In a significant development for Kosovo’s energy sector, the Millennium Challenge Corporation (MCC) compact program—focused on energy storage infrastructure—will continue, despite prior funding uncertainties caused by cuts under the administration of former U.S. President Donald Trump.
The Presidency of Kosovo announced on Wednesday afternoon that it had received confirmation of the continuation of the $202 million MCC grant, centered on the battery storage project, one of the most ambitious clean energy initiatives in the region.
“This crucial decision follows a letter sent by President Vjosa Osmani to U.S. Secretary of State Marco Rubio, as well as her successful meeting with Deputy Secretary Landau during her official visit to Washington,” the official statement read. “Just days after this high-level meeting, the U.S. administration gave the green light for the continuation of the Compact, with Deputy Secretary Landau playing a key role in the decision-making process.”
While the government has not yet commented on the operational details or the progress of the Energy Storage Corporation—established in March 2023 as part of the agreement—experts welcomed the news as a breakthrough for Kosovo’s economy and energy independence.
Energy expert and MCA Kosovo Board Member Lulzim Syla hailed the development as a “great fortune and extraordinary news” for Kosovo.
“It’s fortunate that we didn’t lose time during this period, since the project was divided into phases. The first phase, which focused on project design, had already been approved and carried out by internationally selected consulting firms,” Syla explained.
“Despite the recent ambiguity, Kosovo was lucky the project had a phased structure. The latest decision now clears the path ahead.”
Syla noted that establishing a new entity posed organizational challenges—particularly in staffing and management—but expressed confidence that any resource limitations could now be addressed, ensuring the project’s continuation.
This news counters prior statements by former Prime Minister Avdullah Hoti, who in April warned that “MCC is shutting down,” claiming that Kosovo stood to lose the grant due to the rejection of the U.S.-backed gas project.
Last month, TV Dukagjini reported that despite Trump-era budget cuts, the Government of Kosovo had not received any official notice of program cancellation.
Meanwhile, despite earlier delays and the lack of detailed public communication, the recruitment process for the Energy Storage Corporation is now underway.
This development marks a turning point not just for energy sustainability but also for Kosovo’s strategic partnership with the United States.
