TIRANA, April 5 – The Albanian Power Corporation (KESH) announced on Monday it had collected 40 million euros from the boom of electricity exports during the first three months of this year. The situation is a result of heavy rains during the early part of this year which led to the opening of gates in the northern hydropower plants and flooding of the regions of Shkodra and Lezha. Speaking at a press conference, KESH director Muharrem Stojku said some 17 million euros was expected to be collected by the state owned company in April.
According to Stojku, revenues from electricity exports are being used to pay debts that KESH owes to government for electricity imports in 2007 and 2008.
“We have already paid 6 billion lek of debts and plan to pay up to 10 billion lek by the end of the year,” said Stojku
He described the current hydro situation in Albania as optimal. The Fierza Lake, which is Albania’s most important reservoir for the production of electricity, is currently at 295 meters, one meter below its full capacity. Stojku assured KESH would increase exports to prevent discharge of water from the Drin cascade gates. KESH says it will stop exporting energy next June, when the drought period starts.
Electricity is being exported at an average price of 40 euros per MWh while imports during the rest of the year are estimated to cost Albania 50 euros per MWh.
According to recent data published by the Institute of Statistics (INSTAT), electricity production in 2009 increased by 35.8 percent compared to 2008, with hydropower plants as the only source of production.
Electricity imports also fell considerably by 97.9 percent in 2009 while losses in electricity distribution rose by 8.8 percent compared to 2008.
Vlora Thermal Power Plant
Speaking of the Vlora thermal power plant, the KESH director Stojku said the newly built thermal power plant would first operate starting from April 12 in a one-month test period. After the test it will be switched on again in August.
The power plant is expected to produce electricity for southern Albania during the drought period of August, September and October. Admitting the high cost of the electricity produced by the power plant, Stojku said the power plant was necessary because of serving as a regulator for the Fierza Lake and the Drin cascade in northern Albania. Experts have often criticized the high cost of electricity produced by the Vlora power plant which is 13 lek per kWh, 5 lek more than the cost of imported electricity.
The Vlora power plant has an installed capacity of 93 MW and is able to produce a maximum of 700 million kWh a year, a quantity equal to 10 percent of the domestic consumption.
Meanwhile, the head of the Energy Regulatory Entity (ERE), Bujar Nepravishta said the power plant cannot be put to work if the energy it produces has a very high cost. Lack of a natural gas pipelines makes its operation on diesel very expensive, said Nepravishta.
ERE Presents Annual Report
The Regulatory Energy Entity (ERE) has described the consolidation of uninterrupted power supply and the considerable increase in electricity production as achievements for 2009. Presenting an annual report on the situation of the energy sector and ERE’s activity in 2009, the agency’s head, Bujar Nepravishta also called a success the privatization of the electricity Distribution System Operator (OSSH) by Czech company CEZ, one of the ten leader energy companies in Europe.
The report also stressed the fact of the Vlora thermal power plant being made available for use as a new electricity resource after 24 years.
The reduction of high levels of electricity losses and the low level of bill collection remain the main challenge of this sector, said ERE.
Another important challenge is supplying the Vlora thermal power plant with natural gas.
The Regulatory Energy Entity dismissed as untrue media reports that said ERE was disappointed with OSSH’s privatization by Czech company CEZ.
Local media had quoted Nepravishta as saying that he was disappointed with OSSH’s privatization by CEZ because of the continuing high levels of electricity losses, nearly 50 percent, poor service and over-billing.
Nepravishta announced that ERE has in plans to change the supply contracts with OSSH clients. The object of the new modifications will be the new obligations born between the new owners of OSSH and the Albanian government in advocacy of the consumers.
