MCC and the Government of Kosovo are working together on a compact to strengthen Kosovo’s energy security, expand economic opportunity, and bolster stability in the Western Balkans.
The compact supports Kosovo’s transition to a more stable and diversified energy system, while creating new commercial opportunities for American companies in energy infrastructure, storage, and workforce development. It also reinforces Kosovo’s role as a reliable U.S. security and economic counterpart in a region where adversarial actors seek to expand influence.
The $236.6 million MCC-Kosovo Compact, which began implementation in April 2024, includes a $202 million grant from the U.S. Government and $34.6 million in co-financing from the Government of Kosovo. It comprises three projects: Energy Storage, JETA Workforce Development, and American Catalyst Facility for Development.
Financials
Financials as of June 30, 2025
Program Budget
Milestones
-
Signed:
July 15, 2022 -
Entry Into Force:
April 30, 2024
Program Projects
-
$2,000,000
Project Total Amount -
$0
Project Amount Committed -
$0
Project Amount Expended
In partnership with the U.S. International Development Finance Corporation, the compact will catalyze private investment in Kosovo’s energy sector. These efforts are expected to unlock commercially viable opportunities—including coal plant modernization, grid upgrades, and new energy generation—where U.S. firms have strong commercial interests. Given this landscape, Kosovo views U.S. companies as preferred partners for these opportunities.
-
$147,695,906
Project Total Amount -
$2,831,377
Project Amount Committed -
$997,240
Project Amount Expended
Kosovo’s electricity demand continues to outpace supply, creating energy insecurity and frequent reliance on costly emergency imports. The country’s aging power plants are unreliable and expensive to maintain, limiting its ability to meet growing energy needs.
The compact will construct two large-scale battery energy storage systems to stabilize Kosovo’s electricity grid, lower energy costs, and allow for a more diverse and stable energy supply. This helps Kosovo’s long-term ability to meet its own energy needs, decrease dependence on emergency imports, and improve reliability for households and businesses.
The compact creates export-ready opportunities for innovative U.S. companies in the energy sector, supporting American jobs and expanding U.S. commercial presence in a strategic region.
Projected Long Term Results at the Time of Program Signing
-
1,799,998
Estimated Beneficiaries -
6-12%
Estimated Economic Rate of Return
-
$16,000,000
Project Total Amount -
$1,265,720
Project Amount Committed -
$1,195,975
Project Amount Expended
Kosovo has the youngest population in Europe, with an average age of 34.8. This rising generation offers significant economic potential—but only if equipped with the skills needed to compete in a modern economy. Skill gaps continue to restrict Kosovo’s growth, especially in technical fields like energy.
The compact expands technical training programs to prepare Kosovans—especially young people—for careers in energy and related sectors. The initiative will support employer-driven training, mentoring, and networking opportunities designed to align skills with labor-market needs and national strategies and policies.
By strengthening Kosovo’s workforce, the compact helps improve employment outcomes and build a more capable energy sector that supports long-term economic growth and regional stability. A skilled workforce is also key to enabling foreign investment, making it easier for American companies to take advantage of business opportunities in energy and related sectors.