Kosovo’s regulatory landscape is shifting fast, with a key highlight from Energy Regulatory Office decision pushing certain companies which meet the criteria entering the open power market and sparking legal challenges, according to RPHS Law Head of Energy Blerina Ramaj, who, at the same time, reports of a wind-power public auction framework and a new crypto-licensing regime aligned with EU rules as signals of a broader push toward modernization and EU convergence.
“The most talked-about topic in Kosovo’s business and legal community since June has undoubtedly been the Energy Regulatory Office’s decision obliging certain companies to enter the Open Energy Market,” Ramaj begins. “The decision applies to all companies with an annual turnover exceeding EUR 10 million or with more than 50 employees. In practice, however, the regulator’s wording used ‘and’ in the definition of the Law on Energy instead of ‘or,’ which is included in the provision of the law creating a conflict with the Energy Law itself and a great deal of confusion among companies”.
According to Ramaj, “this distinction has had major consequences to the companies that should not have been affected by the measure, suddenly found themselves compelled to buy electricity at unregulated prices.” Many have challenged the decision before Kosovo’s courts, both on legal and practical grounds. “From a legal standpoint, the inconsistency between the definitions in the Energy Law and the regulator’s decision is at the core of the dispute. On the practical side, companies faced soaring electricity prices, sometimes up to 300% higher than those under the regulated market. That shock led some of the companies, especially those engaged in the production sector, to suspend parts of their operations, terminate supplier contracts, or even reduce staff.”
As Ramaj explains, “first-instance court rulings have started to appear, but the decisive verdict from the second instance is still pending. With winter approaching and market prices likely to rise again, the business community is anxiously awaiting clarity. The case has become a real test of legal certainty and regulatory consistency in Kosovo’s energy sector.”
Turning to renewables, Ramaj highlights a forward-looking initiative. “The new Law on the Promotion of Use of Renewable Energy Sources and the accompanying National Strategy have opened a new phase for green investments," she says. "The government introduced the second public auction, and the first one on wind-power for 100-megawatt, under which it will provide land and guarantee a fixed feed-in tariff for electricity resale.” However, she notes, “the political situation, including a government shutdown, has delayed implementation."
Finally, Ramaj points to another significant legislative milestone, this time related to cryptocurrencies. “At the end of 2024, Kosovo adopted its Law on Crypto-Assets, and at the end of August of this year the Central Bank of Kosovo approved the Regulation on the licensing of crypto-asset service providers." As Ramaj explains, companies engaged in "exchange and trading activities must now obtain authorization from the Central Bank to operate.” She adds that “the regulation closely follows the EU’s MiCA framework and aims to, firstly, ensure compliance with anti-money-laundering and counter-terrorist-financing rules. The licensing process is still ongoing, and all existing or prospective operators are to complete it by the end of 2025 should they wish to continue operating, as the Central Bank of Kosovo have provided them 90 days to comply with the requierments" According to her, this is a crucial step toward bringing the digital assets sector under proper supervision and aligning Kosovo’s financial regulations with EU standards.
