RPHS Law

LEGAL UPDATE: THE LAW ON THE PROMOTION OF THE USE OF RENEWABLE ENERGY SOURCES IN KOSOVO IS APPROVED

On May 2, 2024, the new Law on the Promotion of the Use of Renewable Energy Sources was published in the Official Gazette of Kosovo, partially abolishing Law No. 05/L-081 on Energy, and establishing a common framework aiming to increase the security of energy supply and improve environmental protection.

Aligned with the legal framework of the European Union Energy Acquis, the law sets national targets for Renewable Energy Target share, provides incentive mechanisms for producers and consumers to transition to renewable energy sources, and establishes sustainability and greenhouse gas emissions saving criteria for the production and use of Biofuels, Bioliquids, and Biomass.

To support these initiatives, the law creates a new Renewable Energy Support Fund to cover the costs of the Support Scheme. This competitive scheme will be implemented for privileged producers through feed-in premiums and feed-in tariffs. Privileged producers are considered those Renewable Energy Producers who use Renewable Energy Source technologies, such as wind, solar, biomass, biogas, geothermal, plants that use gas from urban landfills or from the treatment of wastewater, and cogeneration plants that utilize Renewable Energy Sources with high efficiency and thermal plants based on Renewable Energy Sources.

Support Schemes are also available for Renewable self-consumers, who are entitled to remuneration for excess electricity, implemented as a monterey credit transferred to the next billing period.

The national target for the share of Energy from Renewable Sources in Gross Final Consumption of energy is set at thirty-two percent (35%) for 2031. As part of Kosovo’s ambitious Energy Strategy to achieve a just energy transition between 2022-2031, four (4) auctions for competitive schemes have been scheduled for 2024 and 2025.

Additionally, the new law also defines the basic principles for network access to renewable energy and emphasizes the importance of public awareness and research and development for promoting and accepting renewable energy technologies. With the main goal of accelerating renewable deployment, this new law will benefit Kosovo and its citizens and businesses by significantly reducing its carbon footprint, increasing energy security through diversification of energy sources, and providing new economic opportunities.

The Law enters into force on May 17, 2024.

The information contained in this document does not constitute legal advice on any specific matter and is provided solely for general informational purposes.