Energy Sustainable Activity

USAID Energy Sustainability Activity aims to improve Kosovo’s energy security by strengthening the capacity and sustainability of local institutions to advance energy market development and regional integration, and facilitate investments in energy infrastructure.  To achieve this goal, USAID helps to advance market coupling with Albania, explores further regional integration according to European Union (EU) market-based standards, mobilizes resources to unlock electricity supply challenges in the four northern municipalities of Kosovo, and promotes transparent, market-based mechanisms for private sector-led investments in renewable energy for electricity generation. This activity contributes to USAID’s overall goal of increasing opportunities for inclusive democratic and economic participation.

Activities 

• Develop Kosovo’s domestic energy market by building the capacity of electricity sector institutions and improving the transparency of regulatory structures.
• Support the process of regularizing electricity supply in the northern municipalities.
• Integrate Kosovo into the regional market by supporting the functionalization of day-ahead (and subsequently intraday) market coupling with Albania through the Albania Power Exchange (ALPEX), and harmonizing Kosovo’s electricity market rules with its neighbors as well as with European Union standards.
• Ensure a robust, compliant energy sector legal framework is in place by developing and monitoring implementation of the National Energy Strategy and drafting new laws (e.g. Energy, Energy Regulator, and Electricity) in compliance with the EU Clean Energy Package. 
• Promote transparent, competitive market-based mechanisms that encourage private sector-led investments in renewable energy generation.
• Develop the next generation of clean energy leaders through the New Energy Internship Program, which places young professionals with clean energy companies and sector institutions across Kosovo. The program emphasizes the inclusion of women and youth from marginalized groups.

Key Results to Date

• Supported the development of the National Energy Strategy, which Kosovo’s Assembly passed in March 2023. 
• Competitively solicited 100 megawatts of solar energy through the launch of Kosovo’s first ever renewable energy auction.
• Developed a framework for reduced commercial losses at electricity utilities in Kosovo’s northern municipalities.
• Helped launch an operational and effective Albanian Power Exchange (ALPEX) that supports the coupled electricity market between Kosovo and Albania. 

Additional Information

Project Funding

U.S. Agency for International Development (USAID/Kosovo)

Project Duration

February 2021 - February 2026 

Implementing Partner

Tetra Tech ES Inc.

Total Funding

$11,987,975

Key Counterparts

Ministry of Economy, Ministry of Environment, Spatial Planning, and Infrastructure, Energy Regulatory Office (ERO), Kosovo Transmission System Operator (KOSTT), Kosovo Energy Corporation (KEK), Kosovo Electricity Distribution Company (KEDS), Kosovo Electricity Supply Company (KESCO), Albania Power Exchange (ALPEX) 

Where We Work

Nationwide

Contact

Arben Nagavci, Project Management Specialist