State of compliance

Kosovo* made progress in terms of cross-border cooperation following the entry into force of the connection agreement with ENTSO-E in October 2020. As of 2021, the transmission system operator KOSTT started to allocate cross-border capacities through SEE CAO. Intraday capacity is allocated bilaterally. Rules for the allocation of capacities on the interconnections with Serbia have not been agreed yet and no auctions have been organised. As a result, capacities are not being allocated on these interconnections, which is a concern for market participants.

Cross-border balancing cooperation with Albania was strengthened pursuant to the agreement on the establishment of the Albania - Kosovo* (AK) control block. Common dimensioning of the frequency restoration reserve (FRR) has been implemented. Furthermore, automatic FRR (aFRR) is procured and activated jointly for both transmission system operators, while manually activated FRR is procured separately.

The project on establishing a day-ahead market and its coupling with Albania is in delay. The Albanian power exchange company ALPEX, which is responsible for setting up of the day-ahead and intraday markets both in Kosovo* and Albania as well as market coupling between the two bidding zones, got stuck with procuring an electronic trading platform and services for the power exchange. According to ALPEX’s plans, the day-ahead market in Kosovo* and its coupling with Albania should commence two months after the go-live of the Albanian day-ahead market. ALPEX established a branch office in Pristina in May 2021.

Competition in the wholesale market is hindered by the socalled bulk supply agreement between KEK and KESCO, through which KEK sells its output to KESCO to the extent it needs it to supply its public service portfolio. The opening of the retail market was postponed for the fourth consecutive year, this time justified by the lack of a decision-making quorum of the  regulator’s board. Medium voltage customers continue to be supplied by the universal supplier at regulated prices. On 31 March 2021, the regulator requested KESCO to continue to perform universal supply of final customers, including customers connected to the 35 kV and 10 kV.

KOSTT has started publishing some data on the ENTSO-E Transparency Platform. The Connection Network Codes are mostly implemented through the grid code from 2018 and the distribution code of 2020. The Rule transposing the REMIT Regulation of June 2020 and a registration of market participants is on-going.