A consortium led by the Swiss construction company Orllati has secured a contract to develop a 100 MW photovoltaic project in Kosovo, with a bid of €48.88 ($52.71)/MWh. The agreement includes a lease for up to 30 years, backed by a 15-year power purchase agreement (PPA) with Kostt, Kosovo’s national market operator.

Image: Mariana Proença, Unsplash

Orllati Won the Race

Kosovo’s Economy Minister, Artane Rizvanolli, announced that a competitive tender to build a 100 MW solar plant in Rahovec was won by a consortium led by Swiss construction conglomerate Orllati.

This project marks Kosovo’s first major step into solar energy procurement. The government approved Orllati’s bid of €48.88 (USD 52.71) per MWh, allowing the consortium to spearhead this groundbreaking solar initiative.

According to a recent report from PV Magazine, Swiss construction group Orllati, in partnership with Kosovan solar firm Jaha and Swiss energy company Holdigaz, secured the rights to develop the 100 MW solar project. Their winning bid of $0.0524/kWh in Kosovo’s inaugural photovoltaic (PV) power competition marks a significant milestone in the nation’s push for renewable energy.

The Bidding Process

Kosovo took a significant step toward its renewable energy ambitions by launching its first solar auction in July 2023. Prime Minister Albin Kurti announced that the tender drew considerable attention, receiving over 160 expressions of interest and highlighting the nation’s commitment to sustainable energy.

The tender’s final phase included six bidders, with prominent contenders such as Turkey’s Calik Group and Limak Holding, Germany’s Notus Energy, France’s Akuo Energy, and Egypt’s Elsewedy Electric. Despite intense competition from domestic and international participants, the Orllati-led consortium ultimately prevailed, as reported by Taiyang News.

Conducted over four electronic sessions, the bidding process saw offered prices gradually decrease, culminating in Orllati’s winning bid of €48.88/MWh. This successful outcome secures the development of a vital solar project and underscores Kosovo’s commitment to diversifying its energy sources and reducing its reliance on imports.

Kosovo’s Commitment to Renewable Energy

With an estimated cost exceeding €70 million, the new PV park in Rahovec will significantly bolster Kosovo’s renewable energy capacity. The project is a crucial step toward achieving the nation’s ambitious procurement targets and signals a promising future for sustainable energy development in the country.

The 100 MW solar plant, to be built on public land, highlights Kosovo’s dedication to expanding its renewable energy infrastructure. Supported by a 15-year Power Purchase Agreement (PPA) with national market operator Kostt and a lease of up to 30 years, the project is designed to accelerate Kosovo’s transition to 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.

Project Impact and Future Outlook

Hailing the solar auction as a success, Prime Minister Kurti emphasized its role in reducing Kosovo’s reliance on electricity imports. The winning consortium’s investment of 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, with plans to launch tenders for a combined 950 MW of capacity over the next two years. This ambitious roadmap highlights the country’s dedication to sustainable development and will play a pivotal role in shaping its future energy landscape.