Analysis by Dr Lorenc Gordani
Legal Advisor in Albanian Energy Market
An overview of the latest updates on renewable
The Albanian energy market is undergoing a full restructuring process, and the country, similar to the transformation taking place in the region, is increasingly entering in an emerging market of distribution of renewable energy (DER), alternative tradings and deregulate of supplies.
Regard the renewable the above profound energy transition has been lately crowned with the approval of the new Consolidated National Action Plan on Renewable Energy Sources 2019-2020. The action plan already in force by the 19 September 2019 rises the PV capacity available from 120 MW to 490 MW, the wind from 70 MW to 150 MW, and the biomass from 8 MW to 41 MW.
RES-E Expanding with Photovoltaic (PV)
The more evident aspect of this deep renovation has to do with approving of the measure for the connection to the distribution system of small photovoltaic installation for the self-producers of solar electricity approved along with July 2019. Net metering scheme to which recognises a full return of energy delivered without the payment of any cost for the use of the grid.
In practical, the installations in photovoltaic are embracing more and more by all the prestigious companies. Actual capacity already awarded has reached 24 MW, and their apport up to October 2019 contribute 0.6% of national production. A fact also evidenced by the confirmation of the statistical data on the loan credits to the Res projects, already reached the level of 200 Mil/Euro along 2019, with growth for the private sector by 43%.
A change of approach about the renewable that aims the diversification similar to the development in the rest of Balkan. A tendency that was finalised with the approve the new NREAP 2019-2020 in August and enter in force in the period of September that rises the PV capacity planned form 120 MW to 490 MW, reserving to small power plants the total capacity by 290 MW.
Energy transition also based on contributions of the wind
Factual evidence that it is also confirmed by the last month’s updates notices, dominated by the presentations at the Ministry of the Energy of only new proposes in wind projects. The tendency that was driven by the rise of new target approved with the NREAP 2019-20120 that passed the wind-planned capacity from 70 MW to 150 MW within 2020.
Starting period of valorisation of the local particularities
In more, the energy market deep renovation on the renewable energies is seeing even the turning attention also toward the local peculiarities. A change of approach on the renewable that aims the diversification similar to the development in the rest of Balkan. A tendency that was finalised in the ambitious NCAPRES that see to rise the use of biomass from 8 MW to 41 MW within 2020.
Last but not least important regard the transport there is a new law initiative that establish 5% of the amount of fuel consumed for transportation in-country should consist of biofuels, while by 2020, this amount should get up 10% of the total, which opens the way for the first time to the production and use of biofuels, with the aim of achieving the 38% target by 2020.
Open toward diversification end the era of SHPP
A change of approach about the renewable that aims towards diversification, similar to the development in the rest of Western Balkans and the EU, which has made the Albanian takes already a big step away from harmful small hydropower (SHPPs) with a capacity below 2 MW.
Then, now more than never does not remain that to find the way to accommodate all these options. The main obstacle stay in the open the market which with the right tools and transparent rules, upgrade the professional capacities, support the small SME and review curricula, in the way to make the things happen and not remain just a list of good intention that finish in finding only shortcuts of the immediate needs of companies that will vanish any effort without any sustainable long result.
For more on above can find the here short video presentation.
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