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August 12, 2017
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Albania importing 80 percent of electricity..

Albania has to import around 80 percent of electricity to cover consumption due to the exceptionally dry period and high temperatures, according to the media.

The Albanian Power Corporation (KESH) has signed a contract to import 434,000 MWh of electricity in order to secure power for the month of August. The contract is worth EUR 30 million.

Albania has launched import procedure in late June. It purchased 285,000 MWh of electricity for the month of July.

The country is forced to import the electricity as it is highly dependent on hydropower plants (HPPs) production and the drought has caused the water level in Albanian rivers to drop. At the same time, the energy consumption has increased in the last weeks, mainly for air conditioning.

Albania produces almost 100 percent of its electricity from HHPs, most of it from three power plants along the Drin river. The Drin river, the largest river in the country, hosts  HPPs Fierza (500 MW), Komani (600 MW ) and Vau i Dejes (250 MW).

The water level at the HPP Fierza fell below the minimum level and it works with minimum capacities. The situation is similar when it comes to the other two HPPs.

KESH warned that if this severe weather condition continues the country could become fully dependent on the electricity import.

August 12, 2017
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Albania sets tariff of €100/MWh for PV projects up to 2 MW

The Albanian energy regulator ERE has set a regulated tariff for PV projects with a capacity of up to 2 MW and wind power projects not larger than 3 MW.

The ERE has established that the regulated tariff for solar for 2017 will be €100 ($117.8)/MWh, while that for wind power will be €76/MWh. According to ATA, solar and wind projects of this size will be entitled to receive the tariff after the Ministry of Energy will have reviewed and approved them. It remains unclear, however, which will be the criteria for the selection of the projects. These will be likely treated as small and medium hydropower projects, which, under the current regulation, can sell power at the regulated tariff to the Albanian public power utility OSSH under a 15-year contract.

The announcement of the new tariff explains the increasing number of PV projects up to 2 MW which were submitted to the Ministry of Energy over the past months. These projects, therefore, will very unlikely compete in the upcoming solar auction recently announced by the government, as we previously reported. The auction, which is being planned with the support of the European Bank for Reconstruction and Development (EBRD), will probably select larger solar facilities like the 50 MW PV project that were proposed by special purpose vehicle Novoselë Photovoltaic PowerPlant Sh.P.K. for Novoselë, a village in the Vlorë County, southwestern Albania in August 2016, or the 50 MW solar facility that a consortium formed by local companies Solar Gamma Sh.p.k., Alfa Energy Sh.p.k., Beta Energy Sh.p.k., Delta Solar Sh.p.k. and Solaris Sh.p.k. hopes tu build in Malik, a municipality in Korçë County of eastern Albania. Overall, the government expects to install between 30 MW and 50 MW through the auction.

The latest two project proposals for 2 MW solar power plants were filed to the Ministry of Energy in the first week of this month. A first €2.4 million project is being planned by RTS Sh.p.k in Bilisht, Korçë County, south-eastern Albania, while a second €2.4 million facility is being proposed by Hydro Valbona Sh.P.K. for the municipality of Topojë, in the Fier County, southwestern Albania.

In late July, the ministry had received two more similar proposals for solar up to 2 MW from Inside Computer System Sh.P.K. and Wonderland Sh.P., while in the previous weeks three more PV projects of the same size were submitted for approval to the ministry.

Albania’s total installed capacity at the end of 2015 totaled 1,895 MW, out of which 98 MW was from thermoelectric generation and the rest, around 95% of installed power, was from hydropower sources.

August 2, 2017
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Increasing interest for photovoltaic parks: Hydro Valbona wants to build one in Tropoja

There is an increasing interest of Albanian enterprises for building photovoltaic parks throughout the country.

Solar energy has received a lot of attention as the government decided to target energy production from alternative sources in order to reduce Albania’s dependence on hydropower, which currently accounts for almost 100% of its production.

The Ministry of Energy and Industry reports that the company Hidro Valbona has expressed interest for the construction of a 2 MW photovoltaic park in the western part of the village of Topoje, Fier.

The company with experience in the field of electricity generation and sale mainly from hydro power plants is seeking to invest an estimated 2.4 million euros.

The project will be extended to a total area of ​​20,000 square meters in the vicinity of the village of Topoja.

In case of approval of the project, the construction and operation of this photovoltaic park will be entirely at the expense of the interested company, while the Albanian state will support this initiative by setting a minimum price for the purchase of energy.

According to research findings on the creation of support for solar and wind energy, this price for 2017 would be 100 euros per MWh, and would drop to 50 euros per MWh by 2050.

Only after the adoption of this scheme, at least MEI have achieved at least 6 expressions of interest to build photovoltaic parks, as they are even more appropriate than wind power generation in the case of our country.

August 1, 2017
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Bulgaria, Macedonia agree to step up cooperation in energy, transport

SOFIA (Bulgaria), – EU candidate Macedonia and Bulgaria signed on Tuesday a friendship treaty that paves the way for closer cooperation in energy and transport between the two Balkan neighbours.

The treaty for good neighbourly relations was signed in Skopje, Macedonia by Macedonian prime minister Zoran Zaev and his Bulgarian counterpart, Boyko Borissov, according to a video file posted on the website of Bulgarian public TV broadcaster BNT. The ministers of transport and energy of the two countries signed memorandums of understanding for completion of the construction of a railroad link between Sofia and Skopje as well as for a pipeline connecting the gas transmission systems of EU member Bulgaria and Macedonia, BNT said.

Last week, the Bulgarian government approved the MoU with Macedonia to build a new gas link between the two countries. Under the MoU, Bulgaria and Macedonia will establish a working group that will conduct a feasibility study within 6 months after the document enters into force. Borissov said after the signing ceremony the European Commission has approved Bulgaria’s plans to build a gas distribution centre on its territory, which will allow Macedonia to buy gas directly from the future gas hub Balkan. “The two memorandums are extremely important to you [Macedonia] and to us, because Transport Corridor 8 is the link that brings together the Balkans. This transport corridor allows every Balkan country to trade and do business with the others,” Borissov noted. The railroad between Skopje and Sofia is part of pan-European Transport Corridor 8, one of 10 European transport corridors. It connects the Adriatic coast with the Black Sea coast via Albania, Macedonia and Bulgaria. The treaty has to be ratified by the parliaments of Bulgaria and Macedonia to enter into force.

August 1, 2017
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Italian Snam, Albanian Albgaz sign MoU on gas market development

Italian gas infrastructure company Snam and Albania’s gas infrastructure operator Albgaz have recently signed a memorandum of understanding (MoU) to develop collaboration opportunities, said a message published on the Snam website July 31.

The MoU is aimed at supporting the start and development of an infrastructure system that will be managed by the Albanian company. The agreement comes in relation to the gas market development that will start with the TAP pipeline crossing Albania.

TAP is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union. The project envisages transportation of gas from Azerbaijan’s Shah Deniz Stage 2 to the EU countries.

The pipeline will connect to the Trans Anatolian Natural Gas Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

TAP will be 878 kilometers in length (Greece 550 kilometers, Albania 215 kilometers, Adriatic Sea 105 kilometers, and Italy 8 kilometers).

Snam Source: Snam e Albgaz, l’operatore infrastrutturale del mercato gas in Albania, hanno firmato un accordo (Memorandum of Understanding) finalizzato a sviluppare ambiti di collaborazione a supporto dell’avvio e dello sviluppo del sistema infrastrutturale che verrà gestito dalla società albanese, in connessione alla metanizzazione prevista con l’arrivo del gasdotto TAP nel Paese.

L’accordo si inquadra nell’ambito delle attività avviate dalla business unit Snam Global Solutions con l’obiettivo di valorizzare a livello globale le esperienze, le competenze e il know-how distintivi di Snam, sviluppati nei suoi 75 anni di attività e gestione dell’intera filiera infrastrutturale del gas in Italia e in Europa.

La collaborazione è rivolta, tra l’altro, a supportare Albgaz nello sviluppo del piano di infrastrutturazione necessario ad avviare il mercato del gas e l’implementazione delle best practice caratteristiche delle attività gestite da Snam.

Albgaz è stata creata nel gennaio 2017 e ha la responsabilità della realizzazione e gestione delle infrastrutture per il mercato del gas albanese.

Snam

Snam gestisce la rete di gasdotti più estesa e accessibile d’Europa (oltre 40.000 km di lunghezza), la maggiore infrastruttura di stoccaggio (con una capacità di 19 miliardi di metri cubi) e uno dei primi terminali GNL realizzati nel Continente. Gli investimenti di Snam in Europa sono finalizzati a favorire l’integrazione delle reti energetiche europee e a promuovere il gas come pilastro di un mix energetico sostenibile. Facendo leva sulle proprie competenze distintive, la società ha lanciato recentemente Snam Global Solutions, che offre attività di studio, consulenza e project management per il mercato.

Albgaz

Albgaz è l’operatore designato per lo sviluppo e gestione del sistema infrastrutturale del gas in Albania, per tutte le attività di trasporto, distribuzione, stoccaggio e rigassificazione.

August 1, 2017
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Energy Community says it will call two tenders under WB6 electricity market

The Energy Community Secretariat has published service prior information notices regarding two upcoming tender procedures under WB6 electricity market integration initiative which are to be launched at the end of August or beginning of September 2017.

The tenders will be launched for technical assistance in the implementation of the Western Balkan six day-ahead market coupling (WB6 DA MI) Program, and for technical assistance to the implementation of cross-border electricity balancing, the statement said.

The first technical assistance will consist of providing project management support to the related governance bodies and expert support needed throughout different phases of the implementation of any individual market coupling project that will be defined in the WB6 DA MI roadmap for the implementation of regional market coupling.

The technical assistance for the implementation of cross-border electricity balancing will consist of providing expert support needed to develop a consistent and feasible roadmap for cross-border balancing cooperation in the WB6 region and its integration into the pan-European market.

The tender documents will be published on the website of the Energy Community and Wiener Zeitung, the official publication body of Austria. The launch of the tenders is intended for end August/beginning September 2017 and will follow an “open procedure” as defined by Austrian public procurement law.

The tenders are part of the project activities set out in the work program for the provision of technical assistance to Western Balkan 6 Contracting Parties under the project “Technical Assistance to Connectivity in the Western Balkans – Component 2: Regional Energy Market” funded by the European Union and implemented by the Energy Community Secretariat.