In the heart of the Balkans, Kosovo stands at a crossroads, grappling with economic stagnation and energy supply challenges. Opposition parties are seizing the moment, promising bold initiatives that could reshape the country’s energy landscape and economic trajectory. The Alliance for the Future of Kosovo (AAK) and the Democratic League of Kosovo (LDK) are at the forefront, advocating for significant capital investments in the energy sector, including new coal and gas power plants. These pledges come as Kosovo continues to struggle with energy shortages and economic growth that lags behind regional averages.
The AAK-Nisma coalition, led by Edmond Hoxha, has set an ambitious target of achieving 7% annual economic growth. This goal, nearly double the World Bank’s estimated 3.8% growth rate for 2024, hinges on substantial public investments exceeding 1 billion euros, with plans to increase this to 1.5 billion euros by the end of their term. Hoxha emphasizes that foreign direct investments (FDI) are expected to reach up to 2 billion euros, alongside private sector investments. “AAK will see businesses as partners,” Hoxha asserted, criticising the current administration’s approach to fostering economic growth.
A key part of AAK’s strategy is the redevelopment of Gjakova Airport, aiming to create an alternative aviation hub to Prishtina International Airport, which currently serves 4 million passengers annually. The coalition believes that enhancing Kosovo’s aviation infrastructure will boost its economy and attract foreign investors. Additionally, Arton Demhasaj, an AAK MP candidate, highlighted the coalition’s commitment to NATO membership as a cornerstone for economic stability. “Foreign investors will not invest in a country where security is not a top priority,” Demhasaj stated. The coalition plans to build a new power plant to address the energy crisis, focusing on a gas-fired option that could generate up to 500 MW of electricity, along with distributing gas to households and constructing heating plants in major cities.
The LDK, on the other hand, prioritizes the construction of a gas power plant as a pivotal component of its electoral program. Berat Rukiqi, an MP candidate and former head of the Kosovo Chamber of Commerce, argued that this initiative would facilitate a smoother energy transition, boost production capacity, and reduce electricity demand. “If this plan includes major electricity consumers, such as Ferronikeli and Sharrcem, which are among the largest energy users, it will reduce electricity demand and, consequently, the need for imports,” Rukiqi explained. Ferronikeli, a mining company, and Sharrcem, a cement production company, are key players in Kosovo’s economy, particularly in the metallurgical and construction sectors.
The LDK also plans to create conditions for an average economic growth of 5 percent per year over the next four years. Besian Mustafa, another LDK MP candidate, announced that the government will increase the public sector coefficient by 150 euros, ensuring no pension is below 150 euros. Mustafa also highlighted plans to develop tourism projects in Brezovica and Peja, and establish a national airline for the diaspora. Rukiqi revealed plans to introduce QR codes on fiscal receipts, allowing individuals to report cases where receipts are not issued. “We have an e-Kosova platform, which must fully digitise the business registration and licensing process, ensuring that all licences are issued within an optimal timeframe, especially considering that we have exceptional companies offering IT services,” Rukiqi stated.
The ruling Vetëvendosje Movement’s decision to boycott debates on economic development and energy policies, moderated by BIRN and Internews Kosova, has sparked controversy. The party justified its absence by claiming that the media platform hosting the debates, TV Dukagjini, is owned by oligarchs. This move was strongly condemned by 20 non-governmental organisations ahead of the 2025 parliamentary elections, highlighting the political tensions and the urgency of addressing Kosovo’s energy and economic challenges.
As Kosovo navigates these complex issues, the promises of new coal and gas power plants, increased salaries, and substantial capital investments are poised to reshape the sector. However, the success of these initiatives will depend on the ability of the new government to implement these ambitious plans effectively. This could also spark a much-needed debate on the role of foreign investments, the importance of a diversified energy mix, and the need for a more transparent and accountable governance system. The path forward is fraught with challenges, but the potential for transformative change is undeniable.
