Republic of Kosovo: Selected Issues
IMF Staff Country Reports, January 27, 2023
Source details
- Canonical URL
- Republic of Kosovo: Selected Issues
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Bibliographic details
- Published: January 27, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400231001.002
Overview
- Focus: challenges and opportunities in Kosovo’s electricity sector.
- Context: Energy market pressures in Europe are likely to continue throughout 2023.
- Principal risk: Higher energy prices represent a heavy blow for Kosovo’s current account.
- Tariff framework: The tariff-setting framework is broadly sound, but the increase in European electricity prices has led to challenges.
Short-term findings and risks (2023)
- Higher European electricity prices have stressed the sector’s flows, creating liquidity choke points.
- Higher European electricity prices and lower domestic electricity supply may result is significant stress for Kosovo’s energy sector and budget.
- Policy emphasis for 2023: More efficient use of electricity should reduce demand and contribute to balance the system in 2023.
Medium-term findings and priorities
- Priority: Boosting energy efficiency and diversification away from lignite.
- Investment proposal: Creating a fund for the renewal and expansion of domestic electricity generation capacity in green technologies could be explored.
- Market signal reform: Starting to explore carbon pricing would strengthen price signals and result in more efficient demand and less carbon intensity.
Subject areas and keywords
- Subject: Commodities, Economic sectors, Electricity, Income, International organization, Monetary policy, National accounts, Natural gas sector, Revenue administration, Tax administration core functions
- Keywords: central banks in Kosovo, Electricity, electricity sector, Electricity supply chain, Europe, Global, Income, Natural gas sector, policy implication, Tax administration core functions, tax revenue growth
Content in this bundle
- Republic of Kosovo: Selected Issues; IMF Country Report No. 23/55; December 20, 2022