Kurti government after ousting the American company, damaged the country by 21 mln euros now returns to “Kosovo B”

The Kosovo government has announced plans to extend the life expectancy of existing coal-powered thermal power plants, renewing the B1 and B2 units of the thermocentral plant “Kosovo B”.

These measures are aimed at improving energy system sustainability and meeting European Union environmental standards.

According to the Economy Ministry, modernisation of the B1 unit is expected to be completed by the end of 2025, while the B2 unit by the end of 2026, extending their operation for another 20 years.

This decision comes after the suspension of the project for the construction of the new thermal power plant “New Kosova” with the American company Contour Global.

In December 2017, the Kosovo government had signed an agreement with Contour Global for the construction of a thermal power plant with a capacity of 500 megawatts, worth an investment of about 1.3 billion euros. This project was meant to begin construction in 2020 and become operational in 2023, with a life expectancy planned for 40 years.

However, in March 2020, Contour Global withdrew from the project, citing political changes in Kosovo and lack of progress in meeting the terms of the contract. As a result, the company indicted the Republic of Kosovo at the Arbitrazhi International Court for disrespecting the contract.

Construction of the “New Kosovo plant towards failure

After a nearly three-year process, in July 2024, arbitration decided in favour of Contour Global, forcing Kosovo to pay the company over 21m euros in compensation.

Prime Minister Albin Kurti, during a government meeting, said the suspension of the project and loss of arbitration were the result of earlier governance and lack of adequate treatment of the issue.

He stressed that this project had not been useful to the country and that its suspension was necessary to avoid larger consequences in the future.

On the other hand, Alliance for the Future of Kosovo Chairman Ramush Haradinaj has accused the current government of failing to project with Contour Global, calling it the biggest investment in Kosovo since the declaration of independence, which would guarantee hundreds of jobs and energy stability for the country.

Currently, the government is focusing on improving the existing power generation capacities, aimed at securing a minimum capacity of 540 megawatts and a strategic reserve capacity of 360 megawatts by 2030.

This change in access to energy policies has sparked public debate on the consistency and effectiveness of the strategies pursued to ensure Kosovo's energy independence and stability. /Infocus/ /Periscopi

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