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Signature(s)

Amount
€ 33,000,000
Countries
Sector(s)
Kosovo* : € 33,000,000
Energy : € 33,000,000
Signature date(s)
18/03/2024 : € 33,000,000
Link to source

Summary sheet

Release date
26 May 2023
Status
Reference
Signed | 18/03/2024
20220274
Project name
Promoter - financial intermediary
KEK SOLAR PV - GLOBAL GATEWAY
KORPORATA ENERGJETIKE E KOSOVES SHA
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 33 million
EUR 107 million
Location
Sector(s)
  • Energy - Electricity, gas, steam and air conditioning supply
Description
Objectives

The project concerns the development of a 100MW solar photovoltaic (PV) power plant, located between Obilic and Fushe Kosova, in close proximity to Pristina, in Kosovo. The PV plant will produce electricity from low carbon sources, therefore it addresses the market failure of negative environmental externalities, by reducing carbon and air pollution.

The aim is to deploy new renewable energy capacity in Kosovo, crucial for the achievement of the decarbonisation targets for 2026 as set out in the in the National Renewable Energy Action Plan (NREAP). Kosovo depends almost exclusively on two ageing lignite plants for its electricity. The project is in line with the EIB's lending priority objectives of financing Renewable Energy, Climate Action, Environmental Sustainability, as well supporting a Pre-Accession region. It is also aligned with the EU Green Agenda for the Western Balkans.

Additionality and Impact

The project concerns the development of a 100MW solar photovoltaic power plan in close proximity to Pristina. The Bank will support the deployment of new renewable energy capacity in Kosovo, crucial for the achievement of the decarbonisation targets set out in the draft National Energy and Climate Plan. The Bank's financing will also support the EU Green Agenda for the Western Balkans. The project is in line with the Bank's lending priority objectives on Energy (Renewable Energy) as well as the transversal objectives on Climate Action (mitigation), Environmental Sustainability (Pollution Prevention Control), and Social and Economic Cohesion (other regional integration).  In terms of addressing market failures, the solar PV project produces electricity from low carbon sources and thereby addresses the market failure of negative environmental externalities, through the reduction of carbon and air pollution compared with coal generation. The majority of the generation will be dedicated to KEK's universal service obligation, with a regulated tariff. The remainder is expected to be sold on the new ALPEX electricity exchange. Thus the project will support market integration. The project is expected to generate a broader social benefit by generating electricity below the cost of coal based alternatives in Kosovo. Moreover, the project is expected to be supported by adequate governance and capabilities of the promoter, considering the technical assistance given through a specific grant from the Western Balkans Investment Framework (WBIF). 


The project contributes mainly to SDG 7 (access to affordable, reliable, sustainable and modern energy), in particular sub goal 7.2 (increase the share of renewable energy in the global energy mix), and SDG 13 (combat climate change).


The Bank's financial contribution to the project is relevant, as the Borrower is unable to raise funds at similar maturities. Moreover, the EIB loan offers customised terms, such as flexibility of drawdowns, longer availability and grace periods, possibility for interest rate conversion and possibility to select fixed or floating rates at the time of disbursement. The EIB participation is complementary, blended with financing from other International Financial Institutions and grants from the WBIF.


Environmental aspects
Procurement

Environmental impact studies will be carried out as applicable and mitigating and/or compensation measures applied as necessary.

The EIB will require the Promoter to ensure that any procurement procedures are done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement rules.

Comments

* This designation is without prejudice to positions on status, and it is in line with UNSCR 1244/1999 and ICJ Opinion on the Kosovo declaration of independence.

Milestone
Under appraisal
Approved
Signed
13 December 2023
18 March 2024
Link to source

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Documents

Environmental and Social Impact Assessment (ESIA) - KEK SOLAR PV - GLOBAL GATEWAY - VLERËSIMI I NDIKIMIT MJEDISOR (VNM) PËR CENTRALIN DIELLOR PV “KOSOVA-A
Publication Date
7 Nov 2023
Document language
Main Topic
Lending
Document Number
182239686
Document Focus
Environmental Information
Project Number
20220274
Sector(s)
Countries
Publicly available
Download now
Environmental and Social Data Sheet (ESDS) - KEK SOLAR PV - GLOBAL GATEWAY
Publication Date
16 Dec 2023
Document language
Main Topic
Lending
Document Number
161175041
Document Focus
Environmental Information
Project Number
20220274
Sector(s)
Countries
Publicly available
Download now

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