Kosovo's Energy Corporation has distributed coal to its workers to make it easier for them to get through the winter. The approximately 3,600 employees received 10 tonnes of coal each, with even those who retired this year and no longer work for the company being entitled to the subsidy. According to the trade union chief, the measure does not only benefit people, but it also helps the state.

There’s coal, but no electricity

Kosovo’s Energy Corporation (KEK) deals with the mining and sale of coal and thermal energy production in coal-fired power plants. Its corporate headquarters are located in Obilic, near the capital Pristina. The company owns three larger mines, from which lignite (also called brown coal), i.e. young, wood-structured coal with low calorific value, is produced. Some of the coal is sold, the rest is used by thermal power plants. The vast majority of the energy produced in the country is sourced from here.

Giving coal to mine workers as some sort of compensation or benefits is not an unprecedented move. Although the Ministry of Economic Development banned this practice in 2018, the ban was lifted this September, allowing miners to receive some coal for free. The head of the Economic Ministry, Artane Rizvanolli, justified the decision with the energy crisis. As he explained, they are also trying to help people get through the winter. This winter some of the workers are plannig to heat with coal and, to a limited extent, with wood, instead of electricity in order to save on costs – not only for themselves, but also for their country. Some will, of course, sell their share of coal and stick with their preferred method of heating. The miners estimate that they can sell the 10 tonnes of coal for around 150 euros, for much less than the general price level is Europe. Thus, monetizing the subsidy will not bring sudden wealth in Kosovo, where the minimum wage is 264 euros since the summer raise.

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The system couldn’t cope with consumption during the summer

Despite rich coal deposits, Kosovo faces a harsh winter. The output of the two thermal power plants of Kosovo’s Energy Corporation is a maximum of 800 megawatt-hours (although they produced only 500 megawatt hours in summer), and consumer demand can rise to 1300 megawatt hours on a cold winter day. The country, one of Europe’s poorest, is trying to make up for the significant shortage by importing energy, but it does not have much room for manoeuvre in light of the skyrocketing world market prices.

The energy distribution company was forced to introduce restrictions at the end of summer: households were disconnected from the grid in two-hour blocks, even though consumption was much lower than it will be in the winter.

To decrease electricity demand, the Kosovo Energy Corporation and the government are promoting heating with coal. KEK has set aside 150 thousand tonnes of coal, which the population can buy at a discounted price of 15 euros per tonne, in a maximum amount of 10 tonnes. Those in the business sector can purchase the coal for 20 euros, with transportat and loading costs being added on top of the discounted price.