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Electricity sector reform Albania

Project purpose

 

  1. Assessing the possibilities for providing Dutch expertise in electricity sector reform, energy efficiency and renewable energy (Ecofys) to reform the Albanian electricity sector.
  2. Informing Albanian authorities about modes of financial support for reform of the electricity sector.

 

Project results

  1. Relevant Albanian authorities involved in electricity sector reform have better understanding of Dutch expertise.
  2. Albanian authorities have better knowledge of modes of financial support for reform of the electricity sector.

Location
Tirana

Executor
Ecofys Netherlands B.V.

Budget
€ 20.853

Project status
Closed

Project activities
Three day visit by Ecofys to Albania last week of June 29 (Mon, Tues, Wed):

  • 1 day joint workshop Ecofys / Albanian Ministry of Energy and Industry on electrical energy and efficiency:  presentation from Albanian side on reform plans, from Ecofys on  what they have to offer and possibilities for funding; participants EBRD, WB, EU Delegation, Albanian authorities, other donors
  • 2 days discussions with relevant parties and field visits:
    • MEI, ERE, KESh, OST and OSHEE, to form understanding of: current roles & responsibilities; technical and regulatory issues; reform & investment plans; financing need & barriers.
    • Local branches of (development) banks, to understand what is needed to facilitate financing
    • Local project developers (energy and buildings), to understand what is needed to incentivise projects
  • Delivery: 5-8 page memo with:
    • Main observations from the three day visit and additional data/reports supplied
    • Brief analysis of core challenges to the Albanian power system
    • Sketch of a coherent, 10-points energy master plan for Albania, combining (1) demand side (industry and buildings): energy use profiles; potential for energy efficiency, distributed renewable energy and storage (2) supply side: the potential for large-scale renewable energy, pumped storage (hydro) and (potentially) CHP, and (3) the grid: optimal, cost-effective use of infrastructure, there where it matters most.
    • Sketch of a stepwise approach to power system rehabilitation, addressing (1) short-term, cost-effective ‘fixing’ of the power supply in terms of achieving a minimum level of reliability and affordability (2) longer-term power market reform, creating a stable investment climate for energy efficiency and renewable energy;
    • Preliminary proposal for the top 5 investments required to kick-start the short-term rehabilitation, including conditions that need to be fulfilled to attract financing from e.g. EBRD, EIB and WB.

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