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Repower – Kosovo Final Report October 2014 – September 2019

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Repower – Kosovo Final Report October 2014 – September 2019 REPOWER – KOSOVO FINAL REPORT OCTOBER 2014 – SEPTEMBER 2019 OCTOBER 2019 This publication was produced for review by the United States Agency for International Development. It was prepared by DT Global REPOWER – KOSOVO FINAL REPORT OCTOBER 2014 – SEPTEMBER 2019 Contract Number: AID-OAA-I-13-00012 Task Order: AID-167-TO-14-00007 Submitted to: USAID/Kosovo Prepared by: DT Global DISCLAIMER: The authors’ views expressed in this document do not necessarily reflect the views of the United States Agency for International Development or the United States Government. Final Report | REPOWER-Kosovo i TABLE OF CONTENTS Acronyms .......................................................................................................................................iii Executive Summary ...................................................................................................................... 1 Project Description ............................................................................................................................................ 1 Highlights Of Repower-Kosovo’s 2014 – 2019 Performance ................................................................ 2 Objective I ............................................................................................................................................. 2 Objective II ............................................................................................................................................ 4 Cross-Cutting Activities ..................................................................................................................... 5 Challenges ............................................................................................................................................................. 5 Implementation by Objective, Component and Task ............................................................... 7 Objective I: Promote Clean Energy .............................................................................................................. 7 Component I: Develop an Enabling Legislative and Policy Environment for Clean Energy Projects..................................................................................................................................... 7 Component 2: Assist the Energy Regulatory Office with Planning, Preparing and Prioritizing Clean Energy Projects ................................................................................................. 18 Component 3: Support to Kosovo and Albania in Establishing a Common Electricity Market ............................................................................................................................... 44 Objective Ii: Improving Enabling Environment Inward Investment in the Energy Sector ................ 54 Component 4: Support the Continued Unbundling of the Energy Sector .......................... 54 Component 5: Develop a Financing Strategy for the Rehabilitation of Kosovo B ............. 65 Cross-Cutting Activities Undertaken During the Years ......................................................................... 71 2017-2026 Energy Strategy Development ................................................................................... 71 High Level Public FORA ................................................................................................................... 71 Environmental Monitoring ............................................................................................................... 73 Gender and Vulnerable Groups Considerations ....................................................................... 75 The Repower-Kosovo Internship Program ................................................................................. 78 Performance Targets and Actuals ............................................................................................. 84 Capturing Learning and Collaboration .................................................................................... 87 Has Repower-Kosovo Implementation Enabled Progress for the Kosovo Energy Sector? ........... 87 Mission Involvement When Implementing Energy Projects in Kosovo ............................................... 87 Defining Specifics for Implementing Energy Projects in Kosovo ........................................................... 87 Implementation Approaches may be Suitable for Similar Energy Programs....................................... 88 Reflecting and Analyzing the Learning from Implementation ................................................................. 88 Potential USAID Interventions in the Evolving Power Sector ............................................................... 89 How Might a Future USAID Intervention in the Power Sector Might Work with the Key Sector Beneficiaries? ........................................................................................................................................ 92 Annex 1. List of Deliverables ..................................................................................................... 94 Annex 2. List of Trainings and Study Tours .......................................................................... 104 Annex 3. Financial Report ........................................................................................................ 106 Final Report | REPOWER-Kosovo ii ACRONYMS ACER Agency for the Cooperation of EMS Elektromreza Srbije Energy Regulators EMMP Environmental Monitoring and AECOM AECOM International Development Mitigation Plan AIB Association of Issuing Bodies EnCS Energy Community Secretariat APEX Albanian Power Exchange ENTSO-E European Network of Transmission AS Ancillary Services System Operators for Electricity AUK American University in Kosovo ERE Energy Regulatory Authority AWESK Association of Women in the ERO Energy Regulatory Office Energy Sector in Kosovo ESIA Environmental and Social Impact BKT Banka Kombetare Tregtare Assessment BOD Board of Directors EU European Union BRP Balance Responsible Party FMC Fichtner Management Consulting CAPEX Capital Expenditure GoK Government of Kosovo CDA Community Development GWh Gigawatt Hours Agreement HEP Hrvatska Elektroprivreda CDCS Country Development and HR Human Resources Cooperation Strategy HROTE Croatian Energy Regulatory Agency CEER Council of European Energy Regulators HSE Holding Slovenske Electrane CLA Collaborating, Learning, and IEA International Energy Agency Adapting IFC International Finance Corporation CLDP Commercial Law Development IDIQ Indefinite delivery/indefinite quantity Program of the Department of IMWG Inter-Ministerial Working Group Commerce, US Gov INDEP Institute for Development Policy CO Contracting Officer JAP Joint Action Plan COD Commercial Operations Dates JWG Joint Working Group CoO Certificates of Origin KEDS Kosovo Electricity Distribution and COP Chief of Party Supply Company DAM Day Ahead Market KEEREP Kosovo Energy Efficiency and DSO Distribution System Operator Renewable Energy Project DSR Demand Side Response KEK Kosovo Energy Corporation DUO Distribution Use of System KEMD Kosovo Electricity Market Design EBRD European Bank for Reconstruction KESCO Kosovo Company for Supply of and Development Energy EC European Commission KESS Kosovo Energy Security of Supply ECRB Energy Community Regulatory KOSTT Kosovo System Transmission and Board Market Operator EIA Environmental Impact Assessment KREA Kosovo Renewable Energy EIHP Energy Institute Hrvje Pozar Association Final Report | REPOWER-Kosovo iii KRPP “Kosova e Re” Power Plant PSO Public Service Obligation kW Kilowatt PV Photovoltaic LOE Level of Effort PX Power Exchange LOP Life of Project QoS Quality of Service MAED Model for Analysis of Energy RAGs Regulatory Accounting Guidelines Demand RES Renewable Energy Sources MAR Maximum Allowed Revenues RfP Request for Proposals MCC Millennium Challenge Corporation RTI Rochester Institute of Technology MED Ministry of Economic Development SAFA Synchronous Area Framework MEI Ministry of Energy and Industry Agreement MESP Ministry of Environment and Social SAIDI System Average Interruption Planning Duration Index MIGA Multilateral Investment Guarantee SAP Strategic Action Plan Agency SHERK Kosovo Renewable Energy MO Market Operator Association MOF Ministry of Finance SLP Service Load Profiles MOU Memorandum of Understanding SO System Operator MW Megawatt SoLR Supplier of Last Resort MYT Multi-year Tariff TA Technical Assistance NARUC National Association of Regulatory TOCOR Task Order Contracting Office Utility Commissioners Representative NDS National Development Strategy TOR Terms of Reference NEMO Nominated Electricity Market TPP Thermal Power Plant Operator TSO Transmission System Operator NICRA Negotiated Indirect Cost Rate TUO Transmission Use of System Agreement TWhs Terawatt Hours NKEC New Kosovo Energy Corporation UP University of Pristina NKPP New Kosovo Power Plant USAID United States Agency for NREAP National Renewable Energy Action International Development Plan USG United States Government OCA Organizational Capacity Assessment USS Universal Supply Service OSS One Stop Shop VREG Flemish Electricity and Gas OST Albanian Transmission Operator Regulator PCT Price Comparison Tool WACC Weighted Average Cost of Capital PES Public Electricity Supplier WB World Bank PIU Project Implementing Unit WB6 Western Balkans Six POE Publicly Owned Enterprise PPA Power Purchase Agreement Final Report | REPOWER-Kosovo iv EXECUTIVE SUMMARY PROJECT DESCRIPTION DT Global
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