Dear Friends & Colleague,
A short note to inform that the Energy World Magazine has just published the online version of the magazine number #28, January-February 2019.
This new publication offers among other a legal insight into the “Legal granting rights and A&M approach in Albania HPP”, pages 62-63, with author Dr Lorenc Gordani
Legal granting rights and A&M approach in Albanian HPP
Albanian total installed capacity in hydropower has reached at 2100 MW. Further, projects granted, but yet not developed, at 1785 MW and the hydropower potential studied, still unexploited, at around 615 MW. Therefore, in a synthesis, considering the theoretical potential by 4500 MW, today only 46% are exploited. As it is worth noting that the country can offer one of the lower cost of production (LCOE) of hydropower in the region.
Therefore, taking into consideration the large number of awarded projects but still not developed, in this analyse, firstly, based in my daily empirical experience, it will concentrated in a briefly analysis of the legal framework on procedures to obtain a HPP, for the better understanding of the complexity of an A&M and the approach needed to address it by interested developers.
Then starting with the explorer of the framework in which base the granting rights of hydropower investments, in summary, there are basically two procedures, and a third one is emerging, on the rights of granting of hydroelectric sources. Firstly, the authorization procedure is followed for the project up to 2 MW, considered as small investments and fundamentally of interest to local investors. A framework based on the principle that leaves the great load (or major risk) of the work to be followed by the investor. However, on the other hand its approval within the ministry is perceived as a fast procedure.
Then, for the most relevant projects, considering the level of difficulty and depending on the nature of the hydroelectric risk, are based on the regime of public-private partnership (PPP). What is necessary, from the already existing framework, is a qualified wise reflection of all the rights recognized by the law to the contract between the parties, based on the fact that the legal provisions governing the project contract provide clear guidance on the key issues that will be dealt, allowing the parties to freely negotiate the flexible terms of the concession contracts. (for more)
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