Page 103 - SE Outlook Regions 2023

into one of the best nickel companies in Europe and one of its most
valuable subsidiaries.

The Trepca mining complex in Kosovo is a huge dilapidated industrial site
near Mitrovice and another important asset of Kosovo.

3.5.4 Energy & power

Kosovo’s gross electricity production in September 2022 fell by 2.8%
y/y to 454.5 GWh, the country’s statistics office said. Kosovo relies
mostly on coal-fired power plant production as the small country has a
huge lignite reserves, but it remains committed to diversifying the
generation portfolio in an effort to achieve an increased share of
renewable energy sources. Kosovo often faces energy crises due to its
outdated thermal power plants (TPPs), which constantly need
repairing.

In October 2022, the EU pledged a grant of €75mn for Kosovo to
overcome the energy crisis that will be available as of January 2023,
European Commission President Ursula von der Leyen said. The grant
is for “immediate support to vulnerable households or businesses”.

The International Monetary Fund (IMF) said that gaps in physical and
social infrastructure vis-a-vis the EU15 are significant, limiting the
attractiveness of Kosovo as a foreign direct investment destination. In
particular, high non-technical and commercial losses make the
electricity sector financially vulnerable, and some unreliability in
domestic supply leave the sector exposed to fluctuations in external
electricity prices. More reliable and greener electricity supply will both
reduce fiscal and business costs, while preparing Kosovo for the
carbon content demands linked with further European integration. IMF
staff urged the authorities to redouble their efforts to expand green
capacity, explore further regional market integration, increase effective
penalties for electricity theft, and strengthen the coordination between
the sector’s stakeholders both at the regulatory and management
levels.

3.5.5 Construction

In the second quarter of 2022, the construction sector, which is one of
the biggest drivers of the economy, fell by almost 18% y/y as overall
economic growth rose 2.1%.

The number of newly registered companies in Kosovo totalled 2,722 in
the third quarter of 2022, up by 9.8% compared with the same quarter
a year before, 11.2% of which were in the construction sector.

In Kosovo the largest share of men is employed in the sectors of
construction, trade and production (38.2%).

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