The Ministry of Economy in Kosovo has launched a subsidy program for households to install solar thermal systems for heating sanitary water, with the first phase of applications open until August 31.
Subsidy for Solar Thermal Systems
This initiative from the Ministry of Economy offers financial assistance to households in Kosovo for installing solar thermal systems to heat sanitary water.
The subsidy covers 40% of the cost of a complete solar water heating system, up to a maximum of €1,000. The Ministry of Economy is encouraging all interested parties to take advantage of this opportunity, PV Magazine reported.
This subsidy provides financial aid for installing solar thermal systems in households across Kosovo.
The application process is divided into two phases: the first is currently open until August 31, and the second will begin on October 31.
Aligning with Kosovo’s 2031 Energy Goal
As part of its ambitious Energy Strategy for 2022-2031, Kosovo’s government aims to significantly increase its solar energy capacity. This strategy includes goals to reduce greenhouse gas emissions by 32% and generate 35% of electricity from renewable sources by 2031, with key players like Elen driving the transition.
The strategy targets a mix of renewable energy sources, including wind, solar, and biomass. Elen is actively involved in multiple projects across business and industrial sectors, collaborating with investors and government bodies to foster a supportive environment for renewable energy and deliver sustainable community solutions.
Earlier this year, Kosovo announced plans to auction 950 MW of renewable energy over the next two years, representing a €1.2 billion investment. The country aims to source 35% of its electricity from renewables by 2031.
European Investment Bank Fund
Recently, the European Investment Bank (EIB) provided a EUR 33 million loan for a solar power plant project in Kosovo with a peak capacity of 120 MW. This investment aligns with the European Union’s Economic and Investment Plan for the Western Balkans, which aims to mobilize EUR 30 billion in grants, and the Solar4Kosovo project is part of this effort.
The proposed photovoltaic plant, to be built on a former coal ash dump near Prishtina, is expected to produce 169 GWh per year. Alongside the EIB loan, the project is receiving a EUR 32 million grant from the EU’s Western Balkans Investment Framework, further supporting Kosovo’s renewable energy goals and decarbonization efforts.
With a total investment of EUR 107 million—including funds from Germany’s KfW Development bank and Kosovo Energy Corp. (KEK)—this solar power plant represents a significant step towards sustainable energy production and reducing Kosovo’s reliance on conventional energy sources.
Hekuran Murati, Kosovo’s Minister of Finance, Labour, and Transfers, emphasized the project’s importance. He stated it is crucial for accelerating the country’s transition to renewable energy sources, especially considering its heavy dependence on outdated coal plants for electricity.
Solar4Kosovo
In addition to the solar power plant, the Solar4Kosovo project includes a solar thermal facility for the district heating system in the capital city. The establishment of Energy Storage Corp. (ESCorp) also aims to manage battery projects with a total capacity of 125 MW and 250 MWh, funded by the United States’ Millennium Challenge Corp. (MCC).
These battery systems, valued at USD 180 million, will play a crucial role in storing surplus electricity and stabilizing the frequency in Kosovo’s transmission system, contributing to the country’s energy security and grid reliability.
Kosovo’s subsidy program for solar thermal systems underscores its commitment to renewable energy, aligning with the ambitious targets outlined in its Energy Strategy. With significant investments from domestic and international entities, initiatives like Solar4Kosovo and ESCorp are driving progress towards sustainable energy production and enhanced energy security.
