http://www.b92.net/eng/news/business-article.php?yyyy=2008&mm=05&dd=31&nav_id=50695

"Reality against Kosovo energy fantasy"

31 May 2008 | 11:37 | Source: Beta

VIENNA -- Kosovo politicians are sure the province has the capacity to 
export energy, but “harsh reality contradicts these grandiose energy 
fantasies,” writes Die Presse.

The Vienna daily states that earlier this week at a seminar on the 
investment potential of Kosovo mining and energy in Vienna, it was 
stated that Kosovo was fifth in the world when it came to using brown 
coal reserves in modern power stations in an eco-friendly manner.

It was added that a hydro-electric power plant was currently under 
construction in Albania with a capacity twice as big as that of 
Austria’s Kaprun plant that would be able to sell electrical energy in 
the Balkans very soon.

“So much for dreams. The reality is somewhat different however. Kosovo 
politicians and economic lobbyists boast that Kosovo, in line with EU 
requirements, has split the KEK electricity supplier from KOSTT, the 
company responsible for transferring power. But, KOSTT only owns high 
energy channels on paper, something that Deputy Kosovo Mining and Energy 
Minister Blerim Rexha was forced to admit in Vienna,” writes Die Presse.

The daily states that this is perhaps a confusing fact, but can be 
“explained simply… since, whoever sells Kosovo power, actually gives it 
to the Electric Power Industry of Serbia (EPS).”

“It is EPS that actually owns Kosovo’s high power network capacities, 
and then sells it to interested parties. That is the case for all 
channels going towards Albania, Macedonia and Serbia,” the Austrian 
daily explains.

It adds that this raises the question of what the Kosovo government 
wants to do to assume control of its own infrastructure.

“To usurp ownership from Serbia—very unlikely. Impoverished Serbia is no 
position to be handing out gifts, particularly not to the Kosovo 
Albanians. Rexha said that he was going to great pains to reach an 
agreement, but that he did not know when that would be,” writes the 
Vienna daily.

Die Presse adds that “trading electricity with Albania which is rich in 
water, which certain Austrian energy concerns have dreamed about, will 
not be possible as quickly as promised at conferences and in fancy 
advertising brochures.”

The fact is that Albania is not a member of the Union for the 
Coordination of Transmission of Electricity (UCTE). The reason for this 
is that “it cannot guarantee a consistent supply of energy. Therefore, 
it cannot ensure that hydro-electric stations won’t suddenly start 
generating excessive electricity and overload the international network.”



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