Foreign companies interested in Albanian electricity

TIRANA, 09 March 2009 – Non efficient transmission lines limit Albania to sell its electricity in the international market. In a time when the hydro situation in the country is very positive, as Albania’s electric system is completely depend on hydro resources, head of Albanian Energy Corporation (KESH), Gjergj Bojaxhi declares that Albania lacks the necessary inter-conjunction lines and the current ones are inefficient causing energy loss and power-cuts.
However, offers to import Albanian energy from foreign companies keep knocking in KESH’s door.
“We had a meeting last week with representatives from ENEL (an Italian public company), who expressed interest in our electricity,” said Bojaxhi said, also adding that “we are very interested in public companies working with us.”
According to Bojaxhi, the recent talks were just preliminary and both sides are expected to decide how to proceed in the upcoming weeks.
Works are in progress to improve the electricity transmission system in the country and behind. Two new inter-conjunction lines connecting Albania and Montenegro, Podgorica-Tirana and Tirana-Elbasan are expected to be completed by the end of the year. In addition, the Albanian government has signed many concessions during the last years to increase the energy production in the country. Many new hydropower plants and at least major thermo plants are in the process of construction. The Vlora thermo plant should be completed by this mid-year.
Albania is considered a rich country in terms of hydro resources to produce energy that should cover not only the country’s needs but also to be used for exports. However, the distribution system is highly amortized and inefficient. An estimated 30% of the energy produced is lost through the distributing system. In addition, Albania is ranked last in Europe for the collection of electricity bills. A World Bank study announced that close to 50% of electricity bills remained unpaid in 2008, causing huge losses to KESH and to the government with funds that could have been used elsewhere.
Major steps have been taken to improve energy situation in all aspects, and earlier this year, the Distribution System Operator was privatized with the hope to improving in the bill cash-in record. Studies and plans to use alternative means of energy sources, from wind to nuclear energy are seriously being considered in order to improve Albania’s potential as an exporter of energy.
Currently, KESH is exporting electricity to Greece and last Friday, it announced a 5 million euro gain from the first 40 days of the contract. Export opportunities are also being considered.