In a ceremony organized in the premises of the American Congress, attended by President Vjosa Osmani, Prime Minister Albin Kurti, Chief Executive Officer of the Millennium Challenge Corporation (MCC), Alice P. Albright and the Minister of Economy, Artane Rizvanolli, signed the agreement for the Compact Program. totaling $202 million, which focuses on energy projects.

At the ceremony organized on this occasion, the Chief Executive Officer of MCC, Alice P. Albright, spoke about the importance of this agreement in the energy sector.

Albright further said that the MCC agreements benefit millions of people, while he said that the citizens of Kosovo are facing energy problems.

"These investments are expected to benefit millions of people.

Today, Kosovo and MCC signed the compact of 263 million dollars.

4 out of 10 houses in Kosovo are currently facing some form of energy problems", she said.

"It is very nice that we have gathered here at this important moment for both countries.

We welcome President Osmani, Prime Minister Kurti, Ambassador Dugolli.

My team has done a lot of work to get to this important moment.

In 49 countries since 2004, the US has invested millions.

Today Kosovo and MCC signed the agreement worth 202 million dollars for energy support.

Energy is crucial for development.

Investments will be in energy, such as the creation of energy storage batteries.

Removing barriers for women to be more involved in business.

The Government of Kosovo will also contribute 35 million dollars.

The US is very proud of the partnership with Kosovo in these agreements", Albright emphasized.

The President of Kosovo, Vjosa Osmani, in an address from Capitol Hill on the occasion of signing the agreement with the MCC, said that the Republic of Kosovo today is sovereign and a living democracy.

"This agreement is proof that we are together in difficult and beautiful times.

The US continues to support you.

Security of energy supply is a challenge for many peoples in the world.

This investment in Kosovo may turn out to be the best investment that will remain for generations.

Kosovo is ready to support this journey for clean energy.

This is the biggest investment for decades in our country that will contribute to energy stability and employment of women in our country.

Women are at the center of this initiative to strengthen the energy sector", said President Osmani.

The Compact Program consists of two projects and is considered the largest investment of the American Government in Kosovo.

The MCC aims to reduce poverty in Kosovo through economic growth with this program, as it is estimated that the unstable energy supply hinders economic growth.

The five-year grant foresees 202 million dollars of direct funds from the American Government, while the rest of the investments will be covered by the Government of Kosovo.

According to MCC director for Kosovo, Sarah Olmstead, the first procurement for Compact Program projects is expected to start in two years.

After signing the Compact Program, the Assembly of Kosovo must ratify this international agreement with two-thirds of the votes.

But what concrete benefits will Kosovo get from this program?

Energy reserves through batteries

The most important project is expected to be the Energy Conservation project.

Through this project, Kosovo will have energy reserves through high capacity batteries of 170 megawatts.

These batteries will make it possible to provide reserves of about 347 megawatts per hour.

This means that the electricity produced at a certain time can be accumulated, so that it can be used during the hours of the day, when the demand for energy, but also the prices, are higher.

Through batteries, it is hoped to reduce the need for energy imports, while import prices have already increased.

Also, at the Compact Program level, close to 1.8 million people are expected to benefit from MCC's investment.

This estimate is based on the Energy Conservation Project, which aims to cover all households connected to the electricity grid – officially reported to be 100 percent of Kosovo households.

During the winter season, when the demand for electricity increases, consumers spend up to 1,300 megawatts per day, while the production capacity of the two power plants in Obiliq, Kosovo A and B, reaches up to 800 megawatts.

The rest of the energy demand is covered by imports.

The Office of the Energy Regulator in Kosovo has said that in 2021, the country imported 1,311,461 megawatts of electricity.


According to MCC, the Energy Conservation Project aims to support energy security, but also for Kosovo to switch to clean energy.

The Minister of Economy of Kosovo, Artane Rizvanolli, has declared on July 5 that Kosovo will save at least 15 million euros per year from the new MCC Compact Program.

According to MCC's estimates, the internal rate of return of this project is expected to be 8.7 percent.

The internal rate of return indicates the economic benefits of a project compared to its cost.

Also, from this project, the MCC estimates that there may be other benefits, such as savings for possible additional services, regulation of the current voltage, but also cleaner air.

The project for the empowerment of women in the energy sector

Within the framework of the Compact is the project for the Just Acceleration of the Transition (JETA) which has two primary objectives: to produce graduates who can be employed in the energy sector or similar sectors, as well as to increase the number of employed women in the energy sector, which participate in the Inclusive Workforce Activity in the Energy Sector.

This is expected to facilitate the energy transition led by the Government of Kosovo, creating the possibility that women who acquire the required skills, provide technical assistance to employers in the energy field and, in this way, increase their representation in this sector. .

according to the MCC, in Kosovo the employment level of women is 14.1 percent, which is one of the lowest percentages in the region and the world.

Meanwhile, business women make up only ten percent, compared to 33 percent of the level of business women in the world and the region.

Development Catalyst Project

Within the framework of the Compact Program, the American Development Catalyst Project (AFDC) will also be included.

This project is designed to enable the use of funds from the US Development Finance Corporation (DFC), to support private investment in the energy sector in Kosovo, but also MCC's goals in the energy sector.

MCC funds will be used to de-risk DFC's investments in the private sector, while DFC will be responsible for overseeing the investments.

In coordination between MCC, DFC and the Government of Kosovo, through this project it is intended to also identify other possible investments in Kosovo.

Kosovo, which last year was affected by the energy crisis that engulfed Europe, produces over 90 percent of its electricity from coal mining and lignite extraction.

While, the rest of the electricity is produced from renewable sources, such as hydropower plants, wind power plants and solar panels.

/Telegraph/