April 2, 2024

European Alliance Triumphs in Kosovo’s Photovoltaic Auction with $0.0524/kWh Bid

A European consortium, spearheaded by Swiss construction firm Orllati, has emerged victorious in Kosovo’s landmark first solar power auction. The alliance, which also includes Kosovan solar developer Jaha and Swiss energy company Holdigaz, submitted a highly competitive bid of €48.88 per MWh ($0.0524/kWh) to develop a 100 MW solar park. The successful tender marks a pivotal moment in the nation’s strategy to expand its renewable energy portfolio and reduce its reliance on energy imports.

The project, representing an investment of over €70 million, will be constructed on public land in the Kramovik area of the Rahovec municipality. According to Kosovo’s Ministry of Economy, the agreement includes a 15-year power purchase agreement (PPA) with KOSTT, the national market operator, and a land lease agreement for up to 30 years. The auction, which concluded on March 29, 2024, was fiercely contested. After attracting more than 160 expressions of interest, the final phase saw six international bidders compete, including France’s Akuo Energy and Egypt’s Elsewedy Electric, as detailed in a recent industry report.

This inaugural photovoltaic auction is a cornerstone of Kosovo’s ambitious energy transition plan. The new 100 MW solar plant will dramatically increase the country’s clean energy capacity, which stood at a modest 20 MW of installed PV at the close of 2023. The government is targeting 1.6 GW of renewable energy capacity by 2031, aiming for renewables to meet 35% of its total energy demand by the end of the decade.

Prime Minister Albin Kurti praised the auction’s success, highlighting its role in securing a stable, domestic energy supply and decreasing the need for costly electricity imports. The substantial investment from the Orllati consortium is also expected to foster economic growth by creating jobs and developing technical skills within the Rahovec region. This project is just the beginning, as the Energy Ministry has outlined a clear roadmap for future renewable energy procurement, including an upcoming tender for 150 MW of wind power and plans for a total of 950 MW in auctions over the next two years.