The European Investment Bank (EIB) has allocated a EUR 33 million loan to support the development of a 120 MW peak capacity solar power plant. This initiative is spearheaded by Kosovo's government-controlled power utility, KEK, intending to repurpose a former coal ash dump near Prishtina for this purpose.

The EIB has officially signed off on a EUR 33 million investment loan to facilitate the construction of a photovoltaic plant in Kosovo, with grid connectivity reaching up to 100 MW, equating to a peak capacity of 120 MW. This financing forms part of the European Union's Economic and Investment Plan for the Western Balkans, a comprehensive program offering EUR 9 billion in grants aimed at mobilizing a total of EUR 30 billion in investment. The proposed solar facility is projected to generate approximately 169 GWh per year, a significant contribution to Kosovo's renewable energy objectives.

The chosen site for the solar project, owned by KEK, is situated on the former ash dump of the Kosovo A power plant. In addition to the EIB's financial assistance, KEK is set to receive a EUR 32 million grant through the EU's Western Balkans Investment Framework. This endeavor represents one of the largest renewable energy ventures in the region, supported by Team Europe's collaborative efforts. By aiding Kosovo in achieving its energy security and renewable energy targets, this project aligns with the EU Green Agenda, promoting decarbonization and energy mix diversification.

Germany's KfW Development Bank has committed a EUR 29 million loan to further bolster the project's financing, with the total investment valued at approximately EUR 107 million, inclusive of KEK's contributions. The solar power plant, strategically located between the towns of Obiliq/Obilic and Fushë Kosova (Kosovo Polje in Serbian) near Prishtina, will be interconnected with the existing substation at the Kosovo A thermal power plant via underground connections. This undertaking signifies a pivotal step towards sustainable energy production and accelerates Kosovo's transition away from conventional energy sources, reducing dependency on outdated coal plants like Kosovo A and Kosovo B.

In addition to the solar power plant component, the Solar4Kosovo project encompasses a solar thermal facility intended for the district heating system serving the capital city. This facility will be situated in the village of Shkabaj (Orlovic) in the Obiliq municipality.

In other developments, the government in Prishtina has established the Energy Storage Corp. (EsCorp), tasked with overseeing a battery project with a combined operating power of 125 MW and a capacity of 250 MWh. Funded by the United States' Millennium Challenge Corporation (MCC), the project is expected to involve the Transmission, System, and Market Operator (KOSTT) owning 45 MW (90 MWh) of the total battery capacity. These battery systems are designed to store surplus electricity and stabilize frequency in the transmission system, with a collective value estimated at USD 180 million.