TIRANA, July 20ccording to the Ministry of Economy, Trade, and Energy (METE) more concessions will be offered this year for the construction of small hydro power plants (SHPP). Currently, 23 such projects are under scrutiny with a collective capacity of 970 megawatts. During the last three years, Albania’s energy sector has become one of the most attractive areas for foreign investors. The approval of a new law regarding concessions criteria opened the way for construction of SHPPs all over the rivers of Albania.
So far, according to METE, about 102 contracts for a total of 2.1 billion euro have been signed, with many HPPs already under construction. Some of the projects currently under construction involve powerful HPPs such as the Kalivac, Ashta, and Devoll ones, as well as another 50 lesser SHPPs.
However, hydro energy potential in Albania has been estimated to be much greater then the ongoing projects. Official data from METE reveal that only about 35% of hydro energy resources are being exploited, with the remaining 65% considered a golden treasure to attract more foreign investors into the sector.
“Our country has a huge hydro energy potential, but currently speaking, only 35% of such potential is being used. In this regard, a new legislative package has been approved to regulate concessions for the construction of hydro power plants. In addition, work on a new law on alternative energy has already started,” declare METE experts.
The new regulations regarding the energy sector serve the objective set by the government to turn Albania into a sort of energy superpower in the region. Meanwhile more concession contracts are expected to be considered during the next few months.
Alternative energy potential
Sun energy is a possible alternative in the future for a country that enjoys 240-280 days of sunshine. Already in use, it only accounts for 0.1% of energy production and further investment is needed.
Wind farm energy is an alternative seriously under consideration and has already attracted possible investors. A major wind farm park, the biggest of its kind in Europe, is planned in the Karaburun Peninsula. However, the project remains hugely controversial as it is thought to damage the tourist potential of the region.
Biomass is the second biggest source of energy production with 10%. It is mostly used for warming and cooking by families and only 7% of it is used for other energy purposes.
Lastly, geothermal energy is considered as a possible alternative source. However, it remains in a study phase.
