Bank aus Verantwortung Financial Support for RE and EE Projects by German Financial Cooperation Donors’ Conference on Sustainable Energy for Kosovo Swiss.

Bank aus Verantwortung

Financial Support for RE and EE Projects by German Financial CooperationDonors’ Conference on Sustainable Energy for Kosovo

Swiss Diamond Hotel, Pristina

May 14, 2013

René Eschemann

2Financial Support for RE and EE - May 14, 2013

German Financial Cooperation with Kosovo Key Figures (in million EUR)

1999 start of German FC with Kosovo

EUR 247 mln committed to Kosovo (German Governmental and KfW own

Funds)

EUR 166.5 mln active portfolio (125 mln under implementation / 41.5 mln

under preparation)

EUR 60 mln mandates mobilized from other donors Focus on infrastructure

projects

Leveraging grant funds with promotional loans

Leveraging funds of other donors

3Financial Support for RE and EE - May 14, 2013

How to increase renewables for Kosovo?… e.g. import via 400kV line Kosovo – Albania: the “electricity highway”

Measures:

› Construction of 400kV Transmission line Tirana-Prishtina, 240 km

› Upgrade of respective transmission substations Kashar (Alb) and Kosovo B

› FC provides EUR 33.5 mn to Kosovo [16.5 mn grant and 17 mn loan] and EUR 42 mn to Albania [interest subsidized loan]

Objectives:

› Optimization of the two systems Kosovo-Albania (thermal and hydro power), exchange of base and peak load

› Improved access to the European grid, efficient use of regulation reserves, reduction of operation cost

› Sufficient cross-border capacity for new power plant and renewables

› Classified as priority infrastructure project of the Energy Community SEE

Kosovoinstalled generation

capacity (MW)

Albaniainstalled generation

capacity (MW)

4Financial Support for RE and EE - May 14, 2013

Energy Efficiency on demand and supply sideImprovement of District Heating System in Prishtina

Measures:

› Implementation of Combined Heat and Power (CHP): utilization of unused waste heat of the thermal power plant for heating purposes

› Refurbishment of district heating network and substations, heat meters, etc.

› Institutional strengthening of the district heating company

Financing:

› EUR 11 mn by FC (Mixed Financing: 6 mn Grant and 5 mn KfW-Loan)

› EUR 14 mn by EU (Grant)

› EUR 2 mn (own contribution Municipality Prishtina)

› Partial Risk Guarantee by OeEB for KfW loan

› Further mandates by Sweden (EUR 2 mn) and Luxembourg (EUR 1.5 mn)

Results:

› 50% cost reduction of the district heating company

› 50% reduction of water losses in the network system

› CO2 savings: >90 000 t/p.a.

› Reduction of electricity consumption for heating purposes

› Increase of overall efficiency of power plant Kosovo B

› Target group: 60 000 inhabitants of Prishtina + further 19 500

Significant improvement of living conditions

5Financial Support for RE and EE - May 14, 2013

Electricity Consumption January and July 2011

Source: ERO 2012.

Bulk electricity demand for heating in winter

EE measures to reduce heating with electricity

EE measures to reduce electricity consumption of industry and commercial consumers

6Financial Support for RE and EE - May 14, 2013

Energy Efficiency Projects under preparation

Promotion of EE Investments via the Banking Sector (EUR 8 mn):

› Credit lines to financial institutions in Kosovo to promote EE investments such as

› building insulations, replacement of windows, heating system modernization

› replacement of production machinery, fuel switching, heat recovery, utilization of renewable energy

› Target group: private households and SMEs

› Tailor made technical assistance for partner financial institutions

› Internal and external marketing: raising awareness amongst staff and clients

› Methodology to easily calculate energy and CO2 emission savings

Energy Efficiency in Public Buildings (EUR 6 mn) :

› Financing of EE measures in municipal public buildings co-financed by WBIF

› EE measures such as insulations, windows, heating and lightning

› So far participating municipalities: Prishtina, Gjakova, Ferizaj, Gjilan

Energy Efficiency in Water Company Prizren (EUR 2.5 mn) :

› Financing of EE measures to reduce electricity consumption for pumped water

› Restructuring of network to increase water supply through gravity

7Financial Support for RE and EE - May 14, 2013

Energy Efficiency / Renewable Projects under preparationImprovement of Transmission Network (EUR 31 mn):

› Rehabilitation and upgrading of substations and transmission lines

› Strengthening the grid to integrate future renewable generation capacities, to increase efficiency and regional integration

Improvement of District Heating in Gjakova:

› Beside rehabilitation and expansion of district heating, assessment of alternative fuel switch to e.g. biomass or waste

› Feasibility study under preparation by WBIF

Wind and Solar Atlas:

› Developing a countrywide wind and solar atlas

› Identifying wind and solar potential and most promising locations

Investments in renewable generation capacities – to be tackled by private investors only? Pilot projects needed? PPP?

Huge potential in demand side Energy Efficiency – but also in the distribution network with losses around 40%

Bank aus Verantwortung

Thank you very much for your attention!René EschemannDirector Regional Office Albania and Kosovo

KfW Office Prishtina KfW Office Tirana Zija Shemsiu 6 Rr. Skenderbej, N21/1 10 000 Prishtina, Kosovo 1000 Tirana, AlbaniaPhone/Fax: +381 38 54 41 41/2 Phone/Fax: +355 42 22 78 69E-mail: [email protected] E-mail: [email protected]