Prishtina, 16.10.2023- The government of Kosovo has made swift and remarkable progress to advance the climate policy agenda. The launch of the first 100MW solar electricity generation pilot auction last May and the submission to the National Assembly of a law on renewable energy sources in early October is paving the way for increasing clean energy generation through the use of a competitive, open, and transparent process.

Capitalizing on the lessons from the first auction, the Ministry of Economy has decided to launch an additional auction for 150MW in 2024 to attract private investment to wind-based electricity generation. The implementation of this action will add to others in the area of climate change mitigation and adaptation that the government of Kosovo has been implementing in the context of the IMF’s Resilience and Sustainability Facility (RSF).

The auction will be the first of its type in Kosovo and would place our country at the region’s forefront in the attraction of private capital to support the green transition. The auction will catalyze financing from private developers through a competitive bidding process.

Government co-financing will decrease risks while catalyzing private sector investment, which will also provide state-of-the-art know-how for the construction and operation of the project. In addition, this auction will provide a strong signal to investors about Kosovo’s intention to continue building a pipeline of future auctions to add green electricity generation.

As with the pilot auction launched earlier this year, the Ministry of Economy will work together with our international partners, including USAID, to ensure that the project is concluded successfully and in a timely fashion.

This will contribute to reduce the reliance on fossil fuels, to provide affordable, reliable electricity supply for citizens, and to promote a sustainable and economically viable energy sector.

More information: https://www.imf.org/en/News/Articles/2023/10/16/pr23355-kosovo-imf-reaches-sla-1st-rev-stand-by-agrmt-rsfa