Albania’s state-owned electricity producer KESH has revealed that it is working on a plan to cover electricity deficits through import contracts over a period of one to three or even five years. Albania’s public finances are under extreme pressure. The country produces almost all of its electricity in hydropower plants, but record droughts have drastically narrowed the room for maneuver for the power company KESH. Even under the best conditions, the company can only cover 75% of domestic demand.
Eighteen months since the beginning of the energy crisis, high electricity prices on the free market have hit the budget of one of the poorest European countries hard. KESH is therefore preparing a change in strategy and is conducting negotiations with foreign suppliers on long-term contracts for the supply of electricity for a period of one to five years.
The plan could be implemented at the beginning of next year, but it is necessary to stabilize the market situation in terms of price level, where the volatility is still too high. The government in Tirana had planned to introduce a higher tariff for households consuming more than 800 kWh per month, but the increase was delayed thanks to favorable weather conditions.
Meanwhile, Albania is continuing with projects aimed at diversifying its electricity supply, with a focus on solar energy. The European Commission recently granted the government in Tirana EUR 80 million in aid for the energy sector for 2023, which will significantly ease the country’s situation.
Source: Balkan Green Energy News