Kosovo is accelerating its energy transition, SEPA integration, and corporate transparency, aligning with EU standards to boost investment, competition, and economic stability, according to Nallbani Law Office Managing Partner Delvina Nallbani.
“Kosovo is making strides in its renewable energy transition, aiming to add 1,300 megawatts of new capacity by 2031,” Nallbani begins. “Lignite power plants continue to struggle to meet electricity demand, which has driven the government to introduce competitive auctions for renewable energy projects. These auctions replace the previous system of direct negotiations with investors. The country held its first 100-megawatt solar auction through competitive bidding in 2024, and plans in the future to conduct regular solar and wind auctions through long-term Power Purchase Agreements..”
Nallbani also highlights that “the recently adopted Law on the Promotion of Renewable Energy Sources establishes transparent and competitive bidding criteria, where bids are evaluated primarily on price, and those exceeding the set price threshold are disqualified.” According to her, “investors can benefit from ‘privileged producer status,’ which grants access to government-backed financial support schemes. To support renewable energy investments, Kosovo has introduced two financial assistance mechanisms: contracts for difference which ensure financial balance between a reference price and a fixed price, and premium contracts, which provide a fixed premium above market prices to ensure financial stability.” The duration of these contracts, according to Nallbani, “varies by energy type – wind projects typically range from 15 to 20 years, while solar projects have contract terms of 12 to 15 years.”
Another major development, Nallbani stresses, “is Kosovo’s efforts to join the Single Euro Payments Area, a key step toward aligning with EU regulations. The Central Bank of Kosovo has initiated the process, which will harmonize local regulations with EU standards on banking, anti-money laundering, and payment services. Currently, banks dominate Kosovo’s financial sector, but SEPA membership is expected to open the market to new players, including electronic money institutions.” Nallbani believes that this expansion “will boost competition, reduce reliance on cash transactions, and make cross-border payments more efficient. SEPA membership will also benefit businesses engaged in exports by lowering transaction costs and increasing the attractiveness of Kosovo’s financial services.” The accession process involves two main steps, she emphasizes: “Kosovo must first be accepted into SEPA, and then service providers can apply to join SEPA payment schemes. While the exact timeline depends on EU institutions, Kosovo’s financial providers, particularly banks, must comply with the new regulations at least one month before applying for SEPA scheme participation.”
Lastly, Nallbani draws attention to a law establishing a beneficial ownership registry. “The law, which came into force in September 2024, requires all business organizations, registered entities, and NGOs to disclose their beneficial owners. The registry will be administered by the Kosovo Business Registration Agency, creating a centralized database of ownership information.” Under the law, she notes, “a beneficial owner is defined as an individual who ultimately owns or controls at least 25% of a company’s shares. The Registry must be operational within one year of the law’s effective date – December 7, 2024, while existing entities will have 60 days to comply once the registry becomes operational. Previously, the companies were required to disclose their ownership only to banks when opening bank accounts, but this new law ensures comprehensive reporting to a public authority.”
