The applicable Law No. 05/L-081 on Energy has established the RES policy, which aims to promote
the economic and sustainable exploitation of the local potentials of RES, in order to meet the needs
for energy, increase the security of supply and environmental protection, which is an integral part
of the Energy Strategy of the Republic of Kosovo.

For the purpose of implementing RES policies, the respective Ministry, according to the legislation in
force, has determined with a special sub-legal act the energy targets of RES in accordance with
requirements of relevant directive of the European Union.

Law No. 05/L-84 on the Energy Regulator has established that the construction of new generation
capacities (RES), new systems for transmission and distribution of natural gas, including
interconnectors, and direct electricity lines and direct pipelines for transmission of natural gas shall
be undertaken in line with authorization procedures as described in this law, and shall be carried
out by the Regulator, in line with objective, transparent and non-discriminatory criteri.

Annex I of this Administrative Instruction 05/2017 has defined electricity capacity from renewable energy sources (MW), where the level of the targets set for renewable energy sources and admitted to the Support Scheme is as in the following table:

In order to fulfill the legal obligations to achieve the mandatory target for RES by 2020, the Ministry of Economic Development has issued Administrative Instruction no. 01/2013 and no. 05/2017 with which it has determined the annual and long-term energy targets by the RES.

The Administrative Instruction has determined that the mandatory RES target by 2020 is 25% of the
gross final energy consumption as set out in Article 4 of the Decision No. D/2012/04/MC –EnC of
the Ministerial Council of the Energy Community.

It is worth mentioning that Kosovo is a signatory party to the Treaty establishing the Energy Community, which was signed on October 25, 2005, ratified and entered into force on July 1, 2006 and began to be implemented on July 1, 2007. Based on this, Kosovo has taken legal obligations to fulfill all obligations related to the energy sector where it is foreseen the mandatory obligation to achieve the targets of RES by 2020.