Electricity

Kopač: Creation of Albanian power exchange would be real game changer for region

Photo: Energy Community

Published

February 6, 2018

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Published:

February 6, 2018

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Reforms must continue without delay in order for Albania’s energy consumers to truly benefit from the changes, Janez Kopač, Director of the Energy Community Secretariat said.

During his visit to Tirana Kopač met with key Albanian energy sector stakeholders to take stock of achieved reforms and the priorities ahead, Energy Community said in a statement.

Starting with a presentation in the Parliament of Albania hosted by the Committee on Productive Activity, Trade, and Environment, Kopač acknowledged the progress made by Albania thus far.

“The country should take steps towards establishing a fully competitive wholesale and retail electricity market. Moreover, the creation of a national power exchange, Albanian Power Exchange (APEX), whose establishment is in delay, would be a real game changer not just for Albania, but also for the region,” Kopač said.

The legal and functional unbundling of the country’s electricity distribution system operator (DSO), OSHEE, in line with the Third Energy Package is another key priority.

This is currently subject to an infringement case launched by the Secretariat earlier this month. The Secretariat agreed to host a meeting of all key stakeholders in late February to assist Albania in this effort.

Energy Community chief in Tirana held bilateral meetings with Minister of Energy and Industry Damian Gjiknuri, Chair of the Committee on Productive Activity, Trade and Environment Eduard Shalsi and CEO of distribution system operator OSHEE Adrian Cela.

Deadline for APEX expired on March 31, 2017

The electricity market model adopted by the Albanian government in July 2016 defines a roadmap for electricity market reforms in the electricity sector.

“At its heart lies the project for establishment of an Albanian Power Exchange (APEX), which has been, however, delayed as a consequence of the political situation in the country. The initial deadline for the decision on the legal and corporate structure of APEX expired on 31 March 2017. The Market Model empowers the minister to decide on the new deadline before the end of 2017,” Energy Community said in its Implementation Report for 2017.

Albania is working with Kosovo* on developing a legal framework for market integration including coverage by the Albanian power exchange for both territories. According to Implementation Report for 2017, a declaration for creating a common electricity market signed in March 2016 has not been followed up by concrete activities.

There is general consent for the transmission system operator of Kosovo* to participate as a shareholder in APEX, yet the final agreement between the competent ministers is pending.

In October last year ministers of Kosovo* and Albania have discussed the establishment of the common electricity market as well as Albanian power exchange.

In breach of Electricity Directive for more than two years

The distribution system operator OSHEE is still legally and functionally bundled with supply activities, with not even unbundled accounts in line with Article 31 of Directive 2009/72/ EC.

“The provisions on the adoption of a compliance programme and appointment of a compliance officer according to Article 26 of Electricity Directive are transposed by the law, but still not implemented. Albania is in breach of Electricity Directive in this respect for more than two years already,” Energy Community’s Implementation Report for 2017 reads

* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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