What does the opening of the energy border between Kosovo and Serbia mean?

The power interconnection lines on the border between Kosovo and Serbia, which are managed by the Transmission System Operators of both countries, are physically functional and active, but for the achievement of commercial goals, it is important that they are used.

This is what the Kosovo System, Transmission and Market Operator (KOSTT) said for Radio Free Europe, also emphasizing that the distribution of net transmission capacities on the border between Kosovo and Serbia would offer the parties more opportunities for electricity trading.

Otherwise, the interconnection line represents a kind of energy border, namely it connects the energy systems of two or more countries, enables the exchange of electricity and increases the stability of the system, as well as the security of electricity supply.

The Deputy Prime Minister of Kosovo and the chief negotiator in the talks with Serbia, Besnik Bislimi, said on October 24 that progress has been made in the implementation of the Energy Agreement and that Belgrade has agreed to put the connecting lines into operation by the end of November.

The medium contacted Bislim's cabinet for more details on the matter, but did not receive a response.

The Serbian side did not mention it and did not answer REL's questions about it.

The EU's special envoy for the Kosovo-Serbia talks, Miroslav Lajcak, said on October 29, a few days after the meeting with Bislim and the Serbian chief negotiator, Petar Petkovic, that there has been no progress regarding the implementation of the Agreement on the road to normalization of relations between the two countries, but added that he is optimistic when it comes to other issues.

"There has been progress on several other important issues, which we will monitor in the coming weeks," Lajcak wrote on his Facebook account.

He did not specify exactly what progress it is about, but said that he met with the director of the Secretariat of the Energy Community, with whom he talked about energy cooperation in the Western Balkans.

On the other hand, KOSTT explained that Kosovo currently has three fully functional connecting lines: on the border with Montenegro, Albania and North Macedonia.

In the annual report of the Office of the Energy Regulator (ERO) of Kosovo, it is stated that the Electric Grid of Serbia has blocked the interconnecting lines for commercial use in 2023 as well and that the result of this blockage has been the lack of cross-border transmission capacity.

"The lack of cross-border transmission capacities, as a result of the blocking of interconnection lines for commercial operation by Serbia, continues to cause serious difficulties for traders, such as the obstruction of energy trade at this border, thus reflecting the increase in the price of capacities cross-border at other borders and the price of energy import, for Kosovo and for South-Eastern Europe", it was said, among other things, in the report published in March.

KOSTT: The operating agreement with the Electric Economy of Serbia (EMS) enables greater cooperation

Among the last steps towards the full implementation of the Energy Agreement is precisely the commissioning of the connecting lines.

"The next step could be the signing of the Operating Agreement between KOSTT and EMS - with all technical annexes - which enables greater cooperation between the two operators of the transmission system", said KOSTT.

As of the publication of this article, EMS did not respond to the question of whether it plans to sign such an agreement with KOSTT.

In the framework of the dialogue for the normalization of relations, Kosovo and Serbia reached agreements on energy in 2013 and 2015, while in June 2022, the two parties approved the Roadmap for the implementation of these agreements.

At the time, the EU, which is brokering the dialogue, said the 2013 and 2015 energy deals "have only been partially implemented".

Meanwhile, after the signing of the Roadmap, the Elektrosever company, which supplies electricity to municipalities with a Serbian majority in the north of Kosovo and collects the bills that it started sending to consumers at the beginning of this year, became fully functional.

Until then, residents of North Mitrovica, Leposaviq, Zveçan and Zubin Potok did not pay electricity for about 25 years.

The company Elektrosever is owned by the Electric Economy of Serbia, but it is registered in Kosovo according to the laws of Kosovo.

Based on the Roadmap for the implementation of energy agreements, KOSTT also offered access to the Vallac substation, which provides most of the electricity for the citizens in the north of Kosovo. It also supplies electricity to the hydropower plant in Ujman Lake.

Vallaçi is one of the first substations built in Kosovo in the transmission system.

It is connected to five 110 KV high voltage lines: Trepça, Skenderaj, Ujmani, Ilirida (near Mitrovica) and Palaj (near Pristina), as well as Novi Pazar 2 station (Kosovo-Serbia connecting line).

The role of Vallac is to ensure a regular supply of electricity to the parties connected to this substation within the Kosovo Transmission System.

This substation is also important for the physical exchange of electricity between Kosovo and Serbia through the connection line Valaç-Novi Pazar.

In the Energy Strategy of the Government of Kosovo for the period 2022-2031, it is stated that some of the strategic goals of the country are the strengthening of regional cooperation and the functioning of the Kosovar market.

There, it is also said that Kosovo is committed to the implementation of all obligations from the Energy Community Agreement, to create a free, integrated and competitive electricity market.