Electricity sector in Albania to undergo a full reform

Over the next two years, the electricity sector in Albania will undergo a full reform. This is according to a special plan, drafted by the government and recently formalized. “A reform effort began in 2006 with the country’s membership in the Energy Community and was further refined in 2015 with the adoption of a new law on the electricity sector. While the reform has slowed down a little over the last two years, “the government’s experts say. Adding to that, in recent months, the main actors have found the right energies to continue with the sectoral reform. Moreover, it should be noted that the strategic plan examines and implements Albania’s international commitments, especially with regard to the process of membership in the Energy Community and the European Union,” underline the government’s experts. Are these reforms implemented, they should create an organized market in the EU model, which is guided by the principles of being transparent, non-discriminatory and sustainable over a long period of time, based on the formation of a cheap price through competition .

What does this strategic plan in itself mean? “It aims to increase the energy efficiency and renewable energy production capacity in Albania; the establishment of a new system of electricity tariffs; development and establishment of an organized market; as well as the integration of the Albanian electricity market with the wider regional electricity markets and, more recently, the European Union’s internal electricity market. These measures, which could be implemented according to the Albanian government, starting from the very first step, to the division of the Distribution System Operator, the sole and universal supplier of Albania; the establishment of the Albanian Energy Exchanging Society (APEX) and the gradual opening of the retail market, together with the creation of a competitive wholesale market. “This wholesale market, in addition to bilateral trade, is expected to include day-to-day markets as well as a balanced electricity market, whereby price formation is expected to be made on the basis of shortage of goods, competition and investment needs, real economic assessment of electricity, “the experts specify.

The first implementation period kicked off in the fourth quarter of 2018 and expected to continue until the third quarter of 2019, while the second period is from the fourth quarter 2019 to the third quarter of 2020.  Albania’s international commitments will be implemented, especially with regard to the accession process to the Energy Community and the EU.

/Klara Ruci/