TPP Kosova e Re Newsletter No.2 (ENG)

No. 2 November 2018

N E W S L E T T E R www.mzhe-ks.net

Content: POTENTIAL ENERGY GENERATION TRANSITION SCENARIO Kosovo’s vision of energy sector transformation

FORECASTED DEMAND

RENEWABLES

TPP B TPP A

2018

2023

23% 77%

FEED IN TARIFFS

DOUBLED

MORE THAN

TRAINING:

OF THE

CAPACITIES

ENERGY -

CAPACITY

ENERGY

IN DISTRICT

COMMUNITY

DEVELOPMENT FOR

SECTOR IN

HEATING

DEVELOPMENT

IMPLEMENTING

FUND

COMMERCIAL

TPP KOSOVA E RE

2040

2060

50% 50%

100%

3%

97%

TRANSITION

NEW RES SUPPORT INCENTIVES

Coal

KOSOVO

FULLY COMPETITIVE RES

Renewable

AGREEMENTS

Transition

TRANSITION OF THE ENERGY SECTOR IN KOSOVO The Energy Strategy 2017-2026, adopted by the Kosovo Assembly, sets forth the objectives of development of the energy sector. This strategy focuses on development of new generation capacities, sustainable and safe supply of energy for the citizens, sustainable economic development and environmental protection.

The transition of the energy sector in Kosovo is a very important process for the country in fulfilling the strategic objectives and criteria set forth by the European Union (EU). “Kosova e Re” Power Plant is at the center of the transition that will provide the security of supply for the future of the energy sector. The security of supply with electric energy for Kosovo is first and foremost linked to the “Kosova e Re” Power Plant, as the most financially viable option that also meets environmental standards.

In compliance with the Energy Strategy, the development of Renewable Energy Sources (RES) is essential to the future of energy in the country. However, until the time

RES will meet the set targets, “Kosova e Re” Power Plant shall provide for the security of supply for electric energy.

Kosovo has applied a support scheme with feed-in tariffs for investment in renewables from water, wind, sun and biomass. Meanwhile, efforts are ongoing to restructure RES support schemes to the requirements of the Energy Community. The legislation in the energy sector, notably the Law on Energy, aim to optimize the utilization of RES, including determination of annual and long-term generation targets, and their placement in the market. In order to promote the use of RES, the Ministry of Economic Development has drafted a 10year Action Plan to help Kosovo meet its goals set by the Energy Community for 2020.

Development of the “Kosova e Re” Power Plant serves the aim of developing and constructing new RES capacities, to provide substantial, safe and sustainable electricity, as a precondition for RES development.

POTENTIAL ENERGY GENERATION TRANSITION SCENARIO Kosovo’s vision of energy sector transformation

FORECASTED DEMAND

RENEWABLES

TPP B TPP A

2018

TPP KOSOVA E RE

2023

2040

2060

50% 50%

100%

3% 23% 97%

77%

FEED IN TARIFFS

NEW RES SUPPORT INCENTIVES

Coal

FULLY COMPETITIVE RES

Renewable

Transition

DOUBLED CAPACITIES IN DISTRICT HEATING

Source: Termokos

Co-generation implies electric energy generation when

Obiliq, Fushë-Kosovë, Vushtrri and Drenas.

combined with thermal energy in a single power plant.

The “Kosova e Re” Power Plant will have generation capacities With the commissioning of the “Kosova e Re” Power

equal to the “Kosovo B” Power Plant capacities, each

Plant, 10% of its electrical capacity shall be ready for

producing 250 MW of thermal energy equivalent. On the

co-generation, which will allow for an extension of the

other hand, the planned decommissioning of the “Kosovo A”

existing network covering the Municipality of Prishtina,

Power Plant will not influence district heating supply.

BROCHURE

KEY FACTS

FAQ

2

MORE THAN ENERGY - COMMUNITY DEVELOPMENT FUND One of the immediate benefits of the “Kosova e Re”

improvement of their livelihood.

Power Plant is the establishment of the Community Development Fund (CDF) at the amount of 10 Million

Additionally the CDF will specifically support projects

Euro, allocated by the investor ContourGlobal. This

aimed at employment generation, as a direct demand

fund shall be disbursed from the commencement of

of the community voiced during the public consultation

construction for a 7 year period. The investor shall

phase.

contribute 1.5 million Euro annually for the first six years, and 1 million Euro in the seventh year.

Objectives set forth for the Fund: sustainable community development for over a generation; planned, monitored

The CDF shall directly support those affected by the

and assessed development with long term benefits;

project. The aim is to help communities improve

and support development plans of local governments.

their social environment, improve equality and social

Appointees of the Government and ContourGlobal will

justice, build capacities and involve the community in

select jointly, projects to be funded by the Community

decision-making processes, contributing in turn to the

Development Fund.

CONTRIBUTED BY

Contour Global

TIMING

PROJECT AGREEMENT REFERENCE

AMOUNT

At or prior to the Transfer Date (Approx. Jan 2023)

SSA § 6.1

€1,500,000

1 year anniversary of Transfer Date (Approx. Jan 2024)

IA § 10.1 (a) (i)

€1,500,000

2 year anniversary of Transfer Date (Approx. Jan 2025)

IA § 10.1 (a) (i)

€1,500,000

3 year anniversary of Transfer Date (Approx. Jan 2026)

IA § 10.1 (a) (i)

€1,500,000

4 year anniversary of Transfer Date (Approx. Jan 2027)

IA § 10.1 (a) (i)

€1,500,000

5 year anniversary of Transfer Date (Approx. Jan 2028)

IA § 10.1 (a) (i)

€1,500,000

6 year anniversary of Transfer Date (Approx. Jan 2029)

IA § 10.1 (a) (ii)

€1,000,000

TOTAL

€10,000,000

3

TRAINING: CAPACITY DEVELOPMENT FOR IMPLEMENTING COMMERCIAL AGREEMENTS

In accordance with the contracting obligations implied with the signature of Commercial Agreements on development of the “Kosova e Re” Power Plant, the Government of the Republic of Kosovo established the New Kosovo Energy Company (NKEC) in May 2018, an enterprise that shall be directly responsible for the implementation of the Power Purchase Agreement.

Members of the provisional Board of Directors of this agreement were trained in the implementation process of

Commercial Agreements for the “Kosova e Re” Power Plant in a five-day workshop. The workshop provided substantial information on the role and responsibilities of NKEC, including recommendations and advice for the best possible implementation of such obligations.

This workshop concluded a series of workshop for capacity development for officers of the Government of Kosovo and relevant ministries, divisions, agencies and publicly owned enterprises.

PROJECT DOCUMENTS To learn more about the Kosovo a Re Project, the following links and documents to Commercial Agreements, Brochure, FAQ and social media have been provided below.

Power Purchase Agreement

Ash and Gypsum Disposal Agreement

Implementation Agreement

Lignite Supply Agreement

Sponsor Support Agreement

Connection Agreement

Site Transfer Agreement

Water Supply Agreement

LINKS

SOCIAL MEDIA

Ministry of Economic Development

Facebook

“Kosova e Re” PP

Linkedin

Kosovo Energy Strategy

Twitter DOCUMENTS

BROCHURE

GOVERNMENT OF KOSOVO MINISTRY OF ECONOMIC DEVELOPMENT Tel. 038 200 215 83 www.mzhe-ks.net

KEY FACTS

?

ADDRESS: GOVERNMENT OF KOSOVO MINISTRY OF ECONOMIC DEVELOPMENT SQUARE “ZAHIR PAJAZITI”, NO.36 10000 PRISHTINA, REPUBLIC OF KOSOVO

FAQ