Lack of reliable access to electricity remains one of the key barriers to investing in Kosovo. In order to tackle these issues the authorities in Kosovo have focused on promoting private sector involvement and a stable regulatory environment, including the unbundling of electricity generation from transmission and distribution networks. As a result, both distribution and transmission grids have undergone material improvements in recent years. However, the country’s electricity supply remains characterised by underinvestment, high levels of pollution and a reliance on two ageing lignite-fired plants which account for more than 97% of total electricity production in the country. During the winter period, when demand for electricity is highest, businesses are regularly disconnected from the grid and KESCO, the private supply company that performs the role of wholesaler and universal supplier of electricity, is faced with having to import significant quantities of electricity at short notice at inflated prices.
As a member of the Energy Community, Kosovo has committed to reaching a 25% share of renewable energy (RE) in final gross energy consumption (currently at approximately 20%) by 2020. The Kosovo Energy Strategy has set an ambitious target of introducing ca. 400MW of renewables into the system by 2026. Current RE capacity amounts to approximately 70MW small hydropower and a 32.4MW wind farm in Eastern Kosovo which reached commercial operation in October 2018. A 105MW wind farm in Northern Kosovo is under development and expected to commence commercial operations in 2021.
The European Bank for Reconstruction and Development (the EBRD or the Bank) has previously engaged with Kosovar authorities on the development of a bankable framework, including power purchase agreement, for wind generation in the country. The framework was agreed in 2019 and has now been applied for the operational wind farm as well as the wind farm currently under development. In July 2019, the EBRD received a request from the Ministry of Economic Development of Kosovo to assist in the design and implementation of competitive procurement for RE capacity.
This Project consists of a comprehensive package of technical assistance to provide support to the authorities on implementing tenders for renewable energy investments, as well as strengthening the underpinning institutional and overall regulatory and legal framework. The Project also includes support to the relevant institutions for practical aspects of the implementation of RE tenders.
The Project consists of a comprehensive technical assistance package that will help to create an enabling environment for private sector RE investments in Kosovo, as well as to provide the necessary support to the relevant institutions for the successful implementation of RE auctions. The technical assistance envisaged to be provided to the authorities under this assignment will include:
1. Enhancing the overall regulatory and institutional framework that is required for the successful implementation of RE auctions. This includes providing authorities with the tender documentation package required for the successful implementation of RE tenders (e.g., Request for Proposals), as well as to provide detailed recommendations on the structure of the competitive procurement process, including the assignment of responsibilities to adequate institutions, as well as the different legal and regulatory changes which would be needed for its implementation;
2. Supporting the authorities on implementing and administering tenders for renewable energy investments, including support to the relevant institutions (including, but not necessarily limited to, the auctioneer) on practical aspects of implementing and administering RE tenders up to financial close, such as responding to bidders’ requests for clarifications, evaluating bids, negotiating with the winning bidders, etc.
Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.
EBRD project enquiries not related to procurement:
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