Electricity supply in Kosovo is stable, no price increase until April 2022.

In Kosovo, there have been no significant investments in the electricity sector since the construction of two Kosovo B generation units in Block A in 1983 and Block B in 1984, and the Kosovo Electricity Corporation (KEK) has provided some lignite reserves.

“Kosovo has no other energy reserves than the minimum reserves of heating oil. Given that domestic production from existing power plants and other renewable sources does not cover domestic demand, there is a need for imports when demand increases,” the Ministry of Economy said.

They added that Kosovo’s energy system relies on market capacities that are now more readily available because imports can be provided through a new 400 kilovolt (kV) interconnection line with Albania.

Electricity prices, for regulated consumers, in the absence of “proper” functioning of the market, are determined by the Office of the Energy Regulator (KRE) and according to a recent decision from October this year, electricity tariffs in Kosovo will remain the same during this tariff year. .

“According to estimates, the established tariffs, which will cover the maximum allowed revenues, will enable regulated operators to perform operational functions in optimal conditions and will ensure a stable supply to customers,” the officials in the Ministry stated.

Renewable energy sources, as they said, provided 15% of electricity needs last year, but as production depends on atmospheric conditions, its impact on the total energy production in Kosovo can change from year to year.

The total electricity production capacity in Kosovo in 2020 was 1,110 megawatts (MW), of which 960 MW or 86.5 percent came from power plants, and the rest was produced from renewable energy sources in hydropower, wind and photovoltaic panels.

During 2021, several more capacities entered the production of electricity, for the production of which KRE continuously collects data and will publish them in the next year.

The Ministry of Economy said that in case of shortages and growth of energy prices, KRE, with the approval of the maximum allowed revenues and tariffs, will, among other things, take into account the increase in import prices, which are beyond the control of the operator.

“However, the increase in revenues, as a result of the increase in electricity consumption, has neutralized the total costs of electricity supply, so that the allowed revenues will not reflect the increase in electricity prices for final consumers in tariff 2021 and tariff 2022 will then be estimated.” , they stated in that Ministry.

At the same time, they point out that, given the problems of non-functioning energy border between Kosovo and Serbia, the entire cross-border capacity will not be enough to provide the necessary imports, so consumers are advised to use electricity efficiently.

High dependence of Kosovo on electricity imports is expected in the period of overhaul of production units of TPP Kosovo B in 2022 and 2023, so the competent ministry estimated that there may be an increase in electricity tariffs.

On the occasion of the 1,000th issue of Beta Monitor, a specialized economic newsletter aimed at the countries of Southeast Europe, Beta broadcasts a series of articles on energy free of charge available on the portal www.beta.rs in Serbian and www.betabriefing.com in English.

By Editor

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