The latest ERRA Regulatory Story of the Quarter offers a detailed overview of Kosovo’s* renewable energy support overhaul, led by the Energy Regulatory Office in collaboration with international partners. The reform addresses pressures from market liberalisation, rising renewable adoption, auction-based support schemes, and the increasing complexity of CfD settlements. The former model, based on feed-in tariffs, reference prices, and tariff recovery, became more vulnerable to liquidity mismatches, counterparty risk, and market distortions, especially as prosumer participation grew. Key to the reform is the creation of a ring-fenced Renewable Energy Operator within KOSTT and the conversion of the Renewable Energy Fund into a comprehensive financial mechanism.
(* This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence.)
ERRA Regulatory Story of the Quarter: ERO’s Redesign of the Renewable Energy Operator for a Sustainable Support Mechanism