In 2006, Kosovo announced the initiation of an international competition regarding the privatization of the energy sector of the province. Privatization is to include the creation of a new 2,100-megawatt power station, the renovation of an older facility, and the manufacture of a lignite production station to supply these power facilities. The total estimated cost is some 3 billion euros, a substantial amount that will be compensated by future high energy demands in the province and an ability to export electricity to Albania, Montenegro, and possibly Bosnia-Herzegovina—three small nations with rising energy needs. The energy market at stake consists of around 10 million people.
Regardless of the legality of such a move, since the province is still under Serbian administration, competitors for the energy investment in Kosovo come from countries that enjoy more or less cordial relations with the United States—the Czech Republic, Italy, Germany, and Greece, among others—and, of course, American companies. Russian or French companies were not present and the winner will certainly follow existing U.S. policy, meaning that it will pursue energy plans according to the planning made by the administration in Washington.
Russia, since Vladimir Putin became president, has proved to be an apt player in the economic game that is unfolding with the construction of a variety of pipelines transferring hydrocarbon from the East to the West. Nowadays, at least 25 percent of the European Union's energy needs in natural gas and oil are being met by Russia, and in some cases countries such as Slovenia. This percentage reaches 60 percent (Gas) or even 100 percent for Romania and Slovakia. Moreover, projections for the next generation are in the negative for the EU since its energy dependency levels will increase from 76 percent (Oil) to 93 percent in 2030. If one adds the political perils of imports from the Middle East and the proximity of the Russia market; then the influence of the former seems to be increasing.
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In 2006, Kosovo announced the initiation of an international competition regarding the privatization of the energy sector of the province. Privatization is to include the creation of a new 2,100-megawatt power station, the renovation of an older facility, and the manufacture of a lignite production station to supply these power facilities. The total estimated cost is some 3 billion euros, a substantial amount that will be compensated by future high energy demands in the province and an ability to export electricity to Albania, Montenegro, and possibly Bosnia-Herzegovina—three small nations with rising energy needs. The energy market at stake consists of around 10 million people.
