TIRANA, Nov. 17 – The newly built thermal power plant in the coastal city of Vlora could produce electricity at a lower cost of up to 40 percent if operated on liquefied natural gas instead of D2 diesel, according to a recent study carried out by the Albanian Energy Regulatory Agency (ERE). Study findings show the cost of 1 kWh produced with D2 diesel is at 0.183 dollar, a very high rate which makes the use of gas to produce electricity in this plant a necessity.
However, considering Albania’s lack of natural gas pipelines, ERE suggest that the power plant should be run on liquefied natural gas, which would require the construction of a nearby terminal.
The study says the positive impact of using gas instead diesel is both environmental and economical. If gas-fuelled, the thermal power plant would emit 80 percent less of carbon dioxide and lower the EU carbon tax for Albania to 1.8 million euros a year under current capacity and to around 5.3 if the capacity is trebled.
Thermal Power Plant
The newly built thermal power plant in the southern city port of Vlora should been ready to produce electricity since May 20, 2010, but its full operation has been delayed because of technical problems with sea pipes.
Experts have often criticized the high cost of electricity produced by the Vlora power plant which is 13 lek per kWh, 5 lek more than the cost of imported electricity.
The new 97 MW, 112 million dollars low-sulphur distillate oil fueled power plant is located at a six-hectare site about six kilometers north of Vlora. The project was supported by a 25 million credit from the World Bank’s International Development Association, USD 37.5 million from the European Bank for Reconstruction and Development, USD 37.5 million from the European Investment Bank, and USD 12.6 million from KESH.
