New Era of Power Capacity in Albania by Lorenc Gordani | Wednesday, August 04, 2015

The consideration of any form of transposition of
the Third Energy Package and the implementation of an Organised Market in Albania,
make necessary the following preliminary here with the energy production
structure of the country. Albania energy domestic production is extremely
dependent on hydrology that make the total of the annual energy produced to be
highly volatile. The 2010 for example has had favourable hydrology, and as a
result, Albania was on balance net exporter of energy. Nevertheless, the poor
hydrology in 2011 resulted in becoming a net importer. The all bring a dynamism
in the import – export seen also that it can easily – in the upcoming integrate
market context – be activate to fulfil the peak regional demand.

Then there are three possibility to face the above
volatility: the investing in new generation or interconnection capacity (in
same time improving the mix of energy) and in the third in the energy efficiency.
The here last option already in this period in discussion in the MC. However
the choice that will be a mix of all above as well as others solution not taken
here in consideration, what it can be recommend is the need to address the development on
an integrated strategy modulated by the simultaneous regional mechanisms
of the references. The all in function to the full realization of the paradigm of concurrence
efficiency, as a trait d’union of
contemplation of the commodity view in the public service obligations, in
compliance with the all-comprehensive (including private) general economic
interest.

In this regard, starting by procedures of
Authorisation and Tendering the
new Law on the Electricity Sector no. 43 on 30th April 2015, state among the Scope of this Law granting
of authorizations and licenses in the electricity sector (Article 2, c)). In
regard, of the construction of new generating capacities, the Section III on
Electricity Generation, in the Article 49 establish that the construction of
new generating capacities, which are not subject of a concession, or every new
generating capacity up to 2 MW, is approved by the minister responsible for
energy. Instead, a process with two stages – then ever longer and ponderate –
is foresee for the construction of new generating capacities above 2 MW which
are not subject of concession, approved by the Council of Ministers with
proposal from the responsible minister for energy.

In more, the new law foresee the investing in the
capacity market to meet the national objectives for demand management and
energy efficiency. Article 50 establish that I in cases where installed
capacity is insufficient to guarantee the security of energy supply, the
Ministry responsible for energy initiates the procedures for the provision of
new generation capacity. New generating capacity, as set forth above is foreseen
to be provided through a competitive procedure pursuant to the legislation in
force.

In regard, licensing procedures, the new law
establish faster procedure. Among other that ERE takes a decision whether to
grant or not a license on electricity generation, within 60 day from the
application date, except the cases of a time extension for issuance of the
license in accordance with the regulation for organizing and functioning of
ERE. In any case, the time extension for the decision cannot be more than 30
days (Article 39).

After the here short
communication about the process of authorisation and licences for the
generation capacity in the next one, it will pass to the grid unbundling
process. In regard it want to reminder that the here above presentation came in framework of a
complete upcoming report about liberalisation and organised market in Albania to be release very soon by ACERC. In case of interest to the direct involvement as
author with analyses or other forms of support, contact us at the info@albaniaenergy.org.

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