Prishtina, 30 April, 2024
The Government of the Republic of Kosovo and the United States Government Millennium Challenge Corporation (MCC) launched the MCC-Kosovo Compact program, focused on providing modern clean energy solutions to improve the reliability of electricity in our country.
The efforts of the Government of Kosovo for a transition towards a more sustainable, inclusive, reliable and affordable energy future are supported by the MCC-Kosovo Compact. The compact also encourages more equal participation of women in the country’s energy sector as it is implemented over the next five years. About 2 million people are expected to benefit from the MCC grant.
“The Kosovo Compact Program is the biggest investment in our country in the energy sector. The Government’s substantial contribution of $34.7 million serves as a testament to our Government’s commitment to both this program and the transformation of our energy sector. We share with MCC its core values: a results-oriented approach with transparency, accountability and country-centric ownership. This is what explains our excellent cooperation since the beginning of our mandate”, said Prime Minister Albin Kurti.
The MCC-Kosovo compact aims to introduce an advanced energy storage system, laying the foundations for reliable, renewable energy sources to be integrated into Kosovo’s grid, and reducing the need for coal-fired power as well as imports costly energy.
“The Compact will serve as a cornerstone of Kosovo’s transition to green energy, increasing the country’s energy security and driving its socio-economic transformation,” said MCC Vice President for the Compact Operations Department, Cameron Alford. “MCC is proud to partner with the Government of Kosovo to officially begin the implementation phase of the compact to ensure a sustainable, brighter and more equal energy future for all Kosovars,” he said.
The compact of 202 million dollars, together with a contribution of 34.7 million dollars from the Government of Kosovo, with a total of 236.7 million dollars, responds to the limitation of unreliable electricity supply in Kosovo, is in line with the national priorities of the Government for development and energy and aims to reduce poverty and increase economic sustainability in Kosovo.
The Compact Program is the largest energy investment in the country in recent decades. By the end of 2027, Kosovo is expected to have the largest battery capacity in the world per capita.
Today, in a ceremonial event in the capital of Kosovo, the Minister of Economy, Artane Rizvanolli, and the Vice President of Compact Operations at the American Millennium Challenge Corporation (MCC), Cameron Alford, signed the entry into force agreement.
Prime Minister Kurti’s complete speech:
Dear President Osmani,
Dear ms. Artane Rizvanolli, minister of Economy,
Dear Members of the Parliament,
Dear Ambassador Hovenier,
Dear Vice President of MCC, Mr. Alford,
Dear CEO of MCA-Kosova, Ms. Florina Duli-Sefaj, and staff,
Dear President Country Director of MCC, Rinor Gjonbalaj
Dear leaders and representatives of Kosovar institutions & development partners, civil society & media,
Dear guests,
2024 has been a fantastic year for Kosova’s energy sector – and we’re still in April! It is a pleasure to have you here in this celebration of the next important milestone for the energy sector in Kosova – the Entry-into-Force of our Compact Program with MCC!
So far this year, we have:
1. Launched the Albanian Power Exchange, ALPEX, where electricity is traded in the day-ahead market, coupled with Albania.
2. Rectified the injustice of the undue costs of the northern municipalities’ electricity consumption to the rest of the citizens.
3. Had our first renewable energy sources law approved by Parliament, and
4. Successfully concluded our first solar auction of 100 MW, with 6 reputable bidders, with a price of 48.88 EUR/MWh, 35% lower than the ceiling price. This was a clear demonstration of how good governance and fair and transparent competition benefits citizens, and it is a standard we commit to uphold in our upcoming wind auction of 150 MW later this year.
In all these significant milestones, we had the unwavering support of our longstanding partner, USAID, and the US Government. And together with the director of the USAID, madam Eileen Dewitt we were at this event where we marked the inaugural sovereign credit rating assigned by Fitch Ratings. This will put us on the map of foreign investors who now will have an independent evaluation to look at when they decide to consider Kosova as an investment destination and it will help broaden access to finance as well as reduce borrowing costs for our country. I hope that part of this investment will be also in the sector of energy renewables. We got a BB- mark.
In all these significant milestones, we have the unwavering support of our long standing partner, the U.S.A and the U.S. Government,
As we invest in renewables and develop a transparent and liquid electricity market, the Entry into Force of our Compact Program completes the puzzle, by ensuring the necessary grid stability and system flexibility.
This is what we mean when we say that the Compact Program with MCC is a cornerstone of our energy transition.
I am happy that our teams designed a forward-looking program that puts the Republic of Kosova at the forefront of developments in the energy sector. Through our excellent partnership, the Republic of Kosova will have a minimum of 340 MWh reserves, making us the country with the largest per capita battery capacity in the world!
The energy sector, the economy, and our society are only as strong as the education and training of our people and –they can only be strong and just if all of the population is contributing actively with their skills, knowledge, and ideas, but also represented and reaping the benefits of the economic development in an inclusive and equitable way.
Therefore, apart from infrastructure development, with this program we aim to ensure that our young men and women are professionally prepared and actively participating in the modern energy sector of the future. We will establish new VET programs in line with market needs and global trends, and we will increase the share of women’s participation in the energy sector workforce to at least 33% by 2031, compared to the baseline of 9%. With these efforts and the largest grant in the history of the country, the Compact Program with MCC is also a cornerstone of our just energy transition.
At 236.7 million dollars, the Compact presents the largest investment in the energy sector in our country in decades. The 202 million dollars grant from the Millennium Challenge Corporation demonstrates the significant role that the United States partnership plays in Kosova’s energy sector.
The 34.7 million dollars contribution from the Republic of Kosova demonstrates country ownership and our government’s commitment to not only successfully implement this program, but to fully implement our highly ambitious Energy Strategy – which was also by the way supported by USAID.
As we embark on an exciting and challenging journey ahead of us, I would like to thank the teams of the Government of Kosova and MCC, for the intensive work so far and to reiterate my Government’s commitment to make this program a global success story. We highly appreciate the support and excellent partnership of MCC, and the continuous support of the US Government to Kosova’s economic and social development.
Transcending even the largest projects, our partnership is strong because it is not based only on common interests and objectives, but deeply rooted in common values of democracy, freedom, and human rights.
Thank you Artane!
Thank you Cameron!
Thank you all!
Last modified: May 2, 2024