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INOVA Launches €25m Green Grants for SMEs in North Macedonia

North Macedonia’s Agency for Innovation, Scientific and Technological Development and Entrepreneurship has launched a grant program to support small and medium-sized businesses investing in environmental protection and sustainability.

The green business support program for 2026–2030 is valued at €25 million, with €22 million earmarked for direct subsidies, according to the agency (INOVA). Eligible companies can receive between €5,000 and €300,000, provided they co-finance 20% to 50% of the investment, depending on the project type.

The European Union is providing €18 million, while the remaining funding will come from the Government of North Macedonia.

At least 300 companies expected to benefit

INOVA said it expects to support at least 300 companies, focusing primarily on micro, small, and medium-sized enterprises, particularly in manufacturing, while remaining open to applicants from other sectors. The program is designed to back projects that reduce CO₂ emissions and waste and increase the use of renewable energy, with a particular emphasis on solar power, the agency noted.

Through public calls, businesses will be able to apply for technical and advisory assistance, standardization support, and financial backing for the purchase of equipment, deployment of new technologies, and development of new products.

INOVA expects the first public call around mid-year.

Previously, the agency said the initiative would be implemented through three instruments: green startups (grants up to €40,000), green modernization (up to €150,000 per beneficiary), and transformation of industrial systems (subsidies of €300,000 per beneficiary).

Officials frame program as competitiveness and climate action measure

INOVA CEO Daniela Dimovska said the initiative offers both financial and expert support to companies investing in sustainable, environmentally friendly, and innovative solutions, describing it as a step toward an economy guided by long-term thinking and responsible action.

Daniela Dimovska, Hristijan Mickoski, and Michalis Rokas (photo: INOVA/Facebook)

Prime Minister Hristijan Mickoski said the program aims to help the country advance toward the climate neutrality goals set out in the Green Agenda for the Western Balkans, by strengthening the private sector and promoting sustainable business practices. He added that green transformation should be viewed not as a cost, but as an investment in economic resilience, environmental quality, and citizens’ well-being.

EU Ambassador to North Macedonia Michalis Rokas said the program is expected to stimulate innovation and the adoption of green technologies among SMEs, supporting a new stage of development that improves competitiveness and strengthens integration into EU value chains.

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North Seas region signs landmark offshore wind deal

Seven heads of state and government and energy ministers of nine countries gathered in Hamburg today to boost the expansion of offshore wind. Together with industry and transmission system operators, the countries launched the Offshore Wind Investment Pact for the North Seas. They envisage cross-border projects totaling 100 GW.

Nine European countries committed to building 15 GW of offshore wind per year over 2031-2040 and derisking offshore wind investments. The industry, in return, pledged cost reductions, 91,000 additional jobs and EUR 1 trillion of economic activity.

Europe is charting the massive offshore wind buildout it needs to deliver on its energy security and competitiveness objectives, WindEurope said.

At the North Sea Summit in Hamburg today, Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway and the United Kingdom confirmed their ambition to build 300 GW of offshore wind in the so-called North Seas by 2050.

Over one hundred companies participate in offshore wind pact

Governments, the wind industry and transmission system operators (TSOs) signed the Offshore Wind Investment Pact for the North Seas. The agreement is underpinned by separate declarations of the heads of state, energy ministers and the industry. The last of the three is an undertaking by more than 100 offshore wind companies across the value chain, the update adds.

Offshore wind has been a European success story with 37 GW installed across 13 countries, WindEurope stressed.

“That’s more than 6,000 turbines providing homegrown, clean and competitive electricity at scale. But deployment has been dragged by suboptimal auction design, increased costs of capital and lack of visibility for the supply chain due to an uncertain project pipeline,” the organization pointed out.

Two-sided CfDs to be auction standard

In the Investment Pact, governments pledge to provide planning and investment security and derisk offshore wind projects. It involves two-sided contracts for difference (CfDs) as the standard for offshore wind auction design, for visibility on revenue. The countries agreed to remove any regulatory obstacles to power purchase agreements (PPAs) – direct agreements between electricity producers and corporate end-consumers.

A steady pipeline of offshore wind projects will bring the needed confidence to invest in new capacity for manufacturing, ports infrastructure and vessels, according to WindEurope.

In return, Europe’s offshore wind industry pledges to drive down costs of offshore wind by 30% towards 2040 against the 2025 levels. The cost reduction would be driven by scale effects, lower costs of capital and further industrialization underpinned by clarity and visibility on the project pipeline.

The industry vowed to create lasting value for the economy, communities and consumers. It also said it would invest EUR 9.5 billion in the value chain including manufacturing, port infrastructure and vessels.

The TSOs intend to identify cost-effective cooperation opportunities and 20 GW of economically promising cross-border endeavors by 2027 for deployment in the 2030s. It includes offshore projects with interconnections to more than one country. The operators are about to develop cost-sharing principles.

The new partnership will secure 100 GW of joint offshore wind projects, Britain said.

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Montenegro’s landfill gas power plant entering electricity market

The first landfill gas power plant in the Western Balkans is in test operation, at the Možura landfill in Montenegro. The eponymous, municipally-owned operator has issued calls for maintenance and the selection of an intermediary for the sale of electricity.

The project in the Možura regional landfill for the power plant utilizing biogas from waste is worth EUR 1.8 million. Montenegro is conducting the investment in cooperation with the Centre for International Cooperation and Development (CMSR) of Slovenia. The 0.99 MW facility was built last year and put into trial operation in December. It is the first in the Western Balkans.

Municipal utility Možura has issued public calls for the maintenance of the power plant and the selection of an intermediary for the sale of electricity. The firm estimates annual output of 7.5 GWh and envisages a 95% uptime. The landfill is near the Adriatic coast in the country’s far south.

Deadline for maintenance tender expires on February 6

The maintenance tender is open until February 6. The public enterprise intends to sign a four-year framework agreement with the selected bidder. The first contract, lasting one year, is valued at EUR 149,900, with another EUR 31,479 for value-added tax. The entire allocated sum then translates to EUR 599,600 alongside EUR 125,916 in VAT.

The eligible applicant has built and commissioned at least one system for the production of electricity from landfill gas of at least 500 kW.

As for the entry into the market, the selected company will be an intermediary in the placement of the produced electricity at the organized market – the power exchange. The contract will last until the end of the year.

Every bidder must be a member of the exchange and have at least three active contracts of the same kind with renewable energy producers, according to the documentation. The conditions include a minimum income of EUR 800,000 in the previous business year. The intermediary assumes the balancing responsibility.

Bids will be received by January 26 at noon, when they will be opened, Možura said.

Slovenia covered third of expenses

The Slovenian Environmental Public Fund (Eco Fund or Eko sklad) has donated EUR 681,800 for the landfill gas power plant. The Environmental Protection Fund (Eco Fund) of Montenegro has paid EUR 50,000 for the project design and its revision.

Landfill gas is extracted from waste in so-called sanitary tubs. An earlier study showed that methane accounts for 50%. Austrian company Jenbacher supplied the equipment.

The power plant is connected to the power distribution system. Možura is the destination for municipal waste from Montenegro’s entire coastal area except for the city of Herceg Novi. Next to the landfill is an eponymous wind power plant.

Montenegrin Prime Minister Milojko Spajić said two weeks ago that Itochu from Japan was interested in the project for a municipal waste incinerator in the capital Podgorica, of up to 50 MW.

In the territory of Belgrade, the capital city of neighboring Serbia, concessionaire Beo čista energija is building a landfill gas power plant. According to the project, the facility in the Vinča complex will consist of two equal units totaling 3.2 MW in electricity capacity and 5.8 MW for thermal energy.

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Motor Oil’s MORE completes three battery systems in Greece

MORE, standing for Motor Oil Renewable Energy, built three standalone battery energy storage systems in Greece. The company won government support for the projects two years ago at an auction.

Oil refiner Motor Oil Hellas said its green energy arm has installed 72 MW in BESS capability, with 144 MWh in total capacity. The three standalone facilities are in Phocis (Fokida), Florina, and Boeotia (Viotia).

MORE, which is an acronym of Motor Oil Renewable Energy, completed the battery systems in just three months, the update reveals. The company pointed out they are among the first of such a scale in Greece.

“The operation of these energy storage systems will lead to a substantial further reduction in electricity prices for consumers by utilizing renewable energy that is currently being curtailed. At the same time, they will contribute to grid stability and enhance the country’s energy security,” Motor Oil added.

The three projects were selected during the second competitive process of the Regulatory Authority for Energy, Waste and Water (RAAEY or RAEWW) for energy storage systems. It was held in 2024. The investments are funded through the National Recovery and Resilience Plan Greece 2.0 and the European Union’s Recovery and Resilience Facility, under the NextGenerationEU program.

According to recent reports, new BESS facilities of 300 MW in combined operating power were waiting for approvals in Greece to be able to start operating.

Athens International Airport (AIA) Eleftherios Venizelos inaugurated a large solar-BESS hybrid power plant last month. Government-controlled Public Power Corp. – PPC Group is building three standalone battery storage systems at its coal plants.

Motor Oil is also involved in hydrogen projects, wind power and carbon capture and storage.

by in News

Motor Oil’s MORE completes three battery systems in Greece

MORE, standing for Motor Oil Renewable Energy, built three standalone battery energy storage systems in Greece. The company won government support for the projects two years ago at an auction.

Oil refiner Motor Oil Hellas said its green energy arm has installed 72 MW in BESS capability, with 144 MWh in total capacity. The three standalone facilities are in Phocis (Fokida), Florina, and Boeotia (Viotia).

MORE, which is an acronym of Motor Oil Renewable Energy, completed the battery systems in just three months, the update reveals. The company pointed out they are among the first of such a scale in Greece.

“The operation of these energy storage systems will lead to a substantial further reduction in electricity prices for consumers by utilizing renewable energy that is currently being curtailed. At the same time, they will contribute to grid stability and enhance the country’s energy security,” Motor Oil added.

The three projects were selected during the second competitive process of the Regulatory Authority for Energy, Waste and Water (RAAEY or RAEWW) for energy storage systems. It was held in 2024. The investments are funded through the National Recovery and Resilience Plan Greece 2.0 and the European Union’s Recovery and Resilience Facility, under the NextGenerationEU program.

According to recent reports, new BESS facilities of 300 MW in combined operating power were waiting for approvals in Greece to be able to start operating.

Athens International Airport (AIA) Eleftherios Venizelos inaugurated a large solar-BESS hybrid power plant last month. Government-controlled Public Power Corp. – PPC Group is building three standalone battery storage systems at its coal plants.

Motor Oil is also involved in hydrogen projects, wind power and carbon capture and storage.

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Kosovo’s* just energy transition: greening the Kingdom of Coal

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.

Tringe Shkodra Just Transition Young Voices Awards

* 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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Bulgaria to host renewable electricity plants on Luxembourg’s behalf

Bulgaria joined Finland as a host country for the 2026 call through the EU Renewable Energy Financing Mechanism (RENEWFM). Luxembourg intends to fund renewable energy projects there, which will enable it to statistically attribute 80% of output to itself.

In the European Union, a member state that missed its renewable energy target can arrange a so-called statistical transfer, for a fee, from a fellow country that surpassed its own target. Another way is to fund power plant projects in another member state, via the EU Renewable Energy Financing Mechanism (RENEWFM).

In the first round, Finland agreed to host seven solar parks on behalf of Luxembourg. The grants amounted to EUR 27.5 million. Next time, also for Luxembourg, it got seven photovoltaic projects and Estonia got two for wind power. The beneficiaries won EUR 52 million in total.

This year, Bulgaria decided to participate with Finland, again on behalf of Luxembourg. Conveniently, the plan is for photovoltaic plants with battery storage in the country’s coal regions in transition: Pernik, Kyustendil and Stara Zagora. The investments are aimed at ensuring long-term employment and energy security. They complement the so-called territorial just transition plans (TJTPs) for a smooth coal phaseout.

The budget for the forthcoming round amounts to EUR 55 million

Bulgaria applied through the call that the European Commission’s Directorate-General for Energy (DG Ener) published. The overall budget is EUR 55 million.

The facilities must operate for at least 15 years. Bulgaria provides land instead of Luxembourg, which gets 80% of the green energy certificates from production.

As for Finland, solar farms are planned again, for the upcoming round.

The European Climate, Infrastructure and Environment Executive Agency (CINEA) is responsible for conducting the calls and monitoring project implementation.

by in News

Kosovo’s* just energy transition: greening the Kingdom of Coal

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.

Tringe Shkodra Just Transition Young Voices Awards

* 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.
by in News

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.