Empowering Kosovo's Energy Transition: The Role of Battery Energy Storage Systems in Kosovo

Evetar Zeqiri, CEO, KOSTT

As Kosovo transitions towards a more sustainable energy future, BESS will undoubtedly play a vital role in achieving its energy ambitions.

As renewable energy sources become more prevalent in power generation, battery energy storage systems (BESS) are becoming an essential component of modern energy systems and an increasingly crucial component of the global energy transition towards a carbon-neutral economy. BESS technologies are vital to speeding up the replacement of fossil fuels with renewable energy. Moreover, they play a pivotal role between green energy supplies and responding to electricity demands. Nowadays, it is evident that there is a lot of research and development towards free fossil fuels and a greener future, especially in energy supply and production. While the goal of increasing renewable energy sources in the energy mix is a noble one, it is not without its difficulties. There are several unique challenges that need to be overcome, such as high investment costs and limited access to financing, environmental concerns, licensing and permitting issues, and, most critically, integrating renewables into the existing power grid. Out of all these challenges, grid integration is particularly important to address.

Due to limited internal energy resources, Kosovo relies heavily on imported electricity to meet its energy demand. The high dependence on imports makes Kosovo vulnerable to price fluctuations and energy supply disruptions. To address this challenge, the government of Kosovo has set an ambitious target to increase the share of renewable energy in the country's electricity mix by up to 35%. The Energy Strategy of the Republic of Kosovo, 2022-2031, clearly targeted its vision by 2031 to improve decarbonization by reducing Green House Gas emissions by at least 32% and reaching a total Renewable Energy Sources capacity of 1,600 MW, primarily solar and wind. However, renewable energy sources such as wind and solar are intermittent, and their output depends on weather conditions. As a result, integrating renewables into the grid can lead to grid instability and increase the need for grid balancing reserves.

An agreement was reached between the Government of Kosovo and the U.S. Millennium Challenge Account (MCC) to address the challenges faced by renewables in Kosovo. The agreement involves an investment of approximately 236 million Dollars, with a major component being the installation of a Battery Energy Storage System (BESS) with a capacity of 340 MWh. As part of the BESS, KOSTT will own a portion of 90 MWh to provide its own ancillary services, specifically secondary reserves. A new public entity will operate the remaining BESS, providing services such as tertiary reserve, arbitrage, and black start capability.

By implementing the largest BESS installation in the region, Kosovo will become a leader in the field, surpassing other countries in the area and beyond. The project, co-funded by the Government of Kosovo and MCC, aims to build a 340 MWh BESS installation by 2027. The project is expected to bring significant benefits to the energy sector in Kosovo. BESS can offer several advantages, including:

Enhanced Energy Security: Battery storage can provide a dependable backup power source during power outages or peak demand periods, thus improving the security of energy supply. This feature is particularly crucial in Kosovo, where energy shortages have occurred previously.

Integration of Renewable Energy: The installation of battery storage can aid in incorporating more renewable energy into Kosovo's power grid. The system can stockpile surplus energy generated by renewable sources and release it when demand is high, preventing energy losses during high wind, solar irradiation, and low load conditions.

Improved Grid Stability: The installation can help stabilize the power grid in Kosovo by buffering against fluctuations in energy supply and demand.

Reduced Energy Costs: The battery storage system can also assist in reducing energy costs by enabling Kosovo to store energy when prices are low and release it when prices are high.

Environmental Benefits: The installation can help mitigate greenhouse gas emissions by allowing Kosovo to rely more on renewable energy sources, thus reducing reliance on fossil fuels.

In conclusion, battery energy storage systems can provide significant benefits to Kosovo's power system. Installing a 340 MWh battery storage facility in Kosovo will positively impact the country's energy sector by reducing the country's dependence on imported electricity, including increased energy security, integration of renewable energy, improved grid stability, reduced energy costs, and environmental benefits. As Kosovo transitions towards a more sustainable energy future, BESS will undoubtedly play a vital role in achieving its energy ambitions.