TIRANA, July 7y September 2009, energy production in Albania should improve considerably as Vlora’s TEC and a number of small hydro power plants (SHPP) are expected to start production.
Vlora’s TEC is thought to have a production capacity of 100 megawatts, a 120 million euro investment financed by a joint venture from the World Bank, the European Bank for Reconstruction and Development, and the European Bank of Investments. The TEC is expected to reduce the country’s dependency on hydro resources and will offer a long term guarantee for the full time supply of energy for the southern region of Albania. In addition, its production should help the Albanian Energy Corporation (KESH) to keep exporting some of its electricity abroad.
Despite its obvious benefits to the energy system of Albania, Vlora’s TEC remains hugely contested by local communities and environmentalists, who are worried about its environmental impact and the related consequences in the tourism industry that characterizes the area of Vlora Bay.
In addition to the TEC, a number of SHPPs under construction from the Albanian government are expected to be finished and start production by September, while others are already at work.
According to data from the National Institute of Statistics (INSTAT), energy production from SHPPs has increased beginning in 2008.
“In 2008, hydro power plants were the only production source of electric energy. HPP production in 2008 increased by 34.3% compared to 2007. Production from SHPPs increased by 12.9% from 2007, making up 1.6% of the country’s energy production,” reports INSTAT in its Electric Energy Balance Sheet.
Official data from Ministry of Energy (METE) shows that the government has signed concession contracts with domestic and foreign companies for the construction of more than 50 SHPPs. Total investment amounts to 200 million euro for installed power of 216 megawatts and an annual production capacity of 700 gigawatt hours of energy.
