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.
===Role of World Bank===The [[World Bank]] is 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/> 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 proposed World Bank to approve the loan for the new coal plantand 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>
===Citizen opposition===
===Estimated cost of electricity===
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> The World Bank responded with a [bit.ly/rK9Oxj new report] that the coal plant will cost twice as much as first estimated, but still advocated its construction.
==Articles and Resources==