Deadlock in Assembly casts doubt on the continuation of energy production in Kosovo

The licenses for “Kosovo A” and “Kosovo B,” the two power plants that account for most of the country’s domestic electricity production, expire on October 4.

If the Board of the Energy Regulatory Office (ERO) is not established by that date, there will be no functioning body able to decide on extending the licenses of the two power plants.

The ERO told Radio Free Europe that, in the absence of extended licenses, the Kosovo Energy Corporation (KEK) will have no legal basis to continue production.

However, the responsible institutions have not provided a specific explanation of what could happen after October 4 if no solution to the deadlock is found by then.

Radio Free Europe asked the ERO and KEK whether the expiration of the licenses would lead to a halt in production, and whether there was any legal solution for the temporary continuation of operations.

Neither institution answered these questions.

A possible halt to KEK’s production would significantly increase Kosovo’s dependence on imports, while experts warn of risks to the security of supply and high financial costs.

The obstacle is the lack of a quorum at the ERO

Decision-making on licensing energy producers falls under the authority of the ERO Board, which currently cannot make decisions because two members and the chairperson are missing.

The process of filling the vacant positions has begun. The Ministry of Economy has published the list of candidates selected for the two member positions and for the post of chairperson of the Board.

However, the procedure remains dependent on the Assembly. After being selected, the candidates must be sent to the Government, which then forwards them to the Assembly for a vote.

The final decision on appointing the Board members is made by lawmakers.

“The list of candidates will be sent once the legal conditions have been met, including the constitution of the Assembly, since the appointment of the ERO Board is ultimately the responsibility of the Assembly of Kosovo,” the Ministry of Economy said in a response to Radio Free Europe.

Meanwhile, KEK has submitted requests to the ERO to extend the licenses for “Kosovo A” and “Kosovo B.” According to the ERO, its professional staff have already reviewed the applications, but a final decision cannot be made.

“Without establishing the legal quorum, a final decision cannot be made regarding KEK’s applications,” the ERO said.

Possible consequences after October 4

According to the regulator, once the licenses expire, production may continue only if there is a valid decision by the Board.

However, the ERO has not clarified whether this would mean an immediate halt to KEK’s operations after the licenses expire.

KEK also did not answer whether it has an alternative plan in the event that October 5 finds the company without extended licenses.

The issue is particularly important because of the role KEK’s power plants play in Kosovo’s energy system.

ERO data for last year show that domestic energy production, including renewable sources, stood at 5.298 gigawatt-hours (GWh), while total demand reached 6.944 GWh.

KEK’s power plants produced 4.687 GWh, or more than 88 percent of the energy produced domestically.

Meanwhile, hydropower plants and other renewable sources generated around 611.5 GWh.

Domestic production covered more than 76 percent of consumer demand in total, while the remainder was supplied through imports.

Consequently, a possible shutdown of “Kosovo A” and “Kosovo B” would significantly increase the need for supplies from abroad.

Njazi Thaçi: An unprecedented situation

Former KEK director Njazi Thaçi describes the situation as unusual and unacceptable.

“It is unimaginable for the units to be shut down because their licenses are not extended. This is an unprecedented case. Kosovo cannot be left relying solely on energy production from renewable sources,” Thaçi told Radio Free Europe.

He stressed that alternative sources do not have sufficient capacity to replace the output of KEK’s power plants.

“Kosovo does not have sufficient production from alternative sources. This is an urgent matter that requires a solution, and political entities must bear in mind the need to find a way to constitute the Assembly,” he added.

The Assembly of Kosovo has not yet completed the constitution process that began on August 6, and no date has been set for the continuation of the session.

Before the session was called to continue, Vetëvendosje, the winner of the latest elections, and the Democratic League of Kosovo, now in opposition, held negotiations on a political agreement that also included the issue of the future president.

On the afternoon of August 31, the two parties announced that they had reached an agreement on Bekim Sejdiu as a presidential candidate, but it remains unknown how the constitution of the institutions will proceed from here.

Risk of higher import costs

Energy expert Ethem Çeku says that, even in the face of the complicated institutional situation, with a caretaker government and no functioning Assembly, a legal solution must be found to prevent the licenses from expiring without the possibility of extension.

Without such a solution, Çeku says, Kosovo would become far more dependent on electricity imports.

“This would create a cost of hundreds of millions of euros, which would initially fall on the state budget and would then be reflected directly on citizens through energy tariffs,” he told Radio Free Europe.

Çeku estimates that if imports were to increase significantly, the supplier could ask the Government for compensation or a subsidy to cover the additional costs.

Supplying consumers is the responsibility of the Kosovo Electricity Supply Company (KESCO).

KESCO obtains most of its energy from KEK, while it covers the gap between domestic production and demand through imports.

“In the event of changes in the supply and demand balance, KESCO takes the necessary measures to secure energy, in accordance with the legal and regulatory framework and market conditions,” the company told Radio Free Europe.

Radio Free Europe asked KESCO how much energy would need to be imported if KEK’s production were halted and what the cost of such a scenario would be.

The company did not provide figures, arguing that it could not make estimates for hypothetical scenarios. According to KESCO, the amount and cost of imports depend on the specific circumstances and market conditions at that time.

Nevertheless, energy imports already cost Kosovo hundreds of millions of euros.

During 2025, the country spent around 240 million euros purchasing electricity from abroad, at an average price of 146 euros per megawatt-hour (MWh).

Less than five weeks before the licenses expire, there is still no clarity about the fate of production at “Kosovo A” and “Kosovo B” if the ERO Board is not made functional by October 4. / RFE