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Electricity Market in Albania

Release Time:2020-07-07 07:53:59 Views:3121

The Albanian generation system of electricity is at present mainly based on Hydro Power Plants (HPP) having a total installed capacity of approximately 1,450 MW and an average annual production about 4,200 GWh, from three major rivers in the north of Albania. The most important hydro power plants are in Drin Cascade, which produce altogether 1,350 MW. The Albanian Power Corporation (KESH sh.a.), a 100% public owned corporation, is the sole owner and user of these HPP-s.

One Thermo Power Plant is in operation since November 2009, 97 MW installed capacity, in Vlora, south of Albania, owned also by TEC Vlora sh.a daughter of KESH sh.a.

There are about 1,000,000 end customers of electricity in Albania with consumption of 500 - 1,400 MW in winter and 300 - 1,000 MW in summer. The power is not sufficient to satisfy the demand, and varying on the weather conditions and precipitations, the difference has been compensated through energy imports.

In reference to the materials in ERE website, the main actors of Albanian electro-energy market are as follow:

KESH owns the three main HPP-s in Albania, and actually produces ~99% of the energy produced. It sells to Albanian Transmission System Operator (TSO) the whole energy equal to the transmission losses and also secures and sells all ancillary services toward TSO. Above all, it sells to the Distribution System Operator (OSSH), all the power that is billed to tariff customers and if there is excess, than it sells to the national or international market.

CEZ Shpërndarje has the function to provide electrical energy to all tariff customers with regulated price by the Albanian Energy Regulatory Body (ERE) and provide the distribution service for eligible clients connected in CEZ Shpërndarje grid.

OST owns the high voltage grid. The high voltage grid has only three connections with Montenegro, Kosovo and Greece: Two 220 kV interconnection lines Vau i Dejes - Podgorice (AL-MN) and Fierze - Prizren (AL-KS) and a 400 kV connection line Zemblak - Kardia (AL-GR). A new 400 kV interconnection line is under construction, connecting Albania with Montenegro and is planned to be in operation in June 2010. A new 400 kV interconnection line between Albania and Kosovo is to be constructed in 33 months from now. The project is to be financed mostly from KfW and from the both governments. Italian company Moncada Costruzioni announced that it will start the construction of a transmission line between the Italian city of Brindisi and the Albanian port of Vlora. The 400 kV power cable, stretching 145 km across the Otranto channel under the Adriatic Sea at a depth of over 900 meters, will allow for electricity to be transmitted in either direction between the two countries. Moncada plans to build a 500 MW wind park in Albania to export electricity to Italy. The constructions, for both the line and the wind park, have not started yet.

The hydrographic territory of Albania has a surface of 44,000 km2 or 57% more than its land territory, with an average height of this hydrographic territory of 700m above sea level. Only around 30% of the water resource has been used, which leaves a good percentage for potential investments, without endangering this valuable resource.