The inherited issues after the war in Kosovo and the transition period have had an immense effect on the progress of this sector.

[3] Kosovo, rich in lignite coal reserves, relies on outdated Yugoslav-era power plants that cannot meet its increasing energy demands.

[4] By 2021 Kosovo had 279 MW of Renewable Electricity Standard (RES) power generation capacity installed.

[7] Kosovo Energetic Corporation (KEK) is a public company, which owns and operates with generation assets of electric energy.

[8] The capacities of the two power plants are lower than the installation parameters level, because of the outdated system and lack of maintenance during the last decade of the 20th century.

Technical and commercial losses and the conditions of the power plants together with the high debts have brought KEK in a difficult financial situation.

As of 2021, hydroelectric power also played a significant role in the electricity mix, accounting for approximately 8.4% of the total installed capacity.

The project was developed by SoWi Kosovo, a joint venture between Kosovar, German and Israeli partners.

[14] By 2021, Kosovo had commissioned wind generator units totaling 137 MW, which constituted 9% of the country's installed capacity.

The region of highest solar potential based on global horizontal irradiation is the southwestern part of Kosovo, centred around the city of Gjakova.

[15] In late December 2022, Kosovo became the first country in the Western Balkans Economy to use solar energy for district heating.

[16][17] Kosovo’s Minister of Finance, Labour and Transfers, Hekuran Murati, said the project would ensure access to the central heating system for about 38,000 citizens.

Transmission System and Market Operator (KOSTT) was founded in 2006 and it is a public company, responsible for operation planning, maintenance and development of transmission network and interconnection with neighboring energetic systems, in order to retain supply insurance in Kosovo.

The majority of the commercial losses are because of the Serb-majority municipalities in northern Kosovo refusing to pay for the electricity.

Even though the generating capacities are increasing mostly in the form of renewables, to cover the demand, Kosovo imports electrical energy in certain periods of time (mostly during the winter).

Until 2020, Kosovo promoted renewable energy in the electricity sector using a feed-in tariff, which was suspended by the ERO due to the cost-efficiency of competitive support mechanisms.

Kosovo is now developing a legal framework to introduce more effective and transparent schemes, like auctions, to advance renewable energy growth.

Actual emission of gases, dust and waste-water discharged from the existing power plants, are above the levels allowed by the EU directives.

This agency has drafted Energy Efficiency legislative frameworks aiming to implement the best EU practices.

[29] The World Bank is preparing a project of $32.5 million in order to finance investment, and to technically support the strengthening of renewable energy regulation and policies.

This initiative is designed to enhance cost-efficiency for meeting renewable energy targets and to improve system flexibility.

The project is pending because of the high cost, limited capacities and issues that relating with the use of water with Albania.

While neighboring countries (North Macedonia and Serbia) generate a portion of their electric power by using geothermal sites, in Kosovo there is a lack of studies on this field.