DEVELOPMENTS OF THE ENERGY SECTOR

IN KOSOVO

Presented by: Maliq Pireci

NGO Kosovar Association for Renewable Energy

and Energy Efficiency - AKEREE

6/3/2016

Conference

Long term Development of the Energy Market in

Macedonia and the Region

03 Jun 2016

6/3/2016

Energy sector institutions

o Ministry of Economic Development (MED);

o Energy Regulatory Office (ERO);

o Indepedent Comission for Mines and Minerand (KPMM).

Key actors in energy sector

– Key actors in electricity:

• KEK – electricity generation and thermal (cogeneration)

• KOSTT – electricity transmission

• KEDS – electricity distribution

• KESCO – electricity supply

– Key actors in thermal energy:

• KEK – generation of thermal energy (cogeneration)

• Termokos - District heating , distribution and generation

• Gjakova – Distict heating, distribution and generation

• Mitrovica – District heating, distribution and generation

DEVELOPMENTS OF THE ENERGY SECTOR

IN KOSOVO

6/3/2016

Legal framework

Kosovo has signed the Energy Community Treaty (ECT),

The above laws are harmonized with the ECT

• Law on energy, no.03/L-184

• Law on electric energy no. 03/L-201

• Law on energy regulatory no. 03/L-185

• Law on thermic energy no. 03/L-116

• Law on natural gas no.03/L-133

• Law on energy efficiency no. 04/L-016 and

• Administrative Instruction 01/2013 for Renewable Energy targets

• Energy Strategy of the Republic of Kosovo 2009-2018,

• Admin. instr 01/2013 for the RE targets,

• AI 02/2013 for the use and support the energy generation from RE

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Resources

Coal (Lignite) is the most important energy resource which supplies about

97% of the total electricity production.

Lignite basins Balance counted

Kosova 8.77 bton

Dukagjini 2.05 bton

Drenica 0.07 bton

Total 10,89 bton

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Installed capacities for electricity

production

Efficiency, 2015:

- TC Kosova A, Ef = 30.36 %

- TC Kosova B), Ef = 37.83 %

Specific coal consumption, 2015:

- TC Kosova A – 1.52 t/MWh

- TC Kosova B – 1.22 t/MWh

Generation

units

Unit capacity (MW) In operation

fromInstalled Net

Thermal Power Plants

A1 65 Not operational 1962

A2 125 Not operational 1964

A3 200 182 1970

A4 200 182 1971

A5 210 187 1975

TPP Kosova A 800 551

B1 339 310 1983

B2 339 310 1984

TPP Kosova B 678 620

Total TPP 1478 1171

Hydropower plants

HPP Ujmani 35 32 1983

HPP Lumbardhi 8.80 8.00 1957 (2006)

HPP Dikanci 1 1.00 0.94 1957 (2010)

HPP Radavci 0.90 0.84 1934 (2010)

HPP Burimi 0.86 0.80 1948 (2011)

Total HPP 46.56 42.58 Total HC

Wind energy 1.35 2010

Total 1,525.91 1,213.58 Total

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Gross el. production (2012): 5,383.98 GWh

Installed hydro capacities: 46.56 MW

Production from HPP (2012): 95.58 GWh (< 2%)

Imported electricity (2012): 571.897 GWh (~ 10%)

Electricity production

Distribution losses:

o 1539.50 GWh or 33.77% for year 2012

o 778.27 GWh or 16.9% projected for 2017, (by KEDS and

government investments)

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Final energy consumption

Source: Annual energy

balance of Republic of Kosovo

for the year 2015

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Energy consumption

Source: Annual energy balance of Republic of Kosovo for the year 2015

Energy consumption by sectors, 2012-2014 (ktoe)

22%

41%9%

2%

26%

Participation in the energy consumption by sectors 2014

Industry

Households

Services

Agriculture

Transport

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The “Kosova e Re” project

TPP “Kosova e Re” 2 x 300 MW, capacity

One company (Contour Global) gave the financial offer

The contract details are not known

Expected to start building in the beginning of the 2017.

Expected to be finished by 2021 – 2022

Will be built with the Best Available Technology (BAT) in the

market

Building the TPP will implement the Industrial Emmissions

Directive

This will create conditions to close the TPP “Kosova A”

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Debate about the TPP «Kosova e Re»

The civil society in Kosovo (CSO Consortium KOSID) is not in favor to built

the TPP «Kosova e Re», some of their arguments given are:

The generation to be based on the RE, import and increase of the EE

If the TPP will be built the electricity price will increase 33.8% to 50%

The production cost 128.17 €/MWh, while the production cost of exited

plants is around 23 €/MWh.

Kosovo must focus on EE and use of the RE

The “Kosova e Re” project

Source: Institute for energy economics and financial analysis, 2016. IEEFA.org

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Is operated by Transmission, System and Market Operator (KOSTT)

The transmission system is connected with all neighborhood countries in the level

of 400 kV, except with Albania, where the connection is in the level of 220 kV.

The 400 kV with Albania is in the process of building. It is finished by the side of

Kosovo. In the Albanian side is in the process.

Electricity transmission

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Electricity market unification Kosovo-Albania

Kosova and Albania are countries with small electricity markets;

Both need more electricity generation capacities;

Generation capacities in Kosovo are non-flexible thermo-generators (98%

TPP with lignite);

In Albania more than 95% is produced by HPP and the supply security is

closely connected with the weather conditions in different seasons of the

year;

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Electricity market unification Kosovo-Albania

Optimization of the import and export needs in the common market and

financial benefit for both countries of about EUR 24 million/year;

The common market would enable the optimal and efficient use of the

generation sources, balance reserves and the transmission grid

The common market is in line with the EU requirements for the

integration of the markets and enables the easy integration in the

regional market

Source: KOSTT, 2015

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District heating

The district heating systems exist only in Prishtina, Gjakova, Mitrovica

dhe Zveçan.

Only 3% of the overall heating needs are covered by district heating.

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Cogeneration from TPP “Kosova B” has started in 2014.

Investments more than 30 ml euro (EU, Germany through KfW,

Sweden, Luxemburg and Prishtina Municipality

Benefits:

Reduction of the production operative cost of about 50%

Replacement of the crude oil with the steam produced at TPP

Kosova B

Improvement of the air quality in Prishtina by reducing the CO2,

dust and other harmful gases

Reduction of the needs for use of the electricity for the space

heating

Cogeneration

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Heat supply from the cogeneration

The cogeneration will supply the district heating grid in Prishtina.

Supply with heating around 12.500 consumers (around 11.500

households and 1.000 institutions and businesses);

The heated surface 1,100,000.00 m²;

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Natural gas

Kosovo is not supplied with the

natural gas;

There exist the underground gas

supply grid built on’70-es which was

functional until1988

Gas was produced by lignite

gasification in KEK

The designed operating pressure

was 25 bar with annual capacity of

0.2 bcm/year.

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The gas demand in

Kosovo according to

the study (bcm/year)

Kosovo will follow the developments of TAP and IAP projects

Natural gas

Study from 2007 financed by World Bank and KfW (German Development Bank). Study

conducted by ECA (Economic Consulting Associates) from UK, in 2007.

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RE targets up to 2020 (obliged 25%, voluntarily 29.47 %)

Renewable Energy (RE)

The primary renewable energy

source

€/MW

SHPP (< 10 MW) 63.3

Wind 85.0

Solar 136.4

Biogas and biomass 71.3

National Renewable Energy Action Plan 2011-2020

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Renewable Energy Targets

25.64% RES in gross final electricity consumption (contributes 10.1%

to the gross target); 240 - SHPP

305 MW – HPP Zhur

150 MW - Wind

14 MW - Biomass

10 MW - PV

10 % RES in gross final transport consumption;

By using the biofuels in transport

45.65 % RES in gross final electricity consumption for heating and

cooling (contributes 17.2 % to the gross target);

Installing solar thermal 70 MWth

Installing heat pumps 10 MWth

Use of the fire wood consist the main contributor to this sector

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Biomass energy potential

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Applications for electricity generation

Final authorization - 16:

Hydro 13 capacity 76.91 MW

Solar 2 capacity 0.602 MW

Wind 1 capacity 1.35 MW

Started production – 6:

Hydro 4 capacity 26.93 MW

Solar 1 capacity 102 kW

Wind 1 capacity 1.35 MW

Preliminary authorization - 21

Hydro 13 capacity 90.2 MW

Solar 5 capacity 9.4 MW

Wind 2 capacity 66.75 MW

Solar 1 capacity 0 .267 kW – on hold

Applications in process - 15

Hydro 10 capacity 39.9 MW

Solar 3 capacity 9 MW “on hold"

Wind 1 capacity 51 MW

6/3/2016

New draft law on the Energy Building Performance

- The law promotes improvements to the energy performance of

buildings, taking into account outdoor climatic and local

conditions, as well as indoor climate requirements and cost-

effectiveness

Revised draft law on the Energy Efficiency

- The draft law foresees the energy certification of the buildings

- To open energy market for the ESCO companies

- It is not yet clear if the law will foresee to establish the Energy

Efficiency Fund.

Efiçienca e energjisë

6/3/2016

o National Energy Efficiency Action Plan (NEEAP) 2010-2018 (target 9%)

o First mid term target (NEEAP) 2010-2012 – target 3% achieved

o Report on second mid term (NEEAP) 2013-2015 – not published

o Almost all municipalities created the MEEP

o Around 30 mil euro (WB loans) planed to be invested in the EE in the objects

o The biggest EE potential:

o Building renovation,

o Modernization of the heating-cooling systems

Efiçienca e energjisë

AKEREErKosovar Association for Renewable Energy and Energy Efficiency

Maliq Pireci

Address׃ “Saraji” 78/b, 20000 Prizren

Mob: +377 44 289 112

E-mail׃ akeree@gmail.com

maliq.pireci@hotmail.com

Thank you

6/3/2016