Albania: OSHEE, Import of Electricity in March

, SEE Energy News

Albanian distribution system operator OSHEE conducted a tender procedure for the import of electricity in March, for the purchase of 96,580 MWh worth EUR 4.6 million without VAT.

According to official data, six companies won the tender, and they have offered an average price of EUR 47.4 per MWh. Prices are based on electricity price forecasting on the Hungarian power exchange, which is taken as a reference for import-export tenders of public energy companies.

Among six companies, NOA offered the highest price of EUR 48.8 per MWh, while the lowest price of EUR 42.9 per MWh was offered by AXPO.

Last year, a local company Devoll Hydropower participated in the OSHEE tender for covering network losses and it sold electricity at a price of EUR 47.2 per MWh, which is about one euro lower than other bidders.

Banjes Hydropower plant on the Devoll River was put in operation in 2016 and it produced 69,848 MWh.

According to Energy Regulatory Authority ERE, domestic production reached 7,136,351 MWh last year, of which 5,091,616 MWh were produced by hydropower plants owned by KESH, while private hydropower plants produced 2,044,735 MWh.

Despite disputes over environmental impact, the Ministry of Energy continues to issue building permits for small hydropower plants. Edi Rama Government additionally liberalized this process. For each hydropower plant with capacity up to 2 MW, the decision is issued by the Minister of Energy, while earlier, the construction was approved by the Government. Due to the simplified procedure, the trend of issuing a large number of permits in 2016 is continued this year.

For the first time after many years, Albania has been a net exporter of electricity due to heavy rains and higher production, with new operators in the market.