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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.
April 6, 2025
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Serbia allocates entire quota at second auctions, investors to install 645 MW of wind, solar

Serbia allocated the entire 424.8 MW quota in its second wind and solar power auction. According to the Ministry of Mining and Energy, the winning bids came from investors from China, the United States, France, and Serbia. They intend to install ten power plants with a total capacity of 645 MW.

The Ministry of Mining and Energy conducted the second round of renewable electricity auctions. Forty-one applications were submitted for market premiums, and 37 were declared valid. Both segments were oversubscribed. Investors in wind submitted bids for 444 MW, and the quota was 300 MW. For solar, they applied for premiums for 260 MW, compared to the available 124.8 MW.

The winners have the right to sign 15-year contracts for difference (CfDs).

Seven bids were declared valid for wind, and five filled the quota. Investors will build wind parks with an overall capacity of 468 MW, and premiums will be awarded for 300 MW, according to the proposed ranking list, published on the ministry’s website, which tracks renewable energy tender procedures. The maximum acceptable bid for wind farms was EUR 79 per MWh, and the investors offered from EUR 53.59 to EUR 68.25, according to the announcement.

These are the winning bidders: Matrix Power, owned by French developer Akuo Energy, Windvision Windfarm A, Windvision Windfarm B, Crni Vrh Power, owned by Chinese companies Shanghai Electric Power & Energy Development Limited and CMC Capital, and Jasikovo, owned by Serbian citizens.

The crowd was much bigger for the solar segment. Five projects won the right to market premiums. A total of 30 applications were valid. The quota was 124.8 MW, and the selected investors are set to install photovoltaic plants with 177 MW in combined capacity, the ministry’s proposed ranking list shows.

It said that the investors offered prices from EUR 50.9 to EUR 59 per MWh. The ceiling for electricity from photovoltaic plants was EUR 72. The following firms had winning bids: Vemi Biogas, Kobra Global, Solarina, Mona Green Energy 2, and Brankov Solar. The 150 MW Solarina project is the only large one, while Brankov Solar is an agrisolar one.

Solarina is owned by CWP Europe, and Mona Green Energy 2 by Serbia’s Mona Holding. The three other firms are owned by Serbian citizens.

The ministry noted that the total planned investments of the winning bids is EUR 782 million.

Đedović Handanović: All produced electricity will be offtaken by Serbia’s utility EPS

Minister Dubravka Đedović Handanović said the second round of auctions was highly successful in capacity and offered prices. Importantly, all electricity from the power plants that get the premiums will go to state-owned power utility Elektroprivreda Srbije (EPS) and be used to supply domestic businesses and households.

“The offered prices are very competitive, i.e. EUR 50.9 per MWh for solar and EUR 53.5 per MWh for wind, which is significantly below the market levels. According to our incentives model, this means we don’t expect power plants will be subsidized but that they will return windfall profit to the state as long as market prices are higher than those offered by the auction winners,” she stated.

The confirmation of good conditions for investment in Serbia

Đedović Handanović stressed that the high interest by investors is a confirmation of good conditions for investments in Serbia.

“In addition to domestic investors, the winners of these auctions are also investors from China, the USA, and France. It demonstrates that Serbia is globally recognized as a good destination for investment, which will be very significant in achieving our strategic goals in the energy transition process,” she said.

In 2023, the Government of Serbia adopted the incentives plan for renewables for a three-year period through 2025. It said it would award market premiums for 1.3 GW. The first round of auctions was conducted in 2023. The selected projects, for 715 MW in total capacity, are all supposed to be connected to the grid by the end of next year.

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April 6, 2025
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Serbia to afforest 7,000 hectares, revitalize 51,000 hectares of forests

Serbia intends to afforest 7,000 hectares with climate-resilient tree species and converse 51,000 hectares of degraded forests within the USD 84 million FOREST Invest project.

An agreement for the project ‘Enhancing the resilience of Serbian forests to ensure energy security of the most vulnerable while contributing to their livelihoods and carbon sequestration (FOREST Invest)’ was signed between the Food and Agriculture Organization of the United Nations (FAO), in its capacity as an Accredited Entity of the Green Climate Fund (GCF), the Ministry of Agriculture, Forestry and Water Management, as well as public enterprises Srbijašume and Vojvodinašume, which manage forests.

The project envisages afforestation of 7,000 hectares with climate-resilient tree species, the conversion of 51,000 hectares of degraded low forests into high forests, and the rehabilitation of at least 500 hectares of abandoned private agricultural land through agroforestry plantations, according to FAO.

The project is financed by FAO, Serbia and GCF

The project, valued at USD 84 million, is funded by the Green Climate Fund, the Government of Serbia and FAO. Over the course of seven years, FOREST Invest will enhance the resilience of forest ecosystems, improve energy security for vulnerable communities, and contribute to reducing greenhouse gas emissions.

By implementing these and other measures, greenhouse gas emissions are expected to be reduced by 8.4 million tonnes of carbon dioxide equivalent (CO2e). Nearly three million residents of Serbia will indirectly benefit from improved forest resilience and sustainable management, FAO said.

Gonzalez: Progress in Serbia will guide future efforts in other countries

The contract was signed by the Minister of Agriculture, Forestry and Water Management Aleksandar Martinović, Srbijašume CEO Krsto Janjušević, executive manager for forestry, ecology and development of Vojvodinašume Marko Marinković, and FAO Deputy Regional Representative for Europe and Central Asia Nabil Gangi.

According to Aleksandar Martinović, the project will help Serbia to establish foundations for long-term reforms in the forestry sector, ensuring sustainability, climate resilience and a better quality of life for people.

Henry Gonzalez said the innovative project in Serbia increases investment in sustainable forestry initiatives that include both mitigation and adaptation measures. Progress in Serbia will guide future efforts in other countries, he stressed.

The partnership between FAO and the government is built on a shared commitment to sustainable development, food security, and climate resilience, Nabil Gangi pointed out.

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