Grid losses in the first half of this year dropped by 4.6 percent to 37.2 percent compared to the same period in 2012 when CEZ Shperndarje distribution operator was under the Czechs’ administration.
TIRANA, Aug. 27 – Grid losses in Albania’s distribution system, which since January 2013 has been back under state administration after Prague-based CEZ Group had its Albania licence revoked, have registered a slight drop, but yet remain high at around 37 percent of electricity fed into the grid. The latest energy report published by the country’s state Institute of Statistics (INSTAT) shows grid losses in the first half of this year dropped by 4.6 percent to 37.2 percent compared to the same period in 2012 when CEZ Shperndarje distribution operator was under the Czechs’ administration. “Grid losses in the first half of this year were at 1,774 GWh, accounting for 37.2 percent of electricity fed into the grid. Distribution losses account for 93 percent of electricity lost in the grid,” says INSTAT. Experts say the situation is a result of massive thefts through illegal connections, non-payment of bills and technical losses in the dilapidated distribution network which needs huge investments.
Back in 2012, grid losses rose to 38.6 percent of the total electricity available for use, up from 28.9 percent in 2011. INSTAT data shows grid losses in 2012 rose to 3.2 million MWh, up 49 percent compared to 2011. Taking into account that power prices currently stand at 9.53 lek/kWh (9,530 lek/MW) the total grid losses are worth around 31 billion lek (Euro 217 million).
The favourable hydro-situation in the first half of this year almost doubled domestic hydro-electricity generation, which accounted for the overwhelming majority of 94 percent of total domestic electricity generation. INSTAT data show domestic electricity generation rose by 89.2 percent to 3,959 GWh meeting 78.5 percent of the country’s electricity needs for the first half of 2013. Private and concession hydro-power plants also increased their electricity generation by 50 percent, accounting for 6 percent of domestic electricity generation. INSTAT says no power was generated from the Vlora thermal power plant, a newly built HPP. With domestic electricity generation 100 percent dependent on hydropower plants and rainfall, the Trans Adriatic Pipeline recently selected as the winning project to bring Caspian gas to Europe through Greece, Albania and Italy would be another opportunity to diversify generation especially in the newly-built Vlora thermal power plant which although made available for use since more than one year has not been made operational because of its high cost on fuel operation. TAP would also help the country’s gasification by offering gas, already massively used as a cheaper alternative to electricity for cooking and heating, although the country’s buildings lack gas infrastructure. The passing of the oil pipeline through Albania would also pave the way for the construction of the Ionian-Adriatic pipeline making Albania a gas hub to other Balkan regional countries, experts say.
The favourable electricity situation due to heavy rainfall also allowed state run KESH power corporation to sharply increase exports. Electricity exports including exchanges increased by almost seven times to around 1,256 GWh, while next exports rose to 953 GWH, up from around 298 GWh in the first half of 2012.
Electricity imports in the first half of 2013 dropped to 1,081 GWh, accounting for only 21.4 percent of electricity needs, down from 45 percent in the first half of 2012.
Both the household and private sector increased electricity consumption during the first half of this year. INSTAT data show household electricity consumption in the first half of 2013 rose by 13.5 percent accounting for 59.2 percent of total domestic electricity consumption. The business and state sector also increased electricity consumption by 15 percent in the first half of this year.
Albania’s Power Corporation KESH exported around 30 million euros of electricity during the first half of 2013 following heavy rains improving the hydro-situation in the country’s northern Drin cascade where the three biggest HPPs are situated. Electricity is expected to have a lower contribution in the second half of 2013 as KESH has already suspended exports to handle the country’s domestic needs in the drought period.
