{"id":2247,"date":"2016-01-22T11:29:56","date_gmt":"2016-01-22T11:29:56","guid":{"rendered":"http:\/\/www.albeiti.org\/?p=2247"},"modified":"2016-01-22T11:29:56","modified_gmt":"2016-01-22T11:29:56","slug":"hydro-energy-sector-eiti-report-2013-2014","status":"publish","type":"post","link":"https:\/\/www.albeiti.org\/site\/en\/hydro-energy-sector-eiti-report-2013-2014\/","title":{"rendered":"Hydro-energy sector &#8211; EITI Report 2013-2014"},"content":{"rendered":"<h4><span style=\"color: #00ccff;\">Hydro-energy sector<\/span><\/h4>\n<p><em>EITI Report 2013-2014<\/em><\/p>\n<p>The hydropower production in Albania is dominated by the public sector. A the end of 2014, the State owned and operated the Albanian Electrical Power Corporation (KESH), the Transmission System Operator (OST) and Electricity Power Distribution Operator (OSHEE).<\/p>\n<p><span style=\"color: #00ccff;\"><strong>KESH<\/strong><\/span> is the largest producer in the country. With an installed capacity of <span style=\"color: #00ccff;\"><strong>1,448 MW or 80% of total installed capacity<\/strong><\/span> in Albania built in a cascade over Drini River in the north, KESH contributed with <span style=\"color: #00ccff;\"><strong>87% of power output in 2013<\/strong><\/span>. This ratio fell to <span style=\"color: #00ccff;\"><strong>72% in 2014<\/strong><\/span>, due to increase activity of private HPPs and HPP under concession in the sector.<\/p>\n<p>ERE reported domestic hydro-power output of <span style=\"color: #00ccff;\"><strong>6,956 GWh in 2013<\/strong><\/span> and <span style=\"color: #00ccff;\"><strong>4,726 GWh in 2014<\/strong><\/span>. If estimated using average export prices, the domestic output would have been reported at Lek 25.5 billion (equivalent to USD 243 million) in 2013 and Lek 24.1 billion (equivalent to USD 229 million) in 2014. However, because KESH sells its output at regulated price of Lek 1 per KWh (equivalent USD 0.01 per KWh) <strong><span style=\"color: #00ccff;\">sales from the sector did not exceed Lek 11 billion (equivalent to USD 106 million) in 2013<\/span> <\/strong>and<span style=\"color: #00ccff;\"><strong> Lek 9.6 billion (equivalent to USD 91.5 million) in 2014<\/strong>.<\/span><\/p>\n<p>The Albanian State subsidizes the power sector through regulation prices of power generation, transmission and distribution. This fact explains the relatively low <span style=\"color: #00ccff;\"><strong>contribution<\/strong><\/span> of the sector <strong><span style=\"color: #00ccff;\">to<\/span> <span style=\"color: #00ccff;\">GDP<\/span><\/strong> at about <span style=\"color: #00ccff;\"><strong>2%<\/strong>.<\/span><\/p>\n<p>In <span style=\"color: #00ccff;\"><strong>2013<\/strong>, <strong>45% of power transmitted was lost<\/strong><\/span> in the distribution system because of its poor technical conditions and informal connections to the system. In <span style=\"color: #00ccff;\"><strong>2014<\/strong><\/span>, the losses dropped to <span style=\"color: #00ccff;\"><strong>37.81%<\/strong><\/span> of the power transmitted<a href=\"#_ftn1\" name=\"_ftnref1\"><sup>1<\/sup><\/a> as a result of combined efforts of the Albanian Government and the power distribution company &#8211; OSHEE. <span style=\"color: #00ccff;\"><strong>Foregone contribution of power<\/strong><\/span> losses measured at export prices is estimated to be about <span style=\"color: #00ccff;\"><strong>Lek 22.3 billion in 2013<\/strong><\/span> (equivalent to <span style=\"color: #00ccff;\"><strong>USD 212 million<\/strong><\/span>) and <span style=\"color: #00ccff;\"><strong>Lek 19.9 billion in 2014<\/strong><\/span> (equivalent to <span style=\"color: #00ccff;\"><strong>USD 190 million<\/strong><\/span>).<\/p>\n<p>The cost structure of domestic power output has changes in the last 5 years with intensification of production from private HPPs and HPPs under concession and is expected to change further in the future when a large number of medium and small HPP under concession enter the production phase.<\/p>\n<p>The sector\u2019s known contribution accounted at <span style=\"color: #00ccff;\"><strong>0.2%<\/strong><\/span> of the total <span style=\"color: #00ccff;\"><strong>revenue in to the National budget in 2013 <\/strong><\/span>and <span style=\"color: #00ccff;\"><strong>0.1% in 2014<\/strong><\/span>. In addition to normal cash flows the Government collected also revenue of Lek 15,439 billion from the privatization of the HPPs of Ulza, Shkopet and Bistrica 1 and 2, which were operating under KESH until mid-2013. Had this amount been counted together with normal cash flows, the contribution to the revenue in to the National budget in 2013 would increase to 4.9%.<\/p>\n<p>Data reported from AKBN show that a large number of HPP granted on concessions have not yet commenced the construction or are still under construction as at the date of this report, showing delays of two years and above. More specifically, out of 502 HPPs under concession, 308 HPPs with installed capacity of 1,152 MW and forecasted energy at 5,359 GWh have not yet started the construction phase. While, 84 HPPs are in the construction phase. If assumed that all HPPs were completed within two years from the concession date and produced the energy foreseen in the concession contract the concession fee for the year 2013 would be Lek 1.78 billion and increased further to Lek 1.9 billion in 2014, which is more than 10 times larger than the concession fee collected in both years.<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\"><\/a><\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\"><\/a><\/p>\n<hr \/>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\"><sup><br \/>\n1. <\/sup><\/a> Power transmitted includes both domestic power consumption and power losses.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hydro-energy sector EITI Report 2013-2014 The hydropower production in Albania is dominated by the public sector. A the end of 2014, the State owned and operated the Albanian Electrical Power Corporation (KESH), the Transmission System Operator (OST) and Electricity Power Distribution Operator (OSHEE). KESH is&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[313],"tags":[],"_links":{"self":[{"href":"https:\/\/www.albeiti.org\/site\/wp-json\/wp\/v2\/posts\/2247"}],"collection":[{"href":"https:\/\/www.albeiti.org\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.albeiti.org\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.albeiti.org\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.albeiti.org\/site\/wp-json\/wp\/v2\/comments?post=2247"}],"version-history":[{"count":0,"href":"https:\/\/www.albeiti.org\/site\/wp-json\/wp\/v2\/posts\/2247\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.albeiti.org\/site\/wp-json\/wp\/v2\/media?parent=2247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.albeiti.org\/site\/wp-json\/wp\/v2\/categories?post=2247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.albeiti.org\/site\/wp-json\/wp\/v2\/tags?post=2247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}