Construction of the Kosovo C coal fired power plant will start in 2018 after Kosovo’s government agreed a deal with ContourGlobal to develop the project.

According to Reuters, ContourGlobal will sign a $1 billion contract in December to build the 500 MW lignite-fired power plant, which is also known as New Kosovo, or Kosova e Re.

The new plant will be the first large-scale power plant to be developed in Kosovo in more than 20 years and will replace the ageing Kosovo A plant. Kosovo C is due to come on line in 2023 and will help Kosovo to maintain its energy independence.

Kosovo has more than 14 billion tonnes of proven lignite reserves. Most of the country’s electricity needs are produce by the 650 MW Kosovo A, which is due to be retired in the coming months, and Kosovo B, which has a capacity of 680 MW.