2030 EU Renewable Target Requirements - Kosovo Position
Can Kosovo adopt a new competitive-based mechanism to achieve new 2030 RES targets? Of course, it can, and it should! There are different mechanisms that can be adopted in Kosovo and we acknowledge the fact that a one-size-fits-all’ mechanism cannot be adopted.
EU member states and the Contracting Parties of Energy Community are under the process of adopting new schemes for accommodating new RES targets requirements.
The latest EU Directive (2018/2001) requires EU member states by 2030 to achieve 32% of the final consumption of energy based on renewable energy sources. Back in the year 2009, the Renewable Energy Directive (2009/28/EU) set a binding target of 20% final energy consumption from renewable sources to be reached by 2020. To achieve this, EU countries and Contracting Parties of Energy Community committed to reaching their national renewables targets for 2020 and adopted National Renewable Energy Action Plans.
Kosovo has committed to a binding target of 25% of energy from renewable sources in gross final energy consumption by 2020 compared with 18.9% in 2009. Despite the obligatory target of 25%, Kosovo In 2013 adopted the “voluntary target” of 29% to achieve by 2020. Based on the analysis Kosovo is going to achieve the obligatory target of 25% by 2020. This occurred after a series of measures adopted by Kosovo institutions. The most important measure implemented by Kosovo is the Feed-in Tariffs support scheme which ensures that the energy generated from renewable energy sources should be purchased at a fixed Feed-in Tariff price, above the market price, for 10 - 12 years and with priority in dispatch.
|Primary Renewable Energy Sources||(€/MWh)||Targets (MW)|
|Hydro-energy (small hydro-power)||67.47||240|
Even though Feed-in Tariffs have been proven an efficient manner to meet the RES targets nevertheless is considered that is not a mechanism based on the market. The Feed-in Tariff scheme in Kosovo is considered as an initial mechanism! The technology development occurring lately lead to a huge decrease in the cost investment in the energy sector which indicates the necessity to reconsider the incentivizing mechanism of renewable technology.
Since the market is considered to be the right mechanism that determines investment costs and energy prices, through competitive ways of equal investment opportunities to all potential investors, Feed-in Tariffs should not be the main supporting mechanism for the future development. Other innovative schemes for supporting the development of renewable projects should be considered. The higher focus should be given to competitive-based Support Schemes, ensuring that the benefits of technological improvements and cost reductions in RES technologies are passed-through to customers via reduced levels of additional support.
Can Kosovo adopt a new competitive-based mechanism to achieve new 2030 RES targets?
Of course, it can, and it should! There are different mechanisms that can be adopted in Kosovo and we acknowledge the fact that a one-size-fits-all’ mechanism cannot be adopted. Few of potential mechanisms for further consideration are:
- Public-private partnership;
- Self-consumption schemes.
Any mechanism to be developed should be tailored to reflect Kosovo's needs, Kosovo’s international obligations, and national natural capacities and should also take into account the bankability of the project. Renewable technology is falling continuously hence policymakers should go toward competitive mechanisms that reveal the real value of the cost of individual projects.
In addition to the above, and despite the model chosen, other parallel measures should be adopted in the order of ensuring the cost-effectiveness of renewable projects, such as: active community participation, development and publication of suitable information, awareness-raising, guidance or training programs in order to inform citizens on the impacts and benefits of renewable projects, etc.
As per the end, we note that any mechanism or model chosen should be monitored regularly by the relevant stakeholders, to ensure that the required results are achieved and in a timely fashion.
Here at Optima Energy Consulting, we help policymakers define renewable targets and take necessary steps to adopt legal and regulatory acts in order for new investments to occur and targets to be achieved.
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