Business

Financing For Kosovo To Use Solar Power For District Heating

Backed by European Union, KfW & EBRD, Kosovo To Become 1st Western Balkan Economy To Deploy Solar Power To Heat Homes

Anu Bhambhani
  • Kosovo is to construct a 50 MW solar power plant in capital Pristina to power central heating system for 38,000 people
  • It will help replace individual heating system and bring down air pollution, according to the EBRD
  • The bank along with the EU and Germany's KfW have pooled in finance to bring the project to reality

A 50 MW solar power plant, financed by the European Union (EU), KfW and the European Bank for Reconstruction and Development (EBRD), is envisaged to come up in Kosovo to power central heating systems which will make it the 1st Western Balkan nation to use solar energy for this purpose.

The PV project in Kosovo's capital Pristina will generate enough clean energy to ensure access to central heating system for around 38,000 citizens, enabling replacement of individual heating systems. A byproduct of the plan will be reduction in air pollution.

"Thanks to this project, many families in Pristina will stop burning coal and wood to heat their homes, which will, in itself, significantly increase their air quality and reduce CO2 emissions," said EBRD Managing Director for Central and South-Eastern Europe, Charlotte Ruhe. "But this new heat will be "green" as well."

The Solar4Kosovo District Heating Project is expected to cost an investment of over €80 million, out of which Germany's KfW is shelling out €31.6 million and the EU another €21.5 million. Remaining €23.2 million is to be provided by the EBRD under financing agreement signed by the country's Ministry of Finance, Labour and Transfers.

According to the bank, this investment is part of Renewable District Energy in the Western Balkans (ReDEWeB) technical assistance program that aims to promote the use of renewable energy for district heating and cooling systems. It is financed by the Austrian government and administered by the EBRD.

"Kosovo's transition to green energy is our common goal," said EU Ambassador to Kosovo Tomas Szunyog. "The solar heating plant is the latest EU investment in that direction, but it is far from being the only one. The EU will support the energy transition and sustainable development of Kosovo through another 100-megawatt solar electricity project with the Kosovo Energy Corporation."