Opportunities for Investment in the Kosovo Energy Sector

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Opportunities for Investment in the Kosovo Energy
Sector US-Kosovo Investment Forum

• Republika e Kosovës
• Republika Kosova-Republic of Kosovo
• Qeveria - Vlada - Government
• MINISTRIA E ENERGJISË DHE MINIERAVE
• MINISTARSTVO ENERGIJE I RUDARSTVA
• MINISTRY OF ENERGY AND MINING
• M I N I S T E R

Presented by Mrs. Justina Shiroka-Pula New
York, 27 October 2010
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CONTENTS ON ENERGY SECTOR
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING

• Country profile
• Energy Sectors Goals
• Government Policy and Strategy
• Legal and Regulatory Framework
• Public Investment in the Energy Sector
• Required Investment and Expected Outcomes
• Challenges and way Forward

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I. Country Profile
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING
Kosovo, is located in center of the Balkans.
Bordered by Macedonia, Albania, Serbia and
Montenegro, Kosovo became fully independent in
February 2008. Land Area 10,887 km2 (4,203
square miles). Land Use Agriculture (53 of
which 40 unutilized), Forest (41). Other
(6) Population Approximately 2.1 million,
including approximately 450,000 diaspora. People
90 Albanians, 8 Serbs, 2 others (Croats, Roma,
Turks). Demographics 49.9 female, 50.1 male
average age 25 years mode 23 years. Literacy
rate 89.8 female, 97.7 male. Government
Kosovo became independent on 17th February
2008. Currency Euro. Per capita GDP (IMF, 2010
estimate) 2,750. Unemployment 42 (an average
that takes account of seasonal plus
part-time/casual etc). Major industries
Agriculture, Energy, Mining. As of GDP-
Primary Agriculture 7, Mining and Manufacturing
12.5, Services 63(real estate, public admin.,
insurance ...etc)  Imports 2,060 million (2008
projected). European Union (36), Macedonia
(20), Serbia (11), China (8) Exports of goods
and services 419 million (2008 projected). EU
(37), Macedonia (10), Albania (10)
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II. Energy Sectors Goals
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING

1. Least cost quality energy security of supply
2. Enhancing energy efficiency of the economy
3. Development of renewable energy
4. Introducing environmentally friendly technologies
   and protection of environment
5. Integration in the EU energy systems

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II. Energy Sectors Goals contd
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING

• Introducing environmentally friendly technologies
  in the energy sector is among key priorities of
  the Government
• Under the EnCT, Kosovo is committed to comply
  with the EC acquis on environment
• Advanced technologies in utilization of lignite
  for power generation are welcomed in Kosovo
• Energy efficiency measures and development of
  renewables will contribute to protecting the
  environment

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III. Government Policy and Strategy
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING

• Policy
• Reform and restructure the energy sector in line
  with the EU acquis
• Open for private investment through win-win
  partnerships
• Open, transparent and competitive tendering
  procedures
• Incentives for renewables feed-in tariffs, etc.
• Strategy
• Develop new lignite-fired power generation
  capacity in full compliance with EUs acquis
• Develop hydropower and other renewables
  generation, and promote energy efficiency, and
  cogeneration
• Develop/upgrade power transmission and
  distribution systems

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IV. Legal Regulatory Framework
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING

• Laws on (i) Energy, (ii) Electricity, (iii)
  Energy Regulator, (iv) Energy Efficiency, (v)
  Natural Gas, (vi) District heating, (vii)
  Concession Public Private Partnerships
• Regulation (i) Cost recovery tariff policy, (ii)
  Predictable and stable regulatory environment,
  (iii) Basic regulatory framework is adopted by
  the ERO, in fully compliance with the EU acquis,
• Kosovo is one of the Contracting Parties of South
  East Europe Energy Community Treaty

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V. Public Investment in the Energy Sector
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING

• Public investment are focused in
• Upgrade and development of a compressive power
  transmission network
• Development of power interconnectors with the
  countries of the Western Balkans, including
  Albania and Macedonia
• Maintenance of existing power generation
  capacities
• Upgrade and development of district heating
• Promotion of renewables and energy efficiency

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VI. Required Investment and Expected Outcomes
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING

• Major ongoing private investment opportunities
  include
• New Lignite-fired Power Plant Kosova e Re,
  including rehabilitation of TPP Kosova B
• Privatization of Electricity Distribution and
  Supply functions of KEK JSC
• Power transmission network development
• Construction of the Hydro Power Plant (HPP) Zhur

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VI. Required Investment and Expected Outcomes
contd
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING

• Other ongoing and identified private investment
  opportunities include
• Construction of several new small HPPs
• Development of other renewable based power plants
  (wind, biomass, etc.)
• Development of Combined Heat and Power to supply
  heat to Prishtina District Heating

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VII. Challenges and way Forward
MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING

1. Completion of the regulatory framework and
   comprehensive energy market model in line with
   the EC acquis
2. Completion of preparatory processes required for
   conducting open and transparent tendering
   processes for concessioning of energy resources
   for private investment
3. Enhance billing collection discipline in
   electricity and heat supply
4. Promote serious private investment, particularly
   from the USA

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MINISTRIA E ENERGJISË DHE MINIERAVE MINISTARSTVO
ENERGIJE I RUDARSTVA MINISTRY OF ENERGY AND MINING
Thank You !