Kosovo’s Financial and Economic Benefits from Natural Gas Investment Compared to the Western Balkans

Gjelosh Vataj, Meshdi Ismailov and Shaqir Rexhepi ()
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Gjelosh Vataj: Faculty of Engineering and Informatics, University of Applied Sciences, 70000 Ferizaj, Kosovo
Meshdi Ismailov: Faculty of International Relations and Economics, Baku State University, AZ1148 Baku, Azerbaijan
Shaqir Rexhepi: Faculty of Business, University of Durres “Aleksandër Moisiu”, 2000 Durres, Albania

Sustainability, 2025, vol. 17, issue 14, 1-16

Abstract: This paper analyzes annual energy production data in Kosovo and explores the potential benefits of introducing natural gas as an energy source. The study compares current coal-based energy production with natural gas in terms of not only financial impact but also environmental pollution and public health. The focus is on evaluating financial sustainability by assessing production costs and consumption effects, particularly the potential for expense reduction through natural gas adoption. A financial module analysis was applied, comparing energy prices from coal and natural gas sources. Special emphasis was placed on household economic benefits, return on investment, and reduced energy costs. With the integration of natural gas, household energy expenses could decrease from €0.12 to €0.10 per unit, resulting in estimated national savings of approximately €60 million per year. The investment evaluation was conducted using methodologies grounded in relevant case studies and price differentials in the energy market.

Keywords: natural gas; deposits; energy sources; financial and economic benefit; investment of natural gas; electricity consumption (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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