ENERGY IN KOSOVO
Kosovo relied on coal power plants for many years to meet its energy needs. Nevertheless, Kosovo has made significant strides in shifting its energy generation from thermal power plants to renewable sources in recent years.
Kosovo’s commitment to generating 35% of its energy from Renewable Energy Sources (RES) by 2031 represents a significant shift towards sustainability and environmental responsibility. This ambitious target aligns with global efforts to combat climate change and establishes an exceedingly attractive and supportive environment for investment in the energy sector.
Like many developing countries, Kosovo has a growing demand for energy. This demand is driven by population growth, urbanization, and industrialization.
Kosovo has considerable potential for renewable energy development, particularly in solar and wind power. Kosovo gives a special focus on Renewable Energy Sources. This fact has led many global investors to invest in and support renewable energy projects in Kosovo. Such an initiative is being supported by Kosovo while creating different positive policies.
The geographical location of Kosovo provides opportunities for regional energy integration with neighboring countries. This can enhance energy security and open up other opportunities for energy trading.
While in the process of upgrading and modernizing its energy infrastructure, which includes power generation, transmission, and distribution systems, Kosovo presents substantial opportunities for improving energy efficiency, especially in the residential and industrial sectors.
Due to the liberalization of its energy market, Kosovo has taken serious steps to make it more competitive. This has opened doors for many private investors to participate in the market and contribute to its sustainable development.
The government has been working on legislation and policy initiatives to encourage the transition to cleaner and more sustainable energy sources, promote market liberalization, and attract private sector investment. The Law on Foreign Investment protects, promotes, and encourages foreign investment in the Republic of Kosovo, providing foreign investors with a set of fundamental rights and guarantees to ensure foreign investors that their investments will be protected and treated with fairness in strict accordance with the accepted international standards.
The legal and regulatory framework of the energy sector in the Republic of Kosovo is shaped by Kosovo’s membership in the Energy Community and its aspiration to be integrated into the European Union.