BELSH Photovoltaic Park Project

The European Bank for Reconstruction and Development (EBRD) is considering the possibility of granting a loan to KESH – the state-owned energy producer in Albania – to finance the construction of a 50 MW solar photovoltaic (PV) plant (park) and the associated electrical infrastructure as and 5 km 110 kV overhead line connection. (the “Project”) in an existing substation in Kajan.

The project was categorized B in accordance with the EBRD Environmental and Social Policy 2019. A proper environmental and social study of the project was undertaken in September 2023.

Project Description

The project is located 50 km south of Tirana, within the territory of Belsh Municipality, in Elbasan District, in central Albania.

The project consists in the construction and operation of a solar plant (PV) with a capacity of 50 MW. A pre-feasibility study has been prepared by KESH in 2022. The PV plant will include:

• Rows of solar panels, mounted on fixed or tracked frames, or a mix of both: KESH will choose the alternative with the best cost-benefit ratio.
• Access roads/passages inside the PV plant: the main passages will be paved with stones or paved with gravel, while the surfaces under the panels will remain with natural soil.
• Inverters, to transform electricity from DC to AC.
• A 20-110 kV switch and transformer substation – an area of ​​less than 1 hectare will be required within the 18 ha of agricultural land that is planned to be acquired by KESH for this infrastructure. A 110kV overhead transmission line (LT) of 8-9 km in connection with the existing substation in Kajan.
• This will include an extension of the Kajan substation, as there is no space to add a line to the existing layout: a new Bay will be built, in coordination with the OST (Transmission System Operator) which has already approved the principle of a connection to the Kajan Substation.
• A parking space, workshop and facilities for technical and non-technical personnel during operation.
• A fence around the FV area, to prevent entry A temporary storage area and assembly/workshop area, as well as possibly worker accommodation for the construction period.
• Improvement, and local widening/reshaping of the access road to be selected.

Implementation agreements and applicable Environmental and Social requirements

The developer of the project is KESH, the national energy company.

The project will be built through an Engineering-Procurement-Construction (EPC) contract and will be operated by KESH.

The preparation of the project is expected to take two years from September 2023. The construction of the Project is expected to take about 12 months after signing all necessary agreements and obtaining permits/authorizations.

Physical impacts and mitigation measures

The main physical hazards and potential impacts are related to the construction phase and include:

• The increase in vehicle traffic accompanied by accidental hazards on the access roads to the construction area of ​​the PV park;
• Local increase in noise, release of emissions occasional stoppage of passage during construction;
• Earthworks and traffic along the transmission line (LT) track;
• Modification of land use on over 50 ha, mainly for the installation of PV panels.

Impacts on biodiversity and mitigation measures

Database: Visit to the project area, review of literature and existing biological database was undertaken to determine the biological species present in the Project area. Also, the proximity of the project to protected or internationally recognized areas was evaluated: The PV park area and the LT footprint are outside and far from any such area.

Biodiversity observations identified a number of species of conservation interest in the project area and its vicinity. These include:

• The land turtle (Testudo hermanni), which is quite widespread in the area;
• Bulbous plant species (Colchicus, Crocus, Orphys and Orchidae);
• Terrestrial molluscs with limited distribution (8 species);
• Birds, many of which are associated with the surrounding water bodies

Mitigation measures: The adopted mitigation measures aim to preserve species and habitats of conservation interest in accordance with EBRD Performance Requirement 6.

Small patches of natural forest and forest hedgerows within the PV area will be preserved.

For turtles, the objective of the adopted mitigation measures is to achieve no net loss of individuals and habitats during the construction and operation of the PV park. This will include the collection and relocation of specimens under the direct control of an experienced herpetologist, as well as the restoration of ecological continuity (after construction, the fence will be opened in certain parts).

Restoration is provided for plants, which are all bulbous plants and thus can be easily harvested and restored prior to construction.

For molluscs (snails), the consolidation of scientific information will be undertaken under the control of an experienced malacologist (mollusc expert), as the lack of knowledge about the ecology and distribution of the identified species appears to be the main gap in this field.

Social impacts and mitigation measures

Employment: During the peak construction period, up to 100-150 workers will be employed. After construction is complete, the operation phase will require a very limited number of staff.

Land Acquisition and Relocation: The project will acquire and use state land for the PV park and its substation. Involuntary acquisition of land through an expropriation procedure will be required for the transmission line (about 30 towers), the extension of the Kayani substation and the extension of local access roads. A Resettlement Framework was prepared and will be expanded into a Resettlement Plan before the land is acquired, and will then be implemented to ensure compliance with national legislation and EBRD Performance Requirement 5.

Concerns: Noise and traffic are the main concerns expected during the construction period. This will only be a problem along access roads and the transmission line, as the PV site is far from any houses.

Entertainment and tourism: The Project site and its vicinity do not offer any special interest for entertainment or tourism activities. Poaching or illegal hunting is practiced in the area, which is a risk for workers to manage.

Public Health: The construction and operation of the project will not produce any health hazards to the surrounding population.

Worker Health and Safety: Prior to the commencement of any construction activity, the contractor shall prepare specific Health, Safety and Environmental Management Plans. Cultural heritage: Palaeolithic stone tools were found in the Project area during the commissioned environmental and social examination. Before construction, an archaeological survey will be organized.

Resettlement Framework