Albania’s signing of two agreements with Italy in the energy field, worth 2 billion Euros, marks another phase in the relations between the two neighboring countries whose shores are jointly washed by the waters of the Adriatic Sea.
The projects, to be implemented by Italian companies and supply both the Albanian and Italian markets, are also expected to mark the final solution to the energy crises Albania has been languishing from for the past twenty years. More than 98 per cent of domestic energy production relies on hydropower stations. The effects of global warming, however, have made weather patterns unpredictable over the past years while the country’s economy would have recorded a six percent growth rate if it had not been for the constant energy crises.
The new projects mark the diversification of energy resources. One of the projects envisaged to be built in Seman, Fier, is related to the gas market, and, may for the first time give Albanian businesses and consumers access to the European gas market. Another project, planned for the southwestern part of the country will be producing 500 MWs of energy through wind mills and is expected to be one of the biggest projects of its kind in Europe.
Tirana regards Italy to be a strategic partner. Italy is Albania’s principle commercial partner and the country’s third biggest donor following the EU and the World Bank. Italy has been extensively present in Albania, especially during the very critical periods the country has gone through during the post-communist transition period. In 1991, Italy had to deal with a crisis of 200,000 Albanian refugees who besieged its shores. Six years later, Italy headed a multi-national force to restore law and order in Albania, following widespread rioting that broke out after the collapse of the pyramid schemes in which hundreds of thousands of Albanian families lost everything.
Voices of criticism over the agreements signed between the two Prime Ministers this week in Tirana are linked with environmentalist concerns and allegations that the production of energy is not destined for the Albanian market. Whilst, on the one hand, every single impact these projects will have on the environment must be seriously taken into consideration, when all is said and done, the simple truth of the matter is that this energy will also be produced for the Albanian market.
Albania may get a considerable amount from the wind farm production and may also get 500 million cubic meters of gas from the degasification plant. The Vlora thermo-power plant may typically need up to 150 million cubic meters of gas and the rest will be destined for the domestic individual consumers and businesses that should now think of accordingly adjusting their infrastructure and techniques.
The government claims that it wants to turn the country into the region’s electricity ‘small superpower’ as the Premier has stated. It is true that in this process, any government should really take good care of the country’s environment and take into consideration European standards, which it wants to one day fully endorse. The goal seems very courageous and what remains to be seen is the real and practical good will on the part of the central authorities to reach that goal – something that will be very obvious in the next 5-6 years.
The signing of agreements worth 2 billion Euros is an indication of the new phase in which the relations between our two countries have entered – from relations of assistance we have now moved to relations based on common economic interests. These agreements are at the same time a positive signal for other foreign investors.
