Amid challenges in energy supply and economic stagnation, opposition parties in Kosovo promise new coal and gas power plants to address the energy crisis, as well as salary increases and billions in capital investments.
Kosovo remains one of the poorest countries in the Balkans, with an economy largely dependent on imports and consumption and characterised by unfair competition. Foreign investments are scarce, focused mainly in real estate diaspora investments, while public enterprise boards continue to be led by politically affiliated figures.
Opposition political parties in Kosovo have pledged large-scale capital investments in the energy industry, including the construction of new coal and gas power plants. They have also promised salary increases as measures to boost economic growth.
The ruling Vetëvendosje Movement refused to participate in debates on economic development and energy policies moderated by BIRN and Internews Kosova. This decision was strongly condemned by 20 non-governmental organisations ahead of the 2025 parliamentary elections.
Vetëvendosje ruling party justified its boycott by claiming that the media platform hosting the debates, TV Dukagjini, is owned by oligarchs.
The Alliance for the Future of Kosovo, AAK
The AAK-Nisma coalition promised an average salary of 1,000 euros, almost double of the current 570 euros.
Edmond Hoxha, an MP candidate, stated that if AAK-Nisma wins the election, the primary goal of its government would be to achieve economic growth of up to 7 percent per year. According to the World Bank, Kosovo’s estimated real GDP growth rate in 2024 was only 3.8 per cent.
According to Hoxha, the 7 percent growth rate would be accomplished by launching public investments worth over 1 billion euros and increasing them to 1.5 billion euros by the end of the mandate.
“Foreign direct investments (FDI) are expected to reach up to 2 billion euros, alongside private sector investments,” he said, emphasising that “AAK will see businesses as partners,” criticising the ruling party’s approach to businesses.
Another ambitious plan of AAK is to “use Gjakova Airport as an alternative airport to enable Kosovo’s economic development,” as the MP candidate from Gjakova, Artan Nimani, explained.
The Prishtina International Airport “Adem Jashari” is the only airport used for civilian purposes in Kosovo. In 2024 alone, it served 4 million passengers.
Kosovo also has the Gjakova military Airport, which is located about 90 kilometers from Prishtina.
After the 1998-99 Kosovo war, Gjakova military Airport was rebuilt by the Italian troops of NATO’s mission in Kosovo, KFOR. Until 2013, it was used to support NATO mission military activities.
In December 2013, following an agreement between the then-governments of Italy and Kosovo, Gjakova Airport, along with all operational assets, was transferred to Kosovo authorities.
In 2019, by a decision of the Government of Kosovo, the airport was placed under the service of the Ministry of Defense, specifically the Kosovo Security Force.
The AAK-NISMA coalition plans to boost the economy through security and stability, which they believe can be achieved by NATO membership. The coalition pledges to achieve NATO membership in the first year of its governance.
The MP candidate, Arton Demhasaj emphasised that “foreign investors will not invest in a country where security is not a top priority.”
He also mentioned building a new power plant to address the energy supply crisis.
“The potential construction of a gas-fired power plant that could also generate up to 500 MW of electricity, and the second is the distribution of gas to households,” including the construction of five heating plants in the major cities of Prizren, Ferizaj/Urosevac, Gjilan/Gnjilane, Mitrovica, and Peja/Pec.
Demhasaj announced plans to revisit the option of gas supply funded by the U.S. In 2020, the Government of Kosovo withdrew from the gas infrastructure project funded by the U.S. Government’s Millennium Challenge Corporation, MCC, despite the U.S. recommendation to proceed with it.
Although Kosovo is not a party to either the United Nations Framework Convention on Climate Change or the Paris Agreement, it has set equivalent voluntary national commitments. Additionally, as a contracting party to the Energy Community Treaty, Kosovo is harmonizing its energy and climate legislation with the European Union acquis and aligns itself with the goal of Europe becoming the first climate-neutral continent by 2050.
The Kosovo Energy Strategy 2022-2031 aims to increase the share of renewables to at least 35 percent from 6.7 percent currently in the gross final electricity consumption.
The draft of this strategy states that the country is considering options for building a natural gas-based system in Kosovo, given that the country currently lacks a gas transmission network.
Kosovo’s inclusion in this project would be through the terminal in Vlora, Albania. In 2021, Kosovo had withdrawn from the project, arguing that it was economically unfavorable and had a high cost, despite MCC stating that it would provide a 200 million euro grant for the infrastructure.
The strategy also plans for roughly 400 million euros of Kosovo public funds to be invested in refurbishment of existing coal power plants.
Democratic League of Kosovo, LDK
The construction of a gas power plant is the key goal of Democratic League of Kosovo, LDK, electoral program they aim to push forward if they return to power after the February 9 elections.
Berat Rukiqi, MP candidate and former head of the Kosovo Chamber of Commerce, stated that the construction of a gas power plant will ensure a smoother energy transition, increase 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. This will also minimize the role of intermediaries, not just in Kosovo but across the region,” he explained.
Ferronikeli is a mining company, primarily engaged in the extraction of nickel ore. The company plays a significant role in Kosovo’s economy, especially in the metallurgical sector, producing ferronickel used in the production of stainless steel.
Sharrcem, on the other hand, is a cement production company in Kosovo, which is widely used in the construction industry.
Besian Mustafa, another MP candidate, pledged that if LDK leads the government in the next mandate, they will create conditions for an average economic growth of 5 percent per year over the next four years.
“The first decision of this government will be to increase the public sector coefficient by 150 euros, and there will be no pension below 150 euros,” he said.
In October 2024, Kosovo Prime Minister Albin Kurti announced that from January to July 2025, public sector employees will receive a 55 euros increase in their monthly salaries with an additional 55 euro raise after July.
A law on public sector salaries, enforced in 2023, set coefficients of salaries from 1 to 20, depending on the sector and job position. The baseline coefficient value in 2023 was 105 euros, in 2024 the Kurti led government increased the baseline coefficient to 110 euros. The two salary coefficients are multiplied to set the salary for each public sector job.
In September 2024, Kurti also announced that as of October 2024, pensioners would receive 20 percent higher pensions. As of January 2025, there was also an additional 20 percent increase in pensions of “war-related categories.”
Regarding the tourism sector, Mustafa stated that they will develop projects in Brezovica (tourism attraction) and Peja and will work on establishing a national airline for the diaspora.
Rukiqi also announced 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,” he added.
Democratic Party of Kosovo, PDK
The Democratic Party of Kosovo has pledged 6 billion euros in capital investments making the empowerment of the private sector the focal point of their electoral programme. They also plan to construct a gas power plant.
Arben Mustafa, MP candidate, believes that economic development can only be achieved through public-private cooperation, meaning the empowerment of the private sector by governmental support. He explained that the PDK programme outlines a strong package for business support and creating favorable conditions for doing business.
Mustafa committed to implementing a fiscal reform that includes tax incentives for new investors who employ at least 50 workers or invest over 500,000 euros in capital.
“The tax exemptions we mentioned do not pose a significant cost to the state budget. We have stated that small businesses with an annual turnover of up to 10,000 euros will be exempt from taxes,” he said.
PDK also plans to improve financial access for businesses by restructuring the role of Kosovo’s Credit Guarantee Fund to direct loans toward key economic sectors. Additionally, the party promises lower interest rates for state-guaranteed loans.
“We will develop a capital market for the private sector, enabling large corporations to issue shares and attract foreign investors,” Mustafa stated.
In the wood industry, PDK promises state support for ambitious and successful entrepreneurs to expand their operations.
Regarding the energy sector, Mustafa explained that Kosovo Energy Corporation, KEK, will be specialised in electricity production, while public-private partnership concessions will be created for coal reserves.
Shala emphasised that PDK has also included renewable energy in its program.
“The 105 MW project in Bajgora Wind Farm is our initiative. We issued the initial licenses for environmental and feasibility studies, and this government merely inaugurated it—it was already prepared,” he said.