Financial Support for RE and EE Projects
by German Financial Cooperation
Donors’ Conference on Sustainable Energy for Kosovo
Swiss Diamond Hotel, Pristina
May 14, 2013
René Eschemann
Bank aus Verantwortung
German Financial Cooperation with Kosovo
Key Figures (in million EUR)
1999 start of German FC with Kosovo
EUR 247 mln committed to Kosovo (German Governmental and KfW own Funds)
EUR 166.5 mln active portfolio (125 mln under implementation / 41.5 mln under preparation)
EUR 60 mln mandates mobilized from other donors
Energy
8
Energy
37
Water/Sewage
 Focus on infrastructure projects
Financial Sector
Transport
Water/Sewage
124
 Leveraging grant funds with
promotional loans
Segment 5
Financial Sector
 Leveraging funds of other donors
78
Transport
131,8
Segment 5
Financial Support for RE and EE - May 14, 2013
2
How to increase renewables for Kosovo?
… e.g. import via 400kV line Kosovo – Albania: the “electricity highway”
43
98
43
TPP
Kosovo
installed generation
capacity (MW)
HPP
TPP
Albania
HPP
installed generation
capacity (MW)
TPP
1171
HPP
1475
Measures:
› Construction of 400kV Transmission line Tirana-Prishtina, 240 km
› Upgrade of respective transmission substations Kashar (Alb) and Kosovo B
› FC provides EUR 33.5 mn to Kosovo [16.5 mn grant and 17 mn loan]
and EUR 42 mn to Albania [interest subsidized loan]
Objectives:
1171of the two systems Kosovo-Albania (thermal and hydro power),
› Optimization
›
›
›
exchange of base and peak load
Improved access to the European grid, efficient use of regulation reserves,
reduction of operation cost
Sufficient cross-border capacity for new power plant and renewables
Classified as priority infrastructure project of the Energy Community SEE
Financial Support for RE and EE - May 14, 2013
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Energy Efficiency on demand and supply side
Improvement of District Heating System in Prishtina
Measures:
›
Implementation of Combined Heat and Power (CHP): utilization of unused waste
heat of the thermal power plant for heating purposes
›
›
Refurbishment of district heating network and substations, heat meters, etc.
Institutional strengthening of the district heating company
Financing:
›
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›
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EUR 11 mn by FC (Mixed Financing: 6 mn Grant and 5 mn KfW-Loan)
EUR 14 mn by EU (Grant)
EUR 2 mn (own contribution Municipality Prishtina)
Partial Risk Guarantee by OeEB for KfW loan
Further mandates by Sweden (EUR 2 mn) and Luxembourg (EUR 1.5 mn)
Results:
›
›
›
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50% cost reduction of the district heating company
50% reduction of water losses in the network system
CO2 savings: >90 000 t/p.a.
Reduction of electricity consumption for heating purposes
Increase of overall efficiency of power plant Kosovo B
Target group: 60 000 inhabitants of Prishtina + further 19 500
 Significant improvement of living conditions
Financial Support for RE and EE - May 14, 2013
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Electricity Consumption January and July 2011
 Bulk electricity
demand for
heating in
winter
 EE measures to
reduce heating
with electricity
 EE measures to
reduce
electricity
consumption of
industry and
commercial
consumers
Source: ERO 2012.
Financial Support for RE and EE - May 14, 2013
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Energy Efficiency Projects under preparation
Promotion of EE Investments via the Banking Sector (EUR 8 mn):
›
Credit lines to financial institutions in Kosovo to promote EE investments such as
›
›
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building insulations, replacement of windows, heating system modernization
replacement of production machinery, fuel switching, heat recovery, utilization of
renewable energy
Target group: private households and SMEs
Tailor made technical assistance for partner financial institutions
Internal and external marketing: raising awareness amongst staff and clients
Methodology to easily calculate energy and CO2 emission savings
Energy Efficiency in Public Buildings (EUR 6 mn) :
›
›
›
Financing of EE measures in municipal public buildings co-financed by WBIF
EE measures such as insulations, windows, heating and lightning
So far participating municipalities: Prishtina, Gjakova, Ferizaj, Gjilan
Energy Efficiency in Water Company Prizren (EUR 2.5 mn) :
›
›
Financing of EE measures to reduce electricity consumption for pumped water
Restructuring of network to increase water supply through gravity
Financial Support for RE and EE - May 14, 2013
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Energy Efficiency / Renewable Projects under preparation
Improvement of Transmission Network (EUR 31 mn):
› Rehabilitation and upgrading of substations and transmission lines
› Strengthening the grid to integrate future renewable generation
capacities, to increase efficiency and regional integration
Improvement of District Heating in Gjakova:
› Beside rehabilitation and expansion of district heating, assessment
of alternative fuel switch to e.g. biomass or waste
› Feasibility study under preparation by WBIF
Wind and Solar Atlas:
› Developing a countrywide wind and solar atlas
› Identifying wind and solar potential and most promising locations
 Investments in renewable generation capacities – to be tackled by private
investors only? Pilot projects needed? PPP?
 Huge potential in demand side Energy Efficiency – but also in the
distribution network with losses around 40%
Financial Support for RE and EE - May 14, 2013
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Thank you very much for your attention!
René Eschemann
Director Regional Office Albania and Kosovo
KfW Office Prishtina
Zija Shemsiu 6
10 000 Prishtina, Kosovo
Phone/Fax: +381 38 54 41 41/2
E-mail: kfw.pristina@kfw.de
KfW Office Tirana
Rr. Skenderbej, N21/1
1000 Tirana, Albania
Phone/Fax: +355 42 22 78 69
E-mail: kfw.tirana@kfw.de
Bank aus Verantwortung