Grid losses rose by a slight 1.7 percent to 3.305 GWh in 2013, accounting for 35.5 percent of electricity available for use, according to INSTAT
TIRANA, March 24 – One year after the electricity distribution was taken back under state administration, the Albanian government has failed to reduce grid losses which was one of the key reasons that led to the revocation of the CEZ Group’s licence in Albania.
Data published by the country’s state statistical institute this week show grid losses rose by a slight 1.7 percent to 3.305 GWh in 2013, accounting for 35.5 percent of electricity available for use.
Losses in the distribution grid, which is managed by CEZ Shperndarje distribution operator, accounted for 96.7 percent of total losses, up 3.8 percent compared to 2013.
At 3.305 GWh, losses in Albania distribution system registered a record high in more than a decade. However, the energy balance sheet improved in 2013 thanks to higher domestic electricity generation due to favourable hydro-situation which also trebled Albania’s electricity exports.
Albania’s deputy Prime Minister Niko Peleshi, who heads a nationwide task force targeting to reduce grid losses and thefts, says Albania is estimated to have lost around 200 million dollars in 2013 from power losses which rose to 43 percent. The losses which are a result of massive power thefts and dilapidated distribution system are equal to 70 percent of electricity generation from the Drin cascade in northern Albania, where the biggest hydropower plants are situated.
Domestic electricity generation, which is 100 percent hydro-dependent, rose by 47 percent in 2013 and accounted for three-quarters of the country’s electricity needs.
Private and concession small and medium-sized hydropower plants also saw their electricity generation increase by around two-thirds. In 2013, electricity generation from state-run hydropower plants accounted for 83.6 percent of domestic electricity generation compared to 16.4 by private and concession HPPs.
No power was generated from the Vlora thermal power, a new investment which has proved inefficient due to the high cost of operating on fuel, and that can be made operational only after the completion of the Trans Adriatic Pipeline by 2019.
Electricity imports in 2013 reached 2.323 GWh accounting for 25 percent of electricity needs compared to 40 percent in 2012. Meanwhile, Albania’s net electricity exports in 2013 more than trebled to 953 GWH.
INSTAT data show electricity consumption for household and non-household consumers grew by 4.9 percent and 3.4 percent respectively compared to 2012.
More than one year after CEZ Group had its Albania licence revoked, the Albanian government says it still negotiating with Czech Republic CEZ Group over an out-of-court solution that would not have severe financial consequences for Albania after the Czechs have initiated Arbitration procedures. CEZ says it is willing to consider avoiding arbitration if the two sides agree on fair compensation.
CEZ has previously said it will claim Euro 200 million in compensation for damage to its investment in power distributor CEZ Shperndarje, which it purchased in 2009 for 102 million euros and invested 100 million euros in repairs and expansion. The former Democratic Party-led Albanian government claimed that CEZ’s failure to fulfill its contract obligations over imports, investments and reducing grid losses caused the state USD 1 billion in damage.
