Kosovo Solar Report

Discover comprehensive insights into the statistics, market trends, and growth potential surrounding the solar panel manufacturing industry in Kosovo

  1. Current Results (n.d.). Average Sunshine a Year at Cities in Europe. Retrieved July 28, 2024, from https://www.currentresults.com/Weather/Europe/Cities/sunshine-annual-average.php
  2. Balkan Energy News (2021, July 27). Kosovo* could add 900 MW of solar by 2030, 250 MW for self-consumption – USAID. Retrieved July 28, 2024, from https://balkangreenenergynews.com/kosovo-could-add-900-mw-of-solar-by-2030-250-mw-for-self-consumption-usaid/
  3. Kesco Energy (2023, September 20). Electricity prices in Kosovo are the cheapest in the Region and Europe. Retrieved July 28, 2024, from https://www.kesco-energy.com/eng/news/electricity-prices-in-kosovo-are-the-cheapest-390/
  4. Technical University of Sofia (2022). Problems of the Contemporary Electric Power System of Kosovo. Retrieved July 28, 2024, from https://e-university.tu-sofia.bg/e-conf/files/169/paper_10.47978%40TUS.2022.72.03.005.pdf
  5. IMF e- library (2023, April 20). Kosovo’s Electricity Sector Challenges and Opportunities. Retrieved July 28, 2024, from Kosovo’s Electricity Sector Challenges and Opportunities in: Selected Issues Papers Volume 2023 Issue 025 (2023) (imf.org)
  6. KFV (2024, February). First photovoltaic power plant for Kosovo. Retrieved July 28, 2024, from https://www.kfw-entwicklungsbank.de/Partner-countries/Europe/Project-information-Kosovo-Solar-farm/
  7. GEM Wiki (2021, April 30). Kosovo and coal. Retrieved July 28, 2024, from https://www.gem.wiki/Kosovo_and_coal?utm_source=perplexity#cite_note-r2-9
  8. Balkan Energy Prospect (2020). Kosovo. Retrieved July 28, 2024, from https://wb6energyprospect.com/kosovo.php
  9. Reddit (2022). Power cuts and outages. Retrieved July 28, 2024, from https://www.reddit.com/r/kosovo/comments/wxm115/power_cuts_and_outages/?rdt=50726
  10. Kosovo 2.0 (2023, July 24). SOLAR BLOSSOMS. Retrieved July 28, 2024, from https://kosovotwopointzero.com/en/solar-blossoms/
  11. The Western Balkans Investment Framework (WBIF) (n.d.). Kosovo, Solar4Kosovo – Photovoltaic Plant. Retrieved July 28, 2024, from https://www.wbif.eu/investmentgrants/WB-IG07-KOS-ENE-01
  12. Balkan Green Energy News (2023, September 7). Kosovo* eases requirements for rooftop solar panels for households. Retrieved July 28, 2024, from https://balkangreenenergynews.com/kosovo-eases-requirements-for-rooftop-solar-panels-for-households/
  13. Balkan Green Energy News (2024, February 7). Kosovo* to subsidize solar panels for prosumers, solar thermal systems. Retrieved July 28, 2024, from https://balkangreenenergynews.com/kosovo-to-subsidize-solar-panels-for-prosumers-solar-thermal-systems/
  14. Talent up (2024, April 10). Average salary in Kosovo. Retrieved July 31, 2024, from https://talentup.io/blog/average-salary-in-kosovo/
  15. Glassdoor (2023, November 10). How much does a Manager make in Kosovo? Retrieved July 31, 2024, from https://www.glassdoor.com/Salaries/kosovo-manager-salary-SRCH_IL.0,6_IN265_KO7,14.htm
  16. Countrymeters (n.d.). Kosovo Population. Retrieved July 31, 2024, from https://countrymeters.info/en/Kosovo
  17. Bluehome (n.d.). Kosovo. Retrieved July 31, 2024, from https://www.bluehomes.com/PXXK0001/en/Selling-a-property-in-Kosovo/expose.html
  18. Realigro (n.d.). Kosovo. Retrieved July 31, 2024, from https://kosovo.realigro.com/for-sale/farmland/
  19. European Water Regulations (2022, May 30). The Regulator – The Water Services Regulatory Authority of Kosovo (ARRU). Retrieved July 31, 2024, from https://www.wareg.org/articles/water-services-regulatory-authority-of-kosovo-arru/
  20. ANEM Real Estate (n.d.). Office for rent 60m2 in new Prishtina. Retrieved July 31, 2024, from https://anem-ks.com/en/property/19704/zyre-me-qira-60m2-te-prishtina-e-re-a2314.html
  21. Wikipedia (n.d.). Electrical energy in Kosovo. Retrieved July 31, 2024, from https://en.wikipedia.org/wiki/Electrical_energy_in_Kosovo
  22. Energy community (2023, November 1). Kosovo* Annual Implementation Report. Retrieved July 31, 2024, from https://www.energy-community.org/dam/jcr:3da7c4f8-ea23-4169-b1e9-66b0ed05fcb7/EnC_IR2023.pdf
  23. EIB (2024, March 18). Kosovo: EIB accelerates green transition with €33 million for new solar power plant. Retrieved July 31, 2024, from https://www.eib.org/en/press/all/2024-113-kosovo-eib-accelerates-green-transition-with-eur33-million-for-new-solar-power-plant
  24. BNE Intellinews (2024, April 6). INTERVIEW: Sunny climates and government incentives drive Balkan solar markets. Retrieved July 31, 2024, from https://www.intellinews.com/interview-sunny-climates-and-government-incentives-drive-balkan-solar-markets-319735/
  25. WBIB (2024, March 27). Kosovo: new solar plant accelerating green transition. Retrieved July 31, 2024, from https://www.wbif.eu/news-details/kosovo-new-solar-plant-accelerating-green-transition
  26. Balkan Green Energy News (2024, June 3).  Kosovo* signs three agreements for 105 MW solar project. Retrieved July 31, 2024, from https://balkangreenenergynews.com/kosovo-signs-three-agreements-for-105-mw-solar-project/
  27. RES Kosovo (n.d.). Kosovo renewable energy source portal. Retrieved July 31, 2024, from https://reskosovo.rks-gov.net/
  28. Balkan Green Energy News (2024, May 7). Turkey-based Yıldırım building 109 MW solar park in Kosovo* for its ferronickel plant. Retrieved July 31, 2024, from https://balkangreenenergynews.com/turkey-based-yildirim-building-109-mw-solar-park-in-kosovo-for-its-ferronickel-plant/

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Kosovo receives an average of approximately 2,123 hours of sunshine annually.1

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kWh per kWp installed

The annual generation of installed photovoltaic (PV) capacity in Kosovo is approximately 1,350 kWh/kWp.2

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Average cost per kWh from utility company

Kosovo has the cheapest electricity prices in the region, nearly 25% cheaper than the second cheapest country Serbia.3

The average cost of electricity in Kosovo is around $0.065 per kWh for households and $0.091 per kWh for non-households.

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Reliability of electrical power supply grid

While Kosovo’s electricity coverage is 100%, the grid’s reliability is compromised by following systemic issues:456

  • High Distribution Losses: Approximately 24.6% of electricity is lost in distribution, which affects overall reliability and efficiency.
  • Seasonal Demand Variability: Winter loads are nearly double those in summer, leading to supply volatility and necessitating imports during peak winter months.
  • Aging Infrastructure: Many power plants are nearing the end of their operational lifespan, contributing to reliability concerns.
  • Voltage Stability Issues: During peak conditions, the 110 kV network struggles to meet demand, resulting in poor voltage quality for consumers.

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Detailed Information

  • All figures have been converted into USD
  • Total solar panel production capacity (installed)

    Kosovo’s total installed production capacity of solar panels is approximately 10.1 MW (2022).6

    Total solar panel production capacity (projected)

    The annual generation of installed photovoltaic (PV) capacity in Kosovo is expected to be 152 GWh from a new solar power plant with an installed capacity of up to 100 MW. This project aims to raise the total installed capacity to 110.1 MW.2

    It is estimated that Kosovo could install 250 MW of solar capacity for self-consumption by the end of 2030.6

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    Coal is the dominant source, generating more than 90% of Kosovo’s electricity. The cost of electricity generated from coal in Kosovo is approximately $0.076 per kWh.7

    No specific cost data provided for hydro, solar and wind sources.

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

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    • Coal: 92%
    • Hydro Power: 5.5%
    • Wind Power: 2%
    • Solar Power: 0.5%

    Average daily availability of electricity from the national grid (measured in hours)

    The average daily availability of electricity from the national grid in Kosovo is approximately 22 hours.9

    Number of residential solar panel installations

    There are currently around 250 households in Kosovo that have installed solar panels and are operating as prosumers.2

    By 2030, projects for self-consumption will be implemented in 8,000 households, 1,000 businesses, and 2,000 public buildings.10

    Total number of solar farms (installed and projected)

    There are six solar power plants installed in Kosovo installed before 2020, contributing to an installed capacity of approximately 10.1 MW.10

    A significant project called Solar4Kosovo is underway, which aims to install a solar photovoltaic plant with a capacity of up to 100 MW on former ash dump fields near the Kosovo A thermal power plant.11

    Off-grid market demand for solar panels (current and projected)

    The off-grid market demand for solar panels in Kosovo is expected to grow significantly in the following years due to several factors:1213

    1. Regulatory Changes: The government has simplified the process for households to install solar panels, eliminating the need for construction permits and allowing systems up to 7 kW for residential use.
    2. Subsidies and Financial Incentives: Kosovo is offering subsidies of €250 per kW for households installing solar systems, which can cover up to €1,750 per household.
    3. Increased Awareness and Need for Energy Independence: With frequent outages and an unreliable national grid, there is a growing awareness among households about the benefits of off-grid solar solutions. The desire for energy independence and stability is driving demand for solar panels.

    On-grid market demand for solar panels (current and projected)

    610

    Kosovo’s Energy Regulatory Office (ERO) states that as of 2023, there are around 250 “prosumers” in Kosovo who generate their own solar electricity and feed the excess into the grid.

    ERO receives 10-15 new applications per month from businesses and households for installing solar panels, indicating growing interest in on-grid solar.

    Prosumers with large solar panel installations on their rooftops are Hotel Gračanica with 141 photovoltaic panels, supermarket chains like Interex, shopping centers like Gorenje, Albi Mall, and Prizren’s Abi Çarshia (the largest rooftop solar project in the region).

    A planned 100 MW solar farm project by KfW Development Bank will be Kosovo’s first large-scale photovoltaic system.

    Average monthly income of workers in solar industry (labor cost)

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    • As of 2024, the average gross monthly salary in Kosovo is approximately $540
    • Construction and Infrastructure for roles such as builders and electricians): monthly salaries range from $430 to $755
    • Information Technology (which is relevant for solar) offers salaries typically between $755 to $1,295 per month for skilled professionals.
    • The estimated salary for a manager is $1,295 per month.

    Population of the country

    The current population of Kosovo is 1,771,686.16

    Average overhead costs of solar panel production (with a brief breakdown)

    Estimate for Factory Rent1718

    The prices for development land range approximately 540 – 944 $/m2 according to the current offer (specific rent costs are not available).

    Industrial Electricity Rates

    The average wholesale electricity price in Kosovo is approximately $0.091 per kWh.3

    Water Costs

    The average cost of industrial water per cubic meter in Kosovo is approximately $0.82 /m3.19

    Salaries and Wages

    Workers of industries close to solar industries in Kosovo averagely earn between $430 and $1,295 monthly, depending on the position.1415

    Rent for Office Space

    The average rent in Prishtina (capital of Kosovo) appears to be around 8.6 to 10.8 $/m2.20

    Insurance

    No available data.

    A summary of the energy infrastructure

    52122

    Electricity Generation

    • Kosovo relies heavily on coal-fired power plants for electricity generation, with over 90% of supply coming from two aging plants – Kosova A and Kosova B.
    • Total installed capacity in 2021 was 1,236 MW, with peak demand reaching 1,398 MW.

    Transmission and Distribution

    • Kosovo’s transmission system is operated by KOSTT, a public company that is a member of ENTSO-E.
    • Transmission losses were 1.6% in 2021.
    • Electricity distribution is handled by KEDS, a private company.
    • Distribution losses were high at 24.6% in 2021.

    Imports and Exports

    • Kosovo relies on electricity imports to meet demand.
    • Net energy imports reached an estimated 12.5% of GDP in 2022.

    Energy Policy and Development

    • Kosovo aims to diversify its energy mix and develop renewable sources to reduce reliance on coal.
    • It has set a target of 32% renewable energy by 2030 in its draft National Energy and Climate Plan (NECP).

    Some of the government regulations surrounding solar panel production

    51023

    Energy Regulatory Office (ERO) is the independent regulatory body responsible for overseeing the energy sector, including the licensing and regulation of solar energy producers and prosumers. The ERO has developed legislation to support the integration of solar energy into the grid, facilitating the process for individuals and businesses to install solar panels.

    Prosumers, or individuals and businesses that generate their own electricity through solar panels, are becoming increasingly common in Kosovo. Currently, around 250 prosumers produce approximately 8 MW of solar electricity with new applications for solar panel installations coming each month.

    Tax Incentives: there are discussions about reducing or eliminating product taxes on solar panels to make installations more affordable.

    Community Involvement: Local associations and groups, such as GREAT and RePER, are involved in promoting renewable energy and supporting community electrification projects. Although their participation in the national strategy is limited, they play a role in advocating for energy access and sustainability.

    International Support: the European Investment Bank (EIB) and KfW Development Bank are financing significant solar projects, including a 100 MW solar plant near Pristina.

    Long-Term Goals: Kosovo aims to increase its renewable energy share to 32% by 2030, as outlined in its National Energy and Climate Plan (NECP).

    Government initiatives in solar panel production (includes investments and subsidies)

    13222324

    EU Grant Support: Kosovo is utilizing a $80.89 million grant from the European Union to subsidize solar panel installations for households and small to medium-sized enterprises (SMEs). This initiative is part of a broader $539 million aid package aimed at addressing energy challenges in the region, particularly in light of the energy crisis.

    Subsidy Details: The subsidies for photovoltaic systems are structured as follows:

    • Households: $270 per kW for systems ranging from 3 kW to 7 kW, with a maximum subsidy of $1,887
    • Micro, Small, and Medium Enterprises (MSMEs): $270 per kW for systems between 3 kW and 9 kW, up to $2,157 total. For systems of 10 kW and above, the subsidy is reduced to $215 per kW, with a maximum of $6,471.
    • An additional $215 is available for businesses that are female-owned or jointly owned by women holding at least 51% of ownership.

    Solar Thermal Systems: The government is also expected to launch a public call to support MSMEs in investing in solar thermal systems for water heating, offering a subsidy of 40% of the investment value or up to $4,314.

    Legislative Support: The Law on Renewable Energy Sources has passed its first reading in parliament, aimed at making solar system installations more attractive and facilitating the energy transition for citizens.

    Major Investments: The European Investment Bank (EIB) is financing a $35.59 million investment for the construction of a 100 MW solar photovoltaic plant near Pristina. This project is part of a larger funding initiative that includes a $34.51 million EU grant and additional loans from KfW Development Bank.

    Notable solar projects in the country (installed and projected)

    24252627

    Solar4Kosovo Photovoltaic Plant

    • Capacity: Up to 100 MW
    • Location: Near Pristina, on former ash dump fields
    • Expected Output: Approximately 152 GWh of electricity annually, displacing around 152,000 tonnes of CO2 per year
    • Funding: Supported by a $34.51 million EU grant and loans from the European Investment Bank ($35.59 million) and KfW Development Bank ($31.28 million)
    • Significance: This project is one of the largest renewable energy developments in the region and is crucial for Kosovo’s transition to renewable energy sources, aiming to enhance energy security and economic growth.

    105 MW Solar Project

    • Details: Kosovo signed agreements for a solar power project with Lindja Solar, which was selected from the first auction for solar power generation.
    • Significance: This project represents a significant step in increasing the share of renewables in the energy sector.

    3 MW Solar Plant

    • Developed by ProCredit Bank Kosovo, contributing to the growing solar capacity in the country.
    • Battery Storage Potential
    • Kosovo has identified a potential of 170 MW for battery storage by 2031, which will support the integration of renewable energy into the grid and enhance energy reliability.

    Some of the notable solar companies (plus brief details on what they do)

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    Yıldırım Energy

    • Headquarters: Istanbul, Turkey
    • Website: https://www.yildirimenerji.com.tr/
    • Project: Yıldırım Energy is actively engaged in expanding its renewable energy footprint in Kosovo, highlighted by the construction of a 150 MW solar park in Gllogovc. The project’s first phase, with a 109 MW capacity, aims to provide a significant portion of the electricity required for the company’s ferronickel plant.

    Solar Energy Group Europe (SEGE)

    • Headquarters: Vienna, Austria
    • Website: https://www.sege.co/
    • Project: Solar Energy Group Europe (SEGE) has embarked on the construction of a 150 MW agrisolar power plant in Gjakova, Kosovo, which began in 2023. This ambitious project combines agricultural use with solar energy generation, reflecting SEGE’s commitment to innovative and sustainable energy solutions.

    Lindja Solar

    • Headquarters: Prishtina, Kosovo
    • Website: lindjasolar.com (not working at the moment)
    • Project: Lindja Solar has initiated the development of a 150 MW agrisolar power plant in Gjakova as of 2023, aiming to integrate agricultural land with renewable energy production.

    Elen

    • Headquarters: Muelheim an der Ruhr, Germany
    • Website: https://elen-ks.com/
    • Projects: Elen specializes in designing solar energy solutions and has successfully completed over 450 solar projects across Kosovo, Albania, and North Macedonia, with scales ranging from kW to MW. Their extensive portfolio highlights their commitment to advancing renewable energy infrastructure in the region.

    ProCredit Bank Kosovo

    • Headquarters: Prishtina, Kosovo
    • Website: https://www.procreditbank-kos.com/
    • Project: Procredit Bank has expanded its role in renewable energy by developing a 3 MW solar plant in Kosovo. This initiative reflects the bank’s commitment to supporting sustainable energy solutions and environmental responsibility.

    Jaha solar factory

    • Headquarters: Prishtina, Kosovo
    • Website: https://jahasolar.com/
    • Project: Jaha Solar has been actively involved in the solar sector in Kosovo, where they have developed several large-scale projects including the 10 MW solar park in Mitrovica and the 5 MW solar installation in Ferizaj.

    TeraVolti

    • Headquarters: Lipljan, Kosovo
    • Website: https://teravolti.com/
    • Project: Teravolti specializes in the development and implementation of solar energy projects. Their major projects in Kosovo include a 20 MW solar park in Gjakova and a 10 MW installation in Drenas.

    Rata

    • Headquarters: Prishtina, Kosovo
    • Website: https://ratasolar.com/
    • Project: Rata focuses on providing comprehensive solar energy solutions, from design to installation. Their major projects in Kosovo include a 15 MW solar plant in Mitrovica and a 7 MW installation in Peja.

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