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Study: legislation improves development of renewables

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December 21, 2015

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Published:

December 21, 2015

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Partial implementation of the national law on renewable energy has been one of the main factors why interest for investments in the energy sector has been focused only on small hydropower plants, according to a study published by the Albanian Centre for Energy Regulation and Conservation – ACERC. The summary report finds the implementation level in the area of green energy is instable due to the dependence on hydrology and the volatility registered from season to season. Despite the drawbacks, the adoption of the Law on Energy Sector in April opened a new era, notes the document, signed by Lorenc Gordani. The National Renewable Energy Action Plan (NREAP), required for setting out the necessary measures to reach the target of 38% share, has been already presented to the Energy Community Secretariat. The draft is currently in its last revision stage at the Ministry of Energy and Industry.

In the framework of the Energy Community, Albania is committed to binding renewable energy targets for 2020. In 2012 it adopted the European Union’s Renewables Directive (2009/28/EC) on the promotion of the use of energy from renewable sources. The document identifies several compliance gaps compared to the European Union’s Renewables Directive in relation to administrative procedures in all sectors. The legislative framework is still not conducive to investments in renewable energy, including improper formulation of the power purchase agreements, complicated authorization and licensing rules and unsatisfactory rules for connection to the networks. Biofuels sustainability criteria and establishment of certification schemes have not been adopted.

The study examines consistency, effectiveness, relevance and viability of the national legislative measures with the provisions of the directive. The analysis identified inconsistencies in the data reported with official energy statistics, mostly related to biomass consumption.

The study concludes that some progress has been achieved on the use of renewable sources for electricity generation. Nevertheless, the heating and cooling and transport sectors are severely lagging. The country is at least slightly below the trajectory for meeting the 2020 renewable energy targets, ACERC said.

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