(Reuters) - London-listed power generator ContourGlobal (L:GLO) has halted plans to build a 500 megawatt coal-fired power plant in Kosovo, and said it will make no further coal plant investments.
The project would have provided around half of the electricity demand of the Balkan country which is struggling with power shortages.
"We will not develop or acquire coal power plants in the future," the company said in its full-year results statement on Tuesday.
Kosovo last month approved a new coalition government almost four months after a snap elections following the prime minister’s resignation.
"As a result of the political situation in Kosovo... our development project is incapable of reaching its milestones prior to the required project completion date," ContourGlobal said.
ContourGlobal, which operates more than 100 power plants across Europe, Latin America and Africa, reported a 15.2% rise in annual adjusted core earnings as it benefited from the sale of a 49% stake in a portfolio Spanish solar power assets.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $703 million, for year ended Dec. 31, from $610 million it reported last year.
ContourGlobal in December had warned that it expects full-year EBITDA to be below its prior expectation of between $720-770 million.