Kosovo bags funds to integrate solar power into district heating

Kosovo has secured grant and debt funding for an innovative project worth over EUR 80 million (USD 85m) that is set to make it the first country in the Western Balkans to use solar power for district heating.

The project, dubbed Solar4Kosovo, will be supported with EUR 31.6 million from Germany's development bank KfW and and additional EUR 21.5 million from the European Union (EU). The financing agreement also includes a loan of EUR 23.2 million from the European Bank for Reconstruction and Development (EBRD), the latter said on Tuesday.

Solar4Kosovo calls for the construction of a solar photovoltaic (PV) park of 50 MW, the output of which will be stored and fed into the central heating system during winter periods. The solution will reduce coal and wood burning and help lower carbon dioxide (CO2) emissions.

“This new capacity will ensure access to the central heating system for about 38,000 citizens, which will replace individual heating systems and, at the same time, address the chronic problem of air pollution in Pristina," said Minister of Finance, Labour and Transfers Hekuran Murati.

The project is the largest solar energy investment in the district heating sector in the region, according to EBRD. The scheme will be executed as part of a wider technical assistance programme administered by the lender that aims to promote the use of renewable power in district heating and cooling systems.

(EUR 1.0 = USD 1.063)

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