ENERGY SUSTAINABILITY ACTIVITY

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ENERGY SUSTAINABILITY ACTIVITY
Helping Increase Investment for Long - Term Energy Supply
TetraTech for USAIDKosovo

USAID’s Energy Sustainability Activity improves Kosovo’s energy security by strengthening the capacity of local institutions to develop open and regionally integrated electricity markets, build resilient and sustainable power networks, and boost investment in renewable energy infrastructure. The next five years for Kosovo are critical for establishing a robust, reliable, and regionally integrated power system in line with Energy Community (EnC) standards—an integral part of bolstering the country’s economic growth and increasing opportunities for its citizens. To achieve these goals, USAID’s activity advances market coupling with Albania and explores further regional integration according to European Union standards; bolsters sector governance; unlocks electricity supply challenges in Kosovo’s four northern municipalities; and promotes transparent, market-based mechanisms for private sector-led investment in clean power generation. 

IMPROVING ENERGY SECTOR GOVERNANCE, DOMESTIC ENERGY MARKET DEVELOPMENT, AND REGIONAL MARKET INTEGRATION

The long-term sustainability of Kosovo’s energy sector relies on transparent regulatory structures, an open domestic market that attracts independent power producers, and an interconnected regional market for cross-border trade.  To strengthen energy sector governance, market development, and regional integration, USAID assistance helps Kosovo to establish electricity market rules in harmony with its neighbors and in line with EnC standards; build the capacity of electricity sector institutions; broaden Kosovo’s regional energy market integration; establish mechanisms to increase consumer confidence in the energy sector; and effectively communicate market reforms.  These efforts will result in an active, sustainable regional and domestic electricity trade that operates according to evidence-based energy sector policies free from political interference, and institutions with greater capability for implementing and monitoring effective electricity markets.

IMPROVING ENERGY SYSTEM RESILIENCE

As Kosovo’s energy sector continues to expand and diversify, growing pains are inevitable.  Through this activity, USAID builds the capacity of government institutions to improve sector performance and fiscal responsibility as systems become more complex.  The focus is on strengthening the electricity regulatory agency (ERO).  USAID also supports the efforts of Kosovo’s transmission system operator, KOSTT, to operate as an independent control area within the European network.  These efforts strengthen the financial health of the electricity sector; improve system stability and reliability; and enhance in-country capacity to independently manage a reliable, efficient, and sustainable power system.

INCREASING INVESTMENT TO SECURE LONG-TERM ENERGY SUPPLIES

Through this activity, USAID assists Kosovo in unlocking its renewable energy potential and facilitating private sector-led investments in energy infrastructure.  The activity increases transparency and market-based solutions and focuses on energy security by promoting enhanced capabilities among local stakeholders to attract and efficiently manage these investments.  These efforts strengthen the capacity of energy institutions to attract greater investment in renewable energy-based electricity generation from private-sector developers on a competitive basis.

KEY EXPECTED RESULTS  

  • $300 million in investment leveraged
  • 200 megawatts of new renewable energy supply capacity added
  • Commercial losses in northern municipalities of Kosovo reduced
  • An operational, liquid Albanian power exchange (ALPEX)

 

Project Duration:            February 2021 - February 2026                                                           

Partner:                               Tetra Tech ES Inc.

Contact:                               Arben Nagavci

 

Last updated: August 25, 2021

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