Selected Issues Papers

Kosovo’s Electricity Sector Challenges and Opportunities: Republic of Kosovo

Author/Editor:

Gabriel Di Bella ; Selim Thaci

Publication Date:

April 20, 2023

Electronic Access:

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Summary:

Since the start of the war in Ukraine, electricity prices in Europe have increased and become more volatile. This coupled with unreliable domestic electricity supply has led to significant stress for Kosovo’s energy sector and budget. This paper presents several scenarios characterized by alternative assumptions for European electricity prices and domestic electricity production in 2023 in order to gauge their potential impact on the budget and the economy. It also discusses the medium-term benefits, including in terms of increased energy security and reduced emissions and pollution, of diversifying domestic electricity generation away from lignite.

Series:

Selected Issues Paper No. 2023/025

Subject:

Commodities Economic sectors Expenditure International organization International trade Monetary policy Taxes

Frequency:

Regular