Prishtina, May 19, 2025
The acting Prime Minister of the Republic of Kosovo, Albin Kurti, participated in the Forum on the topic “Liberalization of the electricity market: effects and mitigating measures”, organized by the National Council for Economy and Investment.
At this forum, which was opened by the Secretary of the National Council for Economy and Investments, Artan Mehmeti, discussions focused on the impact of the liberalization of the energy market and the ways of cooperation to successfully address this challenge, which is foreseen by the Law on Electricity adopted in 2016.The Prime Minister stated that they are aware that businesses affected by liberalization may face increased costs, especially manufacturing ones. On this occasion, he assured that the Government of the Republic of Kosovo will stand by local producers to listen to their main concerns and needs for support regarding the market liberalization process.
“Our common goal is clear: to ensure a manageable and fair transition to a free market, where no one is left behind and where competition and investment drive development. As a Government, we will always stand by our producers and ensure that this process is accompanied by concrete support measures, so that local producers are not left unprotected and can continue to grow, develop and also increasingly penetrate foreign markets through the export of our products,” said Prime Minister Kurti.
He mentioned the concrete steps taken to overcome this challenge, including: designing grant schemes for energy efficiency and renewable sources, to reduce electricity consumption, with concrete support that will increase with the budget review; opening public calls through KIESA for subsidizing Micro, Small and Medium Enterprises for the purchase of manufacturing and processing machinery, with a planned budget of 5 million euros; as well as support for conducting energy audits, in order to reduce electricity consumption and costs.
Among other things, Prime Minister Kurti also highlighted the additional support provided during the four years of governance, such as the increase in free capital, new markets, modern infrastructure, a qualified and motivated workforce, as well as the easing of the administrative burden.
Meanwhile, the acting Minister of Economy, Artane Rizvanolli, said that the liberalization of the electricity market is an obligation that stems from participation in the energy community and integration into the regional and European market, which has already been implemented earlier and to a much greater extent by the countries of the region.
She emphasized, among other things, that work is being done on a new support scheme for businesses for energy efficiency.
“We are currently finalizing a new support scheme for manufacturing businesses with the support of LuxDev Development. Within this scheme, we will support energy efficiency through investments in building insulation, solar photovoltaic (PV) systems, solar thermal (water heating) systems, batteries for solar PV systems, as well as equipment such as reactive power regulators to increase the efficiency of the devices that producers are already using.”
The forum was also attended by Acting Deputy Prime Minister Besnik Bislimi, Acting Minister of Economy Artane Rizvanolli, Acting Minister of Industry, Entrepreneurship and Trade Rozeta Hajdari, manufacturers, business representatives, representatives of Chambers of Commerce and representatives of the National Council for Economy and Investment.
Full speech of Prime Minister Kurti:
Honorable Deputy Prime Minister Bislimi,
Honorable Ministers, Artane Rizvanolli and Rozeta Hajdari,
Honorable producers, business representatives, representatives of the Chambers of Commerce, representatives of the National Council for Economy and Investment,
Honorable attendees,
Ladies and gentlemen,
Thank you for your participation and engagement in this extraordinary meeting of the National Council for Economy and Investment. We have convened this meeting to discuss together the impact of the liberalization of the energy market and the ways in which we can cooperate to successfully face this challenge.
As you know, the Law on Electricity, which foresees the liberalization of the electricity market, was adopted back in 2016. Following the adoption of the Law, the Energy Regulatory Office (ERO) initiated the market liberalization reform and implemented the first phase by releasing to the free market consumers connected at the high-voltage level — Trepça, Sharrcem, and Ferronikeli — in 2017. After that, the release of other groups of businesses to the market was postponed for various reasons for eight consecutive years, until March of this year.
We are aware that one of the concerns expressed has been the impact on competitiveness in the region and beyond. However, Kosovo is the last in the region to implement this reform. Albania has already opened the market for all consumers connected at the high-voltage levels of 35 kV and 20 kV, while in North Macedonia, around 40% of total consumption is provided at market prices. Over the years, our producers have benefited from better regulated tariffs than their competitors and from tariff subsidies, particularly during 2022 and 2023.
We are aware that businesses affected by liberalization may face cost increases, especially those in the manufacturing sector. Therefore, I want to assure you that the Government of the Republic of Kosovo, just as it has over the past four years, will stand by domestic producers, and we are here to hear your main concerns and support needs regarding the market liberalization process.
When we began our mandate more than four years ago, it was clear that the manufacturing sector lacked capital. Today, hundreds of you have access to automated lines and new robotic equipment thanks to €100 million in subsidized investment loans for 379 enterprises, and an additional €12 million for 440 businesses that expanded their capacity without risking their financial balance.
We have ensured that our businesses increase their international presence: 139 companies with export potential have been subsidized with €9.8 million for certifications, digitalization, and training, while 103 local manufacturers have been supported in purchasing production lines through €3.9 million in direct support. In 51 international fairs—from Vienna to Dubai—over 250 Kosovo businesses have been supported to hold B2B meetings with new buyers, as well as investment forums in eight countries to promote more than 1,000 Kosovar products.
The support for production and promotion has been accompanied by infrastructure investments: we have now completed industrial parks in Shirokë, Viti, and Vushtrri, the incubator in Malishevë, the Tech Park in Bernica, and the Training and Innovation Center in Prizren.
To ease the administrative burden, we have developed a single point of contact, electronic business registration and a passive business list. As a result, over 33,000 new businesses were registered in just three years. We have reduced oil permits from 5,000 euros to just 55 euros, modernized customs and tax codes, and we have concluded agreements for the avoidance of double taxation with six countries.
All this support would not have played a major role without people. Therefore, we have subsidized 1,268 businesses with half of their salary increases, improving the salaries of over 17,000 workers, and exempting the minimum wage from tax.
With all this support, free capital, new markets, modern infrastructure, reduced administrative burdens and a more qualified and motivated workforce, we have worked to increase your competitiveness, which will undoubtedly facilitate facing a future process of liberalization of the energy market.
We are also working to overcome this challenge to remain by your side and continue to do so, and we have started with concrete steps:
We are designing grant schemes for energy efficiency and renewable sources, to reduce electricity consumption, with concrete support that will increase with the budget review;
Through KIESA, we have opened a public call for subsidies for Micro, Small and Medium Enterprises for the purchase of manufacturing and processing machinery, with a planned budget of 5 million euros;
We will support you in conducting energy audits, so that you can reduce electricity consumption and costs.
This meeting is not the end of the discussion, but the beginning of a new chapter in our cooperation. With all this, our common goal is clear: to ensure a manageable and fair transition to a free market, where no one is left behind and where competition and investment drive development. As a Government, we will always stand by our producers and ensure that this process is accompanied by concrete support measures, so that local producers are not left unprotected and can continue to grow, develop and also increasingly penetrate foreign markets through the export of our products.
Thank you and I look forward to your thoughts and suggestions.
Last modified: May 20, 2025