PROJECT NAME:

EU Support to the Energy Efficiency Fund

SECTOR:

Energy

PROJECT VALUE:

€10 million, IPA 2017 +€3mil planned under IPA 2022

DURATION:

48 months, until 30 June 2024

IMPLEMENTING PARTNER:

Indirect management by the World Bank

DIRECT BENEFICIARY:

Kosovo energy efficiency fund Kosovo Government and municipalities

PARTNERS:

The EU contribution is managed by the World Bank through a Trust Fund The initial capital of the KEEF is €16mil of which EU grant €10mil, Kosovo Government grant €1mil/year for the next three years and World Bank loan €5mil.

COVERAGE/IMPACT:

Kosovo Municipalities

OVERALL OBJECTIVE:

To improve the security of supply in Kosovo by implementing the Energy Community Treaty requirements on energy efficiency and the national energy efficiency plan.

PROJECT PURPOSES:

To improve the energy efficiency in the municipal public infrastructure.

ACTIVITIES:

The Fund (KEEF) is established as an independent, autonomous and sustainable entity to enable the Government of Kosovo to achieve its policy objectives on energy efficiency by promoting, supporting and implementing energy efficiency measures, as well as attracting and managing financial resources in order to finance and implement investment projects in the area of Energy Efficiency in a sustainable manner. The Fund operates on revolving basis which means that projects implemented will be repaid by the municipalities in instalments over a period of approx. 10 to 15 years as foreseen in the energy service agreements between the Fund and municipality. The Fund is governed by a board of members consisting of representatives/experts of the Government, Association of municipalities, managing director of the fund and representatives of the two main donors EU Office in Kosovo and World Bank. The Fund will target energy efficiency improvements and renewable energy investments initially in the public sector buildings such as schools, health care centres, hospitals, but also in street lighting, etc. In midterm the Fund will be investing on energy efficiency in the residential buildings subject to enhanced policy and regulatory framework. The KEEF has signed in Feb 2022 the contracts for implementation of 74 energy efficiency projects, see the list below. The implementation of energy efficiency projects will be completed in 2023.

RESULTS:

Result 1: The pipeline of energy efficiency projects in the public infrastructure is prepared and implemented in agreement with donors contributing to the Fund. Result 2: Increased energy savings in public infrastructure and improved level of comfort and level of services in the public sector.