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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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North Macedonia, Kosovo* planning 400 kV power interconnection

The transmission system operators (TSOs) of North Macedonia and Kosovo* are developing a project for a 400 kV interconnection line between Tetovo and Prizren. The investment would include other grid upgrades and expansion.

Director-General of North Macedonia’s MEPSO Burim Latifi and Acting Chief Executive Officer of Transmission, System and Market Operator (KOSTT) of Kosovo* Shaban Neziri signed a memorandum of cooperation in Skopje. The two transmission system operators intend to jointly upgrade the high-voltage network. The emphasis is on a strategic project for a 400 kV interconnection line from Tetovo to Prizren.

The endeavor aligns with the European Union’s energy transition goals by 2050, North Macedonia’s TSO said. The project is nominated through the planning platform of the European Network of Transmission System Operators for Electricity (ENTSO-E) for increasing transmission capacities.

New interconnection to encourage investments in renewables

North Macedonia and Kosovo* have only one interconnection now, of 220 kV. According to ENTSO-E, Southeastern Europe needs to at least double transmission capacities and, in some cases, increase them even more than that, MEPSO stressed.

On that note, the bilateral project includes additional investments in the transmission network, such as the construction of a 400/110 kV transformer station in Tetovo, in North Macedonia’s northwest, and 400 kV transmission lines from Tetovo to Ohrid and Skopje.

“The 400 kV Tetovo-Prizren transmission line project will not only increase the system’s capacity and reliability but also enable greater electricity exchange, encouraging new investments in renewable energy sources,” Latifi said.

Investment to bolster East-West energy corridor

Regarding the other benefits, the heads of the two TSOs agreed that the project would bolster the transmission infrastructure in the region, strengthen the so-called East-West energy corridor and improve system flexibility.

The new document confirms the joint commitment to creating a modern and reliable energy infrastructure, Neziri stressed. “With this project, we are enhancing energy connectivity in the region and contributing to achieving the energy goals of the Western Balkans,” he added.

Strong interconnections are essential for the integration of the electricity market in the Western Balkans

The project is in the planning and technical preparation phase. The start of construction depends on securing financial resources and coordination with all relevant stakeholders, MEPSO explained.

Strong interconnections are essential for the integration of the electricity systems and markets in the region with the EU, through market coupling. Together with Albania and Greece, North Macedonia and Kosovo* are part of one such regional project, which has been suffering delays.

Market coupling is a prerequisite for the exemption of the power markets in the Western Balkans and the rest of the Energy Community from the EU’s Carbon Border Adjustment Mechanism, or CBAM, under which a CO2 tax is set to start being charged on January 1.

* 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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CEO of Kosovo* TSO KOSTT dismissed amid allegations of abuse of office

The Board of Directors of Transmission, System and Market Operator (KOSTT) of Kosovo* fired Chief Executive Officer Evetar Zeqiri after a complaint that former board members sent to the Special Prosecutor’s Office surfaced in the media. The company appointed Shaban Neziri as acting CEO.

Evetar Zeqiri is dismissed from the top position in KOSTT, the transmission system operator (TSO) of Kosovo*, but also fired. The board deposed the CEO, who led the government-controlled company since October 2022, and replaced him with Shaban Neziri, in an acting capacity.

Just before the announcement, the Dukagjini television station showed criminal charges that former board members allegedly filed with the Special Prosecutor’s Office against Zeqiri for abuse of office. KOSTT denied the connection between its move and “the reports published in some media.”

Allegations of interfering in procurements

According to the document, the former CEO violated his obligations regarding finance, interfered in procurement, set discriminatory criteria and demanded that all technical specifications for the company’s projects be sent to him in advance. The allegations include influence to make illegal decisions and failing to properly inform the board, causing financial damages to the company. Zeqiri has asked legal entities to withdraw their bids, during evaluation, according to the report.

The authors of the complaint, who weren’t named, said they raised concerns several times, but that they were a minority within the board and that both its then-Chairman Jeton Mehmeti and CEO Zeqiri blocked them.

KOSTT cites poor personnel management, investment

The same media outlet obtained the decision to remove Zeqiri. The board said his personnel changes impacted the functioning of the enterprise’s operational structures and the motivation of the staff. It cited unsatisfactory capital investment and improper planning of projects in the budget.

Acting CEO Neziri is an electrical engineer, in KOSTT since its establishment.

From 2021 to 2024, Kosovo* imported electricity worth nearly EUR 590 million in total, according to Klan Kosova. One of the main importers is Noa Energy Trade, a company with an apparently unknown address and owner.

Notably, government-owned Kosovo Energy Corp. (KEK) has been led by acting CEOs for the past two years, since CEO Nagip Krasniqi was arrested. The current interim head is Gramos Hashani.

* 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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Prequalification open for 170 MW of battery storage in Kosovo*

Millennium Challenge Account Kosovo invited qualified companies to respond to the prequalification call for a battery storage project. The two lots are for 45 MW and 125 MW in operating power, with a duration of two hours.

The United States, acting through its Millennium Challenge Corp. (MCC) and the Government of Kosovo*, entered into a Millennium
Challenge Compact in 2022. The project contributes to poverty reduction through economic growth. Within the mechanism, a new prequalification call is on until February 14 for the design and build of utility-scale battery energy storage systems (BESS) and transmission connection infrastructure.

The US participates with USD 202 million and the government in Prishtina allocated USD 34.7 million for the entire endeavor. Kosovo* intends to apply a portion to eligible payments under one or two contracts for BESS, the documentation shows.

The contracting authority in the prequalification process is called Millennium Challenge Account Kosovo (MCA-K). The subproject will be instrumental in enhancing the stability of the power grid and improving the management of energy imbalances, the call reads. It is the biggest investment in BESS in the Western Balkans.

Facilities to provide grid services, conduct energy arbitrage

The first lot will be for batteries with 45 MW in capability and a duration of two hours. It translates to 90 MWh in capacity. The second lot is for 125 MW and 250 MWh, respectively.

According to the project presentation MCC released earlier, the first facility will provide automatic frequency restoration reserve (aFRR) services. It would work for the Transmission, System and Market Operator (KOSTT) of Kosovo* and within the Albania-Kosovo (AL-KS) Control Block.

The site for one BESS facility is next to US Army base Camp Bondsteel

The site, near the city of Ferizaj (Uroševac), is right next to Camp Bondsteel. Led by the US Army, it is the seat of the Kosovo Force (KFOR).

The second BESS system would provide ancillary, balancing and other services and conduct energy arbitrage. It would operate under government-controlled Energy Storage Corp. (ESC or ESCorp). The location is in the municipality of Peja or, in Serbian, Peć.

The two future lithium-ion battery systems have budgets of USD 46 million and USD 125 million, respectively, the document shows.

They will be connected to 400/110 kV substations Ferizaj 2 and Peja 3, via underground cables.

Online conference scheduled for December 23

The current announcement adds there would be a prequalification webinar on December 23.

MCC expects to issue the call for bids in July and that construction would start in May 2026. The targeted commercial operation date is August 2028.

Of note, the Millennium Challenge Compact program includes the Just and Equitable Transition Acceleration (JETA) project. It consists of reskilling and the promotion of an inclusive energy sector workforce.

* 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.