KESH requires 1 billion euro investments

TIRANA, March.11 – Reforms in the energy sectors will require an investment of no less than 1 billion euros. This amount is needed for giving out with concession the major energy producer facilities in the country and the efficient use of the existing infrastructure. The investment is expected to be split along tow lines: form private sector and form the state. One single aim is the motivation of the new head of The Albanian Energy Corporation (KESH), Gjergji Bojaxhi, the overcoming of the energy crisis and in the long term the prevention of similar situations altogether. Bojaxhi mentioned again the need for the overhaul of the distribution system. Experts advocate that the state needs to focus in two or three short term main projects order to avoid the power crisis. Two thermo-power plants are projected to be built one in Vlora and one in Porto Romano, close to Duress. The Porto Romano one will have a capacity of 130 megawatt and an estimated cost of 130 million euro. According to Ministry sources the aim is to use internal funds for the project so that the facility remains under state ownership. Albania uses only 30 percent of its hydropower potential and more faculties can be built to exploit that.
A German investment group has expressed such an interest asking for a concession to build a plant on the river Vjosa. The project would be worth 1.5 billion euro. Similar proposals have been made for the river Devoll and the Bushat part of river Drin. The latter is estimated to cost 100 million euro. Another part of the river, Skavica can hot a bigger plant which in turn would cost more. The small hydro power plants can be given out in concessions but they have a very small capacity. In the peak of their use during the late 80’s their production covered only 3 percent of the total demand. The use of the small plants can assist the minimizing of network losses. Experts from the Ministry of the Economy have estimated that a real difference would be seen only after 41 small hydro power plants are completed, a plan which is far from realistic for the conditions Albania is in.