Kosovo's district heating sector is inadequate and underdeveloped meeting only 5% of the total heat demand in the country. The project is focused on further improvements to the district heating system in Pristina. The project has two key components, first the rehabilitation of the heating system in Pristina and second connecting the heating system with Power Plant Kosova B in order to enable the use of steam to heat the city.
The project has three very significant benefits: it will have a dramatic environmental impact by reducing the CO2 and other noxious gas emissions which are the cornerstone of the EU policy on climate change; it will increase the efficiency of the overall energy system by using the heat extracted from Kosovo B power plant for heating water which is circulated in the district heating network; and the project helps to reduce the operational cost of the district heating company, Termokos, by about 50 % due to the replacement of heavy fuel oil, "mazut", which has been the main source of power up to now with a much cleaner technology based on combined heat and power cogeneration.
Additionally, the project will refurbish the district heating network which is currently suffering major water loss as a result of old pipes. Overall, the citizens of Pristina will receive a better heating service which will in turn reduce the electricity consumption for heating and will make available more electricity for the supply of other Kosovo regions.
The WBIF technical assistance support provided market analysis, the best option for heat capture from Kosovo B and subsequent revisions to economic and financial aspects, environmental and social impact assessment and legal and regulatory matters. Construction and overhaul works started in June 2013 and the project is planned to conclude end of 2017.