Kurti's lost chance of turning energy crisis into opportunity for Kosovo

The price of coal on all continents has risen to the highest levels of all time this week, reaching $3375 per tonne, almost triple of what was a year ago, while Kosovo sleeps in Europe's second largest lignite reserve of over 14 billion tons of coal. With all this underground wealth and this favourable situation, if we had a professional and responsible government in Kosovo, not only would there be no belt cuts but there would be a lot of budget revenues. Today Kosovo should have multiplied the extraction of lignite to supply the growing need for coal in neighbouring countries, marking for the first time a positive commercial balance through sale or electricity exchange.

Today, the Kosovo government would have to undertake economic diplomacy using increased coal needs not only to ensure continued electricity for Kosovo and profits but also to ensure favour and diplomatic concessions. Germany has numerous recently closed coal mines in Rhineland or Lustian, where with little money modern machinery can be bought to reproduce coal mining in Kosovo. But unfortunately we today are not getting enough coal to meet our needs and this historic opportunity is running out of hand.

One of the most wrong decisions Kurt has made was that of June to reject Serbia's proposal, to give Kosovo electricity in exchange for coal. This has been an extraordinary opportunity for Kosovo, as Serbia is among the most dependent countries on coal-powered thermal power plants, which make up 70% of the energy needs. Serbia has authorised the power corporation to buy as fast as 3m tonnes of coal, which at market price means over 1 billion euros in purchase.

If we take it principledly, this was a hypocritical step that Kurti on the one hand is sold as a hot patriot refuses to receive electricity from Serbia, on the other hand, the government allocates 40m euros to COST for the current in the north and imports from Serbia have been over 300m euros. Made practically, this decision has been very harmful because it was an extraordinary opportunity to save money by providing coal-changing electricity, which Kosovo has seen, without being poisoned by central smoke. Serbia is currently desperate and is trying to buy coal wherever it can, making deals to get coal even from Albania and Montenegro.

Northern Macedonia has been trying last year to buy three million tonnes of coal from Kosovo to supply its coal power plants covering 55% of the needs. Due to the geographical proximity and railway ties inherited from Yugoslavia, the Kosovo coal export market may also be Bosnia and Herzegovina (65% depending on coal thermal power plants, which last year alone imported 1.4 million tonnes of coal.

But Kosovo has a phenomenal opportunity to sell or exchange coals for electricity to other European countries to exploit and offset the embargo on Russia, given that EU countries imported nearly 52 million tonnes of coal from Russia in 2021. Of these 8 million tonnes have gone to Poland (which 41% of energy provides it from coal thermal power plants) and 4.5 million tonnes in Slovakia. Romania, Hungary and Bulgaria are also seeking alternative resources to import coal already that has halted already imports from Russia.

Kosovo's electricity needs are known to exceed production capacities, especially during the winter. Kosovo has the capacity to produce around 800 megawatts if the two existing existing thermal power plants are fully operational, while during the winter the needs could reach up to 300 megawatts (M). So it is known to any Kosovo government that during the winter it is necessary to import electricity. The global energy crisis has started since last year, where electricity prices in the free market went into multiple amounts compared to previous years, is expected to deteriorate this year and continue in the coming years. So for example, the price of electricity on the Hungarian Stock Exchange (which is taken as reference to our region's market) on September 1st was about 600 euros for Me, on February 1, 2021, was about 30 euros for Me, while on the same date in 2020 it was only 30 euros for Me.

So the Kosovo government has had plenty of time last year to think, study and negotiate contracts to deal properly with the energy crisis. Other countries have long known themselves and have taken emergency measures to face what awaits the country. So for example, in Albania a contract has been contracted since April of this year to bring in two power-generating ships with a total installed capacity of 110 M. Northern Macedonia Prime Minister Dimitar Kovachevski and incumbent Bulgarian Prime Minister Galab Donev have just made an agreement under which Bulgaria can export up to 200 more electricity to northern Macedonia by 31 March when it is the peak of the crisis.

Still, it is possible that this government will get out of sleep, withdraw from the denouncing behaviour as if it were in the opposition, and rule the country. The energy crisis will likely last several years, and sanctions against Russia, the biggest coal exporter in Europe, will likely last and be toughened. Under such conditions, the Kosovo government would have to give up trying to sell more Catholic than the pope, so ecologically than the EU, and walk the ground using Kosovo's largest natural wealth, coal, for the sake of its citizens. The town would have to be used today not only to ensure continued supply at affordable prices but also to ensure additional budget revenues that could then be used for infrastructure, better quality public services and so on.