Albania introduces market based procurement of balancing services

The new balancing rules in force as of April introduce market based procurement of balancing services and imbalance price formation. Independent hydro power producers (HPPs) became responsible parties for their imbalances.

Market participants can now offer balancing services in Albania, and may hedge their own balancing responsibility by creating or joining balance groups, according to the Secretariat of the Energy Community.

Independent hydro power producers, which became responsible parties for their imbalances

This will be important in particular for independent hydro power producers (HPPs), which became responsible parties for their imbalances with the creation of the balancing market as well.

A balance group that integrates small HPPs in Albania would ensure efficient integration of these producers into the electricity market and allow them to optimise balancing costs, the secretariat said.

The secretariat will support HPPs and their counterparties in designing the most appropriate solutions.

The new balancing rules have helped to resolve KESH- Energji Ashta dispute

The new balancing rules pave the way for the resolution of a long-lasting dispute related to balancing responsibility between a private investor, Energji Ashta hydropower plant, and state-owned power utility KESH, related to balancing responsibility.

Energji Ashta HPP is owned by power companies Verbund and EVN.

The balance group arrangements between KESH and Ashta which bring the dispute to an end are in operation as of  April 1, the secretariat said.