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Home › Dodgy Deals ›
Dodgy Deal
Kosovo C coal power plantKosovo

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Contact:

climate@banktrack.org

Last update: 2016-10-18 22:49:33
Photo: -

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Contact:

climate@banktrack.org

Last update: 2016-10-18 22:49:33
Why this profile?

What must happen

By constructing yet another coal-fired power plant, the government would lock the citizens of Kosovo into decades of continued dirty energy and cost them upwards of EUR1.4 billion. This dirty and destructive coal plant should not go ahead and financial institutions should steer clear of funding it. 

About
Sectors Coal Electric Power Generation
Location
Status
Cancelled
Design
Agreement
Construction
Operation
Closure
Decommission
Website http://www.kek-energy.com/en/pergjShoq.asp

Kosovo's power sector is 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 megawatt lignite-fired power plant, called the New Kosovo Plant. ContourGlobal, an American developer of electric power, is said to start construction in 2016. The cost of the project is estimated at USD1.6 billion, with a third to be financed by ContourGlobal and the remainder via loans. The plant is planned to go online in 2021.

Impacts

Social and human rights impacts

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. Health problems arise from the serious pollution emitted from the two functioning power plants in the country; out-of-date models that emit 25 tonnes of dust and ash per hour, which is 74 times the EU standard for power plant emissions.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 the Kosovo Agency for Environmental Protection, pollute the areas up to 30 kilometres away from their locations. Many experts regard this as 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.


Environmental and climate impacts

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. It also fails to meet EU emissions regulations. The two plants have a combined installed capacity of 1,487 megawatt, 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 tonnes 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.


Other impacts

While the plant is being depicted as necessary to ensure the country's energy security, up to 30 percent of available electricity in Kosovo today is wasted according to official data, because of lack of energy efficiency programmes. This adds to the 37 percent of electricity losses, of which around 17 percent are technical and a result of an old grid. The other are commercial losses, i.e. theft.

Financiers
Institution type
Finance type
Year

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.

Companies

Kosovo Energy Company, KEK (Korporata Energjetike e Kosovës)

Kosovo
Website
No companies
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

EBRD confirms it will not finance New Kosovo coal plant

2018-11-13 | CEE Bankwatch Network
BankTrack news BankTrack blog Partner news Partner blog

Shame on the World Bank for Supporting an Absurdly Expensive Coal-Fired Electricity Project in Kosovo

2016-01-22 | IEEFA
BankTrack news BankTrack blog Partner news Partner blog

Life near coal mines: Kosovo's dying villages

2015-12-28 | Al Jazeera
BankTrack news BankTrack blog Partner news Partner blog

Red Flags on a Coal-Fired Power Plant in Kosovo

2015-12-02 | IEEFA
BankTrack news BankTrack blog Partner news Partner blog

A Resettlement Injustice in the Making

2015-04-22 | The Huffington Post
BankTrack news BankTrack blog Partner news Partner blog

The Future of Coal Passes Through Kosovo

2015-04-15 | National Geographic
BankTrack news BankTrack blog Partner news Partner blog

Guest post: Resettlement process for Kosovo Power Project does not comply with international standards

2015-02-03 | Bankwatch
BankTrack news BankTrack blog Partner news Partner blog

On Overseas Coal, Will the World Bank and U.S. Government Pass Their Own Tests?

2015-01-27 | Sierra Club
BankTrack news BankTrack blog Partner news Partner blog

Kosovo wants construction of the railway to Montenegro

2015-01-23 | Turkish Weekly
BankTrack news BankTrack blog Partner news Partner blog

The coal dilemma

2015-01-09 | Devex
BankTrack news BankTrack blog Partner news Partner blog

"REpower Kosovo"

2014-12-30 | The Huffington Post
BankTrack news BankTrack blog Partner news Partner blog

Will a Dirty Coal Plant in Kosovo Spoil the Clean Energy Record of Dr. Kim and World Bank?

2014-12-14 | The Huffington Post
BankTrack news BankTrack blog Partner news Partner blog

US and World Bank must stop funding overseas coal

2014-07-02 | The Ecologist
BankTrack news BankTrack blog Partner news Partner blog

The coal industry and the international community

2014-06-10 | World Coal
BankTrack news BankTrack blog Partner news Partner blog

At least one killed in Kosovo power plant blast, supplies hit

2014-06-06 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Two killed in Kosovo power station blast near Pristina

2014-06-05 | BBC News
BankTrack news BankTrack blog Partner news Partner blog

Coal-Fired Plant in Kosovo Tests World Bank Clean-Air Pledge

2014-06-02 | Bloomberg
BankTrack news BankTrack blog Partner news Partner blog

New Ads Reveal Coal Isn’t Cheap in Kosovo

2014-05-05 | Sierra Club
BankTrack news BankTrack blog Partner news Partner blog

Dr. Kim’s World Bank Legacy Hinges on Kosovo Climate Test

2014-03-11 | Sierra Club
BankTrack news BankTrack blog Partner news Partner blog

A Lesson for Dr. Kim and the World Bank as It Ponders the Kosovo Coal Project

2014-01-26 | Huffington Post
BankTrack news BankTrack blog Partner news Partner blog

Kosovo Coal Plant Fails President Obama's Climate Plan Test

2013-11-25 | Huffington Post
BankTrack news BankTrack blog Partner news Partner blog

Kosovo pays a heavy toll for lack of reliable energy

2013-11-19 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

Kosovo is a Chance for World Bank, Obama to Show Global Leadership on Climate Change

2013-07-02 | National Geographic
BankTrack news BankTrack blog Partner news Partner blog

More dirty coal on the radar as EBRD announces new strategy for Kosovo

2013-05-10 | CEE Bankwatch
BankTrack news BankTrack blog Partner news Partner blog

European Parliament wants green energy, not coal, as part of Kosovo integration

2013-04-19 | CEE Bankwatch
BankTrack news BankTrack blog Partner news Partner blog

Kosovo Activists Project No Coal on World Bank Building

2013-04-18 | Huffington Post
BankTrack news BankTrack blog Partner news Partner blog

Kim Says World Bank Can’t Reject Coal If People Freeze

2013-04-17 | Bloomberg
BankTrack news BankTrack blog Partner news Partner blog

Kosovo power plant turns journalist to activist

2013-03-07 | DW
BankTrack news BankTrack blog Partner news Partner blog

New Ads Highlight World Bank's Deadly Coal Plans For Kosovo

2013-02-04 | Sierra Club
BankTrack news BankTrack blog Partner news Partner blog

Serious water concerns for Kosovars if the World Bank supports a new coal plant in Kosovo

2013-01-16 | Bic USA
BankTrack news BankTrack blog Partner news Partner blog

Kosovo police clash with protesters in capital

2012-10-17 | Bloomberg Business Week
BankTrack news BankTrack blog Partner news Partner blog

Kosovo unions oppose privatisation of main state enterprises

2012-10-13 | Set Times
BankTrack news BankTrack blog Partner news Partner blog

World Bank making poverty worse in Kosovo

2012-10-03 | Bretton Woods Project
BankTrack news BankTrack blog Partner news Partner blog

World Bank’s Draft Country Environmental Analysis for Kosovo Fails to Account for Pollution Costs

2012-08-08 | Bic USA
BankTrack news BankTrack blog Partner news Partner blog

Doubts linger over Kosovo coal-fired power plant

2010-03-23 | Reuters
Resources
Documents
Images
Videos
Links
2017-06-14 00:00:00

Planned coal power plants in the Western Balkans versus EU pollution standards

NGO document
2017-06-14 00:00:00 | CEE Bankwatch Network
2017-03-31 00:00:00

Carbon costs for planned coal power plants in the Western Balkans and the risk of stranded assets

NGO document
2017-03-31 00:00:00 | CEE Bankwatch Network
2016-03-01 00:00:00

Energy poverty, then and now: how coal proponents have it wrong

NGO document
2016-03-01 00:00:00 | IEEFA
2016-01-31 00:00:00

The proposed new Kosovo power plant: an unnecessary burden at an unreasonable price

NGO document
2016-01-31 00:00:00 | IEEFA
2014-02-01 00:00:00

Does the Kosovo Power Project’s Proposed Forced Displacement of Kosovars Comply with International Involuntary Resettlement Standar

NGO document
2014-02-01 00:00:00 | Dr. Theodore E. Downing
2013-11-01 00:00:00

Does the Kosovo Coal Project Fail the President’s Climate Action Plan Test?

NGO document
2013-11-01 00:00:00 | Sierra Club
2012-12-31 00:00:00

Kosovo Needs Clean Energy, Not New Coal

Fact Sheet
NGO document
2012-12-31 00:00:00 | Sierra Club
2012-08-01 00:00:00

Draft Country Environmental Analysis Fails to Account for Significant Pollution Costs

Reviewing World Bank’s Draft Country Environmental Analysis for Kosovo
NGO document
2012-08-01 00:00:00 | Institute for Development Policy

Kosovo World Bank Protest by the Sierra Club

2014-04-17

Economy of Coal Promo: COAL 2

2014-05-27 18:23:28

Economy of Coal Promo: COAL 1

According to the World Bank, in 2010, air pollution in Kosovo caused: 11,600 emergency visits to the hospitals, 835 premature deaths, 100 mullion euros in medical bills, and 22,900 children with pulmonary diseases.
2014-05-27 18:22:37

KOSID in Main News- RTK

Kosid Kosovo
2014-05-27 18:21:36

Morning Show -RTK (Visar Azemi)

2014-05-27 18:18:31

Klan Kosova Ora 7 – Nezir Sinani

Morning Show on Klan Kosova
2014-05-27 18:17:40

Visar Azemi on the Morning Show -Klan Kosova

2014-05-27 18:16:43

KOSID – NO NEW COAL on World Bank Building

2014-05-27 18:15:20

Economy of Coal PSA

2014-05-27 18:13:04

KOSOVO'S COAL: A World Bank Legacy

World Bank's investment in dirty coal in South Africa and its latest project to engage in a similar project in Kosovo
2012-04-17 09:34:29

Kosovo: Energy Clean Up

2011-07-18 13:08:02

SourceWatch on Kosovo C

Red Flags on a Coal-Fired Power Plant in Kosovo

Project review by IEEFA, Institute for Energy Economics and Financial Analysis

Refugees Of Development Kosovars Who Rebuilt War-Torn Village Face New Threat As World Bank Considers Coal-Burning Power Plant

The Huffington Post

Sierra Club

World Bank webpage on status project Kosovo Power

Peak pollution Eight months of independent monitoring of air quality in the Balkans

Report by Bankwatch

Bankwatch webpage on Kostolac power plant

Updates

2018

2018-11-13 00:00:00 | EBRD confirms it will not finance New Kosovo coal plant

Following the World Bank’s recent statement that it will not provide support for the 500 MW New Kosovo coal power plant, the EBRD has now followed suit by confirming that it is not considering support for the project. In an e-mailed statement responding to an enquiry from the Institute for Energy Economics and Financial Analysis (IEEFA), an EBRD spokesperson said “the EBRD indeed is not considering this project”, ending years of uncertainty as to whether the bank would make an exception to its overall energy policy restricting coal financing (CEE Bankwatch Network).

2017

2017-06-14 00:00:00 | Almost none of new coal power plants planned in the Balkans will meet EU pollution standards, according to a new analysis

On 28 April this year, EU officials adopted new technical standards for large combustion plants, the so-called ‘LCP BREF’, which sets out the best available techniques for controlling pollution to air, water and soil, as well as the emission limits that must be achieved by applying these techniques. Bankwatch’s analysis looks at eight coal-fired units totalling 2.6 GW in capacity planned in Bosnia-Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia, plus the Stanari plant in Bosnia-Herzegovina which started commercial operation last September. Compared to the air pollution limits set in the BREF, five of the planned units would certainly not meet the new standards, while insufficient information is available for the remaining three.

2016

2016-01-31 00:00:00 | The proposed new Kosovo power plant: an unnecessary burden at an unreasonable price

A report by IEEFA concludes that the World Bank, which has announced its support for a substantial financial subsidy for construction of the coal-fired plant, should invest instead in the development of renewable energy and energy efficiency in Kosovo. IEEFA concludes also that the U.S. government, which has endorsed the project, should cease its support for the misguided introduction of a costly and outdated form of electricity generation.

2015

2015-11-17 00:00:00 | Sierra Club & Kosovar Civil Society react to Kosovo coal plant developments

"After months of waiting, we can now confirm what we already suspected: the Kosovar government and ContourGlobal are putting profits before the people of Kosovo," said Maura Cowley, Associate Director the Sierra Club's International Program. "An adequate assessment of the environmental and social consequences of this project has yet to finish, so there's no good reason for the government to push forward this dirty, dangerous project." (source www.sierraclub.org).

2015-02-04 00:00:00 | ContourGlobal could start building Kosovo power plant in 2016

According to Reuters: ContourGlobal could start building a coal-fired power plant in Kosovo in 18 months, in the first major investment in the country's energy sector in decades aimed at curbing power shortages and creating jobs, an official at the U.S. power company said. The cost of the project is estimated at up to EUR1.4 billion, with a third to be financed by ContourGlobal and the remainder via loans. The New York-based company was the only bidder for the 660 megawatt plant.

2011

2011-07-18 00:00:00 | Energy sector reforms

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 USD10.5 million and a European Commission grant of two million euro, 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 what 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 megawatt coal plant.

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