final version - renewable energy in albania
TRANSCRIPT
RENEWABLE ENERGY IN ALBANIAAnita Shushku
Ylliad – General Director
FIAA Vice Chairman of Energy Committee
16 October, 2014. Tirana, Albania
Balkan Energy Finance Forum
WHY ALBANIA FOR GREEN ENERGY ?
Rich in natural resources of renewable energy (plenty of studies and projects confirming )
Affordable and sustainable source of clean energy Know how, due to history of existing industry of power
production (Hydro 97%) Contribution to a greener Europe
WHY NEW DEVELOPMENTS IN HYDRO ENERGY IN ALBANIA?
Very rich in water resources most of which not used
Hydro-energy is less expensive than the other forms of renewable energy and has good investment returns
Produces more energy for the same capacity comparing with other RE options
Hydro energy does not harm and pollute the environment and has no residuals after production
Well spread all over Albania and develops the region where the plants are constructed making the life of the inhabitants better off
Albania has high qualified expertise in this sector due to the experience in hydro energy production
New capacities of renewable power plants will increase the value of existing power plant with reservoirs
Albania becomes mores independent in the energy production
CURRENT SITUATION
The electricity production in Albania is highly based on hydro-power, accounting for 97% of the total production.
The main producer is KESH sh.a with the state owned hydropower plants Fierza, Komani and Vau i Dejes with a cumulative installed capacity of 1350 MW (KESH sh.a.)
Part of the energy needed is produced from small hydro-power plants which sell their energy to KESH sh.a based on a regulated yearly price (ERE).
The total installed capacity of the operative small hydropower plants is 347 MW. (2013,ERE)
The small hydropower plants are connected to the energy transmission and distribution system in Albania
MAIN CHARACTERISTICS OF RENEWABLE ENERGY - HYDRO PLANTS IN ALBANIA
Situated on all the territory of Albania
Financed , designed, developed and operated by Albanian and Foreign investing companies
Mainly run-of-river schemes
Connected to distribution (OSSHE) or transmission lines (OST)
The production is not programmable due to their characteristics (Cannot be subject of imbalances).
Government regulated energy selling price for hydro plants smaller than 15 MW installed capacity (review every year for 15 years)
PRODUCTION FROM RENEWABLE SOURCES FUTURE PERSPECTIVE
YEAR 2013 2030
KESH and EXISTING HYDRO (MW)
1,531 1,531
NEW RE HYDRO PLANTS (MW) 347 1,300
WIND (MW) 600
SOLAR (MW) 1,400
TOTAL (MW) 1,878 4,831PEAK DEMAND (MW) 1,400 1,800
TOTAL DEMAND (GWh) 8,823 10,800
TOTAL PRODUCTION (GWh) 6,819 12,360
CURRENT ISSUES
No long term regulations to give incentives to the private investors The market model not in coherence with the development in the
energy sector Existing energy law not in line with EU directives and regulations. Missing the Law on Renewable Energy No defined entity for managing imbalances The formula of the selling price not a long term decision (at least 15
years) Totally dependant in KESH payments – may result in “market stuck” as
in the current situation.
WHY IT IS IMPORTANT TO SECURE SUSTAINABLE SELF RELIABLE ELECTRICITY?
An excellent approach to increase incentives to private investors towards industrial development
Increase the efficiency of power production and the value of the energy produced .
Decrease the technical losses in the grid
Excellent job creator
Promote economy development in general
PROPOSED SOLUTIONS
Political will for a sustainable development of energy sector using Albanian natural and intellectual resources
Strategic plan for development of Renewable Energy(RE) sector making it attractive for investors
New energy law to support the development of RE through: Assigning an entity to cover imbalances of run-of-river plants .
Excluding transmission fees for producers .
Offering base price for the energy for at least 15 years for small producers .
Creating a budget fund to pay small producers.