Region: Albania and Kosovo signed MoU on joint energy exchange

, SEE Energy News

Albanian Government announced that Albania and Kosovo have signed a Memorandum of Understanding (MoU) on the establishment and operation of joint energy exchange of the two countries.

According to the statement, at the meeting in the Albanian city of Korca, the two delegations agreed to name the future exchange – Albanian energy exchange. Albanian Minister of Energy Damien Gjiknuri said that the aim of the joint energy exchange is to facilitate sales and purchases of energy at prices that reflect the real market value, thus eliminating the need for public tenders. The signing of this MoU is a part of the agreement to establish joint energy exchange between Albania and Kosovo, launched in March 2014.

In June, Minister Gjiknuri and Kosovar Minister of Economic Development Valdrin Lluka discussed the establishment of joint electricity market. The two Ministers agreed to reorganize working groups for the integration of energy markets and intensify their work, and to appoint coordinators at the political level in the process. It was also agreed that Kosovo’s electricity transmission system operator KOSTT will participate as a shareholder in future Albanian electricity exchange.

Gjiknuri and Lluka also discussed the problem of putting into operation the 400 kV transmission line between Albania and Kosovo and agreed to coordinate action on this issue. Lluks estimated that the transmission line is not operational for political reasons, due to the problems in relations with Serbia. Gjiknuri said that Albania will support Kosovo in this regard, adding that this interconnection is crucial for the integration of two energy markets.

Last July, Prime Ministers of Albania Edi Rama and Kosovo Isa Mustafa attended the ceremony on the commissioning of new 400 kV transmission line between these two countries, which took place in Kashar near Tirana. This interconnection is an important step towards the establishment of integrated energy market between Albania and Kosovo. New 400 kV interconnection is 241.1 kilometers long, of which 151.1 kilometers are located in the Albanian territory, while Kosovo section is 90 kilometers long. The first segment in the Albanian territory, 80 kilometers long Tirana-Vau Dejes line, also includes the extension which connects it to Tirana-Podgorica interconnection with Montenegro. The second segment runs from Vau Dejes to Morine at Albania-Kosovo border.