3Power Energy Group Inc (PSPW)

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The policy launched by the "Berisha" government, the energy produced by private HPPs exceeds the energy produced by public HPPs
August 28, 2022

This is a historic achievement for Albania!

The energy produced by private HPPs exceeds the energy produced by public HPPs.

In the first 6 months of 2022, private HPPs produced 54% of all energy produced in the country!

Dear friends, the first six months of 2022 mark a historic development in energy, for the economy and security of Albania. For the first time this 6 months from the private HPPs of the Devolli Cascade, the Fan Cascade, the Ashta hydropower plant and about 50 HPPs of the Lume river cascade, Drini branches, and other water sources from Martaneshi, Lura , Librazhdi, Kelmendi and Sasaj produced 54% of the energy produced in the country, significantly exceeding the production of electricity from public HPPs.



With the energy that they sell to OSSHE at 7.2 eurocents kwh, a price at least 5-7 times lower than the price of energy in the stock market, they saved the state at least 200 million euros in 6 months.



Dear friends, this success story and historical turning point began in 2007, about 30 years after the construction of the last hydroelectric plant in the country. Albania, a country rich in water, used until 2007 only 1/3 of its water potential for the production of electricity.



This success story started with the implementation of the strategy "Albania, a small regional superpower for renewable energy"! In a period of 6 years, 2007-2013, contracts were signed for the concession construction with transparent procedures of 423 large, medium and small HPPs.



But this strategy was absurdly opposed by the opposition of that time.



Edi Rama, after inaugurating the works in the Devolli cascade (photo below) with the company Shtatkraft of Norway, which is a world leader in the construction of hydropower plants, would declare in Gramsh that this is Berisha's next fraud.

Even Edi Rama, not only then but also in the first years after he came to power, he declared the war of Don Quixote with windmills against HPPs, changed the contracts, canceled the licenses to fine. He later not only licensed over 400 small HPPs without any criteria, but now he has decided to build Skavica, the variant in which 6000 hectares of land and 37 villages are flooded, de facto the lower Dibra disappears almost completely.



I would like to add here that in all the contracts for the construction of 432 HPPs signed in the years 2007-2013, a total of dozens of houses were displaced and no whole villages were flooded anywhere.



Below you have an analysis of the Monitor Magazine on the above issue. sb



- Energy, private companies exceed KESH, produced 54% of the net total



Priority energy producers (HECs with a capacity of up to 15MW) as well as independent private producers provided 54 percent of the country's net energy in the first 6 months of this year.

Official data for the first half of this year show that the net domestic energy production was over 3.66 million MWh by the end of June, of which KESH produced only 1.7 million MWh. The rest belongs to independent producers such as Devoll Hydropower with its two HPPs, Kurumit, Ayen Enerji and the smallest of these HPPs, Qani.

Meanwhile, the rest of private production is occupied by HPPs, which, according to the contract, sell the energy to distribution. Net domestic production this year is 40 percent less than a year ago, thus reflecting the poor water year the country is in.

Consumption, on the other hand, recorded a level of 4.25 million MWh, which indicates that total production could only cover 80 percent of consumption. The latter has undergone a slight increase compared to a year ago, which is almost insensitive in terms of numbers.

In the liberalized market, KESH, which is charged with providing the necessary energy for the Free Market Supplier (part of OSHEE Group), has received about 18 percent of the energy needed for consumption.

During this year, energy prices on the stock exchanges have reached frightening levels, where at peak hours, one MWh of energy has been traded up to 700-750 euros, while the prices on the Hungarian Stock Exchange, which our country has a reference to during the months of July and August, have mainly fluctuated between 350 -500 euros/MWh.

The public company had to spend hundreds of millions of euros to ensure the necessary energy for consumption, while by the end of this year the bill is expected to increase even further, increasing the pressure on the company's finances and the need for the government to continue support.

The latter stated a few months ago that it would see the option of increasing the price for those who consume above a certain band that was initially said to be 700 kwh and then 800 kwh. This initiative is related to an attempt to discourage consumption, but so far no concrete decision has been made.

https://www.standard.al/2022/08/28/politika-e-nisur-nga-qeveria-berisha-energjia-e-prodhuar-nga-hec-et-private-tejkalon-energjine-e-prodhuar-nga-hec-et-publike/