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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.
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 privatisationprivatization. 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 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.
