CLEVELAND, Dec. 2, 2015 (IEEFA)—The government of Kosovo should abandon its plans to build a new coal-fired power plant, the Institute for Energy Economics and Financial Analysis (IEEFA) has concluded in a review of the project.
“Introduction of the New Kosovo coal plant would likely cause electric rates in Kosovo—a country whose people are already paying too much for electricity relative to their income—to rise by up to 50 percent,” said Tom Sanzillo, director of finance for IEEFA.
Sanzillo noted also that the New Kosovo plant has been under consideration off and on for over a decade and that the size and scope of the project has changed repeatedly and without explanation, including as recently as two weeks ago. Sanzillo questioned in particular the World Bank’s support for the project.
“The World Bank is committed to assisting the poor, but this plant—under any of the various scenarios that have been put forth thus far—would leave the poor paying more for electricity,” Sanzillo said. “It would also harm national economic growth by encumbering the public with large loans for decades to come. It is an unnecessary burden, at a significant expense, with unreasonable terms and extravagant subsidies.”
IEEFA, a U.S-based group that studies coal finances globally, is working with the Kosovo Civil Society Consortium for Sustainable Development (KOSID) to research the project.
“The proposed ‘New Kosovo’ coal plant, if built, would cause the price of electricity in Kosovo to rise to unreasonable levels and would place unnecessary burdens on the Kosovo economy, its businesses and residents,” said Visar Azemi, KOSID’s coordinator. “Any bank considering subsidizing this wasteful and expensive project should invest instead in supporting the development of renewable energy and energy efficiency in Kosovo.”
IEEFA’s research suggests also that the cost of the plant could be significantly higher than the government of Kosovo has acknowledged.
Among the project’s red flags:
IEEFA issued these additional warnings:
The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy and to reduce.