Department of Strategy and Donor Coordination

Figure 12 shows the electricity production by thermal and hydro sources, the energy available in the grid
and load shedding. The amount of available electricity increased to 6,298 GWh in 2008, of which 3,850 GWh
was produced domestically. Non-technical losses fell by eight per cent compared to the year before, while the
supply improved significantly, by 40 per cent compared with 2007. Technical and non-technical electricity
losses in the distribution network amounted to 1,927 GWh or 32.74 per cent, 2.66 per cent less than in 2007.
Total energy losses, including in transmission, amounted to 2,140 GWh (34%) in 2008, 2.4 per cent less than
in the previous year.
Figure 12. Production and distribution of electric energy
7000
6000
5000
4000
GWh
3000
5971
5976 6056 5728
6298
2000
1000
0
2004 2005 2006 2007 2008
Thermo-electric power Hydro-electric power Energy to network (GWh) Load shedding (GWh)
Source: KESH and Distribution System Operator
With regards to the liberalisation of energy production, 69 concession contracts were signed with private,
including foreign, investors for construction and operation of the hydro-electricity power plants Ashta (48.2
MW installed capacity; 130 million EUR invested) and River Devoll cascade (319 MW installed capacity;
985,400 MWh annual production; 950 million EUR). Construction of an energy park in Porto Romano, Durrës,
was approved, indispensable to the sustained industrial development and growing needs of the economy for
energy. Within the framework of diversification of energy sources and the use of renewable energy, licences
were granted for seven wind farms. Concrete steps were taken to ensure licensing of private companies for
construction of a wind farm with installed capacity of 500 MW and another combined biomass-wind plant in
Shëngjin.
Important progress has been made in the hydrocarbons sector with the adoption of a full regulatory framework
on hydrocarbons in line with EU directives in 2008. This framework includes enhanced capacities of the
Energy Regulatory Entity and provides favourable conditions for higher hydrocarbon production and foreign
investments engaged in exploration and extraction of oil and gas. In 2008, implementation of hydrocarbon
agreements on exploration and extraction of oil and gas by prominent international companies continued.
Investments in this area increased to 129 million USD compared to 83.97 million USD in 2007. Crude oil
production in 2008 was 578 thousand tons.
Following finalisation of a concession agreement, La Petrolifera Italo Albanese sh.a. Company started works
in 2008 on an oil terminal in the Bay of Vlora. In addition, Romano Port sh.a Company is implementing an
agreement concerning construction of oil installations in Porto Romano. In 2008, public corporation ARMO
was privatised and a contract signed with winning company Refinery Associates of Texas, Anica Enterprises
and Mercuria Energy Group. Furthermore, a contract was signed with Falcone Group to build a regasificator
in Seman, Fier, for an amount of 950 million EUR. As regards the energy park in Seman, a concession contract
was signed with Trans European Energy BV for a terminal of Liquefied Natural Gas in Fier and an under-sea
gas transmission pipeline from Albania to Italy for an amount of 850 million EUR.
With the objective of connecting Albania to the regional oil and gas networks, unsparing support was given to
the major projects Trans–Adriatic Pipeline (TAP) and Ionian Adriatic Pipeline, resulting in the following:
NSDI 2008 Progress Report | 31