Private HPPs producing 2 percent of electricity

TIRANA, April 12 – Small and medium-sized hydropower plants (HPPs) built under concession agreements accounted for 2 percent of domestically produced electricity in 2010. The Energy Regulatory Entity (ERE) said in its 2010 report that power produced by HPPs of up to 15 MW rose to 159 million kWh, registering a 78 percent increase compared to the end of 2009. Data show some 51 HPPs owned by 19 private companies operate in Albania. Five of them were made operational last year.
Since 2008, the business community’s interest to build small and medium sized HPPs has been on the rise following a government decision which authorizes state-owned power production company, KESH, to buy energy from each HPP build under concession contract under a set stimulating price approved by ERE.
Revenues of companies operating HPPs also rose to 1.1 billion lek (11 million dollars) compared to 580 million lek in 2009.
Prime Minister Sali Berisha has invited big international banks to support the financing of small hydropower plants to make Albania what he called a small energy superpower in the region.
“I invite big banks to follow IFC’s example and seriously consider the financing of these projects for the private sector, which is a big contribution to the country’s sustainable development and Albania’s big exporting potentials,” said Berisha recently.
Since approving a new law 3 years ago, government has signed 220 concession contracts for the construction of small, medium-sized and big hydropower plants. According to Berisha, government will sign contracts to build some 450 other medium and big HPPs and thousands of small ones. Wind and solar energy are also being considered as resources to diversify electricity production in Albania.