An EU-funded technical assistance project worth €2 million was launched recently to support the preparation of a feasibility study for district heating in Kosovo based on renewable energy. The study will include cost-benefit analyses and an environmental and social impact assessment report and will cover the municipalities of Drenas/Glogovac,Ferizaj/Uroševac, Gjilan/Gnjilane, Kastriot/Obilić, Mitrovica, Peja/Peć , Prizren, and Zveçan/ Zvečan.

Currently, the heating systems in these municipalities are not suitable for collective residential and service sector buildings and they have a substantial negative impact on both air quality and public health. The feasibility study will consider the possibility of using environment-friendly and locally available primary energy sources with different technologies and distributing the heat through highly efficient district heating systems.

A team of international and national experts will support the Kosovo authorities to develop the plans which canfacilitate strategic investment. The main funding sources are expected to be loans from the European Investment Bank – the lending arm of the EU – and the European Bank for Reconstruction and Development (EBRD). National contributions and technical and investment grants from the Western Balkans Investment Framework (WBIF) are expected to be blended with loan funds.

The WBIF is an EU-led donor investment platform that pools grants with implementing partner financing to support EU enlargement and socio-economic development in the region.