Albania is preparing to place 100 MW of dispatchable reserve capacity under state control through the proposed acquisition of two floating thermal power plants stationed near Vlore.
State-owned utility KESH currently operates the vessels under two-year leasing arrangements. It applied in July for a longer-term operating licence from energy regulator ERE, but Energy Minister Enea Karakaci said the ownership transfer was among the remaining steps required before approval.
The heavy-fuel-oil units are intended primarily for tertiary reserve rather than continuous baseload generation. They can supply electricity to transmission system operator OST when hydropower production or imports are insufficient and provide rapid support during system stress.
The vessels are owned 90% by US-based Excelerate Energy and 10% by Italy’s Renco. They were brought to Albania in 2022, when the European energy crisis increased concern over security of supply, and were positioned beside the existing Vlore thermal plant to use nearby grid infrastructure.
Acquiring the units would end the temporary leasing model and give KESH direct control over a backup source that could become increasingly valuable during dry hydrological periods. Albania remains heavily dependent on hydropower, leaving its domestic balance exposed to rainfall and volatile regional import prices.
The acquisition would improve operational control, but it would not resolve the underlying cost and environmental disadvantages of heavy-fuel-oil generation. Its commercial value will ultimately depend less on annual output than on how often Albania needs expensive emergency capacity when water levels fall.
