Kosova e Re
The Kosova e Re was a project of the Government of Kosovo to build a new 2,000-MW coal-fired power plant near Pristina, to rehabilitate the existing Kosovo B power plant and completely shut down the Kosovo A power plant which is considered the largest source of pollution in Kosovo. It also included the development of a new lignite mine in order to meet the needs of the Kosovo B and the newly constructed power plant. It was originally estimated to cost US$2 billion.
The government had identified the need for additional generation capacities to address long-term concerns about the country's power supply security. Government policy goals, also presented in all Kosovo Energy Strategies, apart from the plans for new generation electricity capacities, also aimed at involving the private sector in the Kosova e Re Power Plant infrastructure project. It included development, design, construction, financing, ownership, maintenance and operation in accordance with IED Best Available Techniques.
In March 2020, the British company ContourGlobal announced the abandonment of the project.
History
Plans to address Kosovo's energy situation began in the early 2000s and originally envisioned a 2,000-MW lignite plant that would allow the country to supply the domestic energy needs and also export energy to the neighboring countries. The government presented the plan in July 2009 and it suggested that all work would be finished by 2015 or at least by 2017. However, the works had not started, mainly because of the opposition from non-governmental organizations. Over the years political and investment setbacks had caused the project to cut down in size.Financing
To attract investors whom are concerned about political or credit risks, the World Bank offered US$60 million in loan guarantees that would set in if the government failed to meet obligations such as supplying coal or electricity. This means that the World Bank, as well as the biggest shareholder - the United States of America, will need to make an exception in their clean-energy commitments. On the 15th of January 2013, representatives of the European Bank for Reconstruction and Development met with Prime Minister Hashim Thaçi, expressing their interest to support the New Kosovo project. However, on December the 10th 2013 the EBRD employed a new strategy which decreased funding for the coal plants, with exception of rare circumstances.Supporters
A major obstacle for the economic growth and development of Kosovo is the inadequate and unreliable electricity supply. The country has the world's fifth-largest reserves of lignite which could, with the current consumption levels, supply the country for another 1500 years. Supporters of the project saw lignite exploitation as the quickest way out of poverty and a way to procure Kosovo’s energy independence and consequently its energy security.There were also those who supported Kosova e Re from the environmental stand point. In the report of Kosova e Re by the Expert Panel of the World Bank, reviewed that the project discovered that particulate matter emissions produced by Kosova e Re would be reduced by more than 90%, sulfur oxide and nitrogen oxide reduced by around 70% and would be carbon neutral, if not carbon reducing, for each MWh produced. Kjorton Bjornson from the European Commission in July 2009 expressed support for the construction of the new power plant with the view to shut down Kosovo A plant. However, the European Parliament resolution on the integration process of Kosovo into the EU stated that the financial aid provided by the EU should be devoted to supporting renewable energy projects to close down its two highly polluting coal plants. It calls on the European Commission to take action to contest plans such as Kosova e Re that run counter to EU climate commitments.