Albania: Third energy package harmonization & future electricity trading

, NGOs

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).

Source: ACERC Albania