Private HPPs produce 2 percent of electricity

Small and medium-sized hydropower plants (HPPs), built under concession agreements, accounted for 2 percent of domestically produced electricity in 2010. The Energy Regulatory Entity (ERE) said in its 2010 report that power produced by HPPs of up to 15 MW rose to 159 million kWh, registering a 78 percent increase compared to the end of 2009. Data show some 51 HPPs owned by 19 private companies operate in Albania. Five of them were made operational last year. Since 2008, the business community’s interest in building small and medium sized HPPs has been on the rise following a government decision which authorizes the state-owned power production company, KESH, to buy energy from each HPP built under concession contract. Revenues of companies operating HPPs also rose to 1.1 billion lek (11 million USD) compared to 580 million lek in 2009. Since approving a new law 3 years ago, the government has signed 220 concession contracts for the construction of small, medium, and large hydropower plants. According to Prime Minister Berisha, the government will sign contracts to build some 450 other medium and large HPPs and thousands of small ones. Wind and solar energy are also being considered as resources to diversify electricity production in Albania. The Prime Minister has invited large international banks to support the financing of small hydropower plants in order to make Albania, what he called, “a small energy superpower in the region.” “I invite big banks to follow the IFC’s example and seriously consider the financing of these projects for the private sector, which is a big contribution to the country’s sustainable development and Albania’s great exporting potential,” said Berisha recently.