Difference between revisions of "Kosovo and coal"

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{{#badges: CoalSwarm|Navbar-Kosovocoal}}  
 
{{#badges: CoalSwarm|Navbar-Kosovocoal}}  
  
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Kosovo's electricity is 90% generated by coal, namely 2 old lignite plants, but is suffering from shortages of power at peak demand season. The [[World Bank]] is undecided on whether to fund a new 500MW coal plant.<ref name=EnStrat/><ref>[https://uk.reuters.com/article/kosovo-worldbank-energy/world-bank-in-doubt-whether-to-back-kosovo-coal-fired-power-plant-idUKL8N1TF4GW World Bank in doubt whether to back Kosovo coal-fired power plant] Reuters, June 13, 2018</ref>
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Over 80% of Kosovo's primary energy<ref name=EnEff>[http://ask.rks-gov.net/media/3948/energy-efficiency-in-kosovo-in-years-2011-2016.pdf Energy Efficiency in Kosovo in years 2011-2016] Kosovo Agency of Statistics, March 2018</ref> is from coal, and the economy is highly energy intensive.<ref name=EUstat>[http://ec.europa.eu/eurostat/statistics-explained/index.php?title=Enlargement_countries_-_energy_statistics Enlargement countries - energy statistics] eurostat, accessed June 2018</ref> And 90% of electricity is from coal, namely 2 old lignite plants, but the country suffers from shortages of power at peak demand in the winter season. The [[World Bank]] is undecided on whether to fund a new 500MW coal plant.<ref name=EnStrat/><ref name=r1>[https://uk.reuters.com/article/kosovo-worldbank-energy/world-bank-in-doubt-whether-to-back-kosovo-coal-fired-power-plant-idUKL8N1TF4GW World Bank in doubt whether to back Kosovo coal-fired power plant] Reuters, June 13, 2018</ref>
  
 
==Coal and power companies ==
 
==Coal and power companies ==
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[[Kosovo Energy Corporation]] (KEK) is the sole power corporation in the Republic of Kosovo. KEK is vertically integrated and was legally incorporated in 2005. KEK was part of the Yugoslavian power system, and focused in production of energy from coal, with power supplied from plants outside of Kosovo. By the late 1990s, the core business of the Corporation became the production of coal and energy in Kosovo, through two open-cast coal mines - the [[Mirash mine]] and [[Bardh mine]] - and two power plants, PP “Kosova A” and PP "[[Kosova B power station]]”, which cover the territory of Kosovo. There are approximately 400,000 customers and 8,000 employees in different sectors.<ref name=kek>[http://www.kek-energy.com/en/rrethKek.asp "About KEK"] Kosovo Energy Corporation website, accessed May 2011.</ref>
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[[Kosovo Energy Corporation]] (KEK) is the sole power corporation in the Republic of Kosovo. KEK is vertically integrated and was legally incorporated in 2005. KEK was part of the Yugoslavian power system, and focused in production of energy from coal, with power supplied from plants outside of Kosovo. By the late 1990s, the core business of the Corporation became the production of coal and energy in Kosovo, through two open-cast coal mines - the [[Mirash mine]] and [[Bardh mine]] - and two power plants, PP “Kosova A” and PP "[[Kosovo B power station]]”, which cover the territory of Kosovo. There are approximately 400,000 customers and 8,000 employees in different sectors.<ref name=kek>[http://www.kek-energy.com/en/rrethKek.asp "About KEK"] Kosovo Energy Corporation website, accessed May 2011.</ref>
  
 
A 2010 European Union report stated that the "legal unbundling of the distribution and supply functions of the Kosovo Energy Corporation (KEK) is due at the end of 2010 with a view to privatisation. Until completion of the new Kosovo power plant project, the other functions will remain integrated in KEK."<ref>[http://www.energy-community.org/portal/page/portal/ENC_HOME/ENERGY_COMMUNITY/EU/UNMIK/2010 "EU report 2010"] Energy Community, EU Report 2010.</ref>
 
A 2010 European Union report stated that the "legal unbundling of the distribution and supply functions of the Kosovo Energy Corporation (KEK) is due at the end of 2010 with a view to privatisation. Until completion of the new Kosovo power plant project, the other functions will remain integrated in KEK."<ref>[http://www.energy-community.org/portal/page/portal/ENC_HOME/ENERGY_COMMUNITY/EU/UNMIK/2010 "EU report 2010"] Energy Community, EU Report 2010.</ref>
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==Coal Mining Operations==
 
==Coal Mining Operations==
  
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In 2017 Q3 1.8 million tons of coal were produced.<ref name=KStats2017Q3>[http://ask.rks-gov.net/media/3676/anglisht-bilanci-i-energjise-tm3-2017.pdf ''Series 3: Economic Statistics Energy Balance Q3 - 2017,''] Kosovo Agency of Statistics</ref>
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In 2016 8.8 million tons of coal were mined.<ref name=KStats2017Q3>[http://ask.rks-gov.net/media/3676/anglisht-bilanci-i-energjise-tm3-2017.pdf ''Energy Balance Q3 - 2017,''] Kosovo Agency of Statistics</ref>
  
 
===Sibovc Coal Mine===
 
===Sibovc Coal Mine===
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The Mirash and Bardh open-cast coal mines are lignite coal mines in Kosovo operated by the Kosovo Energy Corporation (KEK).<ref name=kek/>
 
The Mirash and Bardh open-cast coal mines are lignite coal mines in Kosovo operated by the Kosovo Energy Corporation (KEK).<ref name=kek/>
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==Electricity generation and consumption==
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According to government statistics in 2016 coal generated 6249 GWh(gross) and hydro 235 GWh, and 459 GWh was imported and 1065 GWh exported; whereas 3595 GWh were consumed.<ref name=KStats2017Q3/>
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==Cost of electricity==
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Consumers pay 7 €c per kWh,the third-cheapest electricity in Europe.<ref name=r2>[https://www.reuters.com/article/us-crypto-currencies-kosovo/with-jobs-short-but-power-cheap-kosovars-get-mining-cryptocurrency-idUSKBN1JB1UH With jobs short but power cheap, Kosovars get mining - cryptocurrency] Reuters, 15 June 2018</ref>
  
 
==Existing coal-fired power stations==
 
==Existing coal-fired power stations==
  
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===[[Kosova A power station]]===  
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===[[Kosovo A power station]]===  
 
This plant was built in the early 1960s, and is located several miles northwest of Kosovo's capital city Pristina. It is operated by Kosovo Energy Corporation (KEK). It comprises five units and uses coal from the Mirash coal mine.
 
This plant was built in the early 1960s, and is located several miles northwest of Kosovo's capital city Pristina. It is operated by Kosovo Energy Corporation (KEK). It comprises five units and uses coal from the Mirash coal mine.
  
 
{{#display_map:42.676389, 21.083333|width=600|height=400|type=satellite|zoom=14}}
 
{{#display_map:42.676389, 21.083333|width=600|height=400|type=satellite|zoom=14}}
  
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===[[Kosova B power station]]===  
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===[[Kosovo B power station]]===  
 
Kosovo B power station was built in the early 1980s and is situated a few kilometers from Prishtina/Pristina.<ref>[http://enrin.grida.no/htmls/kosovo/SoE/energy.htm "9.1. Energy Situation"] Kosovo Ministry of Planning, accessed May 2011.</ref> After conflict in Kosovo in the 1990s, the European Agency for Reconstruction (EAR) invited tenders for the rehabilitation of Kosovo power station unit B2. In June 2000, the contract was won by a consortium of [[RWE npower|RWE Power International]].<ref>[http://www.rwe.com/web/cms/mediablob/en/217472/data/216646/1/rwe-power-international/power-generation-services/maintenance-and-workshops-tsg-ferrybridge/outage-management-and-site-projects/RWEs-expertise-more-than-doubles-the-availability-of-Kosovo-B-power-station.pdf "RWE’s expertise more than doubles the availability at Kosovo B power station"] RWE Power Case Study, December 2008.</ref>
 
Kosovo B power station was built in the early 1980s and is situated a few kilometers from Prishtina/Pristina.<ref>[http://enrin.grida.no/htmls/kosovo/SoE/energy.htm "9.1. Energy Situation"] Kosovo Ministry of Planning, accessed May 2011.</ref> After conflict in Kosovo in the 1990s, the European Agency for Reconstruction (EAR) invited tenders for the rehabilitation of Kosovo power station unit B2. In June 2000, the contract was won by a consortium of [[RWE npower|RWE Power International]].<ref>[http://www.rwe.com/web/cms/mediablob/en/217472/data/216646/1/rwe-power-international/power-generation-services/maintenance-and-workshops-tsg-ferrybridge/outage-management-and-site-projects/RWEs-expertise-more-than-doubles-the-availability-of-Kosovo-B-power-station.pdf "RWE’s expertise more than doubles the availability at Kosovo B power station"] RWE Power Case Study, December 2008.</ref>
  
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==Plant closures==
 
==Plant closures==
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The ''Energy Strategy of Kosovo'' aims for the closure of five outdated generating units by 2015 (the Kosova A plant) by the end of 2015, since the units cannot economically be brought into compliance with the [[European Union Large Combustion Plant Directive]]. They would need to be closed by 2017 at the latest, as required under the Energy Community Treaty. In closing the units, Kosovo is being supported by the European Commission in preparing the decommissioning of "Kosovo A" in favor of a new lignite coal plant.<Ref name=wb/>
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[[Kosovo A power station]] will have to be shut down as it cannot economically be brought into compliance with the [[European Union Large Combustion Plant Directive]].
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==Proposal for the New Kosovo power plant==
 
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Plans to update Kosovo's power system began in the early 2000s and originally envisioned a 2,000-MW lignite plant that would allow the country to export energy to its neighbors. Political and investment setbacks caused the plant to be scaled back in size.
 
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A 2010 EU report stated that plans for the development of a new Kosovo power plant (using lignite coal) had been reconfigured: "The initial installed capacity will be two units of 200-300 MW, the Sibovc lignite field will be developed immediately and participation in the Kosovo B power plant will be included in the package to be offered to investors with a view to refurbishment. The legal unbundling of the distribution and supply functions of the Kosovo Energy Corporation (KEK) is due at the end of 2010 with a view to privatisation. Until completion of the new Kosovo power plant project, the other functions will remain integrated in KEK."<ref>[http://www.energy-community.org/portal/page/portal/ENC_HOME/ENERGY_COMMUNITY/EU/UNMIK/2010 "EU report 2010"] Energy Community, EU Report 2010.</ref>
 
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A five-part U.S. State Department [http://www.eenews.net/assets/2011/07/11/document_cw_01.pdf strategy] for Kosovo obtained by ''ClimateWire'' suggested closing Kosovo A, rehabilitating Kosovo B to meet E.U. standards, developing a new 600-MW lignite-fired power plant, and privatizing the country's electricity distribution system.
 
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===Role of World Bank===
 
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The [[World Bank]] is considering supporting the ''Lignite Power Technical Assistance Project'' with a World Bank grant of US$10.5 million and a European Commission grant of Euros 2 million, as well as providing "advisory services" for the inclusion of private capital in the new lignite mine and power plant.<Ref name=wb/>
 
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In a July 2011 statement to ''ClimateWire'', a World Bank spokesman said the institution had not taken a decision on financing Kosovo B, and that an independent panel of experts was being tasked to determine if the project meets the bank's coal guidelines. The World Bank asked for and received [http://www.eenews.net/assets/2011/07/11/document_cw_02.pdf written support] from the Obama Administration for the World Bank to approve the loan for the new coal plant and privatize the country's electricity distribution system.<ref name=lf>[http://www.nytimes.com/cwire/2011/07/11/11climatewire-us-on-both-sides-of-new-battle-over-assistan-96428.html?pagewanted=1 "U.S. on Both Sides of New Battle Over Assistance to 'Ugly' Coal-Fired Power Plant"] NY Times, July 11, 2011.</ref>
 
  
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In January 2012 a World Bank analysis concluded that building a lignite coal plant in Kosovo could cost nearly twice as much money as previously estimated.
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==Proposal for new power plant==
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The government has proposed the lignite-fired [[Kosova e Re power station]]<ref>[http://mzhe-ks.net/en/projects-202#.Wyug--iFPrd '' Kosova e Re Power Plant''] Ministry of Economic Development, accessed June 2018</ref> and the [[World Bank]] is considering supporting the proposed plant.
  
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The study also acknowledged about 400 megawatts of hydro, wind and other clean energy capacity in Kosovo -- something the World Bank had previously dismissed as virtually non-existent. Yet despite newly recognized financial challenges to coal and the existence of cleaner alternatives, the World Bank ultimately concluded that a new 600 MW coal power station remained the "best and cheapest option" for replacing Kosovo's long-neglected power plants and establishing reliable power supply in the country.<Ref name=duke>[http://nicholasinstitute.duke.edu/news/world-bank-studies-coal-fired-power-plant-for-kosovo "World Bank Studies Coal-Fired Power Plant for Kosovo"] Lisa Friedman, EENews, January 17, 2012.</ref>
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==Alternatives to coal in Kosovo==
  
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The US has continued to support $58 million in World Bank financing for the plant despite President Obama's 2013 pledge to stop funding for overseas coal, according to a [http://www.eenews.net/assets/2013/10/21/document_cw_01.pdf 2013 U.S. Agency for International Development report]. The report argues that coal is the only short-term option for Europe's poorest, energy-starved country, making the plant still eligible for U.S. backing under Obama's Climate Action Plan.
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===Solar===
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With its own solar panel manufacturing plant<ref>[https://www.usaid.gov/news-information/news/supporting-renewable-energy-kosovo ''SUPPORTING RENEWABLE ENERGY IN KOSOVO''] USAID, August 7, 2017</ref> and 2000 hours of sunshine per year Kosovo has considerable solar potential, but the country has less than 10MW solar and no solar farm auctions have yet been held<ref>[https://www.pv-magazine.com/2017/11/06/kosovo-announces-auction-scheme-for-solar/ ''Kosovo announces auction scheme for solar''] pv magazine, NOVEMBER 6, 2017</ref> (in contrast in the cloudier UK a single unsubsidized solar farm is typically 10MW<ref>[https://www.pv-magazine.com/2018/06/09/the-weekend-read-solars-coming-of-age-in-the-uk/''Solar’s coming of age in the UK''] pv magazine, 9 June 2018</ref>).
  
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===Citizen opposition===
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===Wind===
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Environmental groups have urged the World Bank to allow Dan Kammen, the bank's chief technical specialist for renewable energy, to do a special assessment of Kosovo's options. Kammen did an assessment in Malaysia, which then canceled a proposed coal-fired power plant in favor of alternative energy options. There is a standoff among members of the [[World Bank]]'s board of directors over a proposal to eliminate coal financing for all middle-income countries. The Obama administration and World Bank officials argue that under the proposed energy strategy, coal lending is permitted for the poorest countries, and Kosovo fits into that category. Environmentalists argue that while the coal plant might meet the letter of the energy strategy, it does not meet the spirit of it, which is to develop cleaner energy sources for developing nations.<ref name=lf/>
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Several wind farms are proposed or under development, including a 105MW wind farm due in 2020.<ref>[https://balkangreenenergynews.com/kostt-sowi-sign-agreement-grid-connection-selaci-wind-farm/ ''KOSTT, SOWI sign agreement on grid connection for Selaci wind farm''] Balkan Green Energy News, May 24, 2018</ref>
  
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Following a World Bank report released in January 2012 that supported the construction the the proposed coal-fired power plant in Kosovo, environmental groups maintained that entrenched support for the coal project within the US State Department had obscured thinking about new, cleaner possibilities. The Sierra Club and others argued that the World Bank's analysis showed no near-term need for additional baseload capacity and noted that analysts had not actually calculated all of the costs involved in the plant or addressed Kosovo's needs for peaking power.<Ref name=duke/>
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===Biomass===
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Modernizing the use of biomass (such as wood stoves) for heating might also include replacing coal in some public buildings and district heating.<ref>[https://www.energy-community.org/dam/jcr:90fc8f31-e5d0-433e-b8ab-21e10b172d28/WB_Biomass_heating_102017.pdf ''Biomass-Based Heating in the Western Balkans – A Roadmap for Sustainable Development''] [[World Bank]], October 2017</ref>
  
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===Estimated cost of electricity===
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===Common Electricity Market===
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The Sierra Club analyzed the “Terms of Reference” provided to the Kosovo Strategic Framework for Development and Climate Change Expert Panel on whether the proposed plant meets World Bank policy and determined that it does not, as "the cost of electricity that would be provided by the Kosovo plant is grossly underestimated" because "the predicted cost of electricity is based on the assumption that all four surviving Kosovo units will operate 85 per cent of the time" yet "overall demand would [likely] be 20 percent, not 85 percent, thus tripling the cost of generation for this plant." The report concluded that the plant will likely cost 2-3 times what project proponents claim, and that the country does not have enough base load demand to justify such a large power project.<ref>Bruce C. Buckheit, [http://action.sierraclub.org/site/DocServer/Review_of_TOR_Final.pdf?docID=8341 "A Review of World Bank Group Cost Estimates For New Lignite-fired Plants in Kosovo"] Sierra Club report, Oct. 2011.</ref>
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Environmentalists claim that further expansion of Kosovo's small amount of hydropower would be damaging, and the ministry is considering this.<ref>[https://prishtinainsight.com/the-fight-for-kosovos-vanishing-rivers-mag/ ''The fight for Kosovo’s vanishing rivers''] Prishtina Insight, 22 June 2018</ref> However as neighboring Albania's generation is already almost all hydro the countries are attempting to establish a common electricity market.<ref>[https://balkangreenenergynews.com/kosovo-and-albania-agree-to-intensify-work-on-establishing-common-electricity-market/ ''Kosovo and Albania agree to intensify work on establishing common electricity market''] Balkan Green Energy News, 6 Oct 2017</ref>
  
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The World Bank countered in a [http://bit.ly/rK9Oxj report] stating that the coal plant will cost twice as much as first estimated, but still advocated its construction.<Ref name=duke/>
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==Climate change and energy efficiency==
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The government is considering the development of an integrated national energy and climate plan as part of its movement towards the EU.<ref>[https://www.energy-community.org/news/Energy-Community-News/2018/06/07.html ''Secretariat supports development of climate change legislation in Kosovo''] Energy Community, 7 June 2018</ref>
  
 
==Articles and Resources==
 
==Articles and Resources==

Latest revision as of 20:03, 22 June 2018

{{#badges: CoalSwarm|Navbar-Kosovocoal}}

Over 80% of Kosovo's primary energy[1] is from coal, and the economy is highly energy intensive.[2] And 90% of electricity is from coal, namely 2 old lignite plants, but the country suffers from shortages of power at peak demand in the winter season. The World Bank is undecided on whether to fund a new 500MW coal plant.[3][4]

Coal and power companies

Kosovo Energy Corporation (KEK) is the sole power corporation in the Republic of Kosovo. KEK is vertically integrated and was legally incorporated in 2005. KEK was part of the Yugoslavian power system, and focused in production of energy from coal, with power supplied from plants outside of Kosovo. By the late 1990s, the core business of the Corporation became the production of coal and energy in Kosovo, through two open-cast coal mines - the Mirash mine and Bardh mine - and two power plants, PP “Kosova A” and PP "Kosovo B power station”, which cover the territory of Kosovo. There are approximately 400,000 customers and 8,000 employees in different sectors.[5]

A 2010 European Union report stated that the "legal unbundling of the distribution and supply functions of the Kosovo Energy Corporation (KEK) is due at the end of 2010 with a view to privatisation. Until completion of the new Kosovo power plant project, the other functions will remain integrated in KEK."[6]

The production capacity of Kosova A power station and Kosova B power station has been hampered by chronic technical problems, including a lightning strike in July 2002. Kosovo has been importing electricity in order to make up some for its deficit. Despite the imports for much of the 1999-2002 electricity was not guaranteed 24 hours a day.[7]

Coal Reserves

Kosovo has the world's 5th largest proven reserves of lignite coal, with 12.5 billion tons of lignite.[3]

Coal Mining Operations

In 2016 8.8 million tons of coal were mined.[8]

Sibovc Coal Mine

Sibovc coal mine is located in Obilić, near Pristina.

Mirash and Bardh Coal Mines

The Mirash and Bardh open-cast coal mines are lignite coal mines in Kosovo operated by the Kosovo Energy Corporation (KEK).[5]

Electricity generation and consumption

According to government statistics in 2016 coal generated 6249 GWh(gross) and hydro 235 GWh, and 459 GWh was imported and 1065 GWh exported; whereas 3595 GWh were consumed.[8]

Cost of electricity

Consumers pay 7 €c per kWh,the third-cheapest electricity in Europe.[9]

Existing coal-fired power stations

Kosovo A power station

This plant was built in the early 1960s, and is located several miles northwest of Kosovo's capital city Pristina. It is operated by Kosovo Energy Corporation (KEK). It comprises five units and uses coal from the Mirash coal mine.

Kosovo B power station

Kosovo B power station was built in the early 1980s and is situated a few kilometers from Prishtina/Pristina.[10] After conflict in Kosovo in the 1990s, the European Agency for Reconstruction (EAR) invited tenders for the rehabilitation of Kosovo power station unit B2. In June 2000, the contract was won by a consortium of RWE Power International.[11]

Plant closures

Kosovo A power station will have to be shut down as it cannot economically be brought into compliance with the European Union Large Combustion Plant Directive.

Proposal for new power plant

The government has proposed the lignite-fired Kosova e Re power station[12] and the World Bank is considering supporting the proposed plant.

Alternatives to coal in Kosovo

Solar

With its own solar panel manufacturing plant[13] and 2000 hours of sunshine per year Kosovo has considerable solar potential, but the country has less than 10MW solar and no solar farm auctions have yet been held[14] (in contrast in the cloudier UK a single unsubsidized solar farm is typically 10MW[15]).

Wind

Several wind farms are proposed or under development, including a 105MW wind farm due in 2020.[16]

Biomass

Modernizing the use of biomass (such as wood stoves) for heating might also include replacing coal in some public buildings and district heating.[17]

Common Electricity Market

Environmentalists claim that further expansion of Kosovo's small amount of hydropower would be damaging, and the ministry is considering this.[18] However as neighboring Albania's generation is already almost all hydro the countries are attempting to establish a common electricity market.[19]

Climate change and energy efficiency

The government is considering the development of an integrated national energy and climate plan as part of its movement towards the EU.[20]

Articles and Resources

Sources

  1. ↑ Energy Efficiency in Kosovo in years 2011-2016 Kosovo Agency of Statistics, March 2018
  2. ↑ Enlargement countries - energy statistics eurostat, accessed June 2018
  3. ↑ Jump up to: 3.0 3.1 Energy Strategy of Kosovo 2017-2026 Ministry of Economic Development, March 2017
  4. ↑ World Bank in doubt whether to back Kosovo coal-fired power plant Reuters, June 13, 2018
  5. ↑ Jump up to: 5.0 5.1 "About KEK" Kosovo Energy Corporation website, accessed May 2011.
  6. ↑ "EU report 2010" Energy Community, EU Report 2010.
  7. ↑ "Kosovo Energy" UNMIK, October 28, 2012.
  8. ↑ Jump up to: 8.0 8.1 Energy Balance Q3 - 2017, Kosovo Agency of Statistics
  9. ↑ With jobs short but power cheap, Kosovars get mining - cryptocurrency Reuters, 15 June 2018
  10. ↑ "9.1. Energy Situation" Kosovo Ministry of Planning, accessed May 2011.
  11. ↑ "RWE’s expertise more than doubles the availability at Kosovo B power station" RWE Power Case Study, December 2008.
  12. ↑ Kosova e Re Power Plant Ministry of Economic Development, accessed June 2018
  13. ↑ SUPPORTING RENEWABLE ENERGY IN KOSOVO USAID, August 7, 2017
  14. ↑ Kosovo announces auction scheme for solar pv magazine, NOVEMBER 6, 2017
  15. ↑ Solar’s coming of age in the UK pv magazine, 9 June 2018
  16. ↑ KOSTT, SOWI sign agreement on grid connection for Selaci wind farm Balkan Green Energy News, May 24, 2018
  17. ↑ Biomass-Based Heating in the Western Balkans – A Roadmap for Sustainable Development World Bank, October 2017
  18. ↑ The fight for Kosovo’s vanishing rivers Prishtina Insight, 22 June 2018
  19. ↑ Kosovo and Albania agree to intensify work on establishing common electricity market Balkan Green Energy News, 6 Oct 2017
  20. ↑ Secretariat supports development of climate change legislation in Kosovo Energy Community, 7 June 2018

Related SourceWatch articles

Europe and coal

External Resources

Background information

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