Lack of electricity repels foreign investors from Kosovo

There is a time-out of planned electricity, but without planning. Cutting off electricity causes serious problems as it disrupts the production process, and then machinery is lost time and causes material loss. From 1999 to now, we have invested enough energy to employ 50 new workers. Lack of this product is one of the causes that has been unable to obtain”, says Piraj for Radio Free Europe.

The problem with stable electricity supply in Kosovo is also highlighted in the latest report of the US State Department for the Investment Climate published on 9 September.

According to this, the Kosovo report has the potential to attract foreign direct investment, but one of the problems preventing the arrival of foreign investors in Kosovo is also the unreliable supply of energy.

Foreign investments in Kosovo over the years have also marked a decline, according to official data from the Central Bank of Kosovo. Last year the value of foreign investments in Kosovo has been 265m euros.

KEDS: Electricity supply stable
In Kosovo, the operator for power supply is power supply (KESCO) and energy distribution (KEDS).

Electricity Supplier Viktor Buzhala, unwilling to comment on the UN report, says there is stable electricity supply in the country and disruptions can only be on certain occasions when there is a breach on the network and when renovations should be made.

“The state of electricity supply is quite stable. Now, how many years KED has not applied reductions for any consumers, the supply continues without interruption. We've inherited a set in highly outdated condition, but this network has improved. There are significant advances this has been noted in the World Bank Doing Business report. In just two cases, there can be power cuts due to weather factors and when we intervene to improve that network, so when investments are made”, Buzhala says, adding that business priorities as far as the stable electricity supply is concerned.

Buzhala adds that KEDS in recent years has invested in the power grid of up to 150m euros.

Self - Power Investments
To escape the problems of power shortages of the Pestova company, which deals with the processing and production of potatoes, in 2008 had invested about 250 thousand euros in construction of a height.

The owner of this company, Bedri Kosumi, tells Radio Free Europe that this investment was made to escape the losses the company suffered from power cuts.

There is no economy where there is no electricity, unfortunately Kosovo has faced this problem and is still facing it. By 2008 we've had so many problems, then with our investments we've built a height, which has a length of 8 kilometers and we've made a good solution to energy supply. In 2008 we invested about 240 thousand euros, while last year (2019) have been invested in this height of 100 thousand euros”, Kosumi indicates.

According to a Kosovo Economic Ode research conducted in 2018, the private sector in Kosovo reportedly spent close to 580m euros on the purchase of power generators.

State provide non-stop energy for business
Representatives of the business community in Kosovo say uncertainty with electricity supplies is one of the problems that is accompanying businesses to Kosovo.

The chairman of the Afarism Oda in Kosovo, Skender Krasniqi, tells Radio Free Europe that there is no strategy by authorities. This strategy, according to him, would have to create areas where the business will have all the necessary infrastructure, including electricity.

The lack of this strategy caused businesses to invest in countries where energy infrastructure is not at the right level. The municipalities in Kosovo give business permits in specific areas to build factories, while not providing you with the necessary infrastructure. Electricity supplies over the years have improved, but continued to have disruptions in some cases even without warnings, damaging business”, Krasniqi says.

As the main reason for the lack of this product in Kosovo is constantly stressed by the age of thermal power plants in Kosovo. The <x0 power plant Kosovo A” dates back to the 1960s, while thermal power plant “Kosova B” dates back to the 80s.

Kosovo now has a project for the construction of the new thermal power plant “New Kosova” with a capacity of 500 megawatts, which was considered to remove Kosovo from electricity problems.

But as such, this project may not be realised at all, since the American company Contour Global, which was selected by the government for the construction of the thermal power plant, has already withdrawn from the plan to build the plant.

The Contour Global Company in March of this year has withdrawn from plans to build the thermal power plant, because the company does not intend to build coal projects in the future, but political changes that have taken place in Kosovo have also been mentioned, adding that former Prime Minister Albin Kurti had publicly rejected the project.