Starting construction on the site is a turning point in the electricity production strategy for Albania, as Ashta is the largest investment of its kind so far. Construction is expected to finish by the end of 2012 and will create about 300 jobs.
TIRANA, March 2 – Construction has officially kicked off at the site of the Ashta Hydroelectric Plant, which is being built by a concession agreement between Verbund, an Austrian company, and the Albanian government.
Construction is expected to finish by the end of 2012 and the up to 200 million euro investment will bring in about 300 jobs locally. Albanian companies will also be subcontracted to work on the project, according to Christian Kern, a Verbund board member.
At a ceremony organized for the occasion, Economy Minister Dritan Prifti Minister said starting construction on the site is a turning point in the electricity production strategy for Albania, as the Ashta project is the largest investment of its kind so far.
“Cooperation between the Albanian government and Verbund is excellent and construction will end in record time,” Mr. Prifti said. “I’m glad that this is a very positive example for foreign investors who have interest in our concessions in the energy field.”
Ashta is the final step in a chain of three existing power plants fed by the Drin River. It will differ from the other three plants however, because it will use Straflo Matrix turbines. Instead of one large turbine, this new technology employs several small ones. As a result, it will be possible to utilize even low current speeds and thereby increase efficiency.
An additional benefit is the shortened construction period.
“This is a unique project, the largest of its kind in the world, because it utilizes modern technology with a minimal environmental impact,” Mr. Kern said in a press conference earlier this week.
When completed, the Ashta hydropower plant will be Albania’s first major hydroelectric plant construction in 30 years and the government’s first large public-private partnership in the energy sector.
It will produce enough electricity to supply energy to 100,000 Albanian families, according to Verbund. The project will increase Albania’s power generation capacity by almost 50 megawats.
Verbund, Austria’s largest electricity company, won the 35-year concession in September 2009 to build the plant under terms that mean over a 15-year term, all of the electricity generated in Ashta will be collected by KESH, the state-run Albanian energy provider. After that, the term can either be extended or the electricity can be sold on the open market.
The government’s savings on electricity imports are estimated to exceed 35 million euros in the first five years of plant operations, according the Austrian company.
With energy being a hot topic for Albania, the construction of this power plant will guarantee reliable supply of electricity to the Albanian electricity system, reduce energy imports from abroad and only moderately affect the environment. The project’s environmental impact is almost negligible, especially since hydropower plants do not produce any emissions.
