Coal in Kosovo is primarily an electricity-security issue rather than an export industry. The country possesses very large lignite deposits, yet its power system depends on two aging thermal plants that frequently operate below their installed capacity.
More than 90% of Kosovo’s electricity is commonly generated from coal, mainly at the Kosovo A and Kosovo B power stations near Pristina. These facilities are supplied by nearby open-pit lignite mines operated by the state-owned Kosovo Energy Corporation, known as KEK.
The result is an energy system built around an abundant domestic resource but weakened by unreliable equipment, high emissions, limited flexibility, and growing electricity demand. Kosovo’s challenge is not a shortage of coal. It is the condition of the infrastructure that converts coal into usable power.
Large Lignite Reserves Have Not Guaranteed Reliable Electricity
Kosovo is often described as holding one of the world’s largest lignite resource bases. Estimates commonly place geological reserves at approximately 12.5 billion tonnes. The main deposits are located in the Kosovo Basin, with additional resources in the Dukagjin and Drenica basins.
The Kosovo Basin has been the center of commercial mining because it lies close to the country’s main power stations and contains thick, relatively accessible lignite seams. Large-scale production began during the Yugoslav period, when the Mirash and Bardh open-pit mines were developed to supply thermal generation.
More recent production has shifted toward the Sibovc mining area as older pits have approached depletion. KEK manages the coal mines together with the Kosovo A and Kosovo B plants, giving the public company a central role in both fuel production and electricity generation.
Kosovo’s lignite has a relatively low calorific value, meaning that large quantities must be burned to produce electricity. Transporting it over long distances would generally be uneconomic. Its main value comes from its location beside the power stations, where short conveyor systems can move fuel directly from mines to generating units.
This explains why Kosovo has not developed a major international coal-export sector despite its large reserves. The lignite is best understood as a domestic power resource.
The reserves could theoretically support electricity production for many decades. However, geological abundance does not solve the problems created by aging plants, inefficient combustion, equipment failures, environmental damage, mine development costs, and the need to meet European energy standards.
Kosovo A and Kosovo B Carry Most of the Power System
The Kosovo A and Kosovo B stations were constructed during the second half of the twentieth century. Together, they have an installed capacity of approximately 1,478 MW, although their real available capacity is much lower. Several Kosovo A units are no longer operational, while the remaining units at both stations require regular maintenance and repairs.
Earlier regulatory assessments placed the combined dependable capacity of the two stations at roughly 960 MW. Actual output varies according to unit availability, coal quality, maintenance schedules, and technical failures.
Kosovo A is the older facility. Its five generating units entered service between the early 1960s and mid-1970s, although only part of the station remains available. The plant is inefficient by modern standards and is a major source of air pollution.
Kosovo B has two larger units that began operating in the 1980s. It is generally the more important and efficient of the two stations, but it also suffers from aging equipment and periods of reduced availability. Because Kosovo B provides a large share of dependable domestic generation, an outage at either unit can create a serious supply gap.
This concentration makes the electricity system vulnerable. Kosovo does not have a wide group of large power stations that can replace lost coal generation immediately. When units fail during winter or periods of high demand, the country may need expensive electricity imports from regional markets.
In 2024, lignite accounted for about 90% of Kosovo’s electricity generation and approximately 76% of its operational generating capacity. The older plants were unable to operate consistently at their full ratings, leaving Kosovo exposed to a structural gap between dependable supply and peak demand.
Domestic Coal Reduces Fuel Dependence but Creates Import Risk
Using local lignite means Kosovo does not need to import large volumes of natural gas or internationally traded coal for its main power stations. This provides a degree of fuel security and protects the system from some changes in global commodity prices.
However, dependence on old coal plants creates a different form of import exposure. When domestic units stop operating, electricity must be purchased from neighboring power markets, often during periods when regional prices are already high.
Kosovo’s electricity demand is strongly seasonal. Winter consumption rises as households and businesses use electricity for heating. Peak demand can exceed the dependable output of domestic generators, while low demand at other times may create temporary surpluses.
Coal stations are designed mainly to provide continuous baseload electricity. They are less suited to rapid adjustments in output, making system balancing difficult. Kosovo therefore needs cross-border trade even when the plants are operating normally.
Interconnections with Albania, North Macedonia, Montenegro, and Serbia connect Kosovo to the regional network. Cooperation with Albania is particularly important because the two systems have different generation profiles. Kosovo relies heavily on thermal power, while Albania depends primarily on hydropower. In principle, the systems can support each other when water conditions, plant availability, and market prices allow.
Greater integration cannot fully compensate for unreliable domestic generation. Regional electricity may become scarce or expensive during cold weather, drought, or simultaneous outages across the Western Balkans.
Mine and Water Infrastructure Are Critical Vulnerabilities
Kosovo’s coal system depends on more than power-station machinery. Mines must supply a steady volume of lignite, overburden must be removed, conveyor systems must function, and sufficient land must be prepared for future extraction.
Mine expansion has created difficult land-use and resettlement issues. Lignite development requires large surface areas, and new mining zones can affect homes, farms, roads, and local communities. Delays in land acquisition or mine preparation can threaten the long-term fuel supply of the power stations.
Water infrastructure is another essential part of the system. Thermal power plants require reliable water for cooling and industrial operations. The Ibar-Lepenac canal supplies water to Kosovo’s main coal stations as well as communities and other users.
An explosion damaged part of the canal in November 2024, raising immediate concerns about cooling-water supplies and possible electricity disruption. Kosovo restored emergency arrangements, but the incident demonstrated how a single piece of infrastructure could affect power generation and drinking-water supplies at the same time.
This vulnerability has increased attention on physical security, backup water systems, network resilience, and emergency planning. A coal-based electricity system may appear fuel-secure because the resource is domestic, but it remains dependent on mines, conveyors, water channels, substations, transmission lines, and a limited number of generating units.
Refurbishment Replaces Plans for a New Coal Plant
Kosovo previously considered building a new lignite-fired power station to replace part of its aging generation fleet. The proposed Kosovo e Re project was intended to provide modern baseload capacity, but the plan did not advance.
The country’s present strategy places greater emphasis on refurbishing selected existing units while expanding renewable generation, storage, and regional electricity trade.
The Energy Strategy for 2022–2031 calls for rehabilitation of both Kosovo B units and at least one unit at Kosovo A. The objective is to maintain a reduced amount of lignite capacity for system security while newer sources are developed. The strategy anticipates approximately 540 MW of coal-based baseload capacity in 2031, with additional capacity potentially held as strategic reserve.
Refurbishment could improve reliability, efficiency, and pollution control. Work may include turbine improvements, boiler rehabilitation, electrical-system upgrades, and equipment to reduce dust, sulfur dioxide, and nitrogen oxide emissions.
The effectiveness of this program will depend on cost, construction schedules, technical conditions, and compliance with the Energy Community’s environmental rules. Rehabilitating an old unit can extend its operating life, but it cannot always achieve the performance of a newly built plant.
Delays also carry a direct energy-security cost. Taking a unit offline for major work temporarily reduces domestic generation, requiring careful scheduling and access to replacement electricity.
Renewable Growth Will Reduce Coal’s Share, Not Remove It Immediately
Kosovo aims to raise renewable electricity generation to at least 35% of consumption by 2031. Its strategy includes substantial new solar and wind capacity, rooftop generation, biomass, and battery storage. The planned renewable fleet could reach approximately 1.6 GW, supported by 170 MW and 340 MWh of battery capacity.
These projects could reduce the number of hours that lignite plants need to operate and limit exposure to electricity imports. Solar generation is especially useful during the day, while wind can provide output across different seasons and hours.
Renewables alone will not replace coal immediately. Kosovo still needs dependable capacity during winter evenings, low-wind periods, and times when regional electricity is expensive. Battery systems can help with short-term balancing but cannot provide unlimited backup during long supply shortages.
Coal is therefore expected to remain part of the electricity mix throughout the current strategy period. Its role, however, is likely to change from overwhelming dominance toward a smaller baseload and reserve function.
The pace of that change will depend on whether Kosovo completes renewable auctions, strengthens the grid, installs storage, improves energy efficiency, and secures reliable regional trading arrangements.
Kosovo’s Coal Sector Is Moving Toward Managed Dependence
Kosovo cannot quickly abandon lignite without creating a serious electricity-security problem. The coal plants still generate most of the country’s power, and no replacement system is yet large enough to assume their full role.
At the same time, continued dependence on Kosovo A and Kosovo B is increasingly costly. The plants are unreliable, environmentally damaging, and difficult to operate within tightening European emissions and carbon policies.
The most likely path is a managed reduction rather than an immediate phaseout. Kosovo will attempt to rehabilitate selected coal units, maintain domestic lignite production, expand renewable capacity, install battery storage, and increase regional market integration.
The success of this approach will depend on timing. New generation and grid resources must become available before older units are retired. If refurbishment or renewable construction is delayed, Kosovo will remain dependent on emergency imports and aging equipment. If investment proceeds as planned, lignite can gradually move from near-total dominance toward a narrower role in maintaining electricity security.