Albania exclusive: Electricity market and power generation, the actial status and influencing factors, the report

28. March 2014. / SEE Energy News

Or how dreams of a ” small energy superpower in the Balkans ” is turning into a nightmare for tens of million of euros of loss for the public budget and the Albanian taxpayers . Destruction of power utility company KESH and the state budget , and the rise of electricity traders and foreign companies actors in Albania energy market. Exclusive insight report reveals the framework of numbers and interests.

About four years ago at the Crans Montana Forum , organized in Tirana former Prime Minister of Albania Sali Berisha announced that the number of licenses in the energy sector , the construction of power plants will continue to grow , up to a final target of 400 – HPP 500 . Almost all these licenses refer small hydropower , excluding Ashta hydropower and greater Devollit . In 1985 , when these plants were at the peak of their functionality , they could not cover more than 3 percent of total domestic electricity production .

In 2012 , HPP ” small energy superpower in the Balkans ” as it was baptized by Mr. Berisha – counted in fact, 7 % of total net production for 2012 in Albania , according to the Energy Regulatory Entity ( ERE ) . Success is evident , but without forgetting that this story is such that success is not necessarily generate success . According ERE are 68 hydropower production , while other sources speak only for 44 . However , the most interesting aspect is the formula by which the previous government has solved the functioning of ” small energy superpower in the Balkans ” . Hydro energy they sell the Albanian Power Corporation ( KESH ) with about 9 leks per kilowatt / hour , while AEC CEZ sells 2.2 leks per kilowatt / hour . This finding , which worsens the balance of the Corporation and hence the state budget , as the AEC held with serums to cover losses from taxpayers , is the result of a decision taken by ERE in 2012 to assist former company Czech electricity distribution .

It is noteworthy that the AEC is estimated to have about $ 500 million of outstanding debt , and that all publicly owned hydro practically been pledged to the World Bank , said in terms of fat. Although the money has not been paid and it is not known when it will be paid or if they can ever paid , the World Bank has not seized its hydropower , Albania , but has more power to detect changes in the country’s energy policy .

The deep hydroelectric power plant of AEC com

Has bad AEC works , as in 2012 , as private banks received loans in the country about 15 % of total loans remained penniless and unable to import electricity, at a time that the market needed . A rule set by the Bank to protect financial stability , dictates that banks can not give loans beyond this level a single entity . Consequently, the government , through the Ministry of Economy and Energy , the peak consumption ( February 2012) , conducted a transaction of 2 billion ( 14.2 million euros ) in the account of KESH , according to the state treasury monitoring project ” Open Spending Albania ” .

At this point , Fetish of ” energy superpower ” was at its zenith . In fact , a year ago , in 2011 , were produced by small hydropower plants about 137,000 megawatt / hour , which , calculated at 66 euros per megawatt / hour ( or 6.6 cents per kilowatt ) , resulted in a receipt for the AEC at 10 million euros . The year 2012 was even more auspicious . Electricity produced in the country amounted to 300,000 megawatt / hour , which was translated for the AEC in a bill of almost 20 million euros . It should be understood that the AEC has historically resulted in losses , and despite the privatization of CEZ Distribution of Czechs – although the company is currently administered by the Albanian state CEZ called again today – the loss continued to emerge .

In fact , recent balance AEC is one published in 2010 , a particularly auspicious year for the company , as the result of heavy rain falls and large exports of electricity produced by hydropower . From that moment onwards , the Corporation has not published its balance sheet , which shows the level of transparency that this institution to the public , but for the evil that can be materialized while the realization of the dream of ” energy superpower ” . Also , ERE has just published data for 2012 , and references to the last digit of the Albanian energy is limited to a year or more ago. In short , no one in Albania , excluding the Energy Minister , Prime Minister , Director of the AEC and the ERE , does not recognize the public ‘s balance sheet production ( and import ) of electricity , though it is public information .

energy counter

But without these data , figures from small HPPs speak for themselves . No rocket science needed to understand how to move this work . Actions basic addition, subtraction , multiplication and division ( without the need to include advanced mathematical formulas or equations in one variable ) are enough to understand where this is going shebang .

HPP Ashta hydropower Tani , considering that from 2011 to 2012 , production from small hydropower plants recorded increase by more than double ( 200 % ) , can also speculate as to spec savers , that in 2013 , the increase will not have been doubled , but the 300,000 megawatt / hour in 2012 to about 450,000 megawatt / hour in 2013 . Receipt of this production would be only 30 million euros . Corporation buys energy at 66 euros per megawatt / hour and will sell it to CEZ ( if larger maintain the same formula ) for 15.7 euros per megawatt / hour , which means that the loss is ( 30 million minus 7 million ) 23 million euros .

Not calculated in this great loss in production or introduction of Devolli cascade , which is expected to add KESH’s financial trouble and about 50 million euros in the three plants, which are expected to become operational in the cascade . According to the developers own statements this project , the three plants will produce electricity for about 140 thousand families with an annual capacity of 800 gigawatts . Leaving aside the marketing of 140 thousand families , 800 gigawatts translated into 50 million of purchased power from this project only added to electricity bills . Namely : AEC only buys energy from Devolli for 50 million euros and sells for 12.5 million euros , with a loss of 37.5 million euros . Extremely good news is that this production successful , coupled with relevant financial tragedy , not anticipated happen before 2020 .

Is still great mystery of who invented and who adopted this formula though alien , which makes the rich private electricity operators afflicting public finances operators . It is certain that results in the fact that the $ 500 million owed ​​to AEC will continue to increase, at a time of economic stagnation , which continues to deepen without interruption , as a result of huge public debt inherited . This means that the government will not have money to streamline the AEC budget for imports or to purchase super expensive electricity from HPPs ” superpower ” . Contracts are signed promptly , and in case of changing the formula already in place , a lot of black scenario of penalties will be tossed on government finances . If contracts are respected , a very black again scenario will continue to consume the government’s finances . I just forgotten to mention something . Government finances are public funds , taxpayers are first . Money Albanians , who either will face much more expensive prices of electricity bill ( to compensate for the loss of AEC ) , or again will pay this loss through the state budget , which is immediately in huge trouble . Apocalypse is coming . Most likely , tomorrow . In not happened today but still have not learned .

Source; Serbia Energy See Desk

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