Joint Press Release ME-IFC

Prishtina, 22.03.2024 – The Minister of Economy, Artane Rizvanolli, and the Regional Manager of the International Finance Corporation (IFC), Nicolas Marquier, today signed the Agreement for the development of Kosovo’s First Wind Auction.

Following the successful completion of the Republic of Kosovo’s first solar auction bidding process, the Ministry of Economy (ME) has begun preparations for the launch of the next auction, the first auction for wind energy.

Minister Rizvanolli highlighted that the current agreement and cooperation with IFC and USAID are particularly important because our demand for electricity aligns well with the profile of wind energy generation capacities. Building such capacities is highly complex; therefore, successfully completing this process demonstrates that our energy transition is achievable, and we are a serious partner for project developers and investors looking to invest here.

She added that ME has included a public-private partnership (PPP) component for the first time in such projects in the region. This enables us to ensure that as a state, we contribute to investments in projects, ensuring that not all construction costs – and energy transition costs – are reflected in end-consumer tariffs in the medium term.

“We are well aware that we have a lot of work ahead. However, with the dedication we have shown, with the projects we have started, and with the dedicated partners we have by our side, these are not challenges but rather opportunities to accelerate and strengthen our energy transition”, Minister Rizvanolli concluded.

Meanwhile, IFC’s Regional Manager for the Western Balkans, Nicolas Marquie, said that IFC is committed to leading Kosovo towards a sustainable future by supporting its transition to renewable energy and helping achieve carbon neutrality. Through strategic partnerships and initiatives like the 150 MW Wind Project, we aim to significantly increase Kosovo’s renewable energy capacity, advancing our shared vision for a greener and more sustainable economy, Marquier added.

The objective of this advisory agreement is to support the Ministry of Economy in mobilizing the experience, technological knowledge, and capital of a selected private sector investor or investors through competitive selection via the Public-Private Partnership (PPP) for the design, financing, construction, and operation of a 150 MW wind power plant(s) which will be divided into two LOTS.

The Government of Kosovo aims to increase electricity production from renewable sources, improve the reliability of electricity supply by increasing installed generation capacity in the country, and stimulate economic development by promoting private investments through private implementation by financing energy generation projects.

The agreement aims to attract private sector investments for wind energy generation projects, including the design, financing, construction, and operation of wind energy plants, as well as promoting effective, transparent, and competitive transactions in line with circumstances.

Projects stemming from this agreement will be based on identifying, managing, and mitigating all environmental and social risks associated with the project. In this case, IFC as a transaction advisor will advise ME in accordance with IFC’s Environmental and Social Performance Standards.