Second Environmental Performance Review of Albania

128 Part III: Integration of environmental concerns into economic sectors and promotion of sustainable developmentTable 9.2: Oil supply and consumption, thousand tons/yearYear 2002 2004 2006 2008 2010Crude oil production 314.8 333.6 389.1 302.9 544.1Petroleum consumption 1,209.0 1,435.7 1,588.1 1,543.8 1,643.4Imports of refined petroleum products 1,041.1 1,156.8 1,088.6 N/A N/AExports of refined petroleum products 143.2 61.7 0.0 50.0 N/ACrude oil distillation capacity 1,300.0 1,300.0 1,300.0 N/A N/ASource: United States Energy Information Administration, Country Analysis Briefs, see:http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm#Table 9.3: Coal supply and consumption, thousand tons2002 2004 2006 2008 2009Coal production 77 79 63 83 115Coal consumption 90 90 75 95 127Coal imports 13 11 12 12 12Source: United States Energy Information Administration, CountryAnalysis Briefs, see: http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm#Table 9.4: Electricity supply and consumption, billion kWh2002 2004 2006 2008Total electricity net generation 3.641 5.498 5.038 3.759Total electricity net consumption 4.546 3.733 2.991 4.054Total electricity imports 2.200 1.242 0.611 2.434Total electricity exports 0.058 0.274 0.000 0.000Electricity distribution losses 1.237 1.968 2.658 2.139Total electricity generation by HPP 3.477 5.411 4.951 3.759Source: United States Energy Information Administration, Country Analysis Briefs, see:http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm#The current total power supply (more than 6,000GWh in 2008) is not sufficient to cover domesticdemand. To meet this challenge, the National EnergyStrategy aims at a combination of new HPP capacityand TPP capacity in the coming years, includingbuilding in the near future Drini1 HPP (84 MW) onthe Drini River, Vjosa1 HPP (80MW) on the VjoseRiver, Devolli1 HPP (75 MW) on the Devolli Riverand the Vlora TPP (435 MW).This means that by 2020 new power system capacitywill be around 900 MW. There is also the potentialfor medium and small HPPs in Albania, estimated tobe about 165 MW at 224 identified sites. Thesecomprise 83 existing small HPPs with a total capacityof 25 MW and 41 new medium-sized HPPs with apotential total capacity of 140 MW.In 2011, the first unit of Vlora TPP, a new distillateoil-fired generation facility with capacity of 97 MW,was commissioned. The project will increaseelectricity production and improve the balancebetween hydropower and thermal power generatingcapacity reducing the overdependence uponpotentially uncertain hydropower resources andpower imports. It will create a more favourableinvestment climate for potential foreign investment inAlbania and improve Albania’s economic growthprospects. However, TPPs are always a source ofpollution and will impact negatively on theenvironment.Energy efficiency and renewables policyThe Government intends to increase installedcapacity of electricity as well as electricityproduction in order to reduce dependence on importsand adverse hydrological conditions. However, anadditional way to meet national electricity demand isthe implementation of energy efficiency measures.Currently, there is a potential for these measures,including reductions in energy consumption andlosses in power production and distribution, andenergy conservation in housing and communalservices, industry, agriculture and transport.Energy efficiency is a cross-sectoral subjectinvolving all economic activities, especially theenergy sector itself. Improving energy efficiency is apolicy priority for the Government. The Government