In-depth | Elections 2025

Energy security: political party pledges

By - 13.01.2025

K2.0 analyzes election programs.

The energy sector in Kosovo’s insecurity resurfaced as an issue in late 2024 and early 2025, when electricity outages returned.

While this discussion became more heated recently, it persisted throughout 2024 due to electricity reductions during the summer, when energy consumption rose significantly compared to previous years.

The Kosovo Energy Corporation (KEC) remains central to discussions about the security of electricity supply, as it provides approximately 90% of the country’s electricity generation capacity. Renewable energy sources, however, account for only 12% of energy consumption. As a result, thermal power plants, despite their significant pollution, remain the backbone of Kosovo’s energy supply. 

And when these two energy sources are not enough, especially during the winter season, importing electricity is inevitable to cover consumption — in December 2024, it covered half of consumption. Unpredictable fluctuations in the international energy market drove up the cost of imported electricity, creating challenges for maintaining a stable supply. From December 1 to 26, 2024, 35 million euros’ worth of energy was imported.

Since the post-war period, there have been no significant investments to enable the country to generate reliable energy. Over the past two decades, various plans to address this issue have circulated through different governments, but none have been implemented.

From the early 2000s until 2021, successive governments included plans for a new power plant — sometimes called “Kosova C” and other times “New Kosovo” — in their programs. However, each government failed to implement the project. During this period, international institutions like the World Bank, which initially financed the project, continued to support coal energy. 

In 2018, the World Bank withdrew its support, shifting its focus toward green energy. After years of debates, the British electricity generation company Contour Global, which had been contracted for the New Kosovo project, withdrew in 2021. Contour Global also sued Kosovo, citing non-compliance with contractual conditions.

Another option was to build a gas power plant and connect it to the gas pipeline in North Macedonia. However, in 2021, the Vetëvendosje (VV)-led Kosovo government  withdrew from this project, citing its economically unfavorable conditions.

In the lead up to the 2025 general elections, K2.0 analyzed the plans of the three largest political entities: the Democratic Party of Kosovo (PDK), the Democratic League of Kosovo (LDK), and the Alliance for the Future of Kosovo (AAK), which is competing in coalition with the Social Democratic Initiative, the E-30 Intellectual Forum Party and the Conservative List.

VV has not yet published its election program. As a result, K2.0 analyzed the steps it has taken while governing the country over the past four years to assess what another mandate could entail if they secure one

VV’s orientation in the last four years 

Vetëvendosje outlined its energy strategy for 2021-2023. The strategy excludes plans for new coal or natural gas-based energy generators and commits to achieving full decarbonization by 2050.

The National Climate and Energy Plan (NCEP) in Kosovo is currently in draft form. The Ministerial Council of the Energy Community, an international organization that unites the EU and aspiring member states to create an integrated pan-European energy market, requested the plan which outlines that coal-based energy will dominate until 2040, with no specific phase-out date.. Nonetheless, the current government aims to increase the share of renewable energy sources (RES) to 32% by 2030.

How is electricity production covered and what are the goals?

At the largest global climate change conference, COP29, held in Azerbaijan in November 2024, Kosovo pledged to reduce carbon emissions by 42% by 2030, compared to its 2016 levels. Achieving this goal requires 4.8 billion euros, of which Kosovo is 3 billion euros short. Beyond financial challenges, excessive bureaucracy and delays in project implementation also hinder progress. Even in the most optimistic scenario, Kosovo could enter 2050 with cleaner air but still relying on coal as its primary source of energy production.

Over the past four years, several steps have been taken in the green energy sector. In the first half of 2024, Kosovo successfully completed its first auction for solar energy, aiming to install a generating capacity of 100 megawatts (MW). However, despite this success, work on the ground has not yet begun.

In December 2024, the government launched an auction for 150 MW of wind energy, to be developed in two lots as a joint investment between the government and the private sector. If the procedures for the wind auction are completed by January 2025, the government will have conducted only two renewable energy auctions over four years.

Compared with existing wind and solar power projects, these two 100 MW capacities would only produce 8% of the country’s total electricity over the course of a year. This means they would not significantly contribute to achieving the 2030 goals.

Where does the electricity we consume come from and what are the goals?

On January 9, 2025, the government launched the prequalifications for the Battery Energy Storage System project, involving the cities of Ferizaj and Istog. The project includes constructing facilities for electricity storage and establishing a new company, called the Energy Storage Corporation. 

This corporation will manage two batteries with a combined capacity of 125 MW for two hours each (250 MWh), while KOSTT will own 45 MW for two hours (90 MWh). Altogether, the total daily capacity these batteries can provide amounts to 340 MWh.

Meanwhile, the energy crisis that engulfed Europe following Russia’s full-scale invasion of Ukraine in February 2022 prompted Kosovo’s government to launch its first support measures for citizens shortly thereafter. These measures aimed to increase energy efficiency by subsidizing heating through efficient equipment. 

In the years that followed, the government introduced additional support measures through open calls, helping citizens and businesses acquire efficient equipment. This included assistance with installing heating systems, replacing windows and insulating homes.

The policies and actions implemented by VV during this mandate indicate that the party will continue prioritizing the country’s energy transition toward clean energy sources. However, without a secure supply during this transitional phase and with the limited contribution of RES to overall energy production, reliance on imports will remain essential. Energy crises may also persist whenever demand rises.

Meanwhile, the election programs of PDK, LDK and AAK include pledges to build natural gas-based power generators.

Gas-fired power plants and the gasification of the country

The largest opposition parties advocate for natural gas as the fastest way to achieve a stable electricity supply.

PDK plans to implement a 350 MW gas power plant project, accompanied by pipelines connecting Kosovo with Albania, where the Trans Adriatic Pipeline (TAP) passes near a terminal in Fier. 

They also propose building gasification pipelines with North Macedonia, which is already expanding its gasification capacity. North Macedonia, located between Kosovo and Greece, offers proximity to the Alexandroupolis Liquified Natural Gas (LNG) terminal.

According to PDK, the country’s gasification involves establishing a distribution and supply network in Kosovo. While PDK does not specify which areas will be gasified first, it states that the process will be preceded by a detailed study. 

Its program promises that gas supply will lower living costs for both citizens and businesses. Meanwhile, LDK presents a broader program focusing on the construction of a gas power plant and the country’s gasification.

LDK pledges to build a 500 MW gas-fired power plant to provide basic energy and balance the system, facilitating the transition away from coal technology and ultimately closing the Kosova A power plant. LDK estimates the project will cost around 500 million euros and take four to five years to complete. 

They propose financing the project through the Kosovo Pension Savings Trust, but this approach faces a legal obstacle, as current laws only permit the fund’s investment in financial markets, not in such projects.

LDK plans to follow the construction of the gas plant with the gasification of the country, proposing a pipeline running from Elez Han to Mitrovica at an estimated cost of 120 million euros. However, they do not specify the source of financing for this project. The plan states that citizens and businesses in nearby cities will be able to connect to this pipeline.

The AAK-led coalition pledges in its program to build a 500 MW power plant but provides no further details. In a social media post, however, Ramush Haradinaj, the party leader and the coalition’s candidate for prime minister, appears to refer to a gas-fired power plant. 

AAK also proposes constructing a gas network, but the program offers no additional details about financing or timelines. For now, it remains a standalone promise.

Countries typically use gas-fired power plants during the transition to green energy. Yet, natural gas, though much cleaner than coal, remains a fossil fuel. Building such a plant from scratch in Kosovo — where the necessary infrastructure and workforce are lacking — would take a long time, making it an unsuitable option for quickly ensuring energy stability. 

Additionally, returning to fossil fuels could undermine the country’s green agenda if Kosovo does not simultaneously invest in developing RES capacities.

In addition to their plans for building new electricity generation capacities, the parties also pledge in their election programs to expand renewable energy capacities.

Renewable energy

LDK places sustainable energy and investments in renewable sources at the core of its governing program, presenting an ambitious plan to transform Kosovo’s energy sector. 

The plan envisions private sector-led investments in energy parks, supported by the adoption of special legislation to stimulate investments and create a favorable environment for new projects. One of LDK’s main goals is to achieve a 32% share of renewable energy in gross final energy consumption within the medium term.

A key part of this plan focuses on achieving energy self-sustainability for public institutions, aiming to equip more than 70% of these institutions with solar panels, reducing their dependence on traditional energy sources and significantly lowering operating costs. 

This initiative also contributes to improving the country’s environmental sustainability. This commitment comes despite the fact that the installation of solar panels does not make an institution self-sustainable, as the energy generated by solar panels is not continuous and depends on atmospheric conditions.

LDK has also pledged to conduct a feasibility study for the construction of a reversible hydroelectric power plant. This plant would operate as a basic water reservoir, releasing water into turbines to generate electricity when needed. When there is a surplus of energy, water pumps would return the water to the main reservoir. 

The project is estimated to cost 200 million euros and is expected to be implemented through a public-private partnership, with 50 million euros invested from the public budget and 150 million euros from private investors.

PDK, meanwhile, emphasizes the creation of a new agency in this field, called One-Stop-Shop.

According to PDK, this agency would accelerate and simplify the process of granting permits for private investors and citizens interested in renewable energy investments. It would serve as a central point where all necessary procedures could be completed in one place, eliminating excessive bureaucracy and delays that have so far hindered the development of the green energy sector in Kosovo.

AAK’s strategy, meanwhile, introduces hydrogen as an energy source. The AAK-led coalition aims to promote the development of clean hydrogen production capacities as part of a plan for a more flexible and sustainable energy system. This initiative seeks to utilize excess energy from renewable sources, such as wind and solar, through electrolysis to produce hydrogen.

The hydrogen produced would provide a solution for storing surplus energy and balancing energy flows, ensuring stable and reliable supplies. Additionally, hydrogen can be stored and used as a fuel or energy carrier, enhancing system flexibility and reducing carbon emissions.

The estimated cost of building electrolysis capacity ranges from 1 to 1.5 million euros per MW. Additionally, the infrastructure required for storing and transporting hydrogen, including storage and distribution systems, is expected to cost between 50 million euros and 100 million euros. To optimize costs and facilitate integration with the existing energy grid, these facilities will be constructed near existing thermal power plants.

Hydrogen as an energy source is still considered an innovation, particularly for developing countries. The main challenges include the high costs of construction and technology development, as well as preparing the necessary framework to manage such a project. While this would be a highly advanced initiative for Kosovo — outlined as a long-term goal in the Energy Strategy 2022-2031 and aimed at supporting the country’s decarbonization — its realization remains a distant prospect.

Currently, such technology is used in countries including Germany, Norway, Australia, Japan, the US.., the Netherlands and the United Arab Emirates.

What can we learn from these election programs?

The main difference in the approach to this sector between the ruling party, VV, and the opposition parties lies in their proposed solutions. While VV focuses entirely on investments in renewable energy sources, the opposition parties advocate for constructing a gas-fired power plant alongside simultaneous investments in green energy.

All commitments, including the current government’s investments in renewable energy sources, are unlikely to ensure energy supply stability over the next four years and are expected to have an impact only in the longer term. 

The construction of new power plants could take more than five years. Meanwhile, with the slow pace of renewable energy generation, coal will continue to dominate as the main energy source for several decades, including in outdated thermal power plants.

None of the major political parties competing in these elections present medium-term solutions to ensure energy stability over the next four years. However, all parties propose plans that move away from coal. 

These commitments align with international agendas for decarbonization and green energy investment. By participating in several regional and global agreements on these goals, Kosovo has already made commitments it must fulfill.

 

Feature Image: Dina Hajrullahu / K2.0

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