Horizon September 2022

Learta HOLLAJ Shaping Kosovo’s Energy Future

Alpin DOGAN KEDS: From a Traditional Power Network to a Modern One

Shqipe NEZIRI VELA Women: Pioneers Greener Future in Kosovo

Petrit SELIMI will Kosovo Benefit from the ‘Women in Energy’Program? DOBRUNA

Prof. Dr. Majlinda DACI AJVAZI Society

Learta HOLLAJ

Shaping Kosovo’s Energy Future

A successful energy transition is the one built on the principles of inclusivity and equity. A successful energy transition is a just transition.

As

the world wakes up to a new energy economy–one that is significantly different from what we were historically accustomed to, be it in terms of infrastructure, policy, or participating actors–the importance of smart, sustainable and inclusive solutions has become a necessity.

The new energy economy is the one that puts innovation, decentralization, and sustainability at the heart of it.

With the world economies having pledged to decarbonize their energy systems in line with the Paris Agreement objectives, Kosovo is similarly faced with a new reality regarding its energy prospects. According to the Energy Community roadmap, but also in line with the Sofia Declaration, the countries of the Western Balkans are expected to deliver on their pledge to achieve the goals of the European Green Deal by embracing the Green Agenda for the region.

In pursuit of the most efficient and effective transition strategies, the cleaning up of the electricity mix, as well as, the electrification of end-uses, play a pivotal role. But what’s most important is that the transition must be secure, just, and affordable.

Kosovo is close to launching a new energy strategy, and the country is at critical crossroads, as decisions made today will naturally impact the lives of citizens and the economy of the country for decades to come.

While there should be no doubt that investing in major

scale deployment of renewables and energy efficiency is a no-regret decision and with coal phaseout being the main narrative of modern, sustainable and resilient systems, it should also be clear to all of us that the energy of the future requires more than just the ambition. The vision is equally as important. As the world navigates this challenging era of change for the energy sector, apart from the necessity to address the capacity, technical and policy aspects of the energy transition, we must also speak of principles. And, if we are to be successful in this endeavor, we must focus on promoting gender sensitive policies, embracing the transformative potential of innovation and financing, as well as, supporting cross sectorial and regional cooperation.

A successful energy transition is the one built on the principles of inclusivity and equity. A successful energy transition is a just transition.

Kosovo’s effort to deliver on its energy transition objectives will only be possible when girls and women become an integral part of energy policy, strategy, and project development. The participation of women in the energy sector in Kosovo is still far from a double-digit representation, mirroring the overall low participation of women in the labor market. Nevertheless, while these numbers are discouraging at first, they also convey a message of massive untapped potential.

Chief Sustainable Development and Partnerships Advisor, Office of the President of the Republic of Kosovo

With the necessity to design new energy systems, new methods of delivering them and with new pricing systems arising, inclusion of women in the planning stages is particularly important. A gender-balanced approach helps in terms of delivering for all. We now have a rare opportunity to not only make electricity accessible for all, but to also shape programming, financing, and policy making so that they ultimately contribute to women empowerment. From enhanced efficiency in household management, to increased gains in education, as well as, higher participation in the; labor market, the energy transition is an excellent opportunity to redesign the heavily male dominated sector to the benefit of all. We must be reminded that, ultimately, the goal of this transition is to ensure a transformation that improves the lives and livelihoods of all.

In this attempt, the role of technology and finance is indispensable. Although carbon management technologies are quintessential in making the transition possible, the digitalization of the energy system, decentralization, and introduction of new active participants to the grid, will require technological solutions which address matters of cybersecurity, data privacy risks, and big data. With this in mind, supporting the ICT sector and building necessary human capacities that fuel innovation should become a governmental and policy making priority. To drive the transition and to make it responsive to the needs of the emerging energy technologies, policymakers in Kosovo need to also couple efforts with the education system, preparing not only the engineers, but also IT experts, economists, modelers, security experts that meet the needs of the future of this sector.

As the country seeks to identify most suitable scenarios to tackle the challenges and meet the needs of the energy systems, financing remains a major concern. In Kosovo and small developing economies alike, the high capital costs and high interest rates hinder green and capital-intensive investments necessary to guarantee the muchneeded sectorial transformation. In attempting to meet the needs of the system and deliver on transition objectives, a coordinated and multilateral approach that combines government policy and encourages public-private investment must be adopted. According to a report by the IEA and World Bank, 70% of the capital for clean energy in the developing world must come from private investors. This encourages efforts towards closing the gap between the public and the private sector, by encouraging a transformation from energy systems centered on governmental and public sector engagement, towards energy systems that put collaboration across the wide economy spectrum at their core. In the same spirit, a successful and resilient energy transition requires an active engagement

towards pursuing a sector coupling approach, as well as, an active regional cooperation policy. In meeting the global 2050 decarbonization goals, the end-use sectors such as transportation, industry, and buildings, play a pivotal role. Connecting and powering these sectors is expected to contribute to bringing down costs, increasing flexibility of energy systems, and ultimately cutting down carbon emissions. Considering that the country is currently preparing the energy strategy which offers a guiding framework for the development of the energy sector for the next decade, with prospects until 2050, concrete actions that facilitate sector coupling would only be considered most appropriate.

Yet, equally as much as the public-private partnerships and sector coupling matter, equally as much will the role of the integrated markets become ever more important. With considerably small energy markets in the Western Balkan, the integration of the markets of the region is estimated to contribute to lower balancing and flexibility needs to accommodate the mass scale deployment of renewables. These efforts would ultimately lower costs for consumers, share the burden of the switch from fossil-based to clean technologies, as well as enhance the system reliability. Most importantly, they would facilitate the largescale deployment of variable renewable energy.

Ultimately, beyond market design, economic, and social considerations, plans and strategic investments in the energy sector should also be seen from the lens of geopolitics, foreign policy and security. Recent unfortunate developments in our continent reinforce this approach, emphasizing the importance of building clean and resilient energy systems, which ultimately encourage cooperation among common value based economy and political systems. Amidst ever changing global energy infrastructure, Kosovo has a great opportunity to position itself as a credible, reliable and forward oriented regional and international actor. The decisions made today will not only define the course of the energy sector or the profile of our economy for the decades to come, they will also have a direct and tangible impact on the quality of life and the wellbeing of the citizens. As such, sustainable, interconnected, wellinformed and inclusive solutions remain the smart way forward. IEA, World Energy Outlook 2021, Mobilising investment

Alpin DOGAN CEO, y Distribution Company (KEDS)Kosovo Electricit

The Kosovo Electricity Distribution Company (KEDS) began operating in 2013, after its privatization. The electricity network was found in poor conditions with no significant investments made for decades. Since 2013, KEDS has invested 209 million euros, implementing nearly 2000 projects through contracting companies or through its own maintenance crews.

Investments began in May 2013, after privatization. In February of that year, a few weeks before the transfer of ownership, thousands of citizens had protested over suspicions of incorrect calculation of their electricity use.

KEDS: From a Traditional Power Network to a Modern Digital One

Upon taking responsibility, KEDS digitized the process of reading and billing customers through Hand Held Unit instruments. Also, the installation of digital meters continued simultaneously. The process started before the privatization but intensified with the arrival of KEDS, and to this day 546 thousand digital meters have been installed in total, out of 660 thousand. A part of them are SMART meters with remote control and reading.

Major changes from investments have also been done in the operation of the distribution network. Prior to privatization, network operations were performed manually. KEDS installed the SCADA system for the entire medium voltage network. This complex digital SCADA system enabled the remote monitoring, controlling, and data acquisition for the whole distribution network.

During that time, KEDS functionalized a program called‘Kosovanet’, that serves to monitor and manage real-time events in the network, enabling the digital management of the entire network infrastructure and workforce.

Facing a continuous demand in electricity consumption each year and a nonadaptable existing medium voltage network to the increasing load in many areas, KEDS converted for the first time in Kosovo the level of 20 kV voltage distribution, which is suitable for high electricity demands in many developed urban and rural areas.

As part of the initial pilot project, four completely new 20 kV lines were built. After the successful implementation of the project, KEDS continued the conversion of the voltage level from 10 kV to 20 kV in other regions as well. Today, most parts of Prishtina operate at this level, having converted a considerable part of the 10 kV lines to 20 kV. So, a doubled distribution capacity that managed overloads, especially during the winter.

Such a level of 20 kV distribution system is being implemented in the centers of other cities as well. In the next five years the transformation will be finalized in every part of the country, where any potential overload could occur. This is because most of the lines that are being transformed at this voltage level involve a large number of customers and high electricity demand.

Investments and advancement of services have significantly increased the reliability of electricity supply, contributing to the overall security of electricity supply. The effect of this vast progress made in the security of electricity supply is also shown in the quality of the electricity supply indexes SAIDI and SAIFI.

These indexes are parameters that determine how much the electricity supply has improved nationwide to final customers. Moreover, the system average outages frequency (SAIFI) during KEDS operations has decreased by 64 percent, while the system average interruption duration index (SAIDI) at the national level has decreased by 70 percent. Improvements in the distribution network have also reduced losses.

KEDS took over the network with a total of 31 percent losses. Now, 9 years later, they have dropped to 18%. Within the five-year period, we aim to meet the average of the region. In order to achieve this, investments are being made in Kosovo, in two levels of voltage, low and medium, managed by the company. The road to achieve this goal has been bumpy in the last two years. A global pandemic and the energy crisis in Europe created an unfavorable situation.

As a regulated company, KEDS was damaged financially by the low electricity tariffs. The electricity prices went tenfold on the international stock markets leading to insolvency. The fact that Kosovo is a net importer country affected the situation, as the need for import increases highly during the winter.

The request to raise the electricity tariffs was rejected by the regulator, on the grounds that the high prices in the international stock

markets are speculative and will soon drop. Our August warning that prices are going beyond the usual, was also ignored. The several months delay in response led for the company to be financially drained.

At the beginning of 2022 the situation changed for the better as many parameters positively changed. There was a price subsidy by the Government of Kosovo, the prices dropped in the international stock markets while the regulator increased the final price for the part of imported consumption.

From these changes, KEDS was given the opportunity to continue its investive projects.

The main focus is on optimizing network operations, increasing customer satisfaction and adapting the network to renewable energy producers. At this point, KEDS has established a special department to address each request from renewable energy producers and for the improvement of general conditions for this entire sector.

The development of the sector is crucial to the company, requiring assistance from experts specialized in the United States. The team meets regularly with businesses interested in investing in renewable energy and acts according to their requirements. Regarding this sector, KEDS has also invested in several special power lines, built specifically for the operation of renewable energy producers.

This is not the last action of the company regarding businesses. Kosovo has an unstable economy and doing business faces many infrastructural problems that must be continuously supported in order to function properly and develop further. Nine years ago, The Doing Business

reports of the World Bank, the problem of electricity was always ranked first by businesses in Kosovo. KEDS also directed investments in business areas.

Capacity was expanded in many of them, while in some lines involving hundreds of businesses, power lines were rehabilitated or replaced with completely new ones. Security of electricity supply became a priority and this brought major changes. In recent years, the electricity problem for businesses has shifted from the main problem to the eighth one.

But, to provide services at the highest standards, the optimization of the electricity network infrastructure must also continue in the following years. To achieve this, KEDS is preparing a five-year distribution network investment plan.

This plan goes beyond the advancement made through maintenance, capacity increase and standardization of voltage levels. For the most part, it takes into account the development of localities.

KEDS is working in full coordination with all municipalities in Kosovo to adapt their development priorities, both in economic terms and the expansion of settlements based on urban plans.

In conclusion, it can be said that Kosovo's distribution network has been going through a phase of modernization and improvement in the last decade.

Meanwhile, by the end of the current decade, it will focus on finalizing digitalization, its adaptation to renewable energy, transformation and expansion based on requests from citizens and businesses as an infrastructural prevention of urbanization of localities.

Business Matters

Ilir GRAPCI Managing Partner, SOWI Kosovo

Investing in Wind Energy in Kosovo, the Story that Grew Me Old

We managed to bring together institutions, individuals, businesses, and dreamers from seven different countries into something that stands out as one of the largest post-war foreign investments in Kosovo, and the largest in the energy sector since the the Kosovo B power plant was build.

Kosovo is set to decarbonize the electricity sector and the economy by 2050, in this case, it must replace the old thermal generation capacities with renewable sources that during generation have minimal impact on the environment and positively affect the community.

Almost every winter, when the demand for electricity reaches record values, we are reminded that the current production capacities do not cover our country’s demand for electricity. The demand continuously increases, but is still remains significantly lower compared to the trends in the region and Europe.

We need electricity, especially if we want to further our development.

Kosovo has committed to update the legal framework for the energy sector, including renewable energy sources. Preparing a new national energy strategy, which will set new development targets for renewable energy sources in the country, is also being prepared.

The main challenges of the economy, the country in general, in the next three decades seems to be the transition from conventional sources to renewable energy sources for electricity production. The energy transition must be fair, provide low cost energy security for consumers and negligible negative impacts on the environment. We need to start decarbonizing the economy, otherwise we will soon start paying staggering sums for every carbon dioxide emitted.

Last year can be considered a successful year in the field of RES for Kosovo.

The new RES capacities had started operating just as the world was entering a global energy crisis, driven by rising electricity prices in international markets; particularly rising gas prices. The production of RES connected to the transmission network in 2021 was 46.1% higher compared to 2020, while those in the distribution network, 22.3%.

In addition, 50 self-generating generators have been added to Kosovo, with a total installed capacity of 1.9 megawatts. The new capacities saved Kosovo large sums of money, especially when the price of electricity in international markets reached over 600 euros per megawatt. Regardless, we are far from providing energy security and regular power supply.

Last year was successful for the renewable energy sector, but not enough. Unfortunately, it was not comparable with the trends in the region.

With the increase of investments in the renewable energy sector in the world, after the pandemic, Kosovo needs to accelerate the policies of establishing and supporting renewable energies following its neigboring countries. The country finds it impossible to develop large RES projects with funds and financing mechanisms within the country, therefore, every major RES project needs an international funding institution.

Attracting international investments, convinient conditions and policies must be created; competing with the policies and support that countries in the region offer.

Due to the limited wind power in Kosovo, large wind projects make economic sense only when located in mountainous areas or at high altitudes with sufficient wind power.

These projects remain unconventional for Kosovo, comparing to the region, as they require more indirect investments, such as those of public infrastructure or energy networking. All this becomes even more difficult, when we take into account the inconsistency of laws, even more, their inconsistency with the requirements of international funding institutions, lack of data, and in this case, those of wind power.

Earlier, Kosovo established policies to support renewable energy sources. All of these policies are

now being re-created, while the same international financial institutions, companies, actors and institutions are monitoring the whole region, and are also starting projects where there is more profitability and support, whether with policies or other forms of stimulation.

Almost every country in the region has already established or is near the establisment of renewable energy policies, including national energy and climate plans and energy strategies. Through these policies,and by offering conditions to investors in the absence of policies, these countries are aiming to absorb more funds and funding opportunities.

Every day we learn about a new agreement for the purchase of energy, or another for the construction of renewable energy capacities in the region. Kosovo is still waiting.

Kosovo continues to face a difficult political and economic situation. Various banking limits make it impossible to invest in serious projects and large sums, as well as in the absence of financial markets and those of investment security.

Nevertheless, there are good stories to tell!

After seven years of trying, in 2022 our latest wind project in Bajgora started operating. When we started the project seven years ago we were dreamers, maybe younger. After seven years we grew old and became plagued with finger diseases, the latter apparently because of all those requests that had to be written, and all those permits that had to be obtained. But that was no reason to give up.

We managed to bring together institutions, individuals, businesses, and dreamers from seven different countries into something that stands out as one of the largest postwar foreign investments in Kosovo, and the largest in the energy sector since the the Kosovo B power plant was build.

We managed to do this together, we as old dreamers with many institutions and operators of good will in this country. In a mountainous area, completely abandoned and previously unused, we managed to bring development, tourism, employment, smiles, and clean energy to hundreds of thousands of Kosovars.

It is without a doubt that in a country like Kosovo these stories make sense, even make headlines of international news, only when everyone gets together.

If the future of electricity completely liberal, with a lot of decentralized and clean production and distribution, and with a proper and diversified transmission infrastructure, it is important for Kosovo to act in a timely manner and follow the trends to benefit from investments.

It is important to start early, in the worst case–one step at a time, and to absorb responsible and sustainable investments that could benefit the community and the environment.

As for electricty produced from wind and other RES, as the people say‘there is no escape, only delay’!

Women: Pioneers for a Greener Future in Kosovo

Through mentoring, scholarships, and internship opportunities, we can increase women’s participation in these sectors

Itis 2022 and we are still undergoing a global energy crisis. Gas and oil prices are at an all-time high due to the surge in energy demand. As economies recover, government policies to ensure a transition towards a sustainable, low carbon, and equitable energy system require a huge transformation across all sectors.

Kosovo’s energy sector needs to undergo a major transition from the use of fossil fuels to the adoption of more renewables. In the near future we are hoping to see the sector go through market liberalization and a further diversification of the energy mix. Kosovo still relies heavily on coal, with over 90% produced by two power plants built 60 years ago.

The pathway to a just energy transition is a complex process. And to succeed, the energy transition must be just. It must be done in a way that delivers sustainable energy access for all, leaving no one behind. It must be done with women.

Yet, the energy sector continues to remain one of the least gender diverse sectors. The mining sector, even worse.

Worldwide, women’s participation in the energy sector is below that of the broader economy. According to the International Energy Agency, women only account for 22% of the labor force in the oil and gas sector and 32% in renewables. These gender gaps in employment vary across the different energy sub-sectors. In Kosovo’s case, only 7% of energy sector jobs are filled by women. Only 7%!

What accounts for this embarrassingly small number? Reasons vary.

A partial explanation can be found when considering the broader underrepresentation of women in the labor market.

Only 21.5% of working-age women were active in the labor market in 2020. Inequality in gender representation is present across all sectors. In particular to energy and mining industries, this inequality manifests itself as a barrier to entry, and then in constant hurdles women must overcome throughout their career. in

A man’s world?

According to the majority of women energy professionals in Kosovo, the key barrier that women face in the energy sector is the general belief that it is a predominantly male domain. This belief takes root early and has long-lasting effects. A lack of support and encouragement from parents and teachers discourages girls from pursuing their career in the energy and mining sectors. They have to continuously overcome cultural and structural barriers that try to tell them that they are in a male domain. The idea that the energy and mining sectors belong exclusively to men is very visible. Ever read a vacancy announcement for miners that says:“women are encouraged to apply”? Anyone who has visited the two coal-fired power plants Kosova A and Kosova B is aware that the sites are designed to only accommodate men (for example, there are no toilets for women).

Leadership of all energy systems from power generation to homes (Energy Corporation, Transmission System Operator, Electricity Distribution Company, and Electricity Supply Company) are all men. Therefore, the miniscule number of women employed in the energy sector is also reflected in a major gender imbalance in the upper echelons of government energy organizations.

Now is the time for women to take on some of these roles.

One solution to raising awareness about the issue at hand is through initiatives like

Global Women's Network for the Energy Transition, International Women in Mining, or Kosovo’s Women in Energy and Mining. These platforms, made of women energy professionals, work hard to shed light on the gender gap in Kosovo’s energy and mining sectors. The recently established WEM, is a hub of professionals from the energy sector, mining, natural resources, climate change, and environmental protection. Members represent all segments of the industry, from academia to public institutions, private sector to international organizations. Such initiatives have the capability to drive change and become agents of change on the pathway to the just energy transition.

Through mentoring, scholarships, and internship opportunities, we can increase women’s participation in these sectors, therefore leading to more gender-inclusive workplaces and policies.

In addition, through advocacy for more gender-sensitive energy policies, the new national energy strategy (2022–2031) led by the Ministry of Economy, should take into consideration the necessity of shaping an inclusive gender sector in Kosovo. Moreover, policymakers, such as the Ministry of Education, should strengthen their actions to encourage girls to become interested, study and work in science, technology, and engineering. The Ministry has already launched a project that provides

scholarships for over a thousand of beneficiaries who study STEM fields.

The private sector too reflects the gender imbalance in the leadership positions. Only 11.4% of firms in Kosovo are women-owned. There is a lack of data of how many businesses in the energy sector are led by women, but there are already success stories that are making an impact. Gentiana Alija Shala is the only woman founder and CEO of one out of more than a dozen solar companies in Kosovo. Whereas Edona Demaj established the first company licensed for the waste management of cooking oil. Following the international practices of the green economy, she introduced an innovative waste management system - the collection, transportation, storage, and physical treatment of used plant-based oils.

To conclude, access to energy is a basic human right. Since women are more affected by the lack of access to electricity, creating a more gender equitable energy policy is a must. Achieving gender representation in the energy sector is a prerequisite to having a successful implementation of energy policies and interventions. Kosovo’s attempt to achieve a just energy transition to a more sustainable future will only be possible if women are involved at all levels of the industry.

Petrit SELIMI CEO, Millennium Foundation Kosovo

How will Kosovo Benefit from the ‘Women in Energy’ Program?

‘Women in Energy’was designed to put under one umbrella several different gender inclusion activities, so we can have an integrated effort of proactive measures to increase the participation of women in the energy sector through education and on-the-job experience

When

we talk about ‘Women in Energy’ program developed by MFK, let’s start with the hard facts:

- 420 women entrepreneurs supported with 2 million euros to grow their businesses through efficient use of energy and energy savings.

- 230 women engaged as interns in energy-related companies for six months, with salaries paid by MFK, with the aim to boost their potential for employment in the energy sector by providing them onthe-job experience. Retention rate is 30%, which means every third interns has been hired with regular contracts after finishing their internship.

- 26 women awarded as scholarship recipients graduated in USA, in the Des Moines Community College, with the objective to provide highly specialized technical training to prepare them for anticipated market needs and help Kosovo develop the workforce needed to sustain new energy investments–92% of them are hired and are working as energy experts,

upon return, in the energy sector in Kosovo.

So, in rough numbers, this is how Kosovo has benefitted from the Women in Energy Program, implemented by Millennium Foundation Kosovo (MFK) and supported by Millennium Challenge Corporation.

Yet, there is an added value to the program. MFK has aimed to create a generation of women leaders in the energy sector, whose success will inspire other women and girls to study relevant energy studies and get involved in this field, where currently over 90% of employees are men. Which also explains the starting question:

Why Women in Energy?

During the development of MCC compact and threshold grants, the low participation of women in the labor market, the energy sector in particular, was identified as a crosscutting concern that could limit the equitable participation of Kosovar citizens in the benefits of MFK investments in the energy sector.

The social and gender assessments conducted during the development of the MFK Social and Gender Integration Plan revealed that in all eight of the business sectors that account for 95% of the energy businesses across the country, employment was dominated by men, especially in the electricity, gas, steam, air conditioning supply, construction, transportation, and storage sectors (MCC, Kosovo LFTUS 2017). Virtually all of the private and public sector energy organizations contacted during the project development noted difficulty in hiring qualified women in technical, professional, or managerial roles due to the lack of candidate applications.

Consequently,‘Women in Energy’was designed to put under one umbrella several different gender inclusion activities, so we can have an integrated effort of proactive measures to increase the participation of women in the energy sector through education and on-the-job experience, and to encourage women entrepreneurs to take advantage of new energy technologies.

It is a $4 million program that helped women with scholarships, internships and grants but also aimed to increase women’s awareness of opportunities in the energy sector, to empower women entrepreneurs through energy solutions, to provide on-the-job and other relevant training in order to increase the pool of technically skilled women

willing to work in energyrelated jobs, and to build linkages between energy employers and qualified women candidates

Stories of Women in Energy

Through the installation of solar panels, a woman entrepreneur and her all women staff in Zubin Potok now have access to hot water and a functioning refrigerator for their food products which was not the case due to unreliable energy supply.

Through the installation of a heating system and building insulation, a woman entrepreneur in Podujeve and her women employees can now work productively during all seasons in their factory. Through the purchase of energy efficient equipment and other energy efficiency measures, women entrepreneurs have not only reduced the cost of electricity but also business has increased production and work with much higher efficiency

230 women were given the opportunity to work as interns in the biggest energy companies in Kosovo and 30% of them

were hired afterwards as engineers, researchers, project leaders in energy. 26 women had the opportunity to gain technical knowledge related to the energy sector and now 92% of them are working as engineers in this sector.

On a broader national level, the‘Women in Energy’Program has had an impact in the behavioral change of the society and increased social awareness. Through massive campaigns asking women to join the energy sector, continuous promotions of the success of our WE beneficiaries, incessant outreach to energy companies in Kosovo to hire women, and loud advocating to include women in the energy sector, WE has managed to increase the social awareness towards the capacity of women as strong actors in the energy sector. In addition, following the success of WE, many organizations and institutions have started designing and implementing similar projects aiming to empower women in the energy sector.

In a more personal statement, as the CEO of MFK, I am proud to be witnessing a structural personnel change in the energy sector with our interns and scholarship recipients filling the spots that were once taken by men. I am thankful for the institutions/organizations, including the American Chamber of Commerce, appreciating the success of the program and directing their resources to engage in similar projects. I am foremost happy that the Kosovar society is seeing and will be seeing women in the fields as energy engineers, and not call it an anomaly.

Reducing CO2 Through Energy Efficiency

Limak Kosovo International Airport J.S.C is committed to continuing its efforts to improve environmental practices and raise energy efficiency with the goal to achieve the net-zero emissions target by the middle of the century set in the UN Climate Change Conference 2021

Airports

are a major global business, part of the aviation industry that by one estimate transports more than nearly half the world’s population in a single year. Therefore, it is no surprise that the aviation industry produces around 2% of all human-induced carbon dioxide (CO2) emissions and 12% of CO2 emissions from all transport sources. Global warming presents unprecedented challenges for the aviation industry, especially for airports. Despite the significant contribution to the growth of commerce, communication, trade, and global tourism, the air transport industry faces major issues like high fuel consumption, economic crisis, greenhouse gas emissions, safety, and operational challenges.

The climate crisis demands urgent, bold action. It threatens the global economy, our health and safety, and the ecosystems on which we depend. Energy efficiency is critical to solving it. In most cases, energy efficiency measures have proven to be the most cost-effective way to address climate change while reducing energy waste, saving money, affordably expanding the use of renewable energy sources, and a vital component in achieving netzero emissions of carbon dioxide through decarbonization.

Limak Kosovo International Airport J.S.C (LKIA) as part of

the aviation industry is well aware of its impact on climate change; therefore, it has prioritized raising energy efficiency, with particular attention to reducing carbon emissions throughout all its operations.

LKIA has established the Quality Management System, Environmental Management System, and Energy Management System to indicate continual improvement and contribution towards raising and promoting energy efficiency according to the highest international standards (ISO 9001, 14001, 50001). Through their implementation, LKIA has developed policies, programs, plans, rules, processes, and environmentally friendly activities (such as: replacing all plastic cups and spoons with cardboard ones for all staffthis way reducing plastic waste; implementing office paper recycling - separating waste and increasing recycling figures) which have significantly improved energy efficiency, energy use and energy consumption throughout daily operations, including all employees and its stakeholders.

Limak Kosovo International Airport’s main objective is to reduce carbon emissions and achieve best practices in carbon management from operations fully within the control of the airport, with the ultimate target of becoming carbon neutral.

Festina BREZNICA

Occupational Health&Safety and Environmental Assistant, Limak Kosovo International Airport J.S.C, Prishtina International Airport“Adem Jashari”

Over the past 7 years,

Limak Kosovo International Airport J.S.C has been gradually channeling its efforts to reduce CO2 emissions, through an independent program called Airport Carbon Accreditation (ACA). By establishing the carbon management strategy, LKIA has been able to identify all the activities and processes that generate these emissions and consequently divided its emissions into three parts, based on their emissions sources. Scope 1 - direct emissions that LKIA owns and/or controls; Scope 2GHG emissions from purchased electricity; Scope 3 - Indirect emissions, not controlled by LKIA but related to the activities of the airport. All data is monitored and measured through certified programs and greenhouse gas protocols.

Following all the work towards becoming a green airport, in 2016 LKIA earned the accreditation level 1Mapping, in recognition of its efforts to manage CO2 emissions, as part of the airport industry’s response to the challenge of climate change by ACA.

In 2017 LKIA managed to

reduce its relative carbon emissions by 10% which resulted in getting certified with the level 2 (Reduction).

In 2018 LKIA expanded its promotion of environmental protection awareness to its stakeholders by engaging them in its green initiatives and continuously working towards reducing carbon emissions which resulted in a 6% reduction in absolute emissions and 23% reduction in relative carbon emissions. As a result, LKIA earned the accreditation level 3 (Optimization), in recognition of the airport’s exemplary work in managing and reducing CO2 emissions and engaging its stakeholders to do the same.

In 2019 LKIA kept reducing its CO2 emissions by 4% in absolute terms and 24% in relative terms. Furthermore, to achieve the goals set since the beginning, LKIA offsetted all of its residual emissions of 10200 tons CO2 by investing in a Biomass based power plant project. Earning this way, the accreditation level 3+ (Neutrality), in recognition of reducing and compensating all of the CO2 emissions under its control, thus becoming a Carbon Neutral Airport.

In 2021 LKIA continued on practicing energy efficiency throughout daily work and managed to reduce its relative emissions by 18%. Also, again offsetted its residual emissions of 10498 tons of CO2 by investing in a project for the reduction of greenhouse gas emissions through the generation of electricity from flowing water, thereby getting certified with level 3+ (Neutrality Renewal).

LKIA has established the Climate Change Committee to continuously work towards reducing its CO2 emissions, engaging its stakeholders to do the same and responsibly compensating for the residual CO2 emissions under its control, as part of the Global airport industry’s response to the challenge of climate change.

As a sustainable business, Limak Kosovo International Airport J.S.C is committed to continuing its efforts to improve environmental practices and raise energy efficiency with the goal to achieve the net-zero emissions target by the middle of the century set in the UN Climate Change Conference 2021.

Pranvera DOBRUNA-KRYEZIU Energy Expert

Energy Transition, in a Coal-dependent Country such as Kosovo, is More than Just a Transition

Kosovo needs proactive policies to ensure that the coal phase-out process does not only tackle the engineering concerns of this matter, but the social ones as well

As

Kosovo stretches over the fifth largest lignite deposits in the world, and supports its base-load energy generation capacities with coal, it comes as no surprise that talking about coal-phase-out policies and processes can be quite challenging. Due to its abundant natural resource base and long-standing coal dependency, Kosovo will be the most heavily affected country in the region whilst undergoing energy transition. Nevertheless, energy transition is not just about producing clean, renewable energy; it is about changing how we generate, supply and consume energy. It cannot only be seen as sacrificing your most reliable natural resource, but also as a period that requires considerable investment in the industry.

When talking about energy transition, we predominantly focus on the production of renewable energy but that embraces only one aspect of the change. What most

readers are not familiar with is the fact that energy transition, as a long-term process, involves replacing the existing coal-based electricity system in Kosovo in its entirety.

Unlike its reliability on coal, Kosovo cannot fully rely on any other resource such as natural gas, solar or large-scale hydro pumped storage for 24 hours base-load production. To reach this scale of reliability, like that of coal, will require a sizable investment across the entire value chain in new generation with transitional fuel, renewable energy, energy storage, electric transport infrastructure, and transmission and distribution networks. Despite all these investments, we would still be unable to overcome the variability of solar and wind energy, in particular, as they come and go with the weather and time of day. Unfortunately, with the continual push for higher integration of solar and wind energy in Kosovo, the stability of the grid is tested.

On a different note, whether renewables will ever cover 100% of electricity generation will depend greatly on the affordability of energy storage technologies, as newer technologies are being introduced to the global markets and R&D efforts are progressing. The emphasis on the affordability of technology is important. Merely pushing for greater integration of renewable energy to the grid, without supporting it with storage capacities, only risks security of supply. Without storage capacities that allow for flexibility, robust systems are unlikely to absorb fluctuations of generation from renewable resources.

Today, energy storage has become a vital part of grid planning and policy. With this technology, grids would be designed to best utilize generation from wind and solar resources when needed -- and to store excess energy when it is not. In this manner, introducing energy storage technologies, like battery storage units, can compensate for the intermittency of renewable energy generation. Had

Kosovo developed flexible renewable energy generation capacities these past years, the issue of intermittency would not pose such a concern.

Seeing how the business sector in Kosovo carries the greatest financial burden in the push for renewable energy integration, we must look for a way to soften this load through policy initiatives and strategic guidance; guidance on how to essentially unlock their own renewable potential and take advantage of different financial incentives to“go green”. One such incentive covers energy efficiency measures as well, cutting electricity consumption by 30%.

In addition to energy efficiency measures, many companies worldwide are attempting to make their businesses self-sufficient in terms of energy supply, by using solar panels, wind turbines and battery storage units to power their operations. A comparable model should also be introduced in Kosovo, hereby creating prosumers -producer/consumer.

Energy prosumers can:

1. Generate electricity from renewable energy sources;

2. Consume the electricity they generate;

3. Store any excess of generated electricity in the battery storage units; and

4. Sell any excess of generated electricity through power purchase agreements (PPAs).

Another innovative approach is also this model of prosumers, but on a larger scale. This is what is coined as Community Energy Storage, and it is a business model where multiple businesses install solar panels and share a common battery storage solution that is connected at a distribution network level. This would be best adapted in an economic zone, of which we have plenty for a pilot-run.

In conclusion, Kosovo needs proactive policies to ensure that the coal phaseout process does not only tackle the engineering concerns of this matter, but the social ones as well.

Business

Prof. Dr. Majlinda DACI-AJVAZI Director of Center for Energy and Sustainability, University of Prishtina

Energy enters our daily lives in a variety of ways. Energy is required to manufacture items from natural resources and to supply a plethora of the services that we have come to expect. Economic progress and higher living standards are complicated processes with one common denominator: the availability of a sufficient and stable energy supply.

Our human species originated a few million years ago, and the process of anthropogenic (humaninduced) environmental change began. We have subsequently grown in number and technical sophistication to the point that we are now globally influencing our planet. Using energy in quantities, more than what our bodies can create has a profound impact on the environment. Coal-fired pollution has been a severe urban issue for centuries. As we seek the globe for fuels that hold the stored energy that we require in an infinite supply, we cause further environmental destruction. Simultaneously, energy helps us achieve greater living standards and permits our planet to support a larger population.

Energy consumption plays an undeniably crucial role in the growth of human civilization.

Energy usage now allows highspeed communication, which connects us to the rest of the world. Unsurprisingly, indices of human happiness are frequently linked to energy usage. Ironically, the same energy use that allows us to experience unprecedented levels of luxury and material well-being also puts natural Earth systems in peril.

High-Energy Society

For Kosovan households, the Center for Energy and Sustainability (CES) at the University of Prishtina, is trying to answer this question by offering training for energy audits in buildings and public lighting

In the recent decades, the longstanding and still considerable repercussions of traditional pollution, resource exploitation, and energy-enabled growth have been eclipsed by a new and genuine global impact of humankind's energy use. Global climate change comes as a result of emissions from fossil fuel use, the leading factor. Climate change is a global issue that transcends national and even continental borders. It will affect us all, though not evenly. Climate change will not have the civilization-ending effects of an allout nuclear war, but it will put a lot of strain on an already overcrowded, divided, and belligerent planet.

To achieve a healthy world with a stable, supporting climate, we must either use less energy or use it in ways that have minimal environmental consequences. As a result, either we may deny ourselves the advantages of energy or we can use energy rationally,

achieving the same results with less energy. We can transition away from fossil fuels and toward energy sources that create less pollution and climate-changing emissions to reduce environmental and climate consequences. Alternatively, we can learn to trap fossil fuel emissions and sequester them away from the Earth's surface environment.

A planet regulates its temperature in the same way as a home does: it obtains energy from a source and expends it on its surroundings.“A penny saved is a penny earned”is as true adage as for tons of coal or barrels of oil. When one fewer ton of coal is used to heat our homes, not only does the coal not have to be mined from the soil but also there are no emissions to pollute the environment.

Energy efficiency is one aspect of energy conservation. How can the same goal be accomplished with less energy expenditure?

For Kosovan households, the Center for Energy and Sustainability (CES) at the University of Prishtina, is trying to answer this question by offering training for energy audits in buildings and public lighting. CES is a comprehensive transdisciplinary research and training center addressing the local and global challenges of sustainability. The center seeks practical solutions and policy applications for problems of global warming and climate change, renewable energy production, energy efficiency, and environmental preservation.

UP-CES has been granted permission by the Ministry of Economy for training and certification of energy auditors and performance appraisers in buildings. This way UP can demonstrate that in addition to being an academic institution, UP is ready to provide services to companies, individuals, and the general public. It is very important for Kosovo to develop a sustainable system of training energy auditors. CES has qualified 114 energy auditors so far, with another 50 undergoing continuous training.

However, no matter how hard we strive to live an environmentally friendly lifestyle, we are all responsible for a significant amount of energy consumption, environmental pollution, CO2 emissions, resource depletion, and other environmental affronts. Hopefully, we can all work together to increase awareness and enhance humanity's connection with Planet Earth.

‘Blackout: Tomorrow will be too late’, a book brilliantly written by Mark Elsberg. It depicts a plausible scenario of a cyberattack in the European grid causing a large-scale blackout. Consequence is nothing less than the apocalypse. It shows how dependent we are today on electricity as a product that fuels our day-to-day life and economic activity.

Arben KLLOKOQI ECRB Electricity Expert, Energy Community Secretariat

Price and Dependency

There shall be no illusions; transition will be tough and costly. Regardless, it remains the cheapest and the most sustainable alternative

In our homes, we probably pay more for phones, internet and cable TV than for electricity. There is nothing wrong with that. Electricity is considered a universal service and affordability criteria, together with measures to mitigate energy poverty, are important factors.

In Kosovo specifically, the concept of energy poverty is yet to be defined, established and implemented. In a nutshell, where the affordability criteria is not met through the price of electricity, which may well be the case when the prices of energy commodities in the wholesale market hit the roof, the Governments shall deploy measures to support specific categories of consumers that are considered energy poor. For businesses, cost or electricity is an input in the costs of products or services they produce or provide.

Governments can deploy different mechanisms to support local businesses, but it is crucial that such mechanisms are external to the electricity sector to avoid market distortions. Paying a fair price for electricity, and by fair we mean a price that reflects the costs of supply, is crucial for resource adequacy and security of electricity supply in the long-run. Price of electricity shall not be seen merely as an instrument to cover the costs of producing and transporting electricity, but also as an indicator on orientation of future energy, climate and environmental policies.

In other words, the price we pay today defines the electricity mix (source) we will have in the future, the environment we will live in and the air we will breathe.

As we are focusing on the price of electricity consumers pay as an indicator of our future path, we should look back and learn from our past. Kosovo surely had generally good plans, policies and strategies to develop, reform and strengthen the performance of the energy sector in general.

Did we deliver? Maybe a better question would be where did we fail?

There are probably several factors, some known and discussed widely and some unknown. One factor that has not reached the level of escalation it should, is the price of electricity consumers pay. Today we discuss extensively about the price (essentially the retail tariff, since all is regulated) of electricity, but the discussion is only limited on the affordability criteria. Rightly so, at the time of a crisis and in particular from the consumers point of view. But, wrongly so when discussing the energy and climate policies. Confronting views on different technologies that should compose Kosovo’s energy mix are generally healthy in reaching the right balance, but a strong bipartisanship is crucial on the market mechanism utilised to deliver investments, including also pricing the externalities linked with climate policies. Both these aspects, market mechanisms in triggering investments and pricing externalities, are very much associated with European policies to which Kosovo has signed to and politically committed; effectively decarbonisation by 2050.

The transition towards a decarbonised economy can only be enabled through a genuine process of greening the electricity sector. What was considered a cause of problem or challenge, shall now be seen as a problem solver or an opportunity. Businesses are best placed to capitalise the opportunities arising in this transition. In Europe, many businesses started getting electricity supplies from renewable producers through the so-called long-term corporate power purchase agreements. This has helped them hedge the long-term price risk and contribute in incentivising merchant renewable generators. In the 21st century, producing your products or service using green energy is the best advertisement any business can have. Transition towards a green economy accounts to a scale of industrial revolution. This is how in the future this era will be referred to. Countries, and the same is valid for businesses, that do not adapt themselves and their surroundings to this revolution will lose a golden opportunity to advance their economies.

On the other hand, there shall be no illusions; transition will be tough and costly. Regardless, it remains the cheapest and the most sustainable alternative.

Business Matters

Lendita GASHI

Improving the Security of Energy Supply in Kosovo

A new energy strategy for the next ten year will be launched soon. The strategy should take into account the commitments made under the green deal for Western Balkans, which means gradual transition to clean energy

Kosovo has been facing issues with the security of energy supply for many years due to the old infrastructure, inherited from the previous regime before 1999, and lack of proper maintenance over decades. While its lignite reserves are sufficient, Kosovo was unable to construct a new power plant, which was considered the least cost power generation option in the region according to the World Bank Generation Investment Study of 2005. The existing lignite power plants (‘Kosova A’and ‘Kosova B’) continue to operate and they supply around 90% of the demand in the country. Both plants have surpassed their operational lifetime. Due to security of energy supply the plants continue operating while being a threat to the environment and public health. The energy sector contributes to nearly 90% of greenhouse gas emissions in the country.

Both plants require huge investments to comply with the requirements of the Energy Community for reduction of dust, NOx and SOx emissions to the limit values set in the applicable directives, but investments are also required to improve the reliability of the plants. At the same time, Kosovo will have to apply a carbonpricing mechanism that in the long-term will have an impact on the feasibility of the investments at the power plants.

In the last few years there was a significant increase in electricity consumption particularly in households during the season of“high demand-winter”, due to use of electricity for space heating. The increase in consumption is mainly due to low retail tariff that encouraged the consumers to switch from burning of biomass and coal, to electricity use for space heating.

Program Manager for Energy Infrastructure, EU Office in Kosovo

The increase of energy efficiency standards and building energy performance certification and also the use of renewable energy is key to reducing consumption in the buildings. At present, large building blocks are under construction with little concern for energy efficiency measures, most buildings with heating installations based on electricity and no use of renewables. New policies are required immediately to incentivise the use of renewables in buildings and other energy efficiency measures. There are available financial instruments operating through commercial banks but also the need to help the lower income consumers to switch to technologies that are more efficient.

The commitment undertaken as a part of the Energy Community for nearly zero energy buildings, both public and private, is yet to be implemented. A strategy for boosting big investments on buildings’ energy efficiency is critical and most worthwhile. In the long-term the transition will require many changes in the energy system where the consumers will play an

active role. Cities need to develop sustainable development plans with focus on clean energy and transport.

Increasing the share of the district heating supply in the energy consumption is also important. There is an on-going feasibility study to develop district-heating systems in Kosovo’s biggest cities, considering Prishtina has a wellfunctioning district heating service; there is the need for expansion due to it only covering 30% of the demand. In Gjakova, the EU financed heating plant, and cogeneration started operating last year. The new plant burns woodchips biomass to produce heating and a small capacity of electricity. Similar systems could be built in a few other cities. Nevertheless, to encourage investments on these plants, a sustainable supply chain of biomass needs to be established.

The possibility for connection to the regional natural gas network has been investigated. Nevertheless, the use of gas for power generation is not perceived as a viable solution. Yet the possibility of gas utilisation in the district heating systems could be

considered. A strategy is needed for developing a clean gas/hydrogen market, including the possibility for domestic production in addition to imports.

A new energy strategy for the next ten year will be launched soon. The strategy should take into account the commitments made under the green deal for Western Balkans, which means gradual transition to clean energy, namely renewable energy and energy efficiency and gradual coal phase-out. There are studies that assessed Kosovo’s great potential for developing wind and solar. By the end of 2021, Kosovo registered a total installed capacity of 228 MW of renewable electricity generatio n; another 100 MW of solar PV is expected to be installed in KEK during the next few years. Policies and incentives need to be in order, to attract investments on renewable energy and energy storage.

Gazmend KABASHI BAJRAMI-RAMA KOSTT

Developing Future Energy Capacities in Kosovo

Energy policies are changing globally, especially given the integration of climate change as a global priority. Added attention is now required in providing flexible units to facilitate energy system balancing

Sustainable and reliable electricity supply is a crucial factor in the daily life and activities of citizens on one hand, while on the other hand, it is the basis for economic and industrial development of a country.

Kosovo underwent various stages of development and consolidation of the Power System (SEE), where the beginnings of the first electrifications of some limited localities or small industrial facilities date back to the‘20s of the 20th century. The dependency on natural resources available to produce electricity in Kosovo, the greatest substantial development of generating capacities took place from 1960 to 1984. Five generating units of‘Kosova A’ Power Plant and two units of ‘Kosova B’Power Plant were built and started operating. In the first half of the 20th century, small Hydropower Plants started their construction in our country. The Hydropower Plants capacities were modest and remain the same, due to small river inflows in Kosovo

Kosovo Power System was designed and developed based on the primary sources of lignitebased electricity generation as a raw material, being the main natural energy resource in the country.

Kosovo went from being dependent on lignite for

providing 95% of electricity generation, to achieving significant progress in diversifying its energy sources through energy policies, support and facilitation measures.

According to the Electricity Balance for 2022, the potential installed capacity of electricity from Renewable Energy Sources (RES) in Kosovo is 21.4% while from lignite 78.6%.

In security of supply, the Transmission System plays a crucial role in enabling the transmission of electricity safely and reliably 24 hours a day, 365 days a year from the generation units to the distribution system. The Transmission Network in Kosovo developed over the last 60 years in several phases of construction, expansion, reinforcement and consolidation, to ensure safe and coordinated operation while balancing and providing a transparent and nondiscriminatory approach to the parties involved in the system.

As a key link in supporting security of supply, since the establishment of KOSTT almost 16 years ago, continuous investments have been made. Investments to ensure a high degree of availability and reliability of the electricity Transmission System, creating conditions to cope with the increasing load/consumption in the network as well as for the integration of new energy sources.

Kosovo firmly interconnects with neighboring systems, through eight interconnection lines. Through the transmission network of 1430 km total length and 6079 MVA transformer capacity, it can accommodate electricity up to 1870 MW. So far, the highest peak load of 1398 MW of electricity is marked at 23:00 on December 21, 2021.

Electricity consumption in Kosovo has marked a continuous increase, compared to the year 2000; it has increased by 130%. In the last 10 years the highest annual consumption was in 2021, with 6764 GWh or 11% higher compared to the previous year.

Kosovo Power System was developed and built, to adapt to the characteristics of conventional energy generators.

Until recently, Kosovo Power System has been characterized by a small number of large power generators, a picture that has begun to change significantly in recent years. The number and nature of generators is now increasing. In the last three years, in the Power System of Kosovo 131 MW of energy generated by RES has been added. Mainly by generation from wind turbines and hydropower plants, while a relatively low capacity is from solar sources. Interest in developing new capacities in solar and wind resources is growing.

Now, generators are not located in one place but scattered in different regions and have different generation capacities. Injecting energy generated into the system at different points and regions, with different capacities that may vary depending on climatic conditions, requires greater system flexibility to balance demand and generation.

Energy policies are changing globally, especially given the integration of climate change as a global priority. Added attention is now required in providing flexible units to facilitate energy system balancing, as RES integration

has technical features other than that for which this system was built and adapted.

Renewable Energy Sources mainly connect to the Transmission System, therefore, continuous investments in the network and the provision of balancing capacities are essential. New flexible units are required to support the integration of RES, such as batteries or reversible hydropower plants.

Battery energy storage systems are technologies that increase the flexibility of the system as well as create suitable conditions for the integration of Renewable Energy Sources (RES) in the transmission system. Being fast in response, they help balance the system in real time through their use for secondary Frequency Restoration Reserve (aFRR), tertiary (Manual Frequency Restoration Reserve - mFRR) and energy arbitrage. In functional terms, they resemble reversible hydropower plants. In this context, with the support of the USA through the MCC program, the installation of battery energy storage systems with a capacity of 170MW and with the possibility of accumulation of about 340MWh is foreseen.

KOSTT plays a critical role in creating the conditions and opportunities for integration and operation of RES in the transmission network, thus providing an essential contribution to the journey towards the inevitable decarbonization process.

Furthermore, the development of the KosovoAlbania common energy market and the further integration into the regional and pan-European market will enable greater integration of RES and the development of the ancillary services market.

According to United Nations (UN) data, the energy and heating sectors are the largest contributors to global greenhouse gas emissions, accounting for approximately 35% of total emissions.

According to the European Union (EU) data, 75% of

greenhouse gas emissions of the EU come from the production and use of energy.

Considering the commitments made under the Paris Agreement, the EU is committed to achieving climate neutrality by 2050 through policies addressed to the European Green Deal and further the legislative package known as "Fit for 55"; proposed in 2021 through which the EU aims to reduce greenhouse gas emissions by at least 55% by 2030.

Plans and actions to address climate change have already taken on a pronounced dynamic in the world, becoming a global issue. It became a bigger issue, after the developments that defined the beginning of 2022. Russia's war in Ukraine and the need to reduce dependence for gas supply from Russia.

Kosovo's strategic policy planning in the energy sector, currently underway, is expected to concretely address the orientation in the development of new energy capacities; as well as Kosovo's path towards decarbonization.

Currently, the Government of Kosovo is drafting the New Energy Strategy 2022-2031 where one of the main objectives will be the process of decarbonization of the energy sector by increasing new RES capacities and increasing energy efficiency. Nevertheless, the development and creation of opportunities for accommodation and integration of new energy capacities by RES presents benefits in several areas.

These areas include increasing security of supply, reducing dependence on imports and on the other hand the inevitable addressing of climate change through decarbonization. Undoubtedly, the benefits of this process will also be the creation of new jobs and the opportunity to address gender equality in the transition to clean energy.

Adnan PRENIQI

Focus of the new Energy Strategy in Kosovo

Meeting ambitious decarbonisation requirements is challenging, but it also presents an opportunity for Kosovo to diversify its production and increase its share of renewable energy

The Ministry of Economy of the Republic of Kosovo prepares and implements policies that promote economic growth and stability, enable the development of domestic business, promote economic cooperation to attract foreign investment, guarantee competition and a secure market, ensure sustainable development and perspective of the country's energy and mineral resources, ensure the development of the telecommunica tions and information technology sector, as well as guarantee efficiency in the administration of public enterprises.

Energy is one of the most important sectors of the country's economy, which faces challenges such as decarbonisation, affordability and security of supply. Currently more than 90% of

electricity consumption is met by lignite power plants, but these units are nearing the end of their lifespan. The Republic of Kosovo is committed to start the energy transition to clean and sustainable energy, but without compromising security of supply and affordability. Kosovo has already started reviewing the legislation and strategic documents for the energy sector.

As a Contracting Party to the Energy Community, Kosovo has joined the initiative to transpose the Clean Energy Package based on the Decisions of the Energy Community Ministerial Council of November 30, 2021. Kosovo has committed to the Sofia Declaration on the Green Agenda for Western Balkans in November 2020, to achieve climate neutrality by 2050.

Deputy Head of Energy Policy Division, Department of Energy, Ministry of Economy

Based on the commitment to the Sofia Declaration and the decisions of the Ministerial Council for the Clean Energy Package, Kosovo has begun the process of reviewing energy legislation. It has already approved the concept paper on Renewable Resources and is drafting the law on RES. The process of preparing a concept paper to review the basic energy legislation, including the Law on Energy, the Law on the Energy Regulator, the Law on Electricity and the Law on Energy Efficiency, has also begun. The concept papers are planned to be approved by the end of 2022, while the drafting of these laws is planned to be done during 2023 according to the dynamics foreseen in the Decisions of the Ministerial Council of the Energy Community.

In addition to drafting concept papers for the basic legislation of the energy sector and drafting the Law on RES, progress is being made in designing of support schemes for investments in the field of RES through Auction schemes/competition based schemes, as well as the design of a pilot project for announcing the first auction. The above activities are being supported by USAID and the Energy Community Secretariat (ECS).

Regarding the strategic planning aspect, Kosovo is already drafting the Energy Strategy 20222031. The Ministry of

Economy established the Working Team to draft the Energy Strategy for the 2022-2031 period. The Working Team includes Institutions, Companies and relevant actors of the energy sector. The process of drafting the Energy Strategy is supported by USAID through technical assistance and consulting companies "Regional Center for Energy Policy Research" and "Tetra Tech" are engaged.

The Energy Strategy of the Republic of Kosovo 2021-2031 is a basic document defining the key directions and actions for the development of the energy sector over the next 10 years. This strategy aims gradual decarbonisation to reach climate neutrality by 2050, maintaining energy security, affordability for end consumers, increasing the use of clean energy and ensuring the integration of the regional market in an economically sustainable and viable way. The strategic objectives on which this strategy will be based are:

•Gradual decarbonization and promotion of renewable energy;

•Improving system stability;

•Increasing energy efficiency for end use;

•Strengthening regional cooperation and market functioning;

•Consumer protection and empowerment.

Renewable energy sources and energy efficiency represent two main pillars of building the energy transition in the Republic of Kosovo. The construction of new energy capacities by RES and the increase of energy efficiency contribute to the security of energy supply, diversification of energy sources, economic growth, reduction of greenhouse gas emissions as well as competitiveness.

The Energy Strategy envisages that by 2031 to build energy capacities from renewable energy sources up to 1470 MW, from wind and solar (compared to about 300 MW as it is currently). This approach represents Kosovo's commitment to a long-term path towards decarbonisation, balancing its objectives of energy security and affordability for energy consumers.

Meeting ambitious decarbonisation requirements is challenging, but it also presents an opportunity for Kosovo to diversify its production and increase its share of renewable energy, increase the use of various energy conservation technologies, and reduce consumption through mass energy efficiency, and we obviously need international support for that.

Business Matters

Naim ZEQIRI

Increasing Energy Efficiency

An important component that will give a boost to the growth of EE is the implementation of the legislation on energy performance in buildings

Energy efficiency does not simply mean reducing energy consumption; this action contains many subsequent effects that directly affect the quality of our daily lives. In addition to reducing financial costs for households and the economy, energy efficiency directly affects the reduction of greenhouse gas emissions, reducing the demand for energy imports and eliminating energy waste.

Almost the whole world is currently facing an energy crisis, including our country. The increase of energy efficiency appears as an imperative of the time, beyond the obligations that the country has as part of European initiatives and other mechanisms, which we aim to be part of in the nottoo-distant future.

These commitments and the current need to reduce energy consumption, Kosovo institutions, supported by international financial institutions and donors, without excluding private sector initiatives, energy efficiency, day by day is receiving due attention.

In our country, there is an institutional structure

responsible for energy efficiency. Mainly operating from the central level, extending to the local level that deals with the development implementation, and monitoring of specific policies and programs in this sector.

Recently, we have had a number of projects aimed at increasing energy efficiency in sectors such as: construction, transport and services. Still, the leader in this area remains the construction sector. During 2021, the 5th Package of the Kosovo Project for Energy Efficiency and Renewable Energy (KEEREP) loan from the World Bank was finalized, within which the EE measures were implemented in 29 public buildings.

Meanwhile, the 6th package of this project that is scheduled for this year, provides for the implementation of EE measures in 12 public buildings, concluding the project. The whole project involved about 80 public facilities. Therefore, it can be concluded that in a large part of public health, administrative and educational facilities, energy efficiency measures have already been implemented.

Acting Executive Director, Kosovo Agency for Energy Efficiency

In the last year, over 10 million euros were invested in the implementation of energy efficiency measures in public buildings and households, which according to preliminary calculations, the reduction of consumption in them can reach a quota of up to 40% less energy. During this year almost double the investments are planned, clearly showing a tendency to increase investments in energy efficiency. This includes the project "Energy Efficiency Measures in public buildings at the municipal level in Kosovo", which provides for the implementation of EE measures in school buildings in four municipalities in the amount of 7.5 million euros, loan / grant from KfW and WBIF.

The Millennium Foundation Kosovo (MFK) funded by MCC, made an important contribution to the residential sector regarding energy efficiency. The REEPLUS project envisages the implementation of EE measures in 1000 individual houses and 26 collective buildings. While part of this project is the installation of metering units for about 14 thousand customers of

central heating in Pristina, significantly increasing the rationalization of thermal energy consumption by customers.

The Ministry of Economy this year plans to implement, from its pilot budget projects in energy efficiency, in order for them to serve in the future as models for investment in this sector.

The target of these investments remains the public sector. It is expected soon that from investments in the public sector it will shift to investments in the private sector. Respectively households, as one of the highest consumers of electricity and heat, which constitutes the sector with potential higher for reducing energy consumption.

This is a call to review the current legal framework and not only, in order to pave the way for alternative investments in energy efficiency, making this sector more convenient for investment by the private sector. For this purpose, the Ministry of Economy has initiated the revision of the primary legislation that regulates energy efficiency, which will be followed by changes in the secondary

legislation aiming to adapt it to the needs of the sector and current circumstances.

Incentives for energy efficiency are being considered, through fiscal and non-fiscal measures by stimulating citizens to install and use as much efficient equipment and at the same time to limit the possibility of free trade of inefficient equipment that spends a lot of energy.

An important component that will give a boost to the growth of EE is the implementation of the legislation on energy performance in buildings. This sets mandatory standards related to energy efficiency in the construction sector and helps the creation of institutional and professional mechanisms that will deal with their implementation.

Beyond the commitments that the country has in this area, energy efficiency remains a high priority for institutions, so in addition to institutional actions, it intends to work in parallel to raise the awareness of citizens that energy saving becomes a way of life, and convince them that it increases comfort and protects our environment!

Focus on Patron

LIMAK GROUP OF COMPANIES

Established in 1976 Limak Group of Companies has expanded into numerous industries and it continues to do so sustainably even today.

Today, Limak operates in the construction, tourism, cement, infrastructure, investment, energy, food, and aviation industry.

Limak has undertaken several airport development projects worldwide including Istanbul Sabiha Gokcen Airport, Prishtina International Airport, Dakar Blaise Diagne Airport, as investor, operator, constructor; and Cairo International Airport, Kuwait International Airport, Rostov International Airport, Volgograd International Airport, Chelyabinsk International Airport and Khabarovsk International Airport as contractor.

Limak is one of the consortium companies of Istanbul New Airport project; one of the largest airports in the world with a capacity of 200 million passengers.

LIMAK KOSOVO INTERNATIONAL AIRPORT J.S.C

Limak in consortium with Aeroports de Lyon in 2010 won the concession of Prishtina International Airport 'Adem Jashari' for a period of 20 years. In 2013 it constructed the new terminal and now it handles around 2.4 million passengers and serves more than 30 destinations with more than 20 airlines. The runway is extended From 2500m to 3040m, and Its instrumental landing system (ILS) is upgraded to cat IIIB.