Kosovo is building a more sustainable future: IMF Fourth Review on Energy, Economy and Sustainable Development

Prishtina, 23 May 2025 – Kosovo has achieved another important step on the path of development and sustainability, successfully concluding the fourth review under the Stand-By Arrangement (SBA) and the Resilience and Sustainability Facility (RSF) with the support of the International Monetary Fund (IMF).

This review underscored the progress achieved in various sectors, including renewable energy, economic growth and the reduction of inflation, positioning Kosovo in a positive direction for the future.

One of the highlighted progresses is the growth and advancement in the electricity sector, where Kosovo has made visible steps towards a more sustainable energy system by increasing the generation of renewable energy and diversifying energy sources.

Kosovo has advanced in meeting its strategic objectives, including increasing renewable energy, improving energy efficiency and strengthening regional co-operation in the energy sector, such as:

– Launch of the auction for the construction of the wind park: increases domestic RES capacities
– The new Law on the Promotion of Renewable Energy Sources: facilitates private investment in the energy sector
– Support of the Kosovo Energy Efficiency Fund with EUR 86 million: renovation of 400 public buildings
– Operationalisation of the joint energy market with Albania (ALPEX): strengthens regional energy integration; and
– Preparations for the EU Carbon Border Adjustment Mechanism (CBAM): alignment with European Union policies

This has contributed to a more stable and affordable supply of electricity for citizens and businesses, making the country less dependent on traditional energy sources and reducing environmental impact. Moreover, regional co-operation in the field of energy has been strengthened, enabling the exchange of electricity and other renewable resources.

Read more at: https://www.imf.org/en/Publications/CR/Issues/2025/05/21/Republic-of-Kosovo-Fourth-Reviews-Under-the-Stand-By-Arrangement-and-the-Arrangement-Under-567057