annual report 2009 - kostt€¦ · · 2011-01-27annual report 2009. 2. content 3 list of tables 4...

Annual Report 2009

Content

3

List of Tables 4List of Figures 5List of abbreviations and acronyms 6Basic Data 8Introduction by the Chairman of Board of Directors 9Introduction by the Chief Executive Officer of KOSTT 10Transmision System of the Republic of Kosovo 400/220/110 kV 12Independent Auditors’ Report 13KOSTT j.s.c. 15Company Objectives for the Year 2010 17Governance and Organization in KOSTT 19The Board of Directors 19KOSTT High Management 19Organizational Structure of KOSTT 20The Role of Audit Commission 22Audit Commission 22Legal and Regulatory Framework 22Regulatory Framework 23Technical Codes Amendments 23Transmission Development Plan 24Development of Transmission Tariff System 25Effective Relations with Stakeholders and Transparency 26Overview of the Kosovo Transmission Network Operation 29Maintenance 2009 29Development and Advancement of the Kosovo Transmission System 39Development of Transmission Network 39Transmission Network Projects (2009) 39Developments in Generation Capacities 42Development of Interconnection Lines with Neighboring Countries 42Development of Controlling and Monitoring Infrastructure 43SCADA/EMS and Telecom Project 43Overview of Electricity System Operation in Kosovo during 2009 45Realized Balance in 2009 Compared to 2008 48Unsupplied Energy 2007-2009 49Kosovo Electricity Market 51The Size of Electricity Market in Kosovo 52Balance of Carried Flows of Energy in the Transmission Network for the PeriodJanuary '09 - December 2009 53Settlement of Parties in the Market 54The Average Price of Electricity and Electricity Imports 55Transit of Electricity 57Energy Losses in Transmission 57Reforms in the Kosovo Electricity Market 58Regional Integrations 59Human Resources Management 61Human Resources Capacity Building in KOSTT 62Information Technology in KOSTT 63Audited financial reports 65Highlights of 2009 71

List of Tables

Tab. 1 Length of transmission lines and their transmission capacity

Tab. 2 The age of lines

Tab. 3 Transformation capacity of KOSTT network in 2009

Tab. 4 Interconnection capacity for 2009

Tab. 5 Key technical performance indicators- Transmission Operator

Tab. 6 Implemented projects during 2009

Tab. 7 Status of capital investments in the Transmission System of Kosovo in 2009

Tab. 8 Supplied and unsupplied energy

Tab. 9 KOSTT’s data on human resources during 2008-2009 period

Tab. 10 Balance sheet since December 31, 2009

Tab. 11 Income statement for the year ended December 31, 2009

Tab. 12 Equity changes at the end of December 31, 2009

Tab. 13 Statement of cash flow at the end of the year, December 31, 2009

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List of Figures

Fig.1 Structural organization of KOSTT

Fig.2 Correction process of technical codes

Fig.3 The Structure of KOSTT tariffs and charges, applicable since April 1, 2009

Fig. 4 Total number of assets according to voltage level

Fig. 5 Comparison of interventions 2007/2009

Fig. 6 Implantation comparison of physical maintenance for the 2007-2009 period

Fig. 7 Comparison of 2008-2009 OHL outages

Fig. 8 Comparison of AT 2008-2009outages

Fig.9 Comparison of performance indicators of TO for 2008-2009

Fig. 10 Planned and completed investments for each project during 2009

Fig. 11 Development of capacities of the transmission network during 2009

Fig. 12 Losses on monthly basis for 2008 and 2009

Fig. 13 Unsupplied energy during 2007-2009 period.

Fig. 14 Physical flows through transmission network of KOSTT for 2009

Fig.15 Profile of total consumption, including losses in electricity distribution

Fig.16 Profile of non-tariff and tariff consumption of KEK’s supplying with distribution

losses during 2009

Fig. 17 Non-tariff consumption and tariff consumption with monthly distribution losses dur-

ing 2009

Fig. 18 The balance of energy flows for 2009

Fig. 19 Involvement of stakeholders in the electricity market of Kosovo for 2009

Fig. 20 Comparison of average electricity import prices for 2008 and 2009

Fig. 21 Comparison of average electricity prices for 2008 and 2009

Fig. 22 Import and export of wholesale electricity according to wholesale dealers

Fig. 23 Electricity transit in the horizontal network of Kosovo for 2008 - 2009

Fig. 24 Comparative statement of losses for 2008 - 2009

Fig. 25 Assets 2008-2009

Fig. 26 Revenues

Fig. 27 Expenditures 2009

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List of abbreviations and acronyms

A AmpereATR AutotransformerATSO Albanian Transmission System Operator BM Balancing MarketCAO IG Coordinated Auction Office Implementation GroupCAS Computerized Accounting SystemCt Transmission Capacity DC Main Dispatching Center DF Distributing FacilitiesDSO Distribution System Operator EC European Commission ECLO European Commission Liaison OfficeEDC Emergency Dispatching Center EIA Environmental Impact AssessmentEMS Environmental Management System EMS (Elektromreža Serbije) - Serbian Transmission System EnCT Energy Community TreatyENTSO-E European Network of Transmission System Operators for ElectricityEPS (Elektroprivreda Serbije) - Serbian Electricity Company ERO Energy Regulatory Office ETSO European Transmission System OperatorsEU European Union F FemaleFAT Factory Acceptance TestFIDIC (Fédération Internationale Des Ingénieurs-Conseils) - International Federation of

Consulting EngineersGWh Giga Watt per hourHE Higher EducationHPP Hydro Power Plant HQ High QualificationsHV High VoltageHVM High Voltage MeteringIFRS International Financial Reporting Standards ISO International Organization for Standardization IT Information TechnologyITC Inter Transmission System Operators Compensation KAS Kosovo Accounting Standards KCB Kosovo Consolidated BudgetKEK Kosovo Energy Corporation KfW German Development BankKOSTT Transmission, System and Market Operator of KosovokV KilovoltKW Kilowatt

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KWh Kilowatt per hour L Length of lines LQ Low QualificationsM Male MEF Ministry of Economy and Finance MEM Ministry of Energy and MiningMO Market Operator MVA Megavolt ampereMW MegawattNACMPF Network Access Congestion Management Power FlowOCGC Operational Codes Governance CommitteeOHL Overhead LineOPEX Operational ExpendituresOPGW Optical Ground WirePBX Commuting (Switching) equipment for telephone networking, connecting lines and

public telephone network POE Publicly Owned Enterprises PLC Power Line CarrierPS Power SystemPSS/E Power System Simulator for EngineeringETR Electricity Tariff Review RG SEE Regional Group South East Europe SCADA/EMS Supervisory Control and Data Acquisition/Energy Management System SDH Synchronous Digital HierarchySEE Southeast Europe SePE Secondary Professional EducationSETSO South East Europe Transmission System OperatorsSn Nominal power SO System Operator SS SubstationSTM-4 Synchronous Transport Module - level 4SuPE Superior Professional EducationTAS Time Attendance SystemTDP Transmission Development PlanTLF Transmission Loss FactorTNDP Transmission Network Development Plan TPA Third Party Access TPP Thermo Power Plant TSO Transmission System OperatorUCTE Union for the Co-ordination of Transmission of Electricity UCTE OH UCTE Operational Handbook (summary of principals and regulations that Euro-

pean TSO’s have to implement in electricity systems)UQ Unqualified

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Basic Data

Registered name:

Transmission, System and Market Operator – KOSTT j.s.c.

Registered Address:

Iljaz Kodra str. nn, 10000 Prishtinë, Republic of Kosovo

Number of business registration:

70325350

Establishment date:

July 1st, 2006

Licenses from the Energy Regulatory Office:

License for the Transmission System Operation and

License for Electricity Market Operation

The shareholder:

Republic of Kosovo, implemented through the Ministry of Economy and Finance

Chairman of the Board of Directors:

Ramadan Paçarada

Chief Executive Officer:

Fadil Ismajli

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9

The Board of Directors, ap-pointed by the Government ofKosovo, is obliged to preserveand enhance the value of thecompany to the benefit of theshareholder, in this case theRepublic of Kosovo, by deter-mining business policies in ac-cordance with the strategicdirection. In view of this crucialaim, the work of the Board hasbeen oriented.

During 2009, KOSTT made sig-nificant progress, both in im-proving its services in providinga reliable transmission networkand sufficient transmission ca-pacity for its clients, whichmeans that the transmissioncapacity was increased signifi-cantly compared with previousyears; this was also associatedwith and increased level of se-curity operation.

These improvements have en-abled completion of numerous

projects in KOSTT, which havebeen implemented by a propercontrol of management andthe Board of Directors. This hasbeen evidenced by the inde-pendent auditor's report withoutany qualification, which to agreat extent facilitates the workof the Board and increases theshareholder’s confidence thatKOSTT is in the right way.

Finally, I want to emphasize thatthe Board, thanks to the sup-port of the professional man-agement of KOSTT, willcontinue to support imple-menting of major projects in thefuture, as well as accomplish-ment of targets for full inclusionin regional and European struc-tures of the transmission sec-tor.

Sincerely,Ramadan PaçaradaChairman of the Board of Directors

Introduction by the Chairmanof Board of Directors

Ramadan Paçarada

" After a joint work between the Board of Directors and the management, and thanks to the tirelesswork of KOSTT employees, they have achieved objectives outlined by the Business Plan and develop-ment policies, and have thus surpassed the results achieved in the previous year. [...] transmission inter-ruptions were reduced from 28 to 11; transmission losses and maintenance costs were also reduced; whilethe net profit was doubled compared to the year 2008. All these results were achieved after the hard work done by the management, the Board of Directors andthe KOSTT staff, for which the Shareholder is proud and encourages us to be even more fruitful for theyear 2010."

Ministry of Economy and Finance, POE Policy and the Monitoring Unit

For the last four years, KOSTThas shown an outstandingcommitment in advancing thesecurity, and improving thequality and the reliability of serv-ices which provides for theusers of Kosovo power system.

The above ascer-tainment refers to re-sults achieved inalmost all fields, andwhich have specifi-cally been pre-sented in this report.If the presented val-ues are analyzedcarefully, one will notice thepositive performance changes,which directly refer to the maxi-mum dedication of KOSTT em-ployees and its management.

These results are an outcomeof adequate planning of humanresources, and of technical andfinancial assistance during thepast years, and which arebeing reflected through an in-creased efficiency with respectto the System Operation andthe transmission network, in-creased confidence of financialinstitutions, and thanks to theprofessional approach of com-pany’s financial policies, de-signed for a long-term financialsustainability.

I must point out here only somekey indicators that show currentachievements in comparison to2006, when KOSTT took over tooperate the system independ-ently:

The year 2009 was challengingas regards application of reli-able operation, and the safetyof personnel and equipment onone side, and the parallel im-plementation of many capital

projects and planned mainte-nance interventions, on theother side, which can easily benoticed in the Report, andwhich are usually accompaniedwith disconnections in linesand supply transformers ofelectricity consumption.With the signing of the loanagreement with KfW (the firstforeign state loan approved forthe Republic of Kosovo – andendorsed by the Parliamentand the President) for infra-structure development inKosovo, namely for the con-struction of a 400 kV Kosovo –Albania Line, the KOSTT hasopened a new chapter in thedevelopment of its transmis-sion infrastructure, which un-derlines the KOSTT’s

commitment for afinancial sustain-ability and credibilitywith regard to inter-national financial in-stitutions.In recent yearsKOSTT has movedwith rapid, but safesteps, towards the

fulfillment of international tech-nical standards, while the levelof supply security is constantlyneareing these standards. Withrespect to long-term develop-ment, priority has been given to

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Introduction by the ChiefExecutive Officer of KOSTT

• transmission capacities increased for morethan 1/3;

• the number of defect (failures) in the supplylines decreased nearly in half;

• the tendency in decreasing losses contin-uous,

• the value of assets during this period hasquadrupled.

Fadil Ismajli

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projects dealing with imple-mentation of standards, suchas N-1 Standard and insuranceof qualitative subsidiary serv-ices.

During last year KOSTT has ini-tiated the preparation processfor membership in ENTSO-E(European Network of Trans-mission System Operators forElectricity), in which the func-tions of UCTE and ETSO havemerged. In this regard a num-ber of procedures and ruleshave been compiled for systemoperation, while the existingones were adopted. We be-lieve that during 2010, KOSTTwill succeed in becoming a full-member of ENTSO-E, whichwould thus ensure full imple-mentation of KOSTT rights at

regional and European level.For the fourth consecutive year,good tradition has continuedwith respect to management ofcompany’s financial resources,as result of which the opinon ofexternal auditor's report waswithout qualification.

The year 2009 has also beenmarked with an additional pro-fessional commitment ofKOSTT in supporting the paral-lel processes in the electricitysector, such as privatization ofDistribution and Supply on onehand, and construction of newgenerating capacities on theother hand. Results and achievementsnoted in this report have re-sulted thanks to extraordinarycommitment of all company

structures, starting with theBoard of Directors, the man-agement, experts and espe-cially the KOSTT staff, whocontinue to work with an addi-tional devotion in order toachieve company objectives,which are the most valuableasset of this company.

KOSTT is grateful to all localand international institutions forall forms of support and this ac-knowledgment is best ex-pressed through the achievedresults, presented also in thisAnnual Report.

Fadil Ismajli

Chief Executive Officer

“I am impressed with dedication and the work done so far by the Chief Executive Officer and KOSTTstaff, whereby I encourage them to continue working by using the effective and good governance of thecorporation. This should serve as an example to other public enterprises. I was pleased when I learned about investments in electricity transmission infrastructure, which weremade over the past years, hence I pledge to give my support to KOSTT in its efforts for complete integra-tion in regional and European associations.”

International Civilian Office - European Union Special Representative (ICO - EUSR), Pieter Faith,22 January 2010

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Transmission System of the Republic of Kosovo 400/220/110 kV

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Thermal Power PlantSwich Yard 200 kV

Hydro Power Plant

SS-220/35/10 kVSS-110/35 kVSS-110/35/10 kVSS-110/35/6,3 kV

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June - 2010Prishtinë

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OPERATOR SISTEMI, TRANSMISIONI DHE TREGU SH.A.

OPERATOR SISTEMA, PRENOSA I TRŽIŠTA A.D. TRANSMISSION, SYSTEM AND MARKET OPERATOR J.S.C.

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13

KOSTT Is an Electricity Transmission System and Market Operator of Republic of Kosovo

Established on 1 July 2006, as a result of the restructuring of the energy sector under the EnergyCommunity Treaty for Southeastern Europe, KOSTT j.s.c. operates under two licenses issued bythe Energy Regulatory Office:

• License of the Transmission System Operator • License of the Electricity Market Operator

KOSTT j.s.c. is a public company, the shareholder of which is the Republic of Kosovo, through theMinistry of Economy and Finance.

KOSTT is responsible for planning, development, maintenance and operation of the electricity trans-mission system in Kosovo; ensuring an open and non-discriminatory access; functioning of thenew electricity market; providing conditions that encourage competition in Kosovo; cooperatingwith neighboring Transmission System Operators (TSO) for the benefit of Kosovo and the region.

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The responsibility of KOSTT is to deliver elec-

tricity safely and reliably from generating units

to the distribution system, 24 hours a day,

365 days a year. KOSTT manages the transmission net-

work of high voltage 400 kV, 220 kV and 110 kV, with a

total length of 1077.06 km.

Currently, Kosovo transmission network is connected with neighboring countries through sevencross-border lines, and soon will begin the construction of the eighth cross-border line.The mission of KOSTT is to provide:

• quality services, by implementing technical and technologi-cal achievements in the development of the transmissionsystem;

• transparency and non-discrimination in the competitiveelectricity market;

• advancement of position at regional and European level,supported by continued capacity increase of human re-sources.

The vision of KOSTT is to be a profitable company for secure and stable transmission of electricity,responsible to the society and the environment, integrated in the European mechanisms.

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Company Objectives for the Year 2010

(1) To ensure financial sustainability

(2) Establish an effective and efficient or-

ganization and to achieve continuous

improvements in productivity

(3) To maintain and promote the function

of the system operation

(4) To improve the performance of the

transmission system

(5) To promote the planning and develop-

ment capacities of the system

(6) To ensure the effective construction of

transmission network

(7) To create possibilities for market oper-

ation in accordance with anticipated

developments of the electricity market

(8) To fulfill EmCT obligations by actively

participating in the development and

operation of the regional market (to

benefit from regional market and con-

tribute to regional development of the

market)

(9) To build effective relationships with

stakeholders

(10) To ensure that KOSTT is a good and

attractive employer

(11) To ensure that KOSTT will be a respon-

sible organization from an environ-

mental aspect

(12) To create a safe working environment

17

To create

a safe working

environment

Governance and Organization in KOSTT

19

Fadil RrustemajDirector

Faton DedaDirector

Fatos UkajDirector

Lutfi MaxhuniDirector

Nazmi MikullovciDirector

Ramadan PaçaradaChairman

Fadil IsmajliChief Executive Officer

The Board of Directors

KOSTT High Management

Fadil Ismajli Chief Executive OfficerNaim Bejtullahu Deputy Chief Executive for DevelopmentKadri Kadriu Deputy Chief Executive for OperationsNebih Haziri Director of Finance Department Merita Kostari Secretary of the CompanyBesim Gërxhaliu Acting Head of Transmission Operation DepartmentSabri Musiqi Director of System Operation Department Skender Gjonbalaj Director of Market Operation Department Ilir Shala Director of Project Management and Engineering DepartmentResmije Ahma Director of Legal and Regulatory Affairs Department Jusuf Imeri Director of Human Resources Department Abdulsatar Ibrahimi Manager of Procurement OfficeIsak Kika Manager of Security OfficeShpresa Kursani Manager of Strategic Planning Office

Foto nga takimi i Bordit te Drejtorëve

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In comparison to previous laws,the new law on Public Enter-prises No. 03/L-087, adoptedin June 2008, has foreseenchanges in corporate gover-nance for Publicly Owned En-terprises (POE). This law hasadvanced the corporate aspectby focusing on the establish-ment and the adequate role ofthe Board of Directors ofPOE’s, the establishment of thenew monitoring unit of POE’swithin the Ministry of Economyand Finance (MEF). It has alsocreated a transparent ap-proach, so that each POEshould have a publication ofdocuments as stipulated by therelevant Law, which conse-quently will increase theconfidence of a thirdparty in the work of theseenterprises.

The law on POE’s hasprovided that KOSTT willfurther be governed bythe Board of Directors(Board) elected in accor-dance with Article 15.1 ofthe Law. Establishmentof the New Board of Di-rectors of KOSTT and ofthe Audit Commission,as well as the MonitoringUnit of POEs, and theirfunctioning were the firststeps which the Govern-ment undertook to implementthe relevant law. KOSTT has un-dertaken all necessary activities

to implement the law, and theguidelines issued by the Moni-toring Unit of POE’s. In order toreflect the changes in gover-nance and the ownership of theKosovo government on KOSTTassets and of other public en-terprises, in accordance withthe Law and the Decision ofMinisters CommissionNo.218/1 of 30.09.2009, theBoard of KOSTT Directors hasadopted the modified Charterand the Code of Ethics and ofCorporate Governance, basedon forms submitted by MEF.Based on this, KOSTT has reg-istered modifications in theBusiness Register, and wasthus Certified.

The Board has adopted strate-gic and development plans

proposed by KOSTT, financialstatements and the businessplan, annual and quarterly re-ports as required by the Law onPOE. The Board has electedCompany officials (Chief Exec-utive Officer, Company Secre-tary, Chief Financial Officer), aswell as the Internal Auditor ofKOSTT, who was selected bythe Audit Commission, in ac-cordance with requirements ofArticle 15 of the Law on POE.

During 2009, KOSTT focusedin developing the Environmen-tal Management System (EMS),which is developed throughpractices and the overall con-trol, in accordance with ISO

Standard 14001.

Based on this, KOSTThas drafted the Policiesand a Manual, which sup-port the appropriate de-velopment of the EMS,with special emphasis onarchitecture and the re-quired procedures for thepurpose of gradual, “stepby step” improvement ofenvironmental perform-ance. The KOSTT staff isbeing informed aboutmandatory environmentalaspects, such as EIA (En-vironmental Impact As-sessment), whereby

education and training of thestaff has been planned.

Pursuant to the deci-sion of the Board ofDirectors, KOSTT

has arranged the work of theBoard itself and of KOSTTCommissions, compensationpolicies for different hierarchyevels (based on the Law onPublic Enterprises), operationthrough a Manual, discipli-nary issues, authorizations,procurement plan, etc.

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The Role of Audit Commission

The law on POE has also established an Audit Commissionconsisting of three (3) elected directors. The Audit Commis-sion considers all documents submitted to the Board of Di-rectors and gives its recommendations to the Board. The

Commission acts as an advisory body of the Board of Directors.

Audit Commission members• Fadil Rrustemaj• Fatos Ukaj• Ramadan Paçarada

Legal and Regula-tory Framework

KOSTT was established pur-suant to the requirements of Ar-ticles 12.1 (as a Transmissionand System Operator) and 27.1(as a Market Operator) of theLaw on Electricity, in accor-dance with Article 8 of Directive2003/54/EC.KOSTT operates based on theElectricity Law, the Law on En-ergy Regulator and on the En-ergy Law, on bylaws of Energy

Regulatory Office (ERO) andpursuant to licenses issued bythe ERO for the TransmissionSystem Operation, and for theElectricity Market Operation.KOSTT also operates based onthe Technical Codes which aresubject to approval by ERO, theMarket Rules and other acts.KOSTT, under the license obli-gations, has compiled Techni-cal Codes (Grid Code,Metering Code, etc.) MarketRules (bilateral model), AnnualEnergy Balances and the 10-years Energy Balance, 2007-

2012 Business Plan, Transmis-sion Connection ChargingMethodology, Operational Pro-cedures and CommercialAgreements, Standards for theSecurity of the TransmissionSystem and Planning, and Op-erating Security Standards,Transmission Network Devel-opment Plan (TNDP) for the2007-2013 period. All thesedocuments have been ap-proved by the ERO and imple-mented by KOSTT.

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Regulatory FrameworkThe regulatory framework, for which KOSTT is responsible, has been designed in full compliancewith primary and secondary legislation of the Republic of Kosovo, in compliance with best EU prac-tices, by defining clearly actions and responsibilities of the Transmission, Systemork and MarketOperator, omitted to ensure a safe development and operation of the transmission system andelectricity market.

Technical Code AmendmentsIn accordance with Article 26.1 of the Law on the Energy Regulator, the ERO Board has adoptedProcedures for the Management of Technical and Operational Codes, as determined in Article 38.7of the Law on Electricity.The Governing Committee of Operational Codes (GCOC) - implies the committee established toreview and discuss the changes/modifications of Technical and Operational Codes in the ElectricityIndustry of Kosovo.Implementation of Technical Code provisions implies implementation of operational proceduresand provisions that regulate the interaction between the TSO and MO, and of transmission systemusers.

This is a process which can be initiated by one of OCGC members, requesting further review byOCGC (Operational Codes Governing Committee), which reviews the request and the rationale,and by mutual agreement of members it is further preceded to ERO for approval.

Initiation of the process for the amendment of TechnicalCode provisions (Grid Code, Distribution Code, Meter-ing Code, DSO Metering Code, Electrical EquipmentCodes, Electrical Standards Codes, Consumer Protec-

tion Code) has been done according to the procedure specifiedin the document: Procedure for the Management of Technical/Op-erational Codes.

24

During January - December 2009 period, KOSTT has reviewed continually implementation of Tech-nical and Operational Codes, as well as application of such provisions in other relevant documents,and related to this it has has made several requests to OCGC for amending Technical Code pro-visions. Based on the requests submitted by KOSTT, OCGC has considered proposals to amendcertain provisions dealing with the Electrical Equipment Code, Grid Code and Metering Code, andhas sent the request to the ERO for approval. During this period ERO, at the request of OCGC hasadopted the request (Decision V_163_2009) to amend Sections 3.2 and 17.4.2.2 of the ElectricalEquipment Code.

Transmission Development Plan is a document drafted by KOSTT, based on require-ments of primary and secondary legislation. This document is prepared by the System Operator,and is published in the KOSTT website after its approval by ERO. The Grid Code instructs thatKOSTT shall annually distribute a detailed Transmission Development Plan for the next seven years.

whereby the year 2009 represents the reference year, or the so-called zero year. All relevant infor-mation has been taken into consideration in compiling this document, such as project details, theexpected date when the project becomes operational, applications for connection in the transmis-sion network that were submitted during the first and second quarter of 2009. For the preparationof the development plan, appropriate calculations have been made with the relevant software PSS/Ev. 32, by simulating computer models of the system based on the data provided by KOSTT and bynetwork users, as well as based on load predictions. Generation data have been provided by KEK-Generation and by other generators. The relevant data about the new generation capacity (smallhydro power plants) were obtained from MEM. Data about interconnectors, which are expected tobe built in the region, were provided by studies made by the Designing Group in charge for PlanningRegional Transmission Network - SECI, the group in which KOSTT also contributes through its rep-resentatives.

Another peculiarity of the development plan is that it taken into account the energy produced fromthe wind. Since the beginning of 2009, a certain number of foreign investors have applied to beconnected in the electrical network of Kosovo, with a total planned capacity of 157 MW. So far, twoapplications have been submitted to KOSTT to connect their turbines in the electrical network:

• Shtime project with a capacity of 127 MW, in the southeastern part of Kosovo, and • Kitka project with a capacity of 30 MW, the eastern part of Kosovo.

Currently, an assessment map of wind potentials does not exists in Kosovo, whilst investors, ontheir initiative, have measured the wind speed in certain areas. Development projects for the trans-mission network have been divided into five categories:

• Reinforcements in the transmission network• New connections (links) of distribution load • Revitalization of the transmission network • New connections (links) of generators.• Support projects of the Transmission System (management, monitoring, metering and

control).

In compliance with requirements aris-ing from ENTSO-E, the reviewedTransmission Development Plan doc-ument, unlike the first TNDP (2007-

2013) document, shall cover the 10-yearsperiod (2010-2019),

25

Development of Trans-mission Tariff SystemThe Transmission Tariff Systemhas been built and continuesto develop under the relevantlegislation, such as: 1) Primary legislation, ap-proved by the Kosovo Assem-bly: a) Law on Energy, b) Lawon Electricity; c) Law on En-ergy Regulator, and2) Secondary Legislation, ap-proved by the Energy Regula-tory Office: a) TariffMethodology; b) Pricing Rule;c) Guidelines for Tariff Applica-tion; d) Regulatory AccountingGuidelines.Since the establishment ofKOSTT in 2006, four Review

Processes of Electricity Priceswere performed; initially, Al-lowed Revenues were deter-mined for three-years, whileafterwards prices were re-viewed every year:

ETR 1 – Electyricity Tariff Re-view 2007 – 2008; ETR 2 –Electricity Tariff Reviw 2008 –2009; ETR 3 – ElectricityTariff Review 2009 – 2010,and ETR 4 – Electricity Tariff Review 2010 – 2011.

The Methodology of Elec-tricity Tariff determines thetotal allowed revenue thatcan be earned from regu-lated tariffs and principleswhich regulate the structure

of tariffs used to cover theseannual revenues.

Tariffs of Electricity Transmis-sion are tariffs that reflect thenecessary costs for the properfunctioning and operation ofthe Transmission, System andMarket Operator of Electricity inKosovo.

The EnergyRegulatory Of-fice, by decision

No. D_172_2009 of15.04.2009, has approvedthe transmission tariffs andcharges which have beenapplied by KOSTT since01.04.2009.

Effective Relationswith StakeholdersTransparency

To establish effective relationswith stakeholder, KOSTT haspermanently applied the Com-munication Strategy and Regu-latory Affairs Policies, supportedby internal and external com-munication procedures. Devel-opment of a regularcommunication processes rep-resents a crucial element forenhancing the performance ofthe company, to which KOSTTemployees pay special atten-tion, in order to achieve the out-lined objectives and developthe transparency, as one of thecrucial fields for a proper com-munication with stakeholders.KOSTT is permanently workingto advance communication re-lations with stakeholders. Reg-ular and continuouscommunications are con-

ducted with independent regu-latory body, Energy RegulatoryOffice (ERO), Ministry of Energyand Mining (MEM), Kosovo En-ergy Corporation (KEK), Ministryof Economy and Finance andall parties involved in the Trans-mission System. Communica-tions with stakeholders focuson the implementation of obli-gations arising from primaryand secondary legislationwhich itself includes several dif-ferent processes: reporting, in-formation, review, approval,publishing, and a separateprocess, that of monitoring theimplementation of the provi-sions of primary and secondarylegislation.Considering that the media arebroadcasters of the messagesand they are essential elementof open dialogue, KOSTT paysspecial attention to ethical andtransparent relationship with themedia and stakeholders forpurposes of information/main-tenance of relationships.

KOSTT’s achievements during2009, including many capitalprojects that have been imple-mented or have begun imple-mentation, were presented tostakeholders by forms definedin Communication Strategy.During 2009 it is evident the ad-vancement of relations withmedia, readiness for trans-parency and willingness topositively and timely answer thedemands of the media. Interestof the printed media to broad-cast the KOSTT activities anddevelopments increased to60% in 2009 compared to pre-vious year.

Development of genuine rela-tionships with stakeholders ispreceded by promotion oftransparency, as one of themain criteria for the develop-ment of this field. Transparentand non discriminatory accessto transmission network by theparties which are not owners ofthe network infrastructure, is

26

27

known as Third Party Access(TPA), which is essential for fa-cilitating greater competition,which helps energy market tofunction effectively.

Drafting of Transmission Con-nection Charging Methodologyhas opened the road for net-work development and trans-parency, and in connectionwith this, the obligations that

derive from Technical Codes.KOSTT is in the final stage ofsigning the Connection Agree-ment to the Transmission Net-work to all parties connected to

the Transmission Net-work (KEK Generation,KEK Distribution, N.H." Ibër Lepenci”, Fer-onikel, Sharrcem etc.),while on the other sidehas established ex-cellent relations withneighboring opera-tors, like signing theInter TSO Agreementon January 30th, 2009with Transmission

System Operator of Albania(AOST), and establishing rela-tions of cooperation with theMontenegro and MacedoniaTSO’s.

KOSTT drafteddocuments andprocedures by

which stakeholders andparties which are con-nected into the transmis-sion network are equallytreated.

Overview of Kosovo Transmission Network Operation

Maintenance 2009

KOSTT, under the license that has at its disposal, is responsible for maintaining the transmissionnetwork. The Transmission System includes all lines at the voltage level of 400 kV, 220 kV and 110kV, and all substations at the voltage levels of 400/220 kV, 400/110 kV and 220/110 kV, as well ashigh voltage facilities of 110 kV at 110/x kV substations.

Transmission capacities of KOSTT assets are as follows:

Current capacities transmission network lines per length unit, as of the end of 2009, are shown inthe below given table.

The following table shows the age of lines by voltage level

29

The current transforming capacities of the Transmission Network managed by KOSTT are concen-trated at substations of 400/220 kV and 220/110 kV. Transforming capacities for 2009 are presentedin Table 3

Interconnection capacity for 2009 is shown in following table:

All these assets make up a functional and complex system, which enables the functioning ofKosovo transmission system.

30

31

In Fig. 4 it is presented in the summary form the number of network elements according to the volt-age transmission.

The quantity of autotransformers has been presented according to primary voltage.

The maintenance plan was based on OPEX budget, approved by the Energy Regulatory Office,the objectives of which are:

• Maintenance of all transmission network equipment, including all lines and equipment inSS.

• Revitalization of the necessary equipment as a preventive measure.

Through these objectives, the main aim has been to achieve these performances:• Increasing security and reliability in operating facilities• Increasing existing transmission capacities, where possible.

This budget has enabled completion of following projects:• Replacement of 220 kV transmission lines and strengthening of existing poles at a length

of L = 17.5 km • Replacement of equipments in 220 kV facility bays, five complete bays• Replacement of 110 kV fields, 7 bays• Replacement of power metering transformers of 110 kV, 220 kV, 400 kV, 33 pieces • Replacement of 110 kV voltage metering transformers, 10 pieces• Replacement of overload voltage dischargers, 110 kV, 220 kV, 6 pieces• Replacement of relay protections, 110kV, 6 pieces• Replacement of insulators from porcelain to polymer in three overhead lines at length of

63.45 km• Replacement of busbar insulators on the 220 kV side at SS Kosova B, 5000 pieces

Implementation of Opex plan foreseen for 2008, which continued in 2009, amounts to 3,596,758.6EUR.

On the other hand the realized value of Opex plan for 2009 amounts to 1,291,825.4 EUR.

Parallel to the development of projects, drafting of the preventive maintenance policy was finalizedand approved by the Board of Directors.

The trend of reduced number of interventions, as a result of preventive maintenance and applicationof modern technology, can be seen in the chart below.

32

Revitalization of the transmission network and thepreventive maintenance, besides the increase oftransmission capacity, has had an effect on theincrease of the reliability and the security of the

system, which has resulted in a lower number of outagesand interventions on the substation equipment and lines.

Implementation of maintenance plan has been presented in Fig. 6, which shows that a rather highpercentage of implementation has been achieved, taking into account the difficulties in carryingout disconnections due to non-compliance of n-1 criteria (undelivered energy), or as a result of si-multaneous execution of a large number of projects.

Comparison of OHL outages for the last two years has been presented in the diagram below, show-ing that the number of outages for 2009 was significantly lower than in the previous year, as a resultof the commitment at work and appropriate investments.

33

In general, the number of autotransformer outages was lower compared to previous years, as a re-sult of activities and the recovery of equipment.

Statement of achievement in the transmission network in 2009 can be presented through perform-ance indicators. From the graph we can see that all indicators, like: the number of faults in linesand substations, including relay protections, then the average repair time of these faults and unde-livered energy due to the maintenance of these facilities for this year, are much more positive indi-cators compared to the previous year.

34

35Key Technical Performance Indicators – Transmission Operator **

36

** Calculation of technical indicators was performed according to the document on Technical PerformanceIndicators, approved by ERO, to which indicators are reported.

39

Development and Advancement of Kosovo Electricity Transmission System

Investments in the Transmission System infrastructure play a decisive role in the advancement ofKosovo Power System. In this regard, KOSTT has made a great effort in 2009 to implement projectsof special importance qualitatively and in due time. Most important projects, which have had directimpact on the performance of Kosovo Transmission System, and on the Kosovo Power System are:

• Construction of SS 400/110/10.5 kV – Peja 3 (ATR 300 MVA) together with interconnectionlines of 400 kV and 110 kV (SS Peja 3 – SS Peja 1, SS Peja 3 – SS Istog, SS Peja 3 – SSVallaq/Skenderaj),

• Reconstruction of 110 kV line, L212, SS Kosova A – SS Bibaj• Installation of ATR1, 150 MVA in SS 220/110 kV –Kosova A• Reconstruction of 110 kV line, SS Gjakova 1 – SS Deçan.

All these investment projects had an impact on the increase of the transmission capacity, henceelimination of bottlenecks in the transmission network, decrease of losses, improvement of voltageprofile, and supply of quality electricity to customers, creating conditions for an overall developmentof economy and industry in our country.

Transmission capacity increased from 930 MW in 2008, to 1250 MWat the end of 2009, an exceptional positive increase, which broughtthe Transmission System Operation from a critical phase to a con-solidated one. Development process in the transmission networkwill continue with increased intensity in future years, based on thelong-term Transmission Network Development Plan, in which re-quirements for further reinforcements are identified, so that theTransmission System could pursue consumption and generationgrowth, but always meeting the technical criteria, in accordance withthe Grid Code.

Development of Transmission NetworkTransmission Network Projects (2009)Following the establishment of the Transmission System Operator, and the Market Operator ofKosovo (KOSTT), significant activities have taken place in the development of the TransmissionNetwork. During this process, the 2007-2013 Development and Investment Plan was drafted, whichwas approved by ERO on 14 July 2009. Based on activities undertaken by KOSTT, concerning de-velopment of projects planned by the Development Planning, the table presented below includesthe list of projects completed in 2009, and the ones which are in their final stages, and which arecertainly expected to be completed at the end of 2010.

1250 MW

▲930 MW

2009

2008

40

The four projects listed in Table6 are extremely important for in-creasing the reliability and se-curity of Transmission SystemOperation. They directly af-fected the growth of transmis-sion capacities of the System.The fifth project is a support forconsumption and distributionof Rahovec region.

This project, characterized withgreat benefits, has led to in-creased transmission capacity,reduction of network losses, re-lieve of a considerable number

of 110 kV lines, and of auto-transformers at SS Kosovo Aand at SS Prizren 2.Moreover, the completedAdaptation Project of 220 kVline (L212), as a 110 kV line,whereby the connection of thisline at SS Bibaj represents avery important project for thetransmission network. Effects of

this project haveenabled elimina-tion of bottle-necks in the 110kV supply line,which connectSS Prishtina 4 -SS Bibaj, and

have increased the supplyquality at distribution points:Bibaj (Ferizaj, Vitia, Therandaand in Sharr).

Installation of new ATR1 - 150MVA autotransformer at the SSKosovo A represents a projectwhich has been coordinatedwith the project line L212. In-stallation of this transformer haseliminated the bottleneck trans-formation, and has optimizedoperation of the transmissionsystem in terms of flows of ac-tive and reactive power.In addition, the replacementproject of 150 mm2 conductorsthat connects SS Gjakova - SSDeçan with 240 mm2 conduc-tors, which was concluded onSeptember 2009, has in-creased transmission capaci-ties of the network and hasimproved security of the trans-mission system.

Peja 3 Project-Pack representsthe largest en-

forcement for the transmis-sion network, since 1980.

42

Developments in Generation Capacities

During 2009, KOSTT has received six applications for connection of generators (wind and water).In accordance with the Transmission Connection Charging Methodology, KOSTT has accordinglyprepared offers for each applicant. During 2009 there has been no development in terms of in-creasing generating capacity that would have affected the transmission system.

Development of Interconnection Lines with NeighboringCountries One of the most important capital projects in the Transmission System of Kosovo is, undoubtedly,the Project for the Construction of the 400 kV line, Kosovo - Albania. This project has resulted as animmediate requirement for meeting the growing needs for electricity in the region, and for eliminationof restrictions in the regional transmission network interconnection.The project will be financed by the German Development Bank (KfW), whereby 50% will be a grantand 50% will be given as soft loan. Terms of the loan for the relevant will be for 12 years with a threeyears "grace period", and with a favorable interest rate. In 2009, a Consulting Services contract wassigned for the 400 kV Line, Kosovo – Albania.The first phase for the line section, which passes through Kosovo (preparation for tender docu-mentation), amount to 367,000.00 EUR, while the second phase of the project amounts to788,000.00 EUR, which includes supervision of implementation works. The total cost of these serv-ices (for the part of the line that passes through Kosovo) is 1,155,000.00 EUR.Impacts of this major project, upon its construction, are:

• Increase of transmission capacities in the region • Capacity to allocate new generation capacities from PP New Kosovo (Kosova e Re) • Optimization of operations for both Power Systems of Kosovo and Albania – (comple-

mentary operation) • Improvement of working efficiency for both Power Systems• Increase of horizontal network for KOSTT• Increase of transmission capacities through the transmission network • Optimal programming of hydro-thermal resources and transaction of energy enables re-

duction of annual operation expenditures• Reduction of expenses for the standby reserve and for the spinning reserve for the two

power systems that work together.• A more efficient programming and a better utilization of water resources, as a result of re-

duced specific water consumption per kWh produced by hydro power plants.• Peak reduction of the joint system, due to non-simultaneous maximum demand, and con-

sequently reduction of demand for additional capacities to cover the peak.• A more efficient programming and a better utilization of thermal resources, as a result of

increased efficient production of boilers and turbines for an optimal operating regime • Increase of operation security of systems.

As part of KOSTT’s Investment and Development Planning, construction of 400 kV line, Kosovo –Macedonia, has also been foreseen.

“Our cooperation with KOSTT dates back to early days of KOSTT as a newly established Transmission Systemand Market Operator. Following successful completion of Peja 3 substation, we have extended our financial coop-eration with KOSTT with another major capital investment - the construction of the 400kV line Kosovo-Albania –as well as two studies for the network expansion and load frequency control. When looking back, the key success factor to our cooperation has undoubtedly been the unusual commitment andprofessionalism of KOSTT.”

KfW

Development of Infrastructure for Control and Monitoring

SCADA/EMS and Telecom Project

As part of the monitoring and control infrastructure, KOSTT is in the implementation phase of SCADA/ EMS project, which includes the Main Dispatching Center (DC) and the Emergency DispatchingCenter (EDC), local SCADA with RTU in 24 substations of 110 kV level, implementation of SCADAwith protection at SS Prizren 2, and the interconnection of existing SCADAs in nine substations ofdifferent voltage levels with DC and EDC. All communication between substations with DC andEDC are to be performed through IEC 104 protocol.Within the framework of this project, 80% of trainings have been completed, technical acceptancehas been performed at the factory or FAT (Factory Acceptance Test) of SCADA/EMS, and EDC isin the implementation stage. The whole project is expected to be completed in December 2010.On the other hand, the telecommunication system must provide broadcast paths for a high andsecure communication, for data exchange and discussions between the Power System units andControl Centers (main and emergency), for the following systems and functions:

• SCADA/EMS that deals with control of electricity transmission network, including controlof substations

• High Voltage Metering (HVM)• Communication and exchange of data in the distance, and of measured values with na-

tional control centers of neighboring countries

Main subsystems that enable above-mentioned functions are: • Telecommunication lines that use optical the fiber system in an optical ground wire

(OPGW), microwave radio system and PLC system • Multiplex and interface equipment for data collection and voice communication, and their

connectivity with broadcasting telecommunication equipments• Commuting equipment (PBX) for telephone networking, for connection lines and public

telephone network.

During 2009, as part of:

43

-SCADA/EMS and TelecommunicationsProject, 200 km of OPGW (Optical GroundWire) optical cable have been installed.

These cables also provide protection to the electricitynetwork and transmission of telecommunicationssignals through optical fibers of very high perform-ance. The goal is to implement, by the end of 2010,the elastic optical network - ''backbone network'' –,with SDH equipment that operates with a high ca-pacity of up to STM-4 .

45

After a very long period ofinsufficient reinforcementsin the transmission network,the year 2009 represents acrucial turning point for thetransmission network. Thecapital project Peja 3 repre-sents the highest strength-ening in the transmissionnetwork of Kosovo. ThisPacket-project has had animpact regarding the qualityof transmission and distri-bution of electricity in a fairlywide area of the transmis-sion network.

A highly positive impact ofthis project is the noticeablereduction of active and re-active power networklosses, as well as the im-provement of the voltageprofile for a large part of dis-tribution nodes, in particularat the Dukagjini area.Given that the rest of thetransmission network,namely its southeasternpart, has not been good interms of operational per-formance and network se-curity, KOSTT, based on the

An Overview of Electricity System Opera-tion in Kosovo in 2009

“The transmis-sion system hasincreased its

transformation capacityfor 270 MW, by affectingthe discharge autotrans-formers at SS Kosovo B,at SS Kosovo A and at SSPrizren 2, and optimizingpower flows at a signifi-cant number of 110 kVlines.”

Transmission Network Devel-opment Plan 2007-2013, hascompleted the conversion proj-ect of the damaged (dysfunc-tional) 220 kV L212 line into110kV line by connected it atinto very important node at SSFerizaj (Bibaj). This project hasenabled optimization of powerflows in the southeastern part ofthe Transmission Network too.With direct injection from thepowerful node SS Kosovo A, avery large improvement of volt-age profiles has been achievedthrough this line, reduction oflosses and relief of problematic110 kV line SS Prishtina 4 – SSFerizaj (Bibaj). In addition, ef-fects of this project have awider impact, because thequality of supply for a substan-tial part of consumers (in Fer-izaj, Sharr, Vitia, Gjilan andTheranda) has improved.Another very important projectin the Transmission Network,which ended in 2009, is the in-stallation of ATR 150 MVA -220/110 kV at SS Kosovo A,

which has replaced the defec-tive ATR1 100 MVA autotrans-former. This project has hadinfluence in the increase ofcapacity, safety and reliableoperation of substation SSKosovo A, eliminating thus thebottlenecks in transformation.Meanwhile, the reinforcementproject 110 kV line SS Deçan– SS Gjakova 1 has beencompleted, which has thusenabled the line to increase itstransmission capacity from 83MVA to 114 MVA, after chang-ing its conductors. This linerepresents an importantbranch of ring substationGjakova 2 - Gjakova 1 -Deçan - Peja 2 - Peja 1 - Peja3, and its strengthening hasled to the reduction of ele-ments that do not meet the N-1 criteria, and has alsoinfluenced the reduction ofactive and reactive losses inthe transmission network.The impact of reinforcementprojects in the transmissionnetwork of 2009, categorized

according to technical require-ments of the Grid Code is thefollowing:

46

• Increase of transmis-

sion capacities for 34%,

compared to the cur-

rent capacity

•Increase of security cri-

teria N-1*** for 31%

•Noticeable improve-

ment of voltage profiles

in 110 kV nodes

•Significant reduction of

active and reactive

losses

•Increased opportunities

for optimizing the flows

of active and reactive

power in the transmis-

sion network

Based on the above said, it can be concluded that transmission network requires further reinforce-ment, in order to be able to follow the growth of consumption and generation, always complyingwith the technical criteria in accordance with the Grid Code. Increased transmission capacity de-pending on weather conditions is best shown in Fig. 11.

*** Criterion N-1 means that if any network element, line, or transformer, is out of operation,

the supply will not be disrupted

47

Realized Balance in 2009 Compared to2008As seen from the table, generation, consumption andmaximum load was greater in 2009 than in 2008.

48

Also it can be seenthat transmissionlosses were lower

in 2009 than those in 2008,which shows the increasedeffectiveness of the trans-mission system operation.Losses, on a monthly basis,for 2008 and 2009 areshown in the diagrambelow.

Unsupplied Energy 2007-2009The table and the diagram below present the energy, which the final customer was to be suppliedwith, but was not supplied, due to failures or due to the works while KOSTT was implementing theprojects during 2007, 2008 and 2009 periods

49

Kosovo Electricity Market

Transiti i energjisë elektrike për vitin 2009 nëpër territorin e Kosovës krahasuar me vitin e mëparshëmështë zvogëluar kryesisht për arsye të topologjisë së re të krijuar të rrjetit të Evropës Juglindore me

51

1 Total consumption includes production of hydro power plant in Lumbardh, as this hydro power plant generates in the distribution network, and does not cause any lossesin transmission.

The Size of Electricity Market in KosovoElectricity market in Kosovo is mainly a regulated market. The only customer in Kosovo, who usesthe right of the qualified customer, is Ferronickel NewCo, which has the right to choose suppliers.The ratio between the traded energy on a regulated market and the traded energy in the non-regu-lated market is shown in the diagram below:

Tariff consumption in the diagram above is measured at the border TSO – DSO, and therefore in-cludes the total losses in distribution.

52

Balance of Carried Flows of Energy in the Transmission Network for January '09 - December 2009 Period

Figure 18 shows the balance of energy flows through the transmission network of KOSTT for 2009.Out of total energy, which has entered the transmission network of KOSTT, about 59% is from localgeneration, about 31.5% is in the form of transit, while about 9% is as import for consumption needsof Kosovo.About 63% of energy, which has emerged from the transmission network of KOSTT, is dedicatedfor Kosovo consumption and to distribution losses, 31.5% was in the form of transit, 3.3% was inthe form of export from generation in Kosovo, while about 2% were losses in the KOSTT transmissionnetwork.

53

Final Settlement of Parties in the MarketOne of the main obligations of the Market Operator, as a licensed operator, is also final settlementof parties in the market. There were four generators as participating parties in the electricity marketin Kosovo during 2009 (TPP Kosovo A, TPP Kosovo B, HPP Ujmani and HPP Lumbardhi), a supplier(KEK Supply) and 12 commercial / wholesale suppliers (ATEL, CEZ, EFT, EGL, ELEM, EPCG, EZ-PADA, GEN I-SLO, KESH, RAETIA, CE and RE Trading RUDNAP). At the same time, the dominantparty in the electricity market was KEK Supply

54

The Average Price of Electricity and Electricity Imports Compared to 2008, import of electricity in Kosovo during 2009 has had a direct impact on the de-crease level of reductions at about 52% . From August to December, reduction of the average priceof electricity in the Kosovo system happened due to the decreased demand in the region, affecteddirectly by the economic crisis.The average price of electricity in Kosovo during 2009 was 25.78 €/MWh, while the average priceof imported electricity in Kosovo was 75.9 €/MWh.

55

2This percentage was extracted from the dispatching log of 2008 and 2009

Transit of ElectricityTransit of electricity in 2009 through the territory of Kosovo, compared to the previous year, hasmainly decreased due to the newly created topology of the Southeastern Europe network, with a400 kV transmission line between Macedonia and Bulgaria (see Figure 23).KOSTT has not yet been compensated for the transit of electricity through its network. KOSTT, basedon interim agreements, is being sending bills to - EMS Serbian Operator for transit compensation,but so far no bill has been paid by the EMS.

The total amount claimed for transit in 2009, which EMS should pay to KOSTT, is 1.4 million EUR.

Energy Losses in TransmissionAs a result of more efficient operation, and establishment of new metering groups and the com-missioning of SS Peja 3 (400/110 kV), losses in 2009 are considerably smaller compared to previousyear. Total losses in 2009 were 17% lower than the previous year.

57

58

Reforms in the KosovoElectricity Market Electricity market in Kosovowas supposed to be devel-oped in several stages, de-pending on the developmentsand reforms in the electricitysector in Kosovo, and develop-ments in regional markets. Theactual model of the Kosovomarket is a bilateral transitionalmodel, with a small number ofparticipants in the market,where KEK plays the dominantrole in generating and supply-ing electricity.Current developments in theenergy sector, like: the privati-zation process of distributionand supply, encouragement ofinvestors to invest in the “NewKosova” Project and KOSTTmembership in ENTSO-E , re-quire transition from the existing

market model phase to amore advanced phase,which implies designing of asuitable electricity market forinvestment in the electricitysector, which would also beconsistent with require-ments arising from EnCT .During 2009, KOSTT has re-ceived consent and thenecessary instructions tobegin the process of modi-fication of Market Rules thatwould adjust to the reformswhich are foreseen to occurafter the disintegration ofKEK, namely privatization ofDistribution and Supply, andGeneration. This processwill also continue during2010, and KOSTT togetherwith stakeholders and trans-action consultants will beactive in designing a newmarket model.

“Upon theadoption ofthe market

design by the KosovoGovernment, the Mar-ket Operator shallmodify Market Rules,in order to createtransparent and nondiscriminatory condi-tions for trading elec-tricity between theparties in the market.

3 ENTSO-E – (European Network of Transmission System Operators for Electricity), is associacion of Europe’s TSO’s established by merger of previous associacionsUCTE, ETSO/SETSO TF, Nordel, UKTSOA, BALTSO, ATSOI4 EnCT- the Energy Community Treaty

59

Regional Integrations

The new association, calledENTSO-E, was established in2009. Prior to the establishmentof ENTSO-E, KOSTT was amember of SETSO TF , a TaskForce which operated underthe umbrella of ETSO and hadan important role in activitiesthat took place in SoutheasternEurope through NACMPF , BM,ITC and CAO IG subgroups.In order to continue SETSO TFactivities, a Southeastern Eu-rope Regional Group, calledSEE RG , was establishedunder the auspices of the MCof ENTSO-E. KOSTT and ATSOhave the status of an observerin SEE RG and have no votingrights. This position is hinderingthe integration process ofKOSTT in the regional mecha-nisms, despite the resultsachieved in 2008.

In July 2009, KOSTT represen-tatives held a meeting at theEuropean Commission (DGTREN) and ENTSO-E, wherethey discussed about prob-lems and integration difficulties

of KOSTT in the regional mech-anisms and membership ofKOSTT in ENTSO-E . At themeeting held at ENTSO-E, theEuropean Commission repre-sentative said that there wereno legal obstacles for KOSTT tojoin ENTSO-E, and furthermoreKOSTT, as a TSO contractingparty of the Energy Community,must meet obligations that de-rive from European legislation,and in particular obligations de-riving from Regulation1228/2003.One of the main objectives ofKOSTT is its membership inENTSO-E. For this purpose,during 2009 KOSTT has under-taken a large number of activi-ties to accomplish this goal.KOSTT has evaluated the crite-ria and the standards to be metfor membership in ENTSO-E,and has conducted the neces-sary procedures foreseen byUCTE OH . KOSTT is still facedwith many difficulties, whichhave come as a result of con-stant obstacles and obstruc-tions of EMS – the Serbianoperator, which is causingmajor damage to KOSTT andthe electricity sector in Kosovo.

The official complaint thatKOSTT submitted to the EnergyCommunity Secretariat in Au-gust 2008, against Serbia as acontracting party, and whichrefers to the violence of the En-ergy Community Treaty by Ser-bia regarding implementationof Regulation 1228/2003 for ac-cess to network and cross-border trade, has not been re-solved yet. The Energy Com-munity Secretariat isconsidering the issue and hasorganized meetings betweenKOSTT, MEM of Serbia andEMS in order to find a compro-mise which would resolve theissue.

Teknologjia Informativenë KOSTT

ENTSO-E

▲KOSTT

5 SETSO TF - Southest European TSOs Task Force.6 ETSO - European Transmission System Operators 7 NACMPF - Network Access Congestion Management Power Flow 8 BM - Balancing Market9 ITC - Inter TSO Compensation 10 CAO IG - Coordinated Auction Office Implementation Group 11 RG SEE – is the regional group under the patronage of MC – Market Committee of ENTSO-E which deals with market issues in SEE. 12 ATSO – Albanian TSO 13 UCTE OH – Operational handbook – summary of principals and regulations that Evropian TSO’s have to implement for operation in electricity systems

Infrastruktura dhe tërë sistemi i Teknologjisë Informative (TI) në KOSTT është relativisht e re, e ngritursipas teknologjisë së fundit të TI-së, e sistemuar dhe e konfiguruar sipas standardeve bashkëko-hore.

Kjo infrastrukturë shfrytëzohet nga një numër i konsiderueshëm i kompjuterëve personalë dhe nganjë numër i konsiderueshëm i pajisjeve të tjera ndihmëse që janë në shërbim të shfrytëzuesve tëKOSTT-it, e që krijojnë një strukturë të centralizuar, hierarkike, të modelit klient-server, e cila menax-hohet, monitorohet, mbrohet dhe mirëmbahet nën mbikëqyrjen e personelit të TI-së. Ruajtja e shënimeve dhe informatave të rëndësishme të KOSTT-it bëhet në makina (serverë) adeku-atë për ruajtjen e shënimeve, të cilat sipas procedurave mirëmbahen dhe arkivohen në baza tërregullta kohore. Për mbarëvajtje të shërbimit të kontabilitet, financave dhe burimeve njerëzore, KOSTT-i dispononme bazën e shënimeve CAS (Computerized Accounting System – Sistemi i Kompjuterizuar iKontabilitetit) duke ofruar mundësinë elektronike të menaxhimit të shënimeve dhe të të dhënavelidhur me resorët e përmendur të KOSTT-it. KOSTT-i disponon edhe me bazën e shënimeve TAS(Time Attendance System) që bën ruajtjen dhe arkivimin elektronik të prezencës kohore të punon-jësve të KOSTT-it.

Shërbimi i pandërprerë i Internetit sigurohet përmes realizmit të një lidhjeje primare të Internetit dhetë një lidhjeje tjetër sekondare, e cila aktivizohet në mënyrë automatike në rast të dështimit të lidhjesprimare. Me qëllim të mbarëvajtjes së sistemit të automatizuar për ekzekutimin e detyrave dhe përgjegjësive,sjelljes ndaj sistemit të TI-së dhe komunikimit me palët e treta, KOSTT-i ka për

60

61

Management of Human ResourcesOn 31 December 2009, KOSTT had a total number of 218 employees, or 8.95% more than in theprevious year. Considering the activity of KOSTT, it is evident that males dominate in the gender shareof employees with 80.73%, while women make up 19,27% of employees.Out of the total number of KOSTT employees, 35.32% are engineers.

Human Resources Capacity Building in KOSTT During 2009, KOSTT has also conducted trainings, by investing in human capacity building,

whereby a budget of around € 139,000, allocated for this purpose, included around 180 peo-

ple.

This is best shown by the Indicator, which is 76.5% higher than in the last year (from 3.28 to 5.79). Main activities of this sector in the field of training, during 2009, focused on developing professionalskills. Trainings, conducted during 2009 are as follows:

1. Trainings of technical nature• In the telecommunication area and SCADA-s• Trainings within the scope of SCADA/EMS and Telecommunications project• Trainings for metering groups and relay protection within the scope of transmission network

projects 2. Trainings of economic and commercial nature• “Assets Management” training• "Price Management and Tariffs" training• FIDIC Contracts Rules training• The seminar "Summary of international standards of accounting and financial reporting".3. Trainings for increase of operating efficiency of the company • "Performance, Motivation and Development Management" training• Corporate practices and their respective protocols training • Management and maintenance of documentation and internal evaluation according to

ISO 9001:2008 • Computer courses for 11 employees

62

For the purpose of professional develop-ment and monitoring of new technologicaladvancements, in 2009 KOSTT engineers

were involved in a considerable number of trainings.

In addition to this, for the purpose of getting experience from advanced companies, our staff hasparticipated in a study trip in United Kingdom, within the scope of the project financed by the Eu-ropean Union, managed by ECLO.

Information Technology in KOSTTInfrastructure and the entire system of Information Technology (IT) in KOSTT is relatively new - es-tablished according to the latest IT technology and configured according to contemporary stan-dards.This infrastructure is used by a considerable number of personal computers and by a considerablenumber of other auxiliary facilities used by KOSTT employees, creating thus a centralized hierarchicalstructure of the client-server mode, which is managed, monitored, protected and maintained underthe guidance and supervision of IT personnel.Data, records and the relevant KOSTT information are kept in appropriate machines (servers) in-tended for storage and preservation of data, and which are archived and protected according toprocedures on a regular time basis.For the purpose of proper functioning of accounting, finance and human resources services, KOSTTpossesses the CAS database (Computerized Accounting System), which offers the electronic pos-sibility of managing records and data dealing with the above-mentioned KOSTT sectors. KOSTThas at its disposal a TAS database (Time Attendance System) that stores and archives electronicallyattendance of KOSTT employees. Uninterrupted Internet service is provided through the execution of a primary Internet connectionand by another secondary link, which is activated automatically in case of failure of primary con-nection.

For the purpose of proper functioning of the automated system, and execution of duties, respon-sibilities, and conduct towards the IT system and communication with third parties, KOSTT hasdrafted relevant policies and procedures.

IT system provides support for other KOSTT projects, through the current infrastructure and existingapplications.

63

Internal and external communication is per-

formed through an official e-mail ex-

change.kostt.com. However, publication of

information classified as open to the public, or the

protected information intended only to third parties

and authorized persons of KOSTT, is performed via

the electronic webpage www.kostt.com

Audited financial reportsBalance Sheet 31.12.2009, Table 10

Më 31 dhjetor 2009 Më 31 dhjetor 2008Shënimet

(në EUR 000) (në EUR 000)MJETETMJETET JOQARKULLUESEProna, Impiantet dhe Pajimet 4 75,195 43,295Mjetet e tjera të paprekshme 5 46 61

75,241 43,356

Mjetet qarkulluese (kapitali punues)Stoqet 6 1,016 1,257Mjetet e arkëtueshmet tregtare 7 10,200 7,576Mjetet e arkëtueshme të tjera 8 8,504 10,506Paraja në bankë dhe në arkë 9 9,137 4,360

28,857 23,699

MJETET (AKTIVA) TOTALE 104,098 67,055

EKUITETI DHE OBLIGIMET Ekuiteti i aksionarëveKapitali aksionar 10 25 25Premiumet aksionare 11 28,347 28,347Fitimet e mbajtura 10,786 3,853

39,158 32,225

Detyrimet joqarkullueseGrantet e shtyra 12 57,362 30,038

Detyrimet qarkullueseDetyrimet e pagueshme tregtare dhe të tjera 13 7,578 4,792

64,940 34,830

EKUITETET DHE OBLIGIMET (Pasiva) TOTALE 104,098 67,055

Autorizuar për lëshim nga Menaxhmenti dhe Bordi i Drejtorëve dhe nënshkruar në emër të tij më13 maj 2010.

Z. Fadil Ismajli Z. Nebih Haziri_____________________ ___________________Kryeshef Ekzekutiv Zyrtar Kryesor Financiar

Audited financial reports

Balance Sheet 31.12.2009, Table 10

65

Balance sheet is a financial statement showing financial position (assets, liabilities and equities) ofthe Company at a specified date.Compared to previous year, there was an increase in these positions:

• Non-current assets for 74% • Current assets (Operating capital) for 22 % • Shareholders equity for 22% • Payable obligations (liabilities) for 58% • Deferred Grants for 90%

This shows that during 2009 KOSTT j.s.c., for the most part, has used government grants and othergrants for capital investments.The year 2009 is the first year when KOSTT j.s.c. financed a part of capital investments with fundsderiving from operating activities, based on increased operating revenue, and balanced by oper-ating expenses.

66

67

Icome Statement, Table 11

Janar- dhjetor 2009Shënimet Më 31 dhjetor 2009 Më 31 dhjetor 2008

(në EUR000) (në EUR 000)

Të hyrat operativeTransmisioni i energjisë 14 20,061 15,212Të hyra të tjera 15 1,196 647

21,257 15,859

Minus: Shpenzimet operativeKosto e stafit 16 2,338 1,982Zhvlerësimi dhe amortizimi 4-5 3,001 2,221Riparime dhe mirëmbajtje 17 918 1,144Humbjet nga transmisioni i energjisë 5,212 5,258Shpenzimet e tjera operative 18 1,001 774Rregullimi sekondar 996 986Energjia, telefoni dhe uji 225 150Derivate dhe lubrifikante 79 83Materiale 32 51

13,802 12,649

Fitimi para tatimit 7,455 3,210

Tatimi në fitim 19 522 -6,933 3,210

Fitimi neto për vitin

Të hyra të tjera gjithëpërfshirëse - -

Total të hyra të tjera gjithëpërfshirëse 6,933 3,210

Statement of incomes and expenditures is one of the financial statements showing the economicperformance (revenues, expenses and profit / loss) of the Company during the accounting period.Compared to the previous year, operating incomes increased for 34%, while operating costs haveincreased for 9%.

Income Statement, Table 11

67

Statement of incomes and expenditures is one of the financial statements showing economic per-formance (revenues, expenses and profit / loss) of the Company during the accounting period.Compared to the previous year, operating incomes have increased for 34%, while operating costsfor 9%.

Investments made in the transmission network, have led to great reduction of costs from energylosses in transmission, despite the fact that this year we had greater flow of energy than in the pre-vious year.Gross profit value was 7,455 thousand Euros and net profit was 6.933 thousand Euros.

68

Gross profit value was 7,455 thousand Euros and net profit was 6.933 thousand Euros.

Fitimi bruto kap vlerën prej 7,455 mijë euro dhe fitimi neto, pas tatimit, 6,933 mijë euro.

Pasqyra e ndërrimeve në kapital më 31 dhjetor 2009, Tabela 12

Kapitali Premiumi Fitimet TOTAL aksionar i aksionarëve e mbajtura

----------------------(në EUR 000)---------------------

Bilanci më 1 janar 2008 25 28,332 643 29,000

Fitimi gjatë vitit - - 3,210 3,210

Shtime - 15 - 15

Bilanci më 31 dhjetor 2008 25 28,347 3,853 32,225

Fitimi gjatë vitit - - 6,933 6,933

Bilanci më 31 dhjetor 2009 25 28,347 10,786 39,158

Statement of changes in equity is a financial statement showing changes in equity of the Companyduring the accounting period.

69

Statement of changes in equity is a financial statement showing changes in the equity of theCompany during the accounting period.

Changes in Equity, Table 12

69

70

Statemenet of Cash Flows-Table 13

Më 31 dhjetor 2009 Më 31 dhjetor 2008

Shënimet (në EUR 000) (në EUR 000)

Rrjedha e parasë nga aktivitetet operative

Statement of Cash flow is a financial statement showing the cash flow (receipts and payments incash and cash equivalent) of the Company during the accounting period.

Based on cash flows, the company KOSTT j.s.c. during 2009 was considerably liquid despite thelarge investments in investing activities.

6,933

3,001(219)

18(890)8,843

241(2,624)

2,0012,786

11,247219

(20,892)

(20,673)

15,181(978)

14,203

4,777

4,3609,137

Fitimi gjatë vititPërshtatur për:Zhvlerësimi dhe amortizimiTë hyrat nga interesiShlyerja e mjeteve, impianteve dhe pajimeveTë hyrat nga grantetFitimi operativ pas përshtatjeveZvogëluar (rritur) në stoqeRritje në kërkesa nga tregtiaZvogëluar (rritur ) në kërkesa të tjeraRritur në pagueshmëri tregtare dhe të tjera

Gjenerimi i parasë nga aktivitetet operativeRrjedha e parasë nga aktivitetet investiveInteresi i pranuarInvestime në Prona, Impiante dhe Pajime

Rrjedha e parasë nga aktivitetet investive, neto

Rrjedha e parasë nga aktivitet financiareGrantet e pranuaraGrantet e kthyera

Rrjedha e parasë nga aktivitetet financiare, neto

Ndryshimet neto të parasë

Paraja në fillim të vititPARAJA NË FUND TË VITIT

4-515

412

99

3,210

2,221(95)

12(533)4,815

(44)(2,495)(2,957)

1,091

41095

(12,157)

(12,062)

14,370(585)

13,785

2,133

2,2274,360

Statement of Cash flow is a financial statement showing the cash flow (receipts and paymentsin cash and cash equivalent) of the Company during the accounting period.Based on cash flows, the KOSTT j.s.c. Company was considerably liquid during 2009, despitelarge investments in activities.

Statmenet of Cash Flows, Table 13

71

JANUARYKOSTT and The TransmissionSystem Operator of Albania, onJanuary the 30, signed theAgreement for implementationof the 400 kV interconnectionline, Kosovo - Albania project.The project for construction ofthe 400 kV interconnection line,Kosovo – Albania, deals withthe construction of a 400 kVhigh voltage line over, at alength of 238 km, out of which85.5 km in the territory ofKosovo and 153.5 km in theterritory of the Republic of Alba-nia.In addition, the InterconnectionAgreement was also signedbetween KOSTT Kosovo andAlbanian TSO.

FEBRUARYChief Executive Officer ofKOSTT, Mr. Fadil Ismajli, with hisassociates, on February the 27made an official visit to theTransmission System Operatorof Montenegro (PRENOS CrnaGora) in Podgorica. At thistechnical cooperation meeting,companies discussed sometechnical issues of mutual inter-est for the two neighboring sys-tems, and agreed to establishworking groups for the techni-cal issues they discussed.However, in early December adelegation from Montenegrovisited KOSTT, and in this case,opportunities for advancing co-operation between these twooperators were discussed.

MARCHOn March the 12, KOSTT j.s.c.presented in front of the energysector stakeholders themedium-term transmission ca-pacity development plans ofthe Republic of Kosovo. Basedon KOSTT medium-term de-velopment plan, upon the im-plementation of plannedprojects and of completion ofthose which were imple-mented, a noticeable increaseof transmission capacities isanticipated.

Highlights of 2009

27FEBRUARY

72

APRILAfter submitting the final applica-tion for the review of tariffs byKOSTT on January the 18, 2009,the Energy Regulatory Office hasanalyzed and finally reviewed ap-plications and has decided to ap-prove transmission tariffs andcharges to be applied by KOSTTfrom April 1,2009.

MAYThanks to the commitment KOSTTto develop the transmission net-work of the Republic of Kosovo, inApril and May 2009 the project forthe replacement of the 110 kV(kilovolt) OHL 126 / 1 transmis-sion lines, that connects 110/35kV substations SS Deçan with SSGjakova was implemented. The aim for implementing this proj-ect, at the amount of 1.079.925.00Euros, which was financed by theKOSTT budget, was elimination ofbottlenecks of the transmissionnetwork, providing thus higherquality of supply, as regards trans-mission to the Dukagjini Region.

JUNEBased on the new Law on PubliclyOwned Enterprises No. 03/L-087,on June the 2, 2009, the firstmeeting of the new Board ofKOSTT Directors was held, con-sisting of Mr. Faton Deda, Chair-man, Mr. Fadil Ismajli, member –Chief Executive Officer of KOSTT,Mr. Fadil Rrustemaj l - member, Mr.Fatos Ukaj - member, Mr. LutfiMaxhuni - member, Mr. NazmiMikullovci - member and Mr. Ra-madan Paçarada - member. At thefirst constituent meeting, KOSTTpresented to members of theBoard of Directors, the Com-pany’s recent work, and applica-ble acts that regulate the activity ofKOSTT.---------------------------------------On June the 25, 2009, at the 13thmeeting of the Permanent HighLevel Group (PHLG) in Sarajevo,which is the body of SEE EnergyCommunity, KOSTT presented itspositions on matters related tomarket developments, the WorldBank's Report, KOSTT’s supportfor establishing CAO, the study forthe development and establish-ment of the Coordinated Conges-tion Management- whereby it wasrequired that the system ofKosovo should be presented sep-arately, in accordance with the ge-ographical framework of the Treaty.

01Aprill

1.079.925.00

euro

73

JULYThe Energy Regulatory Office, atthe Board meeting held on Julythe 23, 2009, at the request ofKOSTT j.s.c., approved the doc-ument "Kosovo Transmission Sys-tem Development Plan 2007-2013”----------------------------------------On July the 7, 2009, separatemeetings were held in Brussels withrepresentatives of DGTREN andENTSO-E. The purpose of thesemeetings was information with thedevelopments in KOSTT with re-gard to cross-border mechanismsintegration and membership inENTSO-E. At the meeting withDGTREN, it was concluded thatKOSTT should continue to work infulfilling the technical criteria formembership, and file the applica-tion for ENTSO-E membership. Meanwhile, ENTSO-E representa-tives were very interested in devel-opments regarding KOSTT andconcluded that other subsequentmeetings should be organized, no-tably before the applicationprocess, in order to clarify proce-dural and technical requirementsthat are necessary before and dur-ing application.

----------------------------------------On July the 29, European Com-mission has sent a letter to theChairman of ENTSO-E, express-ing full support of Commission forKOSTT membership in ENTSO-E.

AUGUSTIn 2009, KOSTT has successfullycompleted the project relating onservicing of tap changers at sev-eral substations: 220/110 kV SSPrizren 2, 220/110 kV SS Prishtina4, 220 / 110 kV SS Kosovo A,which was implemented byKončar company from Croatia. Im-plementation of this project is animportant part for maintenance ofthe transmission network electricityequipment. This Service is fore-seen to be performed every a 6(six) years period. Implementationof this project, will primarily affectthe lifecycle of equipment, and willalso increase the security of sup-ply, in terms of transmission.

SEPTEMBERIn the presence of the highest au-thorities of the Republic ofKosovo, the German Governmentand representatives of the Gov-ernment of the Republic of Alba-nia, on September the 24, thecontract on consulting services forthe 400 kV interconnection line -Kosovo - Albania was signed.In addition, on September the 24,at a solemn ceremony, a plaqueof acknowledgment for the Fed-eral Republic of Germany and theRepublic of Kosovo was unveiled,as co-financers of the project forthe construction of 400/110 kV(kilovolt) Substation, Peja 3.

Kosovo Transmission

System Development Plan

2007-2013 ”

DGTREN

and

ENTSO-E

increasing se-

curity in energy

supply in terms

of transmission.

74

OCTOBERUnder the joint organization ofthe Alb - Konfindustria, KOSTTand KEK, and with the supportof the Ministry of Energy andMining, especially MinisterJustina Shiroka - Pula, on Oc-tober 5 and 6, the InternationalForum "Kosovo - An EnergyOpportunity" was held. Interna-tional Energy Forum was themeeting place of many localand international energy repre-sentatives and experts, whohad the opportunity to discusson energy issues, and whereKosovo presented its opportu-nities to potential investors.

NOVEMBERIn the vicinity of Istog, in thepresence of the high delega-tion of Kosovo Government, ofGerman Embassy, and keylocal and international stake-holders in energy sector, the400/110/10.5 kV substation SSPeja 3 was inaugurated on No-vember 17, where KosovoPrime Minister, Mr. HashimThaçi, solemnly energized thesubstation. Substation SS Peja3 has now most the most mod-ern substation in Kosovo, whichat the same time is the first andmost important investment inthe electricity transmission sys-tem of the Republic of Kosovo,since the early 80's.

DECEMBERThe Minister of Economy andFinance, Mr. Ahmet Shala, theregional Director for Kosovo, Al-bania and Macedonia from theGerman Development Bank(KfW), Ms. Ute Rodrian, andCEO of KOSTT, Mr. Fadil Ismajli,signed in Prishtina, on Decem-ber the 23, a Loan and Financ-ing Agreement for 400 kVinterconnection line Kosovo-Al-bania. The agreement foreseesa budget of 33.5 million Euros,out of which 17.0 million arelong-term commercial loans,with soft credit terms, and 16.0million is a grant from the Ger-man Government.- On December 13, 2009, at 7o’clock p.m., a peak electricitytransmission of 1072 MW wasrecorded.

1072MW

peak electricity

transmission

75

Annual Report 2009 coordinated by:Naim Bejtullahu, Deputy Chief Executive for Development

Zana Bajrami-Rama, Communication Manager

With contribution of KOSTT employees:Arjeta Gashi, Azem Kastrati, Besim Gërxhaliu, Bukurije Dauti, Fëllënza Xhelili, Gazmend Kabashi,Gjokë Karaqi, Gonxhe Haziri, Ibrahim Gashi, Ilir Shala, Jusuf Imeri, Kadri Kadriu, Kimete Fazliu,

Labinot Gashi, Merita Kostari, Musa Kadriu, Nadire Klaiqi, Nagip Syla, Naim Bejtullahu, Nasip Bresilla,Nebih Haziri, Nergize Rezniqi, Resmije Ahma, Rexhep Gerguri, Sabri Musiqi, Sadudin Havolli, Safete Orana, Sahit Halimi, Shaban Neziri, Sherif Dedaqi, Shpresa Kursani, Shukrije Fetahaj,

Skender Gjonbalaj, Visar Hoxha, Vjosa Rezniqi, Xhavit Sadiku, Zana Bajrami-Rama, Zera Ymeri

Images by: KOSTT j.s.c. except cover and pg ( 14, 18, 28, 38, 44, 51, 60)Dizajn and layout: ASHA

Transmission, System and Market Operator - KOSTT j.s.c. Iljaz Kodra str. nn10000 Prishtina

Republic of Kosovo

Tel: + 381 (0) 38 501 601 5Fax: + 381 (0) 38 500 201

E-mail: [email protected]: www.kostt.com

Printed on July 2010This publication is not for sale

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