Faruk Serdarevic - Chief of Party

Ceia Whitaker - Deputy Chief of Party

REPOWER – KOSOVO

AECOM International Development

KOSOVO POWER SECTOR KEY ISSUES

MILESTONES ACHIEVED AND

CHALLENGES GOING FORWARD

Pristina, 18 April 2017

CONTENTS

1. Results achieved in the last 12 months

2. Main ongoing and future challenges

The set of:

- technologies,

- physical infrastructure,

- institutions,

- policies and

- practices

located in and associated with the Kosovo which enable

energy services to be delivered to Kosovo

consumers.

The system does not serve the system participants.

It serves the system’s end users.

KOSOVO ENERGY SYSTEM

KOSOVO POWER SECTOR - KEY ISSUES IN 2016

Legislation/Regulation

Energy Community Treaty

• Third Energy Package

• Western Balkans Six (WB6)

Security of Supply

Kosovo Energy Strategy

CRITICAL

REQUIRED

5

MAIN ACHIEVEMENTS IN THE LAST 12 MONTHS

• Energy Strategy development and adoption by

Government

• Adoption of set of new energy laws in line with

3rd Energy package

• Initiation of wholesale and retail markets

phased liberalization process

• Two new suppliers licensed by ERO

6

MAIN ACHIEVEMENTS IN THE LAST 12 MONTHS

• 400 kV line commissioned between Kosovo

and Albania

• Agreement reached on market integration

with Albania –APEX establishment

• Progress on development of the new RES

legislative package for further RES projects

promotion including establishment of RES

One Stop Shop

7

ONGOING CHALLENGES

CRITICAL

REQUIRED

Security of Supply (import/export

issues, generation adequacy)

Implementation of actions for meeting

objectives set in the Energy Strategy

‒ TPP New Kosovo construction

‒ TPP Kosovo B rehabilitation

‒ TPP Kosovo A decommissioning

‒ System reserve issues

‒ Kosovo cross-border lines control

8

ONGOING CHALLENGES

CRITICAL

REQUIRED‒ Albania-Kosovo electricity market

integration

(Phase I: Day-ahead-market through Power

Exchange (APEX) integration)

‒ Unbundling of KEK – ensure mine

sustainability and non-discriminatory and

transparent third party access to fuel

9

ONGOING CHALLENGES

KOSTT membership in ENTSO-e

‒ EMS (Serbian TSO) controls all Kosovo cross-

border lines (annual direct loss of ~20

mil.€/year)

‒ KOSTT’s Connection Agreement with

ENTSO-E (European Network of Transmission

System Operators for Electricity) not

implemented since Oct 1, 2015 (due to the

political obstacles)

10

ONGOING CHALLENGES

CRITICAL

REQUIRED

TPP New Kosovo agreements

‒ Securing commercial and financial close

‒ TPP New Kosovo offtake arrangements

(including adjustment of market design) and

Lignite Supply Agreement

‒ Major impact on future electricity market

‒ On generation concentration

‒ On wholesale liquidity

11

ONGOING CHALLENGES

CRITICAL

REQUIRED

Retail market

‒ Appoint the Supplier of Last Resort

‒ Closely monitor new entry into newly

competitive non-USS sector

‒ Confirm arrangements for second tranche of

liberalization (1 April 2018)

‒ Enhance protection for vulnerable customers

12

ONGOING CHALLENGES

CRITICAL

REQUIRED

- Certification of KOSTT J.S.C. as unbundled

TSO

- Complete streamlining of administrative

procedures for RES and get OSS fully

operational

- Implement energy efficiency legislation and

strengthen institutional arrangements

- Association of Women in the Energy Sector

to empower women in the energy sector

13

CRITICAL

REQUIRED

THANK YOU FOR YOUR ATTENTION