Strong performance by Kosovo’s first large-scale wind and solar farms show the coal-dominated, Western Balkan country can exploit falling renewables costs and green lending appetite to align better with a low-carbon European transition and reduce losses from stranded fossil fuel assets.
According to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA), Kosovo has multiple opportunities to move beyond coal, which provided 95% of its electricity last year. It can close the oldest of its two coal plants; boost building efficiency to reduce crippling energy losses; strengthen electricity distribution networks; improve interconnection with its neighbours; and conduct electricity market reforms.
“The country must move beyond coal to secure its energy future,” said Arjun Flora, co-author of Beyond Coal: Investing in Kosovo’s Energy Future. “This will include meeting pan-European standards on carbon emissions and air quality, as well as adopting a rapidly rising carbon price so it can ultimately join the European Union”.