Electricity

Albania gets fresh EUR 12 million loan for strategic Dam Safety Project

Photo: KESH

Published

June 6, 2018

Country

Comments

0

Share

Published:

June 6, 2018

Country:

Comments:

0

Share

Albania has drawn an additional EUR 12 million in lending for its Dam Safety Project to safeguard hydroelectric dams and extend the operating life of hydropower plants on two rivers, including the Drin Cascade, which accounts for the bulk of the country’s electricity generation.

The three hydropower plants (HPPs) in the Drin Cascade – Fierza, Komani, and Vau i Dejes – with total installed capacity of 1350 MW, generate about 70% of total electricity supply in Albania and play an important role in the country’s objectives to increase regional power connectivity, decrease future dependence on thermal power supply, and create a Regional Power Market in South-East Europe (SEE), according to the World Bank, which approved the additional lending.

This Drin Cascade’s role will become more significant as the Montenegro-Italy undersea transmission line starts operations in 2020, thus enabling Albania, and its public electricity generation company, Albanian Power Corporation (KESH) in particular, to take advantage of price differentials in the region, according to the World Bank.

At the same time, the Albanian Power Exchange and balancing market are expected to become operational in 2019, which would lead to a market pricing system that would enable the HPPs along the Drin Cascade to provide reliable secondary regulation to neighboring countries, ancillary services, and peak capacity in the regional market.

Part of a wider Dam Safety Program

The Dam Safety Project, which also covers two smaller HPPs on the Mat river, privatized in 2012 – Ulez and Skkopet – is part of a larger Dam Safety Program, also backed by other international finance institutions (IFI).

Prior to the recently approved second additional loan worth EUR 12 million, the World Bank extended the original credit worth about EUR 26.3 million and the and the first additional loan of EUR 15.5 million.

The program has also been supported by the State Secretariat of Economic Affairs of the Swiss Confederation (SECO), with a CHF 6.4 million grant, the European Bank for Reconstruction and Development (EBRD), with a EUR 15.7 million loan, and German development bank KfW, with a EUR 20 million loan and a EUR 0.32 million grant.

KESH has set aside EUR 10 million from own sources for the program.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

OMV Petrom sustainable fuels green hydrogen Romania

OMV Petrom to produce sustainable fuels, green hydrogen in Romania

19 June 2024 - The Petrobrazi refinery will become the first major producer of sustainable fuels in Southeast Europe, OMV Petrom said

DTEK subsidiary DRI buys 126 MW solar power project Romania

DTEK’s subsidiary DRI buys 126 MW solar power project in Romania

19 June 2024 - Renewable energy company DRI acquired its third project in Romania. The Văcărești solar farm is planned to have 126 MW in capacity.

iberdrola-hybrid-wind-hydro-portugal

Iberdrola plans Portugal’s first wind-hydro hybrid power project

18 June 2024 - A 274 MW wind farm will be linked to the Tâmega hydropower complex in Portugal's biggest hybrid energy project, says Iberdrola

baltic-sea-subsea-interconnector-sweden-germany

Sweden opts against subsea interconnector with Germany over power price concerns

18 June 2024 - The Hansa PowerBridge subsea interconnector would have facilitated renewable electricity transmission from Scandinavia to Germany