Albania Res: Financial Effort Scenarios Run by Type of Technology by Dr Lorenc Gordani, November 28th, 2015

The final
costs of each technology used by EEMM model runs of Sled based on Levelised
Cost of Electricity (LCOE) per unit of energy, giving the following benchmark
data’s:

Ø 55 €/MWh for
energy production from hydro;

Ø 90 €/MWh for
energy production from wind;

Ø 105 €/MWh
for energy production from solar PV;

Ø 110 €/MWh
for energy production from biomass.

In this
regard, the present FIT support levels in the country for new hydro capacities,
set at around 60 €/MWh for existing plants up to 10 MW and 70 €/MWh for new
plants up 15 MW will be sufficient to cover hydro technology. For the other RES
technologies, no FIT exists. Then the figures shows an increas of support
budget between 2015 and 2020 (reaching over 80 m€/year) and a reducing budget
afterwards in spite of continuously growing RES-E capacities in the CPP and REF
scenarios. The peak of the support budget will be around 2020 for the REF and
CPP scenarios, when the financing becomes less costly in overall terms.

A similar
trend as in the case of the overall RES-E budget applies to the fees for the
end-user. If the RES-E support budget is divided by the total electricity
consumption – assuming that all electricity consumers have to pay for the RES
electricity support – it can calculate the average RES support fee that each
end user has to pay to their consumption. The extra charge is the highest in
the AMB scenario, reaching a peak of 9.3 €/MWh (or 0.93 €cent/kWh) by 2020. The
projected average charge also peaks in 2020 (and 2025 for the AMB scenario) and
then follows a declining trend afterwards.

A full report on Albanian
Res Capacity and Energy Market Perspectives within EU Policies of 2020 and 2030

will be available very soon in the here page.

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