IFC and Kosovo Energy Regulator Agree to Cooperate to Develop Renewable Energy Market

IFC, a member of the World Bank Group, agreed to cooperate with the Energy Regulatory Office in Kosovo to improve the existing regulatory framework relating to renewable energy sector and spur investments in this field.

“The Feed in Tariff mechanism has proved to be a very successful and effective policy to promote the development of renewable energy technologies. The development of feed in tariff for photovoltaic (PV) power generators, with invaluable support from IFC’s Balkans Renewable Energy Program (BREP), will enable us to diversify the technologies for electricity generation,” said Krenar Bujupi, Member of the Board of the Energy Regulatory Office. “The feed in tariff methodology for solar generators, as was the case in the past with the existing feed in tariff for water, wind and solid biomass generators, will be developed to take into account the actual cost of electricity generation and to allow investors a reasonable return for their investments in renewable technologies.”

In addition to the Feed in Tariff for photovoltaic power generators, IFC is also going to work with the Energy Regulatory Office on drafts of standardized power purchase and grid connection agreements, as well as on regulation related to the guarantee or origin. In Kosovo, IFC’s BREP cooperates with the Ministry of Economic Development, Energy Regulatory Office, local financial institutions, developers of renewable energy projects and other public and private stakeholders in the energy sector. Through BREP, IFC aims to remove the market barriers in order to enable investments in renewable energy projects.

“The results of our cooperation agreement with the Energy Regulatory Office in Kosovo are expected to boost the interest of credible investors in renewable energy projects” said Elira Sakiqi, IFC Kosovo Senior Country Officer. “Furthermore, the new regulatory framework will enable Kosovo to meet its international obligation that by 2020, 25% of the overall energy consumption of energy must come from renewable sources.”

BREP is a regional advisory program initially implemented in Albania, Bosnia and Herzegovina and Macedonia. In July 2012, the program was expanded to include Serbia, Kosovo and Montenegro. The program aims to develop market for renewable energy in the region, as a means to green the economies, diversify energy mix in the Balkans, and support the countries’ progress towards the European Union. IFC is implementing its Renewable Energy Advisory Program in the Balkans in partnership with the Austrian Finance Ministry.

energjia.al, 20.06.2013