Kosovo Energy Efficiency Fund

pipeline

The Project is based on the Kosovo Energy Efficiency and Renewable Energy Project (KEEREP, P143055), which was approved in June 18, 2014 and it is expected to close on December 31, 2023. KEEREP was supported by a US$31 million IDA credit and EUR 9.4 million grant from the EU-Instrument for Pre-Accession (IPA) and established the Kosovo Energy Efficiency Fund (KEEF) in January 2019 as a sustainable financing mechanism on a revolving basis for energy efficiency (EE) and distributed renewable energy (RE) investments in municipalities. By the closing date, KEEREP will have completed investments in about 90 subprojects across Kosovo in municipal buildings and street lighting. The proposed Project would channel an additional EUR 2.7 million EU IPA grant to continue to support KEEF’s investments in municipalities. The proposed Project includes two components: 1) Financing for municipal investments into EE and distributed RE (EUR 2.6 million EU IPA grant) and 2) Technical studies related to the investments (EUR 100,000 EU IPA grant, ~EUR 200,000 KEEF funds). The proposed Project is aligned with Kosovo's CPF: Under the High-Level Objective 3, on increased environmental resilience, the CPF seeks to support Kosovo’s transition toward a future that safeguards the sustainability of economic growth and citizens’ quality of life. The CPF also contributes to the policy priority on climate change preparedness by aiming to decrease emissions. The CPF will continue to advance the energy efficiency and energy transition agendas through: (i) analytical work, with a focus on decarbonization, regional integration, and a just transition; (ii) ongoing WBG energy efficiency operation and transactions; and (iii) transformative operations that aim to maximize private capital mobilization in a modernized regulatory framework.