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Albania near energy crisis
KESH has received offers from five companies to import electricity for the first quarter of 2007, at an international bid. But all the offers so far can provide for less than 47% of the total 568,000 MW/h required. "We have accepted to pay a higher price (than the previous year) in order to assure that the country’s energy needs are met", KESH’s general director Andi Beli said.
However all seven participating companies in the bid made only small and very expensive offers. The average offered price was EUR 80/MWh, about double the price of the 2006 tender.
The tender is expected to be declared partly or totally failed, because of inadequate offers. As happened in 2005, the government will order KESH sh.a to accept whole offers.
The difficult situation in the Balkans electricity market is caused by the closure of a big nuclear power plant in Bulgaria. Albania is expected to suffer more than other Balkan countries because its financial and technical capacities are limited.
Experts in Tirana says that even if someone could offer electricity to sell to Albania, with the average market price of eur 80/MWh, the country will need more than EUR 200 million to pay for all its energy needed. KESH sh.a has a total annual revenue of EUR 200 million, so the corporation would in no case be able to pay the bill. KESH’s added problem is the fact that the average selling price of electricity in Albania is LEK 7.01 (EUR 0.06), so KESH would still not be able to cover the bill for imports from its own revenues.
