The World Bank and Government of Kosovo have signed agreement for the $31m Kosovo energy efficiency and renewable energy project (KEEREP).

The project intends to lower energy consumption and fossil fuel use in public buildings and reveal the economic viability of resultant investments.

Kosovo will get support from the World Bank in the implementation of its energy strategy and improvement of the policy as well as regulatory environment for renewable energy and energy efficiency.

The government is expected to benefit from the project via reduced energy expenditures and a renovated building stock.

In addition, the Ministry of Economic Development, the Ministry of Environment and Spatial Planning, the Kosovo Energy Efficiency Agency, and the Energy Regulatory Office will develop their capacity to encourage sustainable energy investments throughout the country.

The bank said the private sector will benefit from an enhanced regulatory environment, which is anticipated to help faster licensing and easier market entry for firms developing renewable energy sources.

World Bank country director Ellen Goldstein said: "A modern energy sector generating reliable, affordable and cleanest possible electricity is indeed Kosovo’s most urgent priority.

"Using available energy more efficiently and encouraging the development of renewable sources represent two central pillars of Kosovo’s comprehensive energy strategy."