TIRANA, Jan. 5 – The creation of a common Albania-Kosovo energy market would have positive and complementary effects on both countries, but Kosovo should reduce its dependency on polluting lignite-fired power plants which account for the overwhelming majority of 98 percent of its domestically-produced electricity, says Kosovo’s GAP Institute for Advanced Studies in a study.
The Kosovo think tank says it strongly supports the integration of the two energy systems and the creation of a common market but opposes the idea that Kosovo should increase the use of coal-fired electricity because of environmental pollution, its impacts on public health and the population displacement to open up new lignite mines.
The lignite-based Kosovo energy system and the Albanian hydro-dependant electricity system could complement and optimize the energy systems in both countries, allowing Albania to import electricity in drought periods and export to Kosovo during peak times, say experts of the Kosovo think-tank.
The Kosovo institute also urges both countries to sign a deal on the use of cross-border waters to pave the way to the contraction of new energy capacities which would benefit Kosovo to diversify its electricity production with renewable hydro-electricity.
The Albania-Kosovo interconnection line is on track to finish by spring 2016, Energy Minister Damian Gjiknuri has said inspecting reconstruction works which are being carried out by Bosnia and Herzegovina’s Energoinvest and financed by Germany’s KfW development bank.
“This line which unifies the Albanian and Kosovo energy markets increases energy security and stability of prices for consumers,” said Gjiknuri.
Engjell Zeqo, the director of the Transmission System Operator said the interconnection line would allow the hydro-dependent Albanian electricity system to import from Kosovo which relies on thermal power plants and plans to build several new lignite-fuelled plants.
The euro 28-million project is expected to finish in April 2016.
The project had been delayed by more than one year after a dispute related to the bids submitted by two companies, Croatia’s Dalekovod which offered 36 million euros and was initially announced the winner and Bosnia’s Energo Invest which submitted a Euro 29 million bid.