A consortium headed by the Swiss construction company Orllati has secured a contract to develop a 100 MW photovoltaic project in Kosovo, offering a bid of €49.89 ($53.8)/MWh. The agreement includes a lease for a maximum of 30 years, backed by a 15-year power purchase agreement (PPA) with Kostt, Kosovo's national market operator.

Orllati Won the Race

The Economy Minister of Kosovo, Artane Rizvanolli, revealed that after a competitive tender process, a consortium spearheaded by the Swiss construction conglomerate Orllati emerged as the victor, securing the rights to construct a 100 MW solar plant in the town of Rahovec, Kosovo.

This landmark achievement signifies Kosovo's inaugural foray into solar energy procurement, with Orllati's bid of EUR 48.88 (USD 52.71) per MWh garnering the necessary support from the government, thereby paving the way for the consortium to undertake this pioneering solar energy initiative in the nation.

According to today's report from PV Magazine, the Swiss construction group Orllati, in partnership with Kosovan solar company Jaha and Swiss energy company Holdigaz, secured the esteemed rights to develop the 100 MW solar project. Their successful bid of $0.0524/kWh emerged victorious in Kosovo's inaugural photovoltaic (PV) power competition, representing a noteworthy milestone in the nation's pursuit of renewable energy.

The Bidding Process Photovoltaic Project

Kosovo took a significant stride towards its renewable energy ambitions with the launch of its first solar auction in July 2023. Prime Minister Albin Kurti revealed that the tender garnered substantial interest, receiving over 160 expressions of interest, reflecting the nation's commitment to embracing sustainable energy solutions.

The tender, which garnered significant attention, initially selected six bidders for the final phase, comprising prominent contenders like Turkey's Calik Group and Limak Holding, Germany's Notus Energy, France's Akuo Energy, and Egypt's Elsewedy Electric. Nonetheless, the Orllati-led consortium distinguished itself, emerging victorious amidst intense competition from both domestic and international participants, as reported by Taiyang News.

The bidding process, conducted over four electronic sessions, saw a gradual reduction in offered prices, ultimately culminating in Orllati's victorious bid of €48.88/MWh. This achievement secures the development of a vital solar infrastructure project and underscores Kosovo's commitment to diversifying its energy sources and reducing dependency on imports.

Kosovo’s Commitment to Renewable Energy

With an estimated cost exceeding EUR 70 million, the forthcoming PV park in Rahovec promises to bolster Kosovo's renewable energy capacity significantly. It represents a crucial step towards achieving the nation's ambitious renewable energy procurement targets, signalling a promising future for sustainable energy development in Kosovo.

The forthcoming 100 MW solar plant, set to be erected on public land, signifies Kosovo's dedication to expanding its renewable energy infrastructure. Backed by a 15-year Power Purchase Agreement (PPA) with Kostt, the national market operator, and a lease agreement of up to 30 years, the project aims to catalyze Kosovo's transition towards greener energy sources.

Despite Kosovo's modest 20 MW of installed PV capacity at the end of 2023, the nation has set ambitious targets, aiming for 490 MW by 2025 and 1.6 GW by 2031. This solar tender is just the beginning of a broader initiative outlined by the Energy Ministry, which plans to conduct additional auctions, including a forthcoming tender for 150 MW of wind power capacity.

Prospects of the Solar Projects

Prime Minister Kurti hailed the solar auction as a success, emphasizing its role in reducing Kosovo's reliance on electricity imports. The winning consortium, set to invest over €70 million ($75.5 million), is expected to not only bolster renewable energy capacity but also stimulate job creation and skill development within the Municipality of Rahovec.

Looking ahead, Kosovo is poised to accelerate its renewable energy procurement efforts, with plans to announce tenders for a combined 950 MW capacity over the next two years. This ambitious roadmap underscores Kosovo's commitment to sustainable energy development and its pivotal role in shaping the nation's energy landscape for years to come.