Kosovo's Q1 electricity production drops 1.1% y/y, consumption down 2.6% y/y

By bne IntelliNews June 25, 2013

Electricity production in Kosovo inched down 1.1% y/y to 1,730 GWh in Q1 2013, while consumption declined 2.6% to 1,006 GWh, the statistics office reported. In quarterly terms, however, both power production and consumption increased by 4.4% and 9.2%, respectively.

Production of electricity in thermal power plants edged 1.4% lower y/y to 1,713 GWh in the first quarter of 2013, accounting for 99.1% of all of power generated in the country. In the same period, electricity from hydropower plants climbed 32.3% y/y to 16.4 GWh, or 0.9% of all electricity.

Power consumption was mainly weighed down by declining consumption of electricity delivered from 220/110kV transmission lines* - down 20.1% y/y to 111.6 GWh. In addition, power consumed by Kosovo's household sector edged down 1.4% y/y to 607.9 GWh.

On the other hand, the commercial sector's electricity usage climbed 4.2% y/y to 187.3 GWh. The industry consumption grew 0.7% y/y to 61.2 GWh after falling 4.1% the previous quarter.

Kosovo produces more electricity than it consumes but domestic generation is not able to meet the demand because a good part of the power produced in Kosovo is lost in the transmission system due to the inefficient distribution network, high commercial losses and lack of insulation in buildings. 

As a result, there is a gap between consumers' electricity needs and what they receive from domestic power producers and this gap is met with electricity imports. The first-quarter imports grew 5.7% y/y to 229.7 GWh, providing 22.8% of the total power consumption in the country (up from 15.4% in Q4 2012).

Kosovo also exports some electricity to other countries. In Q1 2013, these exports spiked up 87% y/y to 100.4 GWh.

At the moment, the Kosovo Energy Corporation (KEK) is the sole power generation company in the country. It is a state-owned corporation, which operates the Kosovo A and Kosovo B thermal power plants and the Ujmani hydro power plant. It has also placed under concession four small hydropower plants.

While the Kosovo A power plant is planned to be taken out of service in 2017, the government intends to build a new lignite power plant, Kosova e Re, with installed capacity of 600 MWh.

In its first country report on Kosovo, published in May 2013, the EBRD announced its intentions to help Kosovo increase its energy supply stability by engaging in the rehabilitation of the Kosova e Re (Kosovo C) project. The bank will also assist renewable energy projects through loan financing. Technical and financial help to Kosovo's transmission company, KOSTT, is also part of the EBRD's strategy.

​In 2012, electricity production in Kosovo rose 2.4% to 5,912 GWh, while consumption declined 2% to 3,611 GWh.

* Kosovo's statistics office breaks down the power consumption in the country to households, privileged consumers (220/110kV), industrial sector, commercial sector, public enterprises and others. Privileged consumers can be both households and businesses.

  2009 2010 2011 2012 Q1'12 Q1'13 Change Q1'12/Q1'13
Electricity production (GWh) 5,348 5,596 5,771 5,912 1,749 1,730 -1.1%
Electricity consumption (GWh) 3,200 3,480 3,684 3,611 1,033 1,006 -2.6%
Electricity imports (GWh) 767 816 816 625 217 229 5.7%
Electricity exports (GWh) 113 350 371 472 53 100 87.0%
Source: Kosovo statistics office              

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