Transcript Legal Framework and Potential for Solar Energy, Biomass
Artan Leskoviku National Agency of Natural Resources Tirana 28 September
Overview
Political important processes in Energy sector :
EU Accession,
Stability Pact,
Energy Community for South East Europe;
Lessons learnt from EU countres;
Opportunities for renewable energy in Albania
Legislation regarding renewable energy sources
Albania transposed in national legislation the provisions of:
Directive 2001/77/CE
regarding promotion electricity produced from renewable energy sources
Directive 2003/30/EC
for promoting the use of bio fuels and other renewable fuels for transport
Renewable energies
considerable energetic potential
Improvements in the security of supply
offers unlimited resources of use on local and national plan
reduce air pollution and greenhouse gas emissions
improvement in the economic and social prospects of country
Legislation regarding renewable energy sources
In 2008 we drafting low “On Renevable Energy Resourses” This law promote the production of electricity from renewable energy sources in order to:
Enhance energy security supply; Protection of the climate and protection of the environment;
Increase of the share of renewable sources in consumption of primary energy sources; Establishment on a preferential basis on the internal electricity market the production of electricity from renewable energy sources and high-efficiency cogeneration plants on the basis of rules and principles.
OTHER LEGAL FRAMEWORK
Law No. 9663 dated 18/12/2006 “ On Concession ” Decision of Ministry Council No. 27 dated 19/1/2007 “ On approval of evaluation regulators and concessions” Law no 8987 dated 24.12.02 “ on establishing of facilitating conditions for new sources construction of electricity generation “.
Law No.7962 dated 13.07.1995 “ On Electricity ” Law No.7970, dt.20.07.1995 “ On regulation of electricity sector changed with law No.9072, dated 22.05.2003.
”, Law No. 7764, date 2.11.1993 “ On foreign investments ”
Small Hydropower Plants
Actually there are 89 Small Hydropower Plants. There are in working condition only 31.
From them, 82 hydropower are with installed capacity 10 KW 1000 KW and 7 hydropower are with installed capacity from 1000 KW to 5 000 KW.
Average construction age of these hydropower's is about 25 years.
Equipment are generally Austrian, German, Chinese, Italian, Hungarian production.
POSSIBILITIES OF THE EXPLOITATION AND DEVELOPMENT OF HYDRO-ENERGETIC RESOURCES Main direction for the exploiting of hydro-energetic resources
Construction of new SHPP ,
Are signed, 50 contracts with capacity of generation 170 MW.
Application of new technologies for the monitoring of Hydropower Plants
PROCEDURES ON APPLICATION OF HYDROPOWER PLANTS CONSTRUCTION
According to the law No.9663 dated 18.12.2006 “On Concession” the bidder presents the project proposal to METE.
The Minister authorize the National Agency of Natural Resources (AKBN) to review the technical aspect of the project proposal.
The ( Technical State Opponent) TSO review the project proposal and sent the detailed evaluation back to Mete.
A second group established at Mete review the project on the economic financial terms.
When the project proposal is evaluated positively by both group METE starts the concession procedure based on decision No.27 Dated 19.102007.
Technical assessment
All existing SHPPs were located at very attractive sites, considering the aspects of water availability and the potential for electricity generation (altitude).
In most cases, the water is fresh water coming from a spring. This implies that also in the winter season the plants can be operated most of the time.
Most plants were linked to agricultural irrigation or to potable water supply. The availability of water during the summer months is stated in the concession or purchase contract. During the summer months, priority has to be given to agricultural and domestic use.
SHPP
S
trengths
Potential for SHPPs: There are many attractive sites in Albania. In general, there is a great potential for small- to medium-scale hydropower plants; Reduction of distribution losses and improvement of the electricity supply conditions: The SHPPs are in general located in remote areas "at the end of the distribution line". Electricity selling tariffs: The ERE of Albania increased the selling prices for the SHPPs for the year 2008/2009 from 4.7 to 7 Lek/kWh (0.0444 Euro/kWh).
Cooperation with KESH: The first interviews with responsible managers at KESH showed a professional and cooperative attitude of KESH towards the independent power producers. Flexible privatisation strategy: The Albanian Government adopted a flexible strategy in this privatisation of state-owned assets. It can be expected that also in the future there will be cooperative atmosphere between the responsible ministries and the new operators (contractual obligation to invest in repair and rehabilitation, increase of electricity generation, etc.).
Promotion of solar energy
a) In 2007, a total of 7000 m 2 were installed (60% by services, 40% by households), bringing total installations to 35,000 m 2 (equivalent to around 55 GWh/y or 1.1% of electricity consumed by households in 2007). b) Installation of solar panels systems in public and private service. EU through EEC and Two German Foundations instalment 168 m 2 SHWS and 28 m 2 PV . f) Include of solar panels for domestic hot water on the fiscal facilities law. g) Organization the awareness campaigns in Tirane, Shkoder Kukes, Fier and Gjirokaster for installation of solar panels in service sector during 2008.
THE BARRIERS FOR SOLAR WATER HEATING SYSTEMS
The current cost of solar systems of sufficient capacity to meet the domestic hot water needs of a typical Albanian household is higher, that represents approximately 50% of the annual income of that household.
The relatively low capital costs for the commonly used electrical hot water equipment in the household sector make it difficult for the solar systems to compete on either a capital cost or a life cycle cost. Cost of electricity used in this sector is still low, making the situation more favourable for the electrical water heaters. Low electricity prices and non-payments are obstacles.
The existence of operational water supply networks is a vital precondition for a broad scale utilisation of solar energy for hot water preparation.
STEPS TO FURTHER DEVELOPMENT OF SOLAR THERMAL MARKET IN ALBANIA
Incentives in the form of tax credits or soft loans for solar thermal system applications in new and existing buildings should be established as soon . Efforts for developing and local manufacturing of solar water heating systems. This would contribute to a significant reduction on the price of a domestic system, since reductions are not easy to achieve on imported products.
Incentives towards demonstration projects i.e. co-financing of the Government in the demo-projects aiming to promote solar thermal applications in the country should be available.
Information and education campaigns which have been proved to be effective in other Mediterranean countries , must be applied.
A greater participation of the Albanian institutions in research and demonstration of solar technologies is expected. Funds to promote feasibility studies and demonstration projects as well as to allow for participation in international exchanges of information on solar technologies should be available.
Other Res in Albania
Wind Energy installations in country. No reliable data. Eight projects are in process with 1500 MW power instaled capacity Promising site along the Adriatic coast: average speed 4-6 m/sec (10m height) In Albania conditions, it is estimated that by 2020, only 4% of the generated power can come from wind energy Biomass : Till now no installations No reliable data. One project is in process with 140 MW power installed capacity Geotermal Energy is in study phase.