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Donors’ Conference on Sustainable Energy for Kosovo

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Presentation on theme: "Donors’ Conference on Sustainable Energy for Kosovo"— Presentation transcript:

1 Financial Support for RE and EE Projects by German Financial Cooperation
Donors’ Conference on Sustainable Energy for Kosovo Swiss Diamond Hotel, Pristina May 14, 2013 René Eschemann

2 German Financial Cooperation with Kosovo Key Figures (in million EUR)
1999 start of German FC with Kosovo EUR 247 mln committed to Kosovo (German Governmental and KfW own Funds) EUR mln active portfolio (125 mln under implementation / 41.5 mln under preparation) EUR 60 mln mandates mobilized from other donors Focus on infrastructure projects Leveraging grant funds with promotional loans Leveraging funds of other donors Financial Support for RE and EE - May 14, 2013

3 How to increase renewables for Kosovo. … e. g
How to increase renewables for Kosovo? … e.g. import via 400kV line Kosovo – Albania: the “electricity highway” Kosovo installed generation capacity (MW) Albania installed generation capacity (MW) Measures: Construction of 400kV Transmission line Tirana-Prishtina, 240 km Upgrade of respective transmission substations Kashar (Alb) and Kosovo B FC provides EUR 33.5 mn to Kosovo [16.5 mn grant and 17 mn loan] and EUR 42 mn to Albania [interest subsidized loan] Objectives: Optimization of the two systems Kosovo-Albania (thermal and hydro power), exchange of base and peak load Improved access to the European grid, efficient use of regulation reserves, reduction of operation cost Sufficient cross-border capacity for new power plant and renewables Classified as priority infrastructure project of the Energy Community SEE Costs 91.3m EUR (Kosovo 39.9m; Albania 51,4m) Financial Support for RE and EE - May 14, 2013

4 Energy Efficiency on demand and supply side Improvement of District Heating System in Prishtina
Measures: Implementation of Combined Heat and Power (CHP): utilization of unused waste heat of the thermal power plant for heating purposes Refurbishment of district heating network and substations, heat meters, etc. Institutional strengthening of the district heating company Financing: EUR 11 mn by FC (Mixed Financing: 6 mn Grant and 5 mn KfW-Loan) EUR 14 mn by EU (Grant) EUR 2 mn (own contribution Municipality Prishtina) Partial Risk Guarantee by OeEB for KfW loan Further mandates by Sweden (EUR 2 mn) and Luxembourg (EUR 1.5 mn) Results: 50% cost reduction of the district heating company 50% reduction of water losses in the network system CO2 savings: > t/p.a. Reduction of electricity consumption for heating purposes Increase of overall efficiency of power plant Kosovo B Target group: inhabitants of Prishtina + further  Significant improvement of living conditions Financial Support for RE and EE - May 14, 2013

5 Electricity Consumption January and July 2011
Bulk electricity demand for heating in winter EE measures to reduce heating with electricity EE measures to reduce electricity consumption of industry and commercial consumers Source: ERO 2012. Financial Support for RE and EE - May 14, 2013

6 Energy Efficiency Projects under preparation
Promotion of EE Investments via the Banking Sector (EUR 8 mn): Credit lines to financial institutions in Kosovo to promote EE investments such as building insulations, replacement of windows, heating system modernization replacement of production machinery, fuel switching, heat recovery, utilization of renewable energy Target group: private households and SMEs Tailor made technical assistance for partner financial institutions Internal and external marketing: raising awareness amongst staff and clients Methodology to easily calculate energy and CO2 emission savings Energy Efficiency in Public Buildings (EUR 6 mn) : Financing of EE measures in municipal public buildings co-financed by WBIF EE measures such as insulations, windows, heating and lightning So far participating municipalities: Prishtina, Gjakova, Ferizaj, Gjilan Energy Efficiency in Water Company Prizren (EUR 2.5 mn) : Financing of EE measures to reduce electricity consumption for pumped water Restructuring of network to increase water supply through gravity Financial Support for RE and EE - May 14, 2013

7 Energy Efficiency / Renewable Projects under preparation
Improvement of Transmission Network (EUR 31 mn): Rehabilitation and upgrading of substations and transmission lines Strengthening the grid to integrate future renewable generation capacities, to increase efficiency and regional integration Improvement of District Heating in Gjakova: Beside rehabilitation and expansion of district heating, assessment of alternative fuel switch to e.g. biomass or waste Feasibility study under preparation by WBIF Wind and Solar Atlas: Developing a countrywide wind and solar atlas Identifying wind and solar potential and most promising locations Investments in renewable generation capacities – to be tackled by private investors only? Pilot projects needed? PPP? Huge potential in demand side Energy Efficiency – but also in the distribution network with losses around 40% Financial Support for RE and EE - May 14, 2013

8 Thank you very much for your attention!
René Eschemann Director Regional Office Albania and Kosovo KfW Office Prishtina KfW Office Tirana Zija Shemsiu 6 Rr. Skenderbej, N21/1 Prishtina, Kosovo 1000 Tirana, Albania Phone/Fax: /2 Phone/Fax:

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