There is a set of academic as well as policy–based arguments that assert that the privatization of publicly-governed assets is critically important for transition economies. The evidence suggests that market-oriented reforms, in many regards, require the involvement of private capital. In Kosovo, as in many European transition economies, privatization and market reforms in specific sectors are simultaneously conditioned by internal and external factors, namely, the market needs and EU standards-driven integration process. The energy market reforms comprise one of the most significant challenges. This said, EU member states’ electricity market has been fashioned according to the EU single electricity market principles of competition. That being said, in Kosovo, energy market reforms and privatization of energy assets should aim to attract private sector participation in the energy industry, to enhance the efficiency and quality of services, and should help shape a free and competitive market model.