Kosovo is one of the poorest countries in Europe, with almost a third of the population living below the poverty line and one in 10 people living in extreme poverty. The average per capita income is about one-tenth that of the EU and Kosovo has one of the highest unemployment rates in Europe. The overall unemployment rate is about 33 percent and unemployment for youth aged 15-24 years is about 60 percent. Job creation, therefore, is a major priority for the country.
Given this background, the Government of Kosovo has prioritized the modernization and improvement of the country''s energy sector, and has asked its development partners, including the World Bank, European Commission, KfW, USAID, as well as other donors, for support and assistance.
The World Bank is committed to helping Kosovo resolve its energy shortages through a comprehensive strategy that includes increased energy efficiency, development of renewable sources of energy, integration into regional power markets, and support for a new power generation that is both reliable, sustainable and affordable for citizens.
The Government of Kosovo aims to put its energy sector on a sustainable path, through developing renewable energy potential, improving energy efficiency, closing a 50-year-old power plant, and rehabilitating another old power plant. The Government also wants to ensure that the affordability of electricity is maintained, given the country''s high poverty and unemployment rates. The World Bank Group supports this comprehensive approach to developing and modernizing Kosovo''s energy sector.
The World Bank Group''s engagement on energy aims to helps client countries secure an affordable, reliable, and sustainable energy supply – which is necessary in order for growth, poverty reduction, and shared prosperity. The Group''s commitment to helping Kosovo improve its energy sector is broad: projects are designed to improve energy efficiency, ease the policy and regulatory environment for renewable energy and energy efficiency, address the environmental legacy of the old power plants, upgrade power generation to meet demand, and improve water supply.
Increased energy efficiency (EE) and renewable energy (RE) are fundamental components of the World Bank Group''s energy sector engagement, and are key to helping Kosovo achieve greater energy security. The country has significant potential to improve energy efficiency and to integrate renewable sources into its energy supply mix. More
Some 50 years of coal-fired power generation have resulted in a legacy of emitting vast quantities of ash into areas surrounding Kosovo''s power plants, polluting the country''s air, and creating a hill of ash visible for more than 10 kilometers. Since 2007, the World Bank Group has been working with the Government of Kosovo to address these issues.More
From renewable energy to hydropower to waste management, water is an inherent component of Kosovo''s energy strategy and fundamental to the World Bank Group''s energy engagement in the country.More...
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Total energy supply (TES) includes all the energy produced in or imported to a country, minus that which is exported or stored. It represents all the energy required to supply end users in the country. Some of these energy sources are used directly while most are transformed into fuels or electricity for final consumption.
Energy production includes any fossil fuels drilled and mined, which can be burned to produce electricity or used as fuels, as well as energy produced by nuclear fission and renewable power sources such as hydro, wind and solar PV. Bioenergy - which here includes both modern and traditional sources, including the burning of municipal waste - is also an important domestic energy source in many countries.
Imports, particularly of fossil fuels like oil, natural gas and coal, make up an important part of the energy supply in many countries. Countries that rely heavily on imported energy may be vulnerable to supply disruption from external events such as the Covid-19 pandemic and the war in Ukraine. In countries that export large amounts of energy, falling energy prices can also cause major economic shocks.
Energy sources, particularly fossil fuels, are often transformed into more useful or practical forms before being used. For example, crude oil is refined into many different kinds of fuels and products, while coal, oil and natural gas can be burned to generate electricity and heat. Other forms of transformation, such as extracting gas or oil from coal, play a relatively minor role in the energy systems of most countries.
One of the most important types of transformation for the energy system is the refining of crude oil into oil products, such as the fuels that power automobiles, ships and planes.
Another important form of transformation is the generation of electricity. Thermal power plants generate electricity by harnessing the heat of burning fuels or nuclear reactions – during which up to half of their energy content is lost. Renewable power sources generate electricity directly from natural forces such as the sun, wind, or the movement of water.
Total final consumption (TFC) is the energy consumed by end users such as individuals and businesses to heat and cool buildings, to run lights, devices, and appliances, and to power vehicles, machines and factories. It also includes non-energy uses of energy products, such as fossil fuels used to make chemicals.
Some of the energy found in primary sources is lost when converting them to useable final products, especially electricity. As a result, the breakdown of final consumption can look very different from that of the primary energy supply (TES). Both are needed to fully understand the energy system.
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