Albania exclusive: Energy investment plan 2014-2016; TSO and Power gen investments, gas and electricity interconnections projects

Published on 19. January 2015., SEE Energy News

During 2014 Albania is expected to adopt a new law on the electricity sector.With the adoption of this law further liberalization of the energy market will be enabled, with a goal to reach full market opening by 1 January 2015in accordance with the objectives of the Energy Community Treaty, according to the government program.In accordance with the scenario envisaged with the adoption of the new law for electricity sector, provided the preparation of the new model of the electricity market.

Gov is planing to undertake significant investments to increase transmission capacity and interconnection networks.During 2013 an agreement was signed for the construction of the interconnection line Albania – Kosovo and the financing agreement was signed with KfW.In parallel, during 2014 Gov will work on project of interconnection line with Macedonia, and will work to identify the source of funding.Along with strengthening the capacity of interconnection Gov is planning work on strengthening the national transmission system through investments in strengthening of existing and construction of new lines, increasing the transmission capacity of increasing the stability of supply in the country.Here we can mention the Southern project, line 220 kV Tirana 2 – Rrashbull and it Elbasan – Fier.

The liberalization of the energy market, considerable investments to develop the transmission infrastructure and electricity interconnection and uninterrupted supply of electricity to customers are some of the main goals of the sector, according to the government program.The amendments made in previous years have been in full compliance with European Union regulations, paving the way for the development of competition in the internal market in electricity and eliminating the monopoly situation in the market.

Direct result of the policy has been an uninterrupted supply of electricity to customers.During the years 2009 – 2013 to only blackouts were due to faults in the network, the non-payment by customers or overhauls announced.

The main challenges for the period 2014 – 2016 and onwards, according to the report, relating to the improvement of primary energy supply sources, increase the generation capacity of the country, reducing network losses, further enhancing the capacity of energy exchange with countries the region, linking Albania with the international network of gas, full liberalization of the electricity market, etc..

Priorities for the period 2014 – 2016, are part of the government’s long-term priorities for development of the energy sector, and related to the implementation of the following programs and projects.

Albania interaction with the regional network of natural gas: aim by 2025 about 15 percent of total energy consumption is covered by natural gas consumption.The Albanian government is working hard to project implementation TAP and IAP.Specifically, on April 5, 2013, two agreements were signed for the TAP project: “The agreement with the government of the host country, between the Republic of Albania, acting through the Council of Ministers and the Trans Adriatic Pipeline AG, associated with the Trans Adriatic Pipeline Project (Project TAP) “, also called HGA, and” Agreement between the Republic of Albania, represented by the Council of Ministers and the Trans Adriatic Pipeline AG, in connection with the Trans Adriatic Pipeline Project (TAP project) “, which were ratified by Parliament of Albania, on April 15, 2013 (law no. 116/2013, dated 04.15.2013).

The TAP project is funded by shareholders, who since 07/30/2013 are: BP (20%), SOCAR (20%), Statoil (20%), FLUXYS (16%), Total (10%), E.ON ( 9%) and Axpon (5%)) “.Similarly, the National Territorial Council (NTC) has approved the decision no.2, dated 12.20.2012 “On the determination of the Trans Adriatic Pipeline project (TAP) as a matter of national importance in the planning of the territory”, is the national sectoral plan approved by Decision no.1, dated 04.07.2013 of the TAC and continues the procedure for adoption of Complex Development Permit.Construction of the project is expected to begin in 2015, with a construction duration of 4-5 years.According to preliminary estimates, the project is expected to have a contribution of about EUR 420 million in GDP for the period 2015-2019, during construction is projected to open about 4,200 jobs (along with additional effects on the economy are expected 10 to 12.000 jobs), the net contribution in the state budget during the operation provided to about 40-50 million / year.Measures taken and the following, related to the prosecution of legal and administrative practices for the project.

Source; Serbia Energy See Desk