Washington, 01.07.2022 – The Executive Board of the Millennium Challenge Corporation (MCC) composed of US Secretary of State and chairperson of this board Antony Blinken, Secretary Janet Yllen, trade representative Katherine Tai, USAID administrator Samantha Power, Chief Executive Officer Alice Albright, Senator Mike Johanns, Congressmen Ander Crenshaw, members Susan M. McCue and George M. Marcus, at the regular meeting of the MCC Board held yesterday, on 30 June 2022 have approved the Compact Project and paved the way for signing and finalization of the ratification processes by the Assembly of the Republic of Kosovo and the decree by the President of the Republic of Kosovo.

Of this funding, 200 million dollars shall come in the form of a grant from the United States of America through the MCC, whilst about 35 million dollars shall be a contribution from the Kosovo Government, and 2 million shall be funds from the American Catalyst Facility for Development (ACFD).

The Program will include three projects:

1. Energy reserve and arbitration (batteries with a capacity of 170 MW, which provide a reserve of 340 MWh),

2. Workforce development and inclusion of women in the energy sector, and

3. The Project of the American Catalyst Facility for Development

The first Project consists of the purchase and installation of high-capacity batteries serving as energy reserves. The capacity of the energy storage system is expected to be the largest in Europe per capita, and marks one of the most innovative projects in the region and beyond. The reserve shall be used to stabilize fluctuating electricity frequency, deriving as a consequence of supply and consumption imbalances. Batteries can also be used for energy arbitration, that is, for storing energy in the early morning hours when spending is low, and using it when necessary during high consumption hours. Furthermore, the batteries can be connected to solar, wind, and similar energy sources very easily and thus accelerate Kosovo’s transition to renewable and sustainable sources of energy.

The second Project includes two activities:

1. Energy Sector Workforce development for future purposes, aimed at the creation of a study program to improve the skills of individuals working in the energy sector, thus supporting the MCC’s investment as well; and

2. All inclusive Energy Sector Workforce development, which aims at a greater involvement of women in the sector through various sub-activities such as the support of employers in the sector for a more suitable environment for women, growth and empowerment of the women’s network in the energy sector, and give the award for the best workplaces for women.
The third Project is funding by the American Catalyst Institution for Development, or ACFD, which aims to encourage private sector funding by the United States’ International Development Finance Corporation (DFC) in Kosovo. Specifically, the project aims to increase the involvement of the private sector during the implementation of the Compact Program in areas that support or complement the energy reserves project and workforce development objectives. Potential projects supported through this mechanism include the generation of renewable energy and opening of financing opportunities for the green agenda.

Compact Program investments shall be property of Kosovo, and they mark one of the most important collaborations between the Republic of Kosovo and the United States of America.