Improving the District Heating in Gjakova, Kosovo

The Gjakova Municipality approached SECO for support in improving the performance of the DH Company. This improvement includes increasing the DH company’s administrative, operational and financial capacities, but also the energy efficiency of the municipal DH, including the network, and the Regional Hospital.

Country/region Period Budget
01.01.2020 - 13.12.2023
CHF  6’325’000

Climate change and the development of respective mitigation and adaptation measures is becoming more prominent in Kosovo. In accordance to EU directives and as required under the Energy Community Treaty, Kosovo has commited to increase energy efficiency and the share of renewable energy. An important project is the replacement of an outdated district heating boiler based on mazut (heavy, low quality fuel) with a new biomass-fired combined heat and power (CHP) plant in the city of Gjakova, financed by EU-IPA II. SECO’s intervention will help to make the new biomass-fired CHP plant more sustainable and improve the performance of the DH comany.


The objective of the project is to contribute to a more sustainable management of the DH company and efficient use of energy in the city of Gjakova. In particular, it will demonstrate how strengthening the operational, financial and administrative capacities of the utility contributes to an improved performance and energy efficiency. The project will also demonstrate related benefits, including reduced energy consumption, reduced air pollution and better indoor environment in connected buildings.

In addition, the new CHP and the SECO project are expected to contribute to the improvement of Gjakova’s business investment environment. A reliable and safely managed energy supply contributes to the generation of a conducive and climate-friendly environment for economic development of existing and future small and medium enterprises. Thus, the SECO and EU project together generate an enabling environment for the creation of long-term employment opportunities (e.g. biomass supply chains).

Medium-term outcomes

A more performant and sustainably managed DH Company resulting from an increased administrative, operational and financial capacity

Improved and energy efficient DH infrastructure, with the effect of reduced energy losses

Reduced energy consumption by Gjakova’s public sector, and thus decreased public energy expenditures

Better indoor environment for patients and staff of the regional hospital


Expected results:  

Capacity building and training program delivered

Metering campaign and targeted infrastructure improvements delivered

Heating network upgrade of Regional Hospital delivered

Additional public buildings connected

Directorate/federal office responsible SECO
Credit area Development cooperation
Budget Current phase Swiss budget CHF    6’325’000 Swiss disbursement to date CHF    0 Budget inclusive project partner CHF    6’300’000
Project phases Phase 1 01.01.2020 - 13.12.2023   (Current phase)