Enel signs energy cooperation agreement with Albania

TIRANA, Dec. 3 – Enel SpA (EN), Italy’s biggest utility by revenue, on Monday signed a memorandum of understanding for energy with Albania, as it seeks to expand in eastern Europe and the Balkan region.
Enel Chief Executive Fulvio Conti signed the agreement with Albanian Energy Minister Genc Ruli in the Albania capital of Tirana.
“Enel looks with great interest at the markets of southeastern Europe for their growth prospects and need to add generation capacity,” Conti said in a statement.
The energy accord includes the possible construction of a coal-fired power plant with a capacity of about 1,300 megawatts.
The Albanian facility may also export power to Italy once new interconnecting lines are built, as well as neighboring countries, Enel said. Italy and Albania are separated by the Adriatic Sea.
The plant’s investments are in the region of EUR1.5 billion, Italian newswire Ansa reported. Enel didn’t confirm this figure.
The agreement was signed in the presence of Italian Prime Minister Romano Prodi and Albania’s Premier Sali Berisha.
Albania’s plants are almost all hydroelectric facilities.
The former communist country is often hit by power blackouts from underinvestment in its infrastructure, an outdated distribution network and higher demand from a growing economy.