Kosovo Energy Corporation J.S.C (KEK J.S.C.) is a vertically integrated public utility with operations spanning coal mining, generation, electricity distribution and is the sole public supplier of electricity to consumers in the Republic of Kosovo.

KEK is wholly owned by the Government of Kosovo, on behalf of the Republic of Kosovo.

Modern day KEK began operating Kosovo’s energy sector and assets after hostilities ceased in 1999. Thereafter, in the period 2005 to 2006 it underwent a process of corporatization and unbundling which resulted in its incorporation as a joint stock company, and a spin off of its transmission and dispatch business to a separate public company (KOSTT).

Today, KEK operates three open pit lignite mines (Mirash, Bardh and Sitnicia), and is in the process of opening a fourth, (Sibovc South West). With respect to its generation business, KEK owns and operates two thermal power plants, "Kosovo A" and "Kosovo B," and has placed on concession a further four small hydro power plants. In addition, KEK owns and operates Kosovo’s electricity distribution system, which includes approximately 51,000km of distribution network covering the whole of Kosovo, and is the sole public supplier of electricity to consumers in Kosovo.

KEK’s activities are performed based on licenses issued by Kosovo’s Energy Regulatory Office, for its generation, distribution and supply of electricity, and by the Independent Commission for Mines and Minerals (ICMM) for its mining operations.


KEK: facts and figures:

•  Over 400,000 consumers, of which approximately:

o 340,000 are residential, and

o 60,000 are commercial (mostly small commercial; around 250 large industrial)

•  Wholesale tariff for electricity is 3.35 € cents/kWh

• Average end-use tariff is about 5.7 € cents/kWh

• 1,072 MW internal peak demand (13 December 2009)

• 5,074 GWh domestic electricity demand (2009)

• 114 GWh Export (2009)

• 178 GWh Transmission Losses (2009)

• Demand was met by Coal generation (4,656 GWh), Imports (611 GWh) and hydro (121 GWh) generation (2009)

• Total KEK installed capacity in the system is 1,478 MW:

o 800 MW Plant A (5 units – 65 to 210 MW each; 37-46 years old)

o 678 MW Plant B (2 units – 339 MW each; 24-25 years old)

• Total available operating capacity is 910 MW:

o 380 MW Plant A (A3 & A4 each 120 MW and A5 140 MW)

o 530 MW Plant B (B1 & B2 each 265 MW)

• Total Coal production in 2009 was 7.8 million tons

• KEK has contracts with one Kosovo owned Hydro generation company (30 MW), and has placed on concession a further four small KEK-owned small hydro plants (total 14 MW)

• KEK’s purchase power cost for 2009 was approximately 50 million and is projected to be about the same amount in 2010

• KEK employs 7,800 employees in variety of functions and, with the exception of the Government, is the largest employer in Kosovo.

KEK Generation

• Almost 100% of the KEK generation capacity is designed as base load and is fueled by coal – which limits unit load reduction capacity by about 25%. Therefore KEK has limited flexibility to reduce load during low-load periods at night.

• The generating units were designed for 30 year operating life. The KEK units are 24-46 years old. Plans are to retire A units by 2017 and B units by 2024, subject to the determination of the B units economic useful life.

• KEK refurbished A5 unit for reactivation in 2008 to reduce purchase power costs and provide better system reliability. Units A1 and A2 refurbishment has been stopped.

• New generation is planned to be operational around 2017 – to replace the capacity of the retired A units.

• The A and B units (after planned repairs in 2010) will provide 960 MW of operating capacity, which is below needed capacity to meet Kosovo’s peak demand until new generation capacity is placed in service.

KEK Distribution and Supply

• KEK operates over 5,200 km of distribution network covering the whole of Kosovo.

• Historically, commercial losses have posed a significant problem (i.e. unbilled energy as a percent of Energy Available for Sale).

• Commercial loss data for the years 2006-2009:

• Efforts to reduce commercial losses have focused on improving internal controls and reducing corruption and poor performance by KEK employees.

• In addition to the energy it loses through commercial losses, KEK incurs collection losses (unpaid bills) of approximately 19% of the amount billed.

• From an overall commercial perspective, KEK must (1) Bill for Energy Available for Sale, and (2) Collect for Energy Billed.

• The table below shows the results for those two measures as well as the composite measure of Collection of Energy Available for Sale (EAFS).

KEK Privatizations

• Two parallel transactions initiated by the Government of Kosovo

• Sale of KEK’s Distribution Network and Supply business

o Process underway; expected completion 2010-2011

• Sale of Kosova e re and Kosova B (plus) power plant(s), and mining assets

o Process underway; expected completion 2010-2011

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