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KOSTT takes over land in Kosovo* for battery system in US-funded project

Transmission, System and Market Operator (KOSTT) of Kosovo* signed a contract with the Ministry of Economy and Municipality of Ferizaj, receiving 2.3 hectares of land for a 45 MW battery project. It is funded through the Millennium Challenge Compact, initiated in 2022 by the United States, acting through its Millennium Challenge Corp. (MCC), and the government in Prishtina.

Almost a year after the prequalification call for potential contractors, KOSTT received 2.3 hectares of land from the Municipality of Ferizaj (Uroševac) for a battery energy storage system (BESS).

The transmission system operator (TSO) of Kosovo* pointed out that the Ministry of Economy is part of the deal as well, within the Millennium Challenge Compact program with the United States.

KOSTT’s battery is for its automatic frequency restoration reserve

The site for the facility for KOSTT’s automatic frequency restoration reserve (aFRR) is near the Sojeva (Sojevo) village and Camp Bondsteel. Led by the US Army, it is the seat of the Kosovo Force (KFOR).

“The batteries will store energy when there is a surplus and return it to the grid when demand increases, for a more stable supply and more affordable costs. The Kosovo-US partnership is turning into another concrete result: infrastructure that makes energy more secure for citizens,” said Acting Minister of Economy Artane Rizvanolli.

Second part of project is for 125 MW, 250 MWh

The BESS project for KOSTT, funded by the US through its Millennium Challenge Corporation (MCC), aims to strengthen energy security, promote the transition to clean energy and reduce energy costs. The battery system would have 45 MW in operating power and a two-hour duration, translating to 90 MWh.

Overall, the agreement is worth USD 236.7 million, of which the Government of Kosovo* is providing USD 34.7 million.

MCC has earmarked more than USD 200 million for the BESS endeavor

Millennium Challenge Account Kosovo (MCA-K), the contracting authority, officially launched the program last year. In September it signed an agreement with KOSTT to implement the project from design to commissioning. The arrangement was initiated in 2022.

The prequalification call was published in late 2024. It included another battery project, for 125 MW and 250 MWh, at a location in Peja (Peć). It is supposed to be managed by a public entity that would provide services such as frequency restoration and energy arbitrage – buying electricity when prices are low, to be used later.

Total investment was estimated at USD 180 million, of which USD 46 million for the smaller BESS.

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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KOSTT takes over land in Kosovo* for battery system in US-funded project

Transmission, System and Market Operator (KOSTT) of Kosovo* signed a contract with the Ministry of Economy and Municipality of Ferizaj, receiving 2.3 hectares of land for a 45 MW battery project. It is funded through the Millennium Challenge Compact, initiated in 2022 by the United States, acting through its Millennium Challenge Corp. (MCC), and the government in Prishtina.

Almost a year after the prequalification call for potential contractors, KOSTT received 2.3 hectares of land from the Municipality of Ferizaj (Uroševac) for a battery energy storage system (BESS).

The transmission system operator (TSO) of Kosovo* pointed out that the Ministry of Economy is part of the deal as well, within the Millennium Challenge Compact program with the United States.

KOSTT’s battery is for its automatic frequency restoration reserve

The site for the facility for KOSTT’s automatic frequency restoration reserve (aFRR) is near the Sojeva (Sojevo) village and Camp Bondsteel. Led by the US Army, it is the seat of the Kosovo Force (KFOR).

“The batteries will store energy when there is a surplus and return it to the grid when demand increases, for a more stable supply and more affordable costs. The Kosovo-US partnership is turning into another concrete result: infrastructure that makes energy more secure for citizens,” said Acting Minister of Economy Artane Rizvanolli.

Second part of project is for 125 MW, 250 MWh

The BESS project for KOSTT, funded by the US through its Millennium Challenge Corporation (MCC), aims to strengthen energy security, promote the transition to clean energy and reduce energy costs. The battery system would have 45 MW in operating power and a two-hour duration, translating to 90 MWh.

Overall, the agreement is worth USD 236.7 million, of which the Government of Kosovo* is providing USD 34.7 million.

MCC has earmarked more than USD 200 million for the BESS endeavor

Millennium Challenge Account Kosovo (MCA-K), the contracting authority, officially launched the program last year. In September it signed an agreement with KOSTT to implement the project from design to commissioning. The arrangement was initiated in 2022.

The prequalification call was published in late 2024. It included another battery project, for 125 MW and 250 MWh, at a location in Peja (Peć). It is supposed to be managed by a public entity that would provide services such as frequency restoration and energy arbitrage – buying electricity when prices are low, to be used later.

Total investment was estimated at USD 180 million, of which USD 46 million for the smaller BESS.

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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Kosovo* to measure wind potential for auctions, public projects

The Ministry of Economy of Kosovo* will install wind gauges this year at many locations to develop projects that it intends to auction or build capacities in public ownership or within public-private partnerships.

The government never had precise data on wind energy potential, as various potential investors measured it themselves, but they didn’t do it properly either, so Kosovo* is “a little behind” in the aspect, according to Minister of Economy Artane Rizvanolli. She told lawmakers that the ministry would set up anemometers and wind vanes in many places this year to determine wind speed and direction, Buletini Ekonomik reported.

The next step will be to conduct other preliminary studies, Rizvanolli explained. The ministry will develop them into projects for the first auctions or to install capacities in public ownership or within public-private partnerships, she revealed.

Data for foreign investors

The aim is to present foreign investors with exact information on wind potential, in her words. It will contribute the success rate and process transparency, for which the ministry was praised during the first auction, Rizvanolli stressed.

Kosovo* hosts two wind power plants. Bajgora (also known as Selac) has 102.6 MW in connection capacity. The Kitka facility, of 36 MW is planned for expansion.

There is an estimated 1 GW in overall potential in the locations of Çiçavica (also Čičavica, Çiçavica and Qyqavica), Zatriq (Zatrić), Budakovo (Budakova) and Kozhica (Kožica), the article adds.

Air Energy 2 intends to install two wind power plants of 34.8 MW each, in combination with a solar power plant. StubllaEnergy is also working on a hybrid power plant of 170 MW, of which 132 MW would be in wind turbines. Most projects have long been dormant.

Next up is 150 MW wind power auction

One month ago the Ministry of Economy published the names of companies that applied to qualify for Kosovo’s pilot renewable energy auction. They are competing for a contract for difference of CfD for a solar power project of 100 MW in indicated connection capacity.

The government plans auctions for a combined 950 MW in wind and solar power and battery storage in the next two years. First up would be a public call for 150 MW in wind power.

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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Kosovo* completes first solar power auction at EUR 48.88 per MWh

A consortium led by Switzerland-based construction company Orllati was selected to build and operate a solar park of up to 105 MW in connection capacity for 30 years including a 15-year contract for difference. The group won the first renewable electricity auction in Kosovo* with a bid of EUR 48.88 per MWh.

Almost a year since the initial public call, the Ministry of Economy in Prishtina completed its pilot solar power auction. Even though it raised the ceiling price in late December to EUR 75 per MWh from EUR 65 per MWh amid repeated delays, it was closed at EUR 48.88 per MWh.

Switzerland-based Orllati leads the winning consortium, consisting of companies from Germany and Kosovo*. The construction firm is led by Kosovar diaspora, officials said.

The victory in the electronic auction translates to the right to take land on lease for a photovoltaic park of 90 MW to 105 MW in total connection capacity and up to 117 MW in peak terms. Orllati agreed to build and operate the facility for 30 years, of which the first 15 years it would sell electricity under a contract for difference (CfD) equalling the winning price.

The government-owned land is in the cadastral zones of Kramovik and Petković (Guri i Kuq) in the municipality of Rahovec or Orahovac.

Auction terms were amended ten times

Two Turkish consortia participated in the auction – Çalik and Limak, and Güri̇ş İnşaat ve Mühendislik (Güri̇ş Construction and Engineering) – together with Akuo Energy, headquartered in France, and Egypt-based Elswedy Electric. It consisted of four rounds, the ministry said. The first one, with 43 bids, drove the price down to EUR 57 per MWh while the final level was reached in the third one.

Kosovo* intends to launch auctions this year for 45 MW in battery storage and 150 MW in wind power

Minister of Economy Artane Rizvanolli said the competitive process is ensuring affordability for citizens, strengthening the security of supply and the sector’s sustainability and enabling private investments. She revealed that the auction terms were amended ten times in line with investors’ suggestions.

The winner will invest more than EUR 70 million, according to the government, which is preparing to issue calls for auctions this year for 45 MW in battery storage and 150 MW in wind power. There is 950 MW in total in the pipeline, Rizvanolli noted, saying the potential investments are valued at an overall EUR 1.2 billion.

Ceiling price at Albania’s next auction will be EUR 59.97 per MWh

The bidding was organized with the support of the United States Agency for International Development (USAID). The renewable electricity auction model was developed with the European Bank for Reconstruction and Development.

Kosovo* hosts just two operational wind power plants and some hydropower and photovoltaic capacities.

For comparison, Romania is preparing its first solar power auction for CfDs with a maximum price of EUR 91 per MWh. Amid weak participation, the lowest price at Serbia’s first solar power auction, held last year, was EUR 88.65 per MWh, just 35 eurocents below the starting level.

The maximum acceptable price in Albania’s upcoming auction is EUR 59.97 per MWh. The two previous auctions, in 2021 and 2020, were similar to the latest one in Kosovo*. The government secured land for one large-scale project at a time and for one investor each. Voltalia was the winner both for Spitalla (EUR 29.89 per MWh) and Karavasta (EUR 24.89 per MWh).

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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Kosovo* signs three agreements for 105 MW solar project

The Ministry of Economy has signed three agreements with the winners of the first renewable energy auction in Kosovo*, for a photovoltaic project with a grid connection of up to 105 MW.

Minister of Economy Artane Rizvanolli has signed an agreement with newly-founded Lindja Solar on the development of the solar power project selected in the first renewable energy auction.

The firm was founded by the winning consortium, led by Groupe Orllati. The remaining members are Holdigaz from Switzerland, ZPV from Germany and domestic solar panel producer and engineering, procurement, and construction (EPC) firm Jaha Solar, the ministry said.

KOSTT signed a PPA with the investors

Rizvanolli said the ministry also signed a land lease agreement with Lindja Solar. In addition, Transmission, System and Market Operator (KOSTT) signed a power purchase agreement (PPA) with the project firm.

The consortium led by Switzerland-based construction company Orllati was selected in early April to build and operate a solar park of up to 105 MW in connection capacity for 30 years, including a 15-year contract for difference (CfD).

The group won the first renewable electricity auction in Kosovo* with a bid of EUR 48.88 per MWh.

Officials stressed at the time that Orllati is run by businesspeople from the Kosovar diaspora.

The investment in the PV facility is estimated at EUR 70 million

Artane Rizvanolli now said that the successful auction would be the first of many that Kosovo* is preparing.

Orllati Chief Financial Officer Destan Orllati stressed that the project, covering 117 hectares, is part of the country’s push to boost renewable energy production. In addition to the production of clean energy, it will create jobs and stimulate the regional economy, he asserted.

According to the ministry, the four companies plan to invest a total of EUR 70 million in the project.

The agreements were signed by Orllati Managing Director Avni Orllati, Holdigaz Chairman and Managing Director Philippe Petitpierre, Chief Executive Officer of Jaha Solar Fadil Hoxha, CEO of ZPV  Peter Zehendner, Director of Lindja Solar Luisa Helms and the CEO of KOSTT Evetar Zeqiri.

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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Kosovo* invites firms to qualify for 100 MW wind power auction

The Ministry of Economy of Kosovo* started the first phase of the first of two planned auctions for wind power. The target capacity for the first round is 50 MW to 100 MW, out of a total of 150 MW.

Qualified companies can submit documentation for the first wind power auction in Kosovo*. They will bid for power purchase agreements (PPAs) and contracts for difference (CfDs) with a duration of 15 years.

The Ministry of Economy said the target capacity in the first round is 50 MW to 100 MW. The auction plan envisages two auctions of an overall 150 MW.

At the presentation, officials announced that it is receiving prequalification documentation by February 20. The ministry aims to publish the list of eligible firms in March. The schedule showed that final bids would be opened in August and the winners declared in September.

Maximum bidding price is EUR 80.2 per MWh

Companies will be obligated to design, build, operate, maintain and decommission wind parks. The maximum price is EUR 80.2 per MWh and the lowest bid, submitted excluding value-added tax, shall win.

According to an earlier brochure, the accepted price will be adjusted every 12 months, based on the inflation rate for the sector.

The Law on Renewable Energy Sources stipulates that the contracts would be converted into CfDs twelve months after the establishment of a day-ahead electricity market price in Kosovo*, the document reads. In addition, balancing responsibility is limited to imbalance volumes greater than 10%. Curtailment is subject to financial compensation.

Kosovo* has extraordinary wind energy potential, Minister of Economy Artane Rizvanolli said. Around 17% of the territory has winds of above six meters per second, while in mountainous areas they reach eight meters per second, she added.

Wind capacity factors range between 28.2% and 32.2%, translating to as much as 2.82 GWh in annual output per 1 MW of installed capacity, the ministry said.

Wind power auction winners to establish public-private partnership with government

Other earlier documents reveal that individual wind projects would be run by special purpose vehicles (SPVs), firms where the government would have a share of up to 49%. The Ministry of Economy intends to use the funds from the International Monetary Fund’s Resilience and Sustainability Facility (RSF) in the development of the 150 MW. The purpose of the public-private partnership scheme is to reduce risk for private investors.

Applicants are required to provide a guarantee of EUR 7,000 per MW of proposed capacity. Winners will be obligated to submit guarantees of EUR 70,000 per MW.

Eligible companies have a net worth of at least EUR 30,000 over the last three calendar years and a minimum annual turnover of EUR 25,000 in the same period.

Kosovo* hosts just three wind power facilities: Selac, also known as Bajgora (104.1 MW), Kitka (32.4 MW) and Golesh (1.35 MW).

Of note, Millennium Challenge Account Kosovo has just invited qualified companies to respond to the prequalification call for a battery storage project. The government earlier said it was planning auctions for 950 MW including battery storage within two years.

The first solar power auction was completed in April.

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.