Millennium Challenge Corporation (MCC) Compacts (Power Sector)

Millennium Challenge Corporation (MCC) Compacts (Power Sector) is sponsored by Millennium Challenge Corporation (MCC). MCC provides grant funding through compacts and threshold programs to improve the quality and reliability of electricity, attract private investment, and build capacity to ensure sustainability in partner countries.

hello from incl-single-country-program-compact-implementation. njk Kosovo Compact Signing Ceremony MCC and the Government of the Republic of Kosovo signed a $202 million compact that will transform Kosovo's energy sector to be more secure, sustainable, reliable and affordable.

Kosovo is a young, vibrant democracy in the Balkan Peninsula of Southeastern Europe with visible commitments to democratic values and institutions and investing in its citizens. Kosovo was selected to develop a $202 million compact program in December 2018 while the country continued to implement an ongoing threshold program.

The $49 million Threshold Program , which closed in September 2022, focused on enabling a reliable energy landscape, supporting transparent and accountable governance, and encouraging women’s entry in the energy sector.

In line with Kosovo’s current focus of transitioning towards an energy future that is more secure, sustainable, reliable, and affordable, the Kosovo Compact focuses on addressing Kosovo’s unreliable supply of electricity, a binding economic constraint for the country, through three projects.

Financials as of June 30, 2025 American Catalyst Facility for Development (ACFD) The American Catalyst Facility for Development Project aims to promote additional private-sector investments in Kosovo’s energy sector in collaboration with the U.S. International Development Finance Corporation (DFC) by complementing MCC’s funding and leveraging private sector participation to scale a successful energy storage public entity launch and catalyzing complementary energy investments that bolster energy generation capacity.

The Energy Storage Project aims to support Kosovo’s energy security and transition to a more secure and reliable energy future.

The project includes supporting battery storage systems that will enable Kosovo’s transmission system and market operator to cost-effectively smooth out imbalances in the electricity grid, supporting either a public energy storage entity or an entity created through a public-private partnership to deploy additional energy storage, and strengthening the regulatory environment of energy storage systems and energy projects in a more sustainable way.

Projected Long Term Results at the Time of Program Signing Estimated Economic Rate of Return Just and Equitable Transition Acceleration Project (JETA) The Just and Equitable Transition Acceleration Project (JETA) aims to help meet current and future demand for workers with the necessary technical skills for employment in the energy and adjacent sectors in Kosovo, which are foundational to Kosovo’s economic growth.

The objectives of the JETA Project are to produce graduates who are hired in relevant jobs in the energy and adjacent sectors, and to increase the employment of women with the requisite skills. The project achieves those objectives by developing new technical training programs, and providing technical assistance and small grants to employers to facilitate recruitment and retention of women.

The project is based on the theory that a greater quantity and quality of training will lead to improved labor market outcomes. By helping Kosovo address current and anticipated future skill gaps in the energy sector, the JETA Project also complements and supports the sustainability of the Energy Storage Project. As of Mon Oct 24 2022 00:00:00 GMT-0400 (Eastern Daylight Time)