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Albania could be the center of gas in the Balkans / Government continues to issue permits for hydropower plants, despite warnings

POLITICAL
2022-04-15 08:19:00

Albania could be a key player in Europe's gas sector, as US company Excelerate Energy Inc. plans to use it as a way to deliver natural gas and its products to the rest of the region.

But the plan may not fit well with environmental organizations, which recently urged the European Commission and regional governments to avoid gas and invest in renewable energy such as solar and wind.

The company will provide floating power plants for Albania, allowing it to generate electricity, boost production and increase exports. In addition, the company is working with Exxon Mobil Corp to build an LNG-to-power project in Vlora.

The General Director of Excelerate, Steve Kobos said he hopes to use the Vlora LNG project to expand to other countries in the region.

"It's a good energy project for Albania," Kobos said of the floating plant deal with Bloomberg. "Obviously we hope this will lead to the opportunity to supply natural gas and sell natural gas to Europe from this approach."

Albania is currently dependent on hydropower and imports of energy from fossil fuels. Other countries in the region depend mainly on coal. There has been a call from environmentally conscious people to move towards wind and sun, instead of using fossil gas as an alternative or energy in transition.

Meanwhile, Europe is trying to diversify its natural gas resources to reduce its dependence on Russia. It has also moved to ban Russian coal, and a ban on Russian oil could be included in the sixth package of sanctions.

Albania signed an agreement with ExxonMobil and Excelerate Energy to turn the Vlora power plant into a terminal for liquefied natural gas in March 2021.

At the time, Energy Minister Belinda Balluku stressed the need for Albania and the Balkan region to diversify and increase energy supplies.

"We are confident that LNG can be the key to achieving these strategic objectives and to finally give a solution to the complex project of Vlora TPP, by choosing the best partners, equipped to offer a project of such size," she added.

The representative of the American company said that "the project should bring transformation in Albania, but also in the region".

"While Albania seeks to improve energy security and resilience, we are convinced that an LNG solution would ensure the reliability of the country's electricity grid by supplementing with intermittent renewables and alternative sources," Kobos said at the time.

In early 2022, the Albanian Power Corporation (KESH), which operates the country's main hydropower plants, announced a call for expressions of interest for the technical and economic possibilities for renting a thermal energy production asset that can be easily integrated into the grid. of country broadcasting.

The call states that the entity wishes to lease the facility for one to three years. Also, the third party must provide maintenance and operation services for the duration of the contract and in accordance with the requirements of KESH. Requirements include light and heavy diesel operation.

It must also be "suitable to be located" near the existing Vlora power plant, so that it can easily use the existing interconnection infrastructure.

Narta Power Plant is located in Vlora on one of the most pristine beaches in the region near a protected area. Since its construction and completion in 2005, it has not generated any watts of power and has been plagued by problems with its cooling system.

Meanwhile, preparations are being made for the reconstruction of energy connections between Albania and Montenegro, and a special project is being developed for a new energy line with Kosovo.

The Albanian Energy Regulatory Entity (ERE) announced that while a current project between Albania and Northern Macedonia with a capacity of 400 kV is already under construction, it plans to develop a secondary 110 kV interconnection with Kosovo and another 110 kV with Mali. black.

Currently, there is a connection between Vau i Dejes in northern Albania and the Montenegrin capital Podgorica, with a capacity of 278 MVA. However, the line was built in the early 1970s and needs reconstruction. As Albania plans to build more hydropower plants in the north and plans gas projects in the south, interconnectors could be put to good use.

The next planned line will connect the Bajram Curri HPP substation and Kukes with Kosovo.

Albania currently produces almost 100% hydropower. However, without storage capacity, energy is sold to other countries during the primary months of production in spring and early summer. This means that Albania has to buy energy from fossil fuels in winter to meet public demand.

The government continues to issue permits for hydropower plants, despite persistent warnings that climate change and rising temperatures mean it is no longer sustainable.

Currently, due to changing weather patterns and decades of mismanagement, lakes used for hydropower plants in the north of the country are operating at limited capacity and are experiencing lower water levels, threatening the already precarious energy situation.

But even the use of gas has been opposed. The region is not currently dependent on gas in any significant way and many would like to keep it that way.

Recently, a group of local and European environmental organizations called on the European Commission to stop funding fossil gas projects in the region, as it risks shutting them down in non-renewable energy for decades to come.

https://politiko.al/english/e-tjera/shqiperia-mund-te-jete-qendra-e-gazit-ne-ballkan-qeveria-vijon-te-jape-l-i457976