The government has announced the approval of two new solar panel parks and an agreement on two gas fields as part of a continued bid to diversify the country’s energy sector.
Albania currently generates almost 100% hydropower, but as it is unable to store it, much is sold, and then fossil energy is purchased at a higher price from neighbouring countries.
Since the Russian invasion of Ukraine and pushes to reduce dependence on energy from the east, Albania has moved to gasify and explore renewable and sustainable energy sources.
Energy and Infrastructure Minister Belinda Balluku addressed journalists on Wednesday (8 June) to announce the plans.
“Today, we have approved two photovoltaic parks which will be built in the Korca region, each of 20 MW (megawatts) without support from the Albanian state as they will be totally private investments. It is an investment from local entities but coincides with a very difficult situation in terms of electricity,” she said.
“Another decision is the draft decision for the approval of the hydrocarbon agreement with the production division for the development and production of hydrocarbons in the natural gas source in Frakull and Povelce.”
She added that both gas wells were owned by state company Albpetrol but would be transferred to private entities. However, the government will invest some $500,000 (about €475,500)during the exploration phase, “an important investment in the condition of crisis,” Balluku told the media.
In May, the Delvina Gas Company applied to the state to continue explorations of the Delvina Field for natural gas. It is believed the region has a production capacity of between eight and ten thousand normal cubic meters a day.
The Delvina Block covers an area of 234 square kilometres and is relatively unexplored. According to their website, the company’s goal is “drilling more wells to increase the amount of gas produced.”
Asides from diversifying energy sources, Albania is seeking to position itself as a gateway to the EU for selling natural gas. Floating gas terminals in Vlora are set to work in conjunction with Vlora TPP in a project spearheaded by US company Excelerate Energy Inc.
Also in May, a memorandum of understanding was signed between US company Linden Energy, Bulgarian energy giant Overgas, and Albanian state-owned company Albgaz.
The agreement could see Overgas receive natural gas from the as-of-yet non-functional Vlora TPP.
(euractiv.com, June 13, 2022)
