This project is not yet fully funded, and is a no go for banks. It is closely tracked by BankTrack.
description
Kosovo's
power sector is currently made up of two power plants, Kosovo A and Kosovo B,
located near the capital of Pristina.
The government of Kosovo supports plans to reform
Kosovo's energy sector which include: the construction of a new 600-MW lignite-fired power plant, called
the New Kosovo Plant.
brief history
With the aid of international organizations, primarily
the World Bank, the government of Kosovo currently supports plans to reform
Kosovo's energy sector which include: to close Kosovo A by 2017, rehabilitate Kosovo B to
meet E.U. standards and develop a new 600-MW lignite-fired power plant (called
the New Kosovo Plant). Plans also include privatizing the distribution system
and assess the ability for alternative energy development in Kosovo. Not laid
out in the strategy is another element: a new lignite strip mine. There are
also plans to supplement this lignite-fueled energy sector with alternative
energy, such as wind and solar, once the new power plant is constructed.
what must happen
Private
banks should not finance this project.
location
new location saved
active file
last update: May 24, 2013
sectors
energy plants, coal
banktrack contact
Yann Louvel, Climate and energy campaign coordinator, BankTrack
Kosovo
faces the issue of energy on an everyday basis. The population is subject to
constant power cuts, which take a toll not only on daily comfort but pose a
dangerous obstacle to the working of hospitals and business; they suffer health
problems from the serious pollution emitted from the two functioning power
plants in the country, out-of-date models that emit 25 tons of dust and ash per hour, which is 74
times the EU standard for power plant emissions..
Residents
in the municipality of Obilic are subject to the worst of the effects of the
existing plants, which according to Kosovo Agency for Environmental Protection,
pollute the areas up to 30 km away from their locations. Many experts see this
is a clear motive to build the New Kosovo Plant with better up-to-date
filtration methods. That said, residents of Obilic and energy experts have criticized
the government and are objecting to building the new plant on the grounds of
environmental issues.
In Obilic
alone, 30 percent of the town suffers from chronic respiratory diseases from
the pollution of the two existing power plants.
environment
Kosovo A is seriously outdated,
built in the 1960s, and the largest point source of air pollution in Europe.
Kosovo B, built in the 1980s, is
poorly maintained and also fails to meet EU emissions regulations. The two
plants have a combined installed capacity of 1,487 MW, but both are run far
below installed capacity. Power outages are frequent as the result of years of
underinvestment, neglect and wartime damage to the country's transmission and
distribution systems.
Serious pollution is emitted from
the two functioning power plants in the country, as they are out-of-date models
that release 25 tons of dust and ash per hour, which is 74 times the EU
standard for power plant emissions. Despite receiving billions of euros in
funding from outside organizations, and despite significant budgetary support,
the publicly owned Kosovar Energy Company (KEK) fails to provide consumers with
a reliable energy supply and has operated for 12 years with losses.
active file
last update: May 24, 2013
sectors
energy plants, coal
banktrack contact
Yann Louvel, Climate and energy campaign coordinator, BankTrack
The two
main projects that aim to reform the energy sector in Kosovo are both active.
These projects, funded by the World Bank, include:
(1) The
Clean Up Land Reclamation Project, which works towards cleaning up over 40
years of indisposed ash.
(2) The
Lignite Power Technical Assistance Project, funded by a World Bank grant of US $10.5
million and a European Commission grant of Euros 2 million - is providing
advisory services for the inclusion of private capital in a new lignite mine
and the construction of a new power plant.
Plans for
the construction of the New Kosovo Plant have been delayed and continue to be
delayed for various reasons. There has been ongoing debate concerning the size
the new power plants should be and the phases in which it should be constructed.
Furthermore, there has been protest by environmentalists and concerned NGOs
within Kosovo and internationally, demanding that Kosovo's energy alternatives
be fully evaluated before construction of a lignite dependent plant is
underway. These protesting groups argue that sufficient research has not been
done into Kosovo's potential for alternative energy, specifically into wind and
solar technology.
The World Bank
is now hesitating to support a coal-focused energy strategy for Kosovo in light
of recent criticism from its involvement with South African utility Eskon building
a 4,800-MW coal plant.
active file
last update: May 24, 2013
sectors
energy plants, coal
banktrack contact
Yann Louvel, Climate and energy campaign coordinator, BankTrack
The World
Bank Group is the main sponsor providing funding for energy sector reforms in
Kosovo. Within the Interim Strategy Note (ISN)
for Kosovo, released February 2010, World Bank Objectives for energy reform
consisted of the five main points:
1. Phased closure of the five
outdated and highly-polluting Kosovo A power generation units by the end of
2015.
2.
Rehabilitation of Kosovo B to comply with EU environmental standards and
privatization of that plant with support from USAID.
3.
Development, through private participation, of the Sibovc SW lignite mine and a
state-of-the-art power plant - the New Kosovo Power Plant (NKPP).
4.
Privatization of KEK Distribution as a key element in the effort to improve its
efficiency and gain better control over the rampant losses of electricity due
to theft.
5.
Development of the country's limited hydropower resources through PPPs.
active file
last update: May 24, 2013
sectors
energy plants, coal
banktrack contact
Yann Louvel, Climate and energy campaign coordinator, BankTrack
Kosovo Energy Company, KEK (Korporata Energjetike e Kosovës) A publicly owned company and the sole provider of energy for the nation; the KEK is planned to lead energy procedures in Kosovo until the construction of the New Kosovo Plant, when the energy sector will undergo privatization.
active file
last update: May 24, 2013
sectors
energy plants, coal
banktrack contact
Yann Louvel, Climate and energy campaign coordinator, BankTrack
The troubled beginning followed by scaling the project down. The project if built poses huge climate and energy risks to Kosovo. Investors are urged to step away from risking their reputation by financing such an environmental nonsense.
