Regional Energy Market: Electricity Market in Albania

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The Albanian generation system of electricity is at present mainly based on Hydro Power Plants (HPP) having a total installed capacity of approximately 1,450 MW and an average annual production about 4,200 GWh, from three major rivers in the north of Albania. The most important hydro power plants are in Drin Cascade, which produce altogether 1,350 MW. The Albanian Power Corporation (KESH sh.a.), a 100% public owned corporation, is the sole owner and user of these HPP-s.

One Thermo Power Plant is in operation since November 2009, 97 MW installed capacity, in Vlora, south of Albania, owned also by TEC Vlora sh.a daughter of KESH sh.a.

There are about 1,000,000 end customers of electricity in Albania with consumption of 500 – 1,400 MW in winter and 300 – 1,000 MW in summer. The power is not sufficient to satisfy the demand, and varying on the weather conditions and precipitations, the difference has been compensated through energy imports.

The main actors of Albanian electro-energy market are as follow:

KESH owns the three main HPP-s in Albania, and actually produces ~99% of the energy produced. It sells to Albanian Transmission System Operator (TSO) the whole energy equal to the transmission losses and also secures and sells all ancillary services toward TSO. Above all, it sells to the Distribution System Operator (OSSH), all the power that is billed to tariff customers and if there is excess, than it sells to the national or international market.