The district heating sector in Kosovo encountered continuous growth over the last years but, as of 2015, there were just four systems in Kosovo. The dominating energy source for the residential sector is biomass, which supplied 46% of total energy usage in 2015, and this was followed by electricity at 44.9%. With regards to the services sector in 2015, the majority of supply was electricity at 48% followed by petroleum products with 28.1%.
As seen in the graph below, district heat sales increased from 7.59 ktoe to 9.66 ktoe between 2013 and 2015. This growth occurred both in the residential and services sector.
District heating faces challenging economic conditions in Kosovo, due to the comparatively cheaper heating oil. Furthermore, the typical building design in Kosovo creates problematic decisions regarding the positioning of a central boiler, and this is particularly the case in the urban areas of high-density heat demand. If natural gas were to be introduced to Kosovo, it could be more competitive than existing alternatives for heating and this could enable a district heating expansion.