Making Kosovo Energy Efficient

Project description

Title: Kosovo Energy Efficiency Project 
Commissioned by: Federal Ministry of Economic Cooperation and Development (BMZ)
Country: Kosovo
Lead executing agency: Ministry of Economic Development  
Overall term: 2017 to 2019

Context

Ensuring a reliable and affordable energy supply in the country is a high priority for the Government of Kosovo and a necessity for economic growth. However, the country is facing enormous challenges from a rising demand for electricity and heating, while the existing power plants have limited capacities and are showing supply bottlenecks. Currently, 96 per cent of electricity is generated from old and inefficient lignite-fired plants, which cause high levels of pollution. Nearly 40 per cent of the energy is used by the residential sector. If compared to the EU average, the demand of energy per square metre in Kosovo is twice as high.

Energy efficiency (EE) is commonly considered the “first fuel” of economic development, with its energy savings completely eclipsing most forms of generation costs. For Kosovo, the increase in EE is therefore an important goal. As a member of the EU Energy Community, the country has committed itself to implement the energy chapter of the EU aquis. Hence, by 2030 the Government of Kosovo is aiming to reduce energy consumption by 32.5 per cent compared to projections, in orientation to the EU energy efficiency target. 

Objective

The project improves the capacities of relevant actors for the efficient implementation of Energy Efficiency (EE) measures. Central level institutions and municipalities have successfully improved the normative and regulatory framework for the development of the EE sector. This includes national building standards and other mechanisms such as sustainable municipal energy planning, a system for energy auditing and the energy certification of buildings, inspection of heating, ventilation and air conditioning (HVAC) systems, and energy management.

Approach

To tackle the challenges and achieve the objectives mentioned above, the project: 

• Supports the national EE Agency (KEEA) in improving the normative and regulatory framework for the implementation of EE measures, with an additional focus of coordinating the developing process of an integrated energy and climate plan;
• Increases the capacities of EE service providers such as energy auditors and energy managers by establishing private and public academic institutions and providing training programmes for energy service providers; 
• Introduces EE instruments in selected municipalities that enable the planning and prioritisation of EE measures in municipal EE action plans as well as the implementation and monitoring of these plans; 
• Enhances technical and political dialogue on Energy Transition by establishing a regular exchange of relevant actors from politics, civil society, academia and the private sector.

Results

The professional exchange with municipalities spreads the gained experiences to conduct EE planning, implementation and monitoring nationwide. Local authorities and municipal energy managers are now able to carry out these tasks. 38 municipal energy managers are being trained to join municipal energy management processes and engage in the development of the municipal EE Action Plans. These plans identify and prioritise EE investments to be financed by a recently established EE fund and other financing instruments and are regularly monitored at the national level to enable further policy making. 

Finally, a close cooperation with the government and civil society such as Kosovo Sustainable Development Week (KSDW) which motivated the creation of the Network for Clean Energy Businesses, today serves as a dialogue exchange to strengthen the relevance of the country’s energy transition.