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April 6, 2025
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Turkey-based Yıldırım building 109 MW solar park in Kosovo* for its ferronickel plant

Yıldırım Energy laid the foundation stone in Kosovo* for the first phase of its 150 MW solar farm. The Turkish company intends to produce electricity for its ferronickel plant, which exports its entire output.

A renewable energy investment of more than EUR 43 million is underway in Gllogovc (also known as Glogovac and Drenas). Yıldırım Group’s subsidiary Yıldırım Energy marked its expansion to Kosovo* by inaugurating the construction works on a 109 MW solar park.

The facility will reduce electricity costs and facilitate sustainable production at the NewCo Ferronikeli plant, its General Manager Cemil Acar said. The ferronickel production complex exports all its products, he pointed out. The photovoltaic plant is due to come online early next year, he revealed.

Company’s solar park is among largest ones in construction in Western Balkans

Using renewable energy in production would enable the group to be exempted from paying the European Union’s CO2 import levy, imposed through the Carbon Border Adjustment Mechanism or CBAM. Ferronickel is a ferroalloy, consisting of iron and nickel.

With the new photovoltaic plant, the group will get cheap electricity for its production lines and it can also exempt it from the EU’s carbon border tax system

Separately, the government in Prishtina said the first section of the solar power plant would have over 54 MW in capacity. The company’s target is to reach 150 MW by 2026, it added. It would make it the biggest in the Western Balkans so far, though Solar Energy Group Europe (SEGE) said a year ago that it launched the construction of an agrisolar power plant of 150 MW in peak capacity in Gjakova (Đakovica), also in Kosovo*.

The Ministry of Economy recently completed its first solar power auction, for a plant of up to 117 MW in peak terms. In comparison, government-controlled power utility Kosovo Energy Corp. (KEK) has a PV project of 120 MW underway. The facility will be built at a former ash dump of its Kosovo A power plant.

Energy crisis knocked out Ferronikeli in 2021

NewCo Ferronikeli resumed production last June after a break of almost two years. It was caused by a surge in electricity prices amid the energy crisis. The group entered ownership in 2022.

Yıldırım Energy trades power and gas, conducts electrification services and produces renewable energy, focused on hydropower, solar and wind. The firm is building a solar panel plant in Kocaeli in Turkey, according to its website. It also operates in North Macedonia and Albania.

The group, founded in 1963, is active in 57 countries. Its operations are based in Istanbul and the financial headquarters are in Amsterdam.

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* 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.
April 6, 2025
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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.

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* 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.
April 6, 2025
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Kosovo* issues terms for upcoming wind power auctions

The first wind power tenders in Kosovo* will be conducted in two rounds of 75 MW to 100 MW each. The Ministry of Economy published the draft criteria for participants. It intends to issue the first call in October.

Instead of a single first tender, the Ministry of Economy in Prishtina said it would auction off electricity from wind power projects in two rounds. Advised by the International Finance Corp. (IFC) and with support from the Energy Sustainable Activity (ESA) project of the United States Agency for International Development (USAID), Kosovo* issued the conditions for applicants.

Mirroring the first solar power auction, both tenders will consist of two stages: qualifications and proposals, according to the ministry. The approximate total quota is 150 MW and each bidding will be for 75 MW to 100 MW, it explained.

Second round to begin next year

The document lists preliminary requirements regarding project feasibility, sustainability and the bidders’ experience and capacities. The conditions can still change before the release of the tender documentation, the authorities pointed out.

The first call for qualifications is expected to be published in October and the qualified bidders will be invited to submit proposals early next year, the ministry revealed. It added that it intends to kickstart the second procedure in 2025.

IMF is funding wind tenders in Kosovo*

Kosovo* is tapping into the International Monetary Fund’s (IMF) Resilience and Sustainability Facility for the 150 MW endeavor. The ministry added that it would coinvest in wind energy projects under a public-private partnership mechanism. It would lower the risk for private investors, it said.

The locations for the projects are still unknown. Auction winners are entitled to power purchase agreements (PPAs), the announcement reads.

The documentation shows applicants would be required to submit production estimates per year over a 20-year period. The assessments must be carried out by independent and qualified wind energy consultants. The company or consortium will also be obligated to hire biodiversity specialists to conduct basic studies on birds and bats.

Eligible companies have experience in the development and operation of grid-connected renewable electricity plants of 60 MW in total. The minimum share of wind is 40 MW, of which one project must be bigger than 20 MW, the summary shows.

The government earlier said it was planning auctions for 950 MW including battery storage within two years.

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* 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.
April 6, 2025
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Kosovo* gets EUR 12.6 million for waste management

Kosovo Landfill Management Company (KMDK) has signed a EUR 12.6 million grant agreement with Kosovo’s* Ministry of Finance, Labor and Transfers and Germany’s KfW Development Bank for waste management in Prishtina, Prizren and Gjilan.

The European Union provided the funding while the KfW would be in charge of the project implementation.

Kosovo Landfill Management Company (KMDK) CEO Dardan Velija said the project is essential for the company and Kosovo*. The activities would drastically change the condition of landfills operating without adequate permits, he added.

The sites would be transformed into sanitary ones with modern infrastructure in line with European standards and environmental regulations.

According to Minister Hekuran Murati, the project aims to improve the quality of life of citizens by securing a cleaner environment. It would provide adequate infrastructure for waste management, he noted.

Müller: It is urgent to take action in this sector

KfW’s director for Southeast Europe and Turkey Klaus Müller expressed the bank’s willingness to support the Government of Kosovo. It is urgent to take action in this sector, to overcome the problems with waste and to finish the project on time, he stressed.

The signing was attended by KfW’s director for Kosovo* and North Macedonia Moritz Remé, leader of the German Development Cooperation at the Embassy of Germany in Kosovo* Daniel Alker, and Deputy Head of Cooperation at the EU Office in Kosovo Alessandro Bianciardi.

Of note, in August last year, the EU suspended grants and investments in wastewater treatment systems in Kosovo* as part of sanctions against Prime Minister Albin Kurti and his government.

At the time, Mayor of Hani i Elezit Mehmet Ballazhi said the EU suspended a wastewater treatment project that was supposed to tackle pollution including asbestos. The town and municipality on the border with North Macedonia is also known as Elez Han and Đeneral Janković.

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* 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.
April 6, 2025
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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.

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* 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.
April 6, 2025
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Kosovo* invites firms to qualify for 100 MW wind power auction

The Ministry of Economy of Kosovo* started the first phase of the first of two planned auctions for wind power. The target capacity for the first round is 50 MW to 100 MW, out of a total of 150 MW.

Qualified companies can submit documentation for the first wind power auction in Kosovo*. They will bid for power purchase agreements (PPAs) and contracts for difference (CfDs) with a duration of 15 years.

The Ministry of Economy said the target capacity in the first round is 50 MW to 100 MW. The auction plan envisages two auctions of an overall 150 MW.

At the presentation, officials announced that it is receiving prequalification documentation by February 20. The ministry aims to publish the list of eligible firms in March. The schedule showed that final bids would be opened in August and the winners declared in September.

Maximum bidding price is EUR 80.2 per MWh

Companies will be obligated to design, build, operate, maintain and decommission wind parks. The maximum price is EUR 80.2 per MWh and the lowest bid, submitted excluding value-added tax, shall win.

According to an earlier brochure, the accepted price will be adjusted every 12 months, based on the inflation rate for the sector.

The Law on Renewable Energy Sources stipulates that the contracts would be converted into CfDs twelve months after the establishment of a day-ahead electricity market price in Kosovo*, the document reads. In addition, balancing responsibility is limited to imbalance volumes greater than 10%. Curtailment is subject to financial compensation.

Kosovo* has extraordinary wind energy potential, Minister of Economy Artane Rizvanolli said. Around 17% of the territory has winds of above six meters per second, while in mountainous areas they reach eight meters per second, she added.

Wind capacity factors range between 28.2% and 32.2%, translating to as much as 2.82 GWh in annual output per 1 MW of installed capacity, the ministry said.

Wind power auction winners to establish public-private partnership with government

Other earlier documents reveal that individual wind projects would be run by special purpose vehicles (SPVs), firms where the government would have a share of up to 49%. The Ministry of Economy intends to use the funds from the International Monetary Fund’s Resilience and Sustainability Facility (RSF) in the development of the 150 MW. The purpose of the public-private partnership scheme is to reduce risk for private investors.

Applicants are required to provide a guarantee of EUR 7,000 per MW of proposed capacity. Winners will be obligated to submit guarantees of EUR 70,000 per MW.

Eligible companies have a net worth of at least EUR 30,000 over the last three calendar years and a minimum annual turnover of EUR 25,000 in the same period.

Kosovo* hosts just three wind power facilities: Selac, also known as Bajgora (104.1 MW), Kitka (32.4 MW) and Golesh (1.35 MW).

Of note, Millennium Challenge Account Kosovo has just invited qualified companies to respond to the prequalification call for a battery storage project. The government earlier said it was planning auctions for 950 MW including battery storage within two years.

The first solar power auction was completed in April.

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* 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.