Under a new agreement with the International Finance Corp. on technical and advisory assistance, the Ministry of Economy of Kosovo* is planning a 200 MW wind power auction. Together with an ongoing tender, investments could reach EUR 500 million.
The process under the first wind power auction in Kosovo* is yet to be completed almost two years after the initial call. Meanwhile, the Ministry of Economy has increased its ambition for the second round.
Minister of Economy Artane Rizvanolli signed an agreement on expanding cooperation with Country Officer for Kosovo* and North Macedonia at International Finance Corp. (IFC) Visar Perani, concerning the continuation of technical and advisory assistance for future wind energy auctions.
The next competitive bidding process will involve up to 200 MW of capacity, according to the update. There are now three bids under evaluation from the first round, for as much as 100 MW. The two tenders were earlier planned for 150 MW overall.
The two rounds would amount to as much as 300 MW combined
Rizvanolli pointed out that the ministry kickstarted the procedure for the second auction. With up to 300 MW in total and IFC as the transaction advisor, the investments will amount to some EUR 450 million, she estimated.
Perani went further to say he expects the tendered capacity to attract investments of up to EUR 500 million. In his view, the project is important both for Kosovo* and the IFC, part of World Bank Group.
The first wind auction was also supported by Germany, Luxembourg Development Cooperation Agency – LuxDev, the European Bank for Reconstruction and Development (EBRD) and the now defunct United States Agency for International Development (USAID)
The initial documentation showed that the ministry intended the wind power plants to be run by special purpose vehicles (SPVs). The government would have a share of up to 49%, helped by funds from the International Monetary Fund’s Resilience and Sustainability Facility (RSF).
A tender for two battery energy storage systems (BESS) totaling 340 MWh is also ongoing.
Separately, the fourth wind power plant in Kosovo* came online in August.