Energy production in Albania short of the potentials

The previous year was one of the four worst that Albania has known in regards to the production of electric energy, stressed the Albanian press this week (Shqip, 30.03.2009). The production was 30 percent higher than in 2007, but still short of the potential energy production that Albania has. According to the press, in 2008 Albania produced 3.85 billion kWh, while in the last fifteen years the country has produced an average of 4.7 billion kWh per year. This year is nearly 20 percent less than the last decade’s average. All the energy is reported to have been produced by hydro power plants. Experts say mismanagement of the Drin river hydro resources and closure of the Fier thermal power plant may be the direct cause of this production shortage. The majority of the electric energy production comes from the Drin’s hydro resources, though the Fier thermal power plant was not a big producer of energy, it was helpful in stabilizing the energy demands and in reducing power transmission losses, which is one of the main problems in Albanian power distribution.
The Fier thermal power plant was closed in 2007 with the promise that it would be given a concession and put to work again after investment and reconstruction was made. But experts point out that energy imports become such a lucrative business that it becomes a force against the local production of energy. On average Albania imported 10 percent of its needs from 2003 to 2006, but the imports rose to 40 percent in the two last years. The requirement of organizing tenders for importing electric power is not at all rentable and this makes costs much higher than buying electric power directly in the stock markets, stresses the press. Albania continues to pay at least twice the price of energy than it is sold in the Romanian stock market, Romania being the provider country to most Western Balkan neighbors. For 2009, the import prices are expected to be lower than they were formerly. A fall in energy and raw material prices has come along with the global economic crisis. From a maximum of 100 Euros per MW last summer, prices have fallen to less than 50 Euros per MW. At the same time, prices in the Romanian stock market have fallen from 60 Euros per MW to 25 Euros per MW, points the Albanian press.