Author: Tringë Shkodra

Kosovo’s* energy transition has great potential but key players such as small and medium-sized enterprises (SMEs) and young people are facing structural exclusion.

Our energy system is still heavily dependent on dirty fossil fuels and overburdened by frequent outages, reliance on imports, and growing costs, particularly during the winter when demand is at its highest and most households and businesses can no longer afford to pay energy bills. While infrastructure upgrades are essential, they are not enough. In order to succeed, this transition must be just, meaning it needs to be inclusive and rooted in the lived experiences of the people it aims to serve.

Understanding Kosovo’s* distinct socio-economic landscape, with the country having the youngest population in Europe as well as a large number of SMEs, is essential for addressing its development challenges and unlocking its potential.

SMEs form the backbone of the Kosovan* economy but get structurally excluded from accessing energy-saving practices. Many studies shed light on energy efficiency within Kosovo’s* private sector – particularly among SMEs, and show that these businesses face serious barriers to adopting sustainable practices. While larger firms are more likely to invest in energy-saving technologies, SMEs struggle with access to finance, lack awareness, and get minimal institutional support.

Businesses require energy efficiency for survival

Yet energy audits show that many could reduce consumption by up to 40% with low-cost interventions. This isn’t about reluctance, but structural exclusion. Energy efficiency, in this context, is not just a technical fix but a survival strategy for businesses.

With the right incentives, this sector can become a driver of Kosovo’s* green transition, creating jobs and fostering innovation.

Youth rarely invited to table

Another overlooked potential for Kosovo’s* energy transition are the youth. Over half of Kosovo’s* population is under the age of 30, yet their involvement in environmental governance remains limited. A study of youth participation in environmental and climatic concerns across ten municipalities of Kosovo* found that, while 63% of young respondents reported a strong desire to contribute to environmental policymaking, only 15% had ever participated in such processes.

Youth-led initiatives, innovation hubs, and climate advocacy networks are lacking institutional trust and real influence

This isn’t a lack of engagement; it’s again a lack of access. Youth-led initiatives, innovation hubs, and climate advocacy networks are already active, but they need to be met with institutional trust and real influence. The potential of our youth is vast – from engineers developing solar microgrids to community organizers shaping local green agendas. However, without inclusion, this potential remains untapped. We are ready to lead, but we are rarely invited to the table.

Dependence on lignite is cause of public health crisis

Advancing fundamental reforms aligned with European values is a prerequisite for sustainable development. This includes harmonizing structural reforms outlined in the Economic Reform Programmes (ERPs), strengthening the rule of law, and embedding the energy transition within the European Union’s broader green agenda. Kosovo’s* overreliance on lignite coal poses not only environmental but social risks, and the outdated mindset of living in the Kingdom of Coal clashes with the urgent need for a clean, secure, and just energy future.

Data from Riinvest Institute outlines clearly that over 90% of Kosovo’s* electricity is still produced from coal, while renewable energy accounts for less than 6%. This dependence is more than an economic liability – it is a public health crisis. Around 300,000 to 400,000 people live within 30 kilometers of lignite-fired power plants Kosovo A and Kosovo B, which lack modern emission controls.

Air pollution and outdated technology put thousands at risk every day. The urgency to diversify the energy mix isn’t only environmental – it is humanitarian. Energy, when approached with justice in mind, can become a tool for dignity and equal opportunity.

Despite a myriad of strategies and policy documents, Kosovo* has made only partial progress in aligning with EU energy and environmental standards. The Energy Community Annual Implementation Report (2024) shows that implementation across clusters such as decarbonization and energy security ranges from just 40% to 66%. True transformation demands more than technical upgrades as it requires institutional coordination, transparency, and strong evidence-based policymaking.

We are transitioning lives

In a recent conversation, a national energy expert put it simply: “We are not just transitioning technologies. We are transitioning lives.” A just energy transition must therefore encompass more than grid modernization or solar farms. It requires tailored policies – legislation that removes bureaucratic bottlenecks, the rollout of incentives for low-income households to adopt renewables, and clear pathways for communities to become prosumers.

Kosovo’s* policy frameworks, such as the forthcoming National Energy and Climate Plan and the renewable energy law, must be instruments of real transformation – practical, inclusive, and focused on impact.

Permitting procedures for renewables need to be simplified

To catalyze a just energy transition, the country requires comprehensive investments across its energy infrastructure while ensuring that reforms are socially inclusive and environmentally sound. This begins with diversifying the energy mix by prioritizing renewables – particularly solar and wind – through competitive auctions and de-risked investment environments that attract private sector participation. Kosovo* must simplify permitting procedures, build institutional expertise, and enhance the grid’s technical capacity to absorb renewable inputs.

Alongside infrastructure upgrades, investments are needed in energy efficiency for public and private buildings, especially given the country’s high winter heating demand and grid losses. Carbon-free heating solutions and retrofitting programs can help reduce both emissions and energy poverty, especially among vulnerable groups.

Subsidies must be designed for low-income households

Financing this transformation requires a blended approach – mobilizing domestic resources, securing grants from the EU and the United States, and leveraging international financial institutions through loans with state guarantees. But energy justice is not only about technology or money, it is about who benefits. Subsidies and support schemes must be designed for low-income households to participate in renewable adoption as consumers and prosumers.

A just transition brings inclusive growth and long-term climate resilience

Moreover, Kosovo* must link its investment strategies to broader social objectives, like upskilling labor for green jobs, protecting coal-reliant communities, and embedding equity and participation in every step of reform.

Kosovo* needs to make use of its strengths, and supports its young population, smaller enterprises and low-income households. Without an integrated approach, it risks reinforcing existing inequalities, but if it creates an energy transition that is just for the people, the country can turn its transition into a platform for inclusive growth, and long-term climate change resilience.