Temporary Thermal Asset Project

Korporata Elektroenergjitike Albanian (KESH) is the producer and public supplier of 75% of electricity in Albania.

Through VKM No. 757, dated December 21, 2021, for “Some changes in VKM No. 620, dated October 22, 2021”, through which the Government of Albania authorizes KESH sh.a., in accordance with the needs and opportunities that will be presented, to turn to the international market to temporarily (1-2 years) rent assets additional thermal generators, which can be easily installed and connected to the Energy Transmission Network in Albania.

Based on the implementation of this decision, the company on 05.01.2022 has published, in accordance with the provisions of VKM, a Call for Expressions of Interest for leasing a thermal generating asset.

The need for these additional generating assets in the Albanian system and to be used by KESH sh.a. came as a need of the company to meet (i) the obligation for public service established through VKM no. 757/2021 as well as (ii) the situation caused by emergency conditions in electricity supply and international energy markets.

The company KESh sh.a. produces electricity from the use of the Cascade on the river Drin, generation 100% based on the use of water, which represents the most environmentally friendly production but which is entirely dependent on hydrological and meteorological conditions.

As a result, in different years the company KESh sh.a. fails to produce energy according to its forecasts, as a result of dry hydro years or produces more energy in a period of the year than is necessary to be consumed and possible to reserve in water basins this in wet years.

As a result, the Republic of Albania, year after year or in seasons within a year, is facing the need to import energy to cover the supply of end customers and the local consumer market.

The main instrument of managing the effects of a generation based on 100% hydro production, is the availability of a thermal generating asset, as a tool that does not depend on hydro conditions and that helps to manage the hydro reserve with its production. Such assets also constitute means of guaranteeing security of supply.

At the end of the procedure published by the KESH company, a contract was reached for the lease and operation and maintenance of a thermal generating asset, which will be located in the area of ​​Triport, Vlore, near the Vlora TPP, with an installed capacity of 110 MW, which uses as fuel for power generation Heavy Fuel Oil and Light Fuel Oil as a catalyst.

The asset consists of two floating vehicles, which move on waterways through sea transport and will be connected to the electricity transmission system of the Republic of Albania, at the 220 KV substation located at the Vlora TPP, about 800 meters away. The vessels are expected to arrive in Albanian waters in August 2022.