.37
8.62
2024
0.00
5.25
3.37
8.62
2025
0.00
5.25
3.37
8.62
Table 29. Generation Scenario 2
KERKESA PER THENGJILL (MILION TON) 2016-2025 SKENARI II
Viti
Kosova A
Kosova B
TC Kosova e Re
TOTALI
2016
2.83
4.25
0.00
7.08
2017
2.83
4.25
0.00
7.08
2018
2.83
4.00
0.00
6.83
2019
2.83
2.50
0.00
5.33
2020
2.83
5.25
0.00
8.08
2021
2.83
5.25
0.00
8.08
2022
2.83
5.25
0.00
8.08
2023
0.00
5.25
3.37
8.62
Table 30. Generation Scenario 3
KERKESA PER THENGJILL(MILION TON) 2016-2025 SKENARI III
Viti
Kosova A
Kosova B
TC Kosova e Re
TOTALI
2016
2.83
4.25
0.00
7.08
2017
2.83
4.25
0.00
7.08
2018
2.83
4.00
0.00
6.83
2019
2.83
2.50
0.00
5.33
74
2020
3.45
5.25
0.00
8.70
2021
3.45
5.25
0.00
8.70
2022
4.50
5.25
0.00
9.75
2023
4.50
5.25
3.37
13.12
2024
4.50
5.25
3.37
13.12
2025
4.50
5.25
3.37
13.12
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
ANNEX 5. DEVELOPMENTAL PROJECTIONS OF THERMAL ENERGY SYSTEMS
5.1. DEVELOPMENT PROJECTIONS OF DISTRICT HEATING COMPANY IN PRISTINA
CITY “TERMOKOS”
5.1.1.
Supply of consumers with thermal energy
In November 2014, Termokos started with the supply of consumers with thermal energy acquired
through cogeneration system. This system allows the use of thermal energy from turbine steam of Bllocs
B1 and B2 of Kosova B. The thermal power available from this system is 2x140MW. However the
exchange capacity 2x70MW in the Heat Extraction Station (HES) and the conducting capacity of the
thermo conductor of Kosova B TPP – Termokos, DN600 (around 160 MW), currently limit the possibility
for using this energy with thermal power of up to 140MW.
This project reaches a value of investments of 37 million Euros, and is financed through
donations and soft loans (German Government and KfW, EU, Swedish Government, Luxemburg
Government, Kosovo Government and Pristina Municipality).
The cogeneration project was the impact factor that made Temokos become a company with
sustainable technical and financial standards, by gaining the trust of its consumers. At the same time
another very important impact of this project is protection of environment and reduction of emissions of
gases into the atmosphere.
Currently, the district heating system of Termokos has connected consumers with installed power of
around 110 thermal MW.
5.1.2.
Development projections of district heating system of TERMOKOS
For period 2016-020, the planned investments for Termokos projects from donors and different
funds, mainly from the German government through KfW, are assessed to be 21.5 million Euros. These
investments aim to increase the performance of the company with components of enlargement and
modernisation of the distribution network, reduction of energy losses, construction of new thermo-substations and optimisation of the work of thermal energy distribution system (balancing of system,
measurement and billing based on consumption etc).
In order to meet the increasing demand of the Pristina City for thermal energy (scenarios
presented above), Termokos plans to expand and modernise its distribution network. In this respect, the
main projects for period 2015-2025, financed by donors and own revenues are:
a. Rehabilitation of 300 substations out of 360 existing substations. Rehabilitation implies
replacement of heat exchangers and circulation pumps, installation of regulatory system
and thermal energy measurement system.
b. Replacement of distribution network of 10km (20km pipeline). Critical positions were
identified, mainly in the main pipeline and main branching pipelines, where it is
considered to have vast loses of water and energy.
75
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
c. Extension of the heating network in the new neighbourhoods, which will be considered
after the hydraulic analysis of the network and energy reserves in certain positions. Such
analyses are being conducted by consultants hired by the EU, in cooperation with
Termokos and Prishtina Municipality.
It is planned based on the scenarios presented above, that the additional surface to be
connected to the Termokos network, at the end of this period will be 1000,000.00 m²
d. Supply of Prishtina city, the part that is connected to the district heating network, with
sanitary water. This project, has a value of 10.5 million Euros, and is in the priority list of
energy projects which was approved by the government of the Republic of Kosovo.
We are providing two scenarios of network expansion, respectively increase of number of
consumers and necessary energy for fulfilling their demand, for period 2016-2025.
Table 31. Projections of Thermal energy system development by Termokos
Medium Scenario
High Scenario
Connected
surface (m²)
Energy
needed
(GWHth)
Connected
surface (m²)
Energy
needed
(GWHth)
2016
1220539
254
1220539
254
2017
1395539
290
1445539
301
2018
1620539
337
1695539
353
2019
1720539
358
1845539
384
2020
1805539
376
1970539
410
2021
1880539
391
2075539
432
2022
1955539
407
2160539
449
2023
2030539
422
2245539
467
2024
2105539
438
2330539
485
2025
2180539
454
2415539
502
5.1.3.
Reduction of losses and energy saving
Projects that will be implemented in this period, apart from objectives indicated above, are to reduce
energy losses in the network and save it through efficiency measures.
5.1.4.
Reduction of water losses
Water losses in the distribution network in the city are vast and have a direct impact in the quality of
service and performance of the enterprise. The Termokos objective is to reduce these losses from the
current situation of 18% to 10% t the end of this period. With reduction of losses, and energy saving
there will be a possibility for Termokos to use the same capacity for supplying more consumers.
5.1.5.
Measures of efficient use of thermal energy
76
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
It is evident that there are a lot of possibilities for improvement in this respect. The planned projects
with impact in this matter are as following:
a. Rehabilitation of thermal substations.
Rehabilitation of substations also implies undertaking all measures for installation of
automatic capacity for measurement of thermal energy. In this way, there will be hydraulic
and energy balancing in the network also and as a result of supply of all consumers with the
necessary energy pursuant to the standards.
b. The pre-insulated pipelines that will be installed in the rehabilitated network, apart from
insulation of water losses, they will have an impact in reducing energy losses as a result of
thermal insulations of tubes according to standards.
c. Improvement of thermo insulation of old public and private buildings, is a good opportunity
for saving thermal energy. The new consumers, which are planned to be connected to
Termokos network, have acceptable standard of thermo insulations. In this respect, by heaving
in its network consumers who meet the standards of thermal efficiency, Termokos observes
the opportunity for increasing the number of consumers by utilising the same generation
potentials.
5.2. Gjakova city District Heating Company
For the period 2016-2020, investments planned for the Gjakova City District Heating Company
from donors and different funds from European Commission, (IPA 2 Program), have been ensured in the
amount of 11.5 million Euros for the biomass Cogeneration Plant. Whereas with respect to distribution
which includes a complete rehabilitation of the network of thermofication and of 20 substations which
requires
additional .5
Medium scenario
High Scenario
million Euros
which
have
not
been
ensured
currently.
These
investments
aim
to
increase the
performance
of
the
company and
modernisation
of
the
distribution
network,
reduce energy
losses,
construct new
thermosubstation and
optimisation
of operation
of
thermal
energy
distribution
network.
(operation
with positive business, balancing of system, measurement and billing based on consumption etc.). In the
following table, you can see a projection of expansion of network in two scenarios.
Table 32. Projections for development of the Gjakova City District Heating Company
77
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Connected
surface (m²)
Energy
needed
(GWHth)
Connected
surface (m²)
Energy
needed
(GWHth)
89914
89914
176933
211933
232933
242933
252933
262933
272933
282933
19
19
44
48
51
53
55
57
59
61
89914
176933
211933
232933
242933
257933
272933
287933
302933
317933
19
37
44
48
51
54
57
60
63
66
Table
projection of
of demand for
capacity based
of district heating in the cities such as Peja, Prizren, Gjilan and Ferizaj40.
33 contains a
development
thermal
on the study
Table 33. Projection of demand for thermal capacities according to annual growth of 1%
The scenario with small growth of 1% annually
Year
Pejë(MW)
Prizren(MW)
Gjilan(MW)
Ferizaj(MW)
2015
2020
2025
2030
55.38
58.20
61.17
64.29
97.88
102.87
108.12
113.63
48.94
51.44
54.06
56.82
60.27
63.35
66.58
69.98
Table 34. Projection of demand for thermal capacities according to annual growth of 1%
Scenario with medium growth of 2% annually
Viti
Pejë(MW)
Prizren(MW)
Gjilan(MW)
Ferizaj(MW)
2015
2020
2025
2030
57.04
62.98
69.53
76.77
100.82
111.31
122.89
135.68
50.41
55.65
61.45
67.84
62.08
68.54
75.68
83.55
Projections of thermal capacities needed to cover the demand for heating in urban zones of big
cities of Kosovo, meet the demand for heating spaces and hot water.
Table 35. Calculation of investments for construction of thermal systems in big cities of Kosovo
Peja
Prizreni
Ferizaj
Gjilan
Projection of investments in case of construction
32,415,118 58,160,671 29,084,342 35,735,475
of thermal capacities in the first stage
40
The study was financed by MED and was implemented in 2012 by the INTECH Institute.
78
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
The list of priority projects of the National Investment Council contains the project for
improvement of energy systems of thermal energy in Kosovo through construction of systems in big
municipalities in Kosovo. The value of this project was foreseen to be 150 million Euros, however so far
it did not meet the support of financial institutions.
A short description of the project: Improvement of central heating in Kosovo through applying
district heating system in municipalities with heating potential41
Project Aim
The aim of the project is to assess the consumption of heating and construct heating systems
based on production and/or cogeneration concept for district heating systems in municipalities with
relevant heating potential.
Through this project, Kosovo will indirectly improve the supply with energy and diversify its
energy sources for the heating sector, by improving the wellbeing, quality of life and health of citizens
and by diversifying its energy sources.
In special cases, the existing project of central heating will also assess the opportunities for
expansion of heating system network and improvement of existing heating capacities.
Expected results
Result 1: Improvement of energy security of supply
Result 2: Diversification of energy
Result 3: Reduction of consumption and costs of electric energy for heating purposes
Result 4: Reduction of CO2 emissions
The estimated cost of the project 150 million Euros.
There should be a feasibility study beforehand however modalities of financing have not been
determined yet.
41
The Project placed in the list of priority infrastructure projects, approved by the National Investment
Council based on the Berlin process platform. http://www.kryeministriks.net/tfu/repository/docs/SINGLE_PROJECT_PIPELINE_OF_INFRASTRUCTURAL_INVESTMENTS.pdf
79
ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
ANNEX 6. NATURAL GAS
Information from application of gas project Albania-Kosovo (ALKOGAP).
The Project of gas supplier Albania-Kosovo (ALKOGAP) is about interconnecting the existing
and planned gas transmission system of the Republic of Albania (including TAP and IAP projects) with
the future project of gas transmission system of the Republic of Kosovo, and interconnectors of
transmission, which are a part of eastern branch of the Energy Community Gas Ring (ECGR).
This project aims to create new pipelines for supply with natural gas from the Middle East and
Caspian Region, through transportation from Trans Atlantic Gas Pipeline, in the north-east of the West
Balkans zone towards Serbia.
The pathway/possible pipeline of gas supply will be assessed in two scenarios: 1.LezhePrishtinë: This scenario assumes that IAP will move on to implementation stage 2. Fier-Lezhë-Prishtinë:
This scenario will be considered if lack of progress is noticed in implementation of IAP. Possible links of
Pristina in the direction of Nis (Serbia) and Pristina in the Direction of Skopje (FYROM) will be
assessed.
Security of supply – Benefits from this project include: -presentation of a more ecologically
acceptable source of energy in the region (replacement for wood logs, coal, oil and supplement for
renewable energy, and potential for increasing cogeneration and coproduction) – facilitation of
gasification of a considerable part in east of Albania and the entire territory of Kosovo, increase energy
security in Albania and Kosovo, by ensuring diverse supply with gas in the region, by ensuring access in
the capacities of Albania, ensuring important transit capacity and income for Albania and Kosovo. Create
preconditions for supporting the regional concept South East European Gas Ring. Reduction of CO2
emission in the region and facilitation of economic development.
Competition – Construction of this gas supplier will enable gasification of Albania and Kosovo,
and will ensure a diverse and credible supply with natural gas. It was emphasised that Albania, Kosovo
and Montenegro are the only isolated countries in Europe when it comes to gas supply. This project,
around 260 km long, would create preconditions for further development of natural gas market in Albania
and create and develop markets of natural gas in Kosovo in the projected annual level of 2 bcm (1- 1.3
bcm for Albania and 0.5-0.7 bcm for Kosovo). It would be possible to increase the capacity (double or
triple), in case ALCOGAP is used to supply Serbia and other countries with gas from the Middle East and
the Caspian, by achieving a regional integration of the gas market.
Sustainability – The benefits from this project include: Benefits from this project include: presentation of a more ecologically acceptable source of energy in the region (replacement for wood logs,
coal, oil and supplement for renewable energy, and potential for increasing cogeneration and
coproduction);– facilitation of gasification of a considerable part in east of Albania and the entire territory
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ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
of Kosovo, increase energy security in Albania and Kosovo, by ensuring diverse supply with gas in the
region, by ensuring access in the capacities of Albania, ensuring important transit capacity and income for
Albania and Kosovo. Create preconditions for supporting the regional concept South East European Gas
Ring. Reduction of CO2 emission in the region and facilitation of economic development.
Short description of the project
This project, around 260 km long, would create preconditions for further development of natural
gs market in Albania and create and develop markets of natural gas in Kosovo in the projected annual
level of 2 bcm (1- 1.3 bcm for Albania and 0.5-0.7 bcm for Kosovo). It would be possible to increase the
capacity (double or triple), in case ALCOGAP is used to supply Serbia and other countries with gas from
the Middle East and the Caspian Region, by achieving a regional integration of the gas market.
Cost - 200 million Euros
Current status – The project was approved to be a part of the priority list with interest for Energy
Community from Groups within the ECS. At the end of 2016 it is expected to be approved from the
Energy Community Council of Ministers.
300 thousand Euros have been allocated from WBIF platform for preparation of feasibility study.
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ENERGY STRATEGY OF THE REPUBLIC OF KOSOVO 2016-2025
ANNEX 7. PROJECTIONS FOR DEVELOPMENT OF POWER PLANTS FROM RES
Table 36. Electric energy production capacities from RES, according to RES targets pursuant to
basic scenario that was taken into consideration during the analysis of energy balance and generation
adequacy
Note: The assessment of development of generation capacities from RES, namely, wind, solar,
biomass was done by the Division responsible for RES within the MED based on obligations under ECT.
The table hereunder includes projection of generation capacities from RES which are subject to
support from support schemes.
In the table of data for generation capacities in three scenarios, we have presented a projection of
HPP in fulfilling the need for system regulation (Scenario 2 and 3).
Table 36. Projection for development of plants for production of electric energy from RES
RES targets (MW)-Basic scenario
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Photovoltaic Energy
2
2
4
4
5
5
6
6
7
7
8
8
9
9
10
Solid biomass
2
2
4
4
5
7
7
9
9
11
11
13
13
14
14
Energy from wind
41.35
51.35
62.15
62.15
70
110
110
120
120
130
130
140
140
150
150
Existing small HPP
73
73
73
73
73
73
73
73
73
73
73
73
73
73
73
New HPP-s
61
76
91
100
107
110
110
120
120
140
160
180
200
220
240
Total
179.35
204.35
234.15
243.15
260
305
306
328
329
361
382
414
435
466
487
End of document
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