Kosovo has begun construction of its first-ever auction-awarded 105 MW grid-connected solar project in the village of Kramovik in the Municipality of Rahovec.

A consortium comprising Orllati, Holdigaz, ZPV, and Jaha Solar was declared the auction winner in March 2024. The companies are based in Switzerland, Germany, and Kosovo. The winning tariff was €48.88 (~$56)/MWh, 35% below the ceiling price of €75 (~$86)/MWh.

The Ministry of Economy issued the tender in May 2023.

The U.S. Agency for International Development supported the auction. Transmission system operator KOSTT will act as the market operator and guaranteed electricity buyer and will sign a power purchase agreement with the winning consortium.

The selected bidder must provide a €7.5 million (~$8.6 million) bank guarantee that will remain valid until the solar project is commissioned.

Kosovo is also preparing a renewable energy auction for up to 100 MW of wind capacity. The auction has reached its final phase before bid submission, with three prequalified bidders participating. State-owned utility Kosovo Energy Corporation has also issued a tender for a 100 MW solar project with support from German development bank KfW.

Kosovo is officially recognized as a potential candidate for European Union (EU) membership. Solar capacity additions in the EU dropped for the first time in a decade in 2025. New installations totaled 65.1 GW, down 0.7% year-over-year from 65.6 GW, according to SolarPower Europe’s EU Solar Market Outlook report for 2025 to 2030. The report attributed the decline to the fading impact of the energy crisis, which had previously driven rooftop solar deployment.

Globally, a record 664 GW of new solar capacity was installed in 2025, increasing total operating capacity to about 2.9 TW. SolarPower Europe said solar generated 2,778 TWh and supplied about 9% of global electricity. Solar surpassed wind generation for the first time and accounted for 77% of renewable capacity additions worldwide.