EU & WBs / Albania Energy Publication Centre

EU & WBs / Albania Energy Publication Centre

Presentation of Albanian Centre for Energy Regulation and Conservation - ACERC

ACERC is a think tank centre with focus in Albania energy market and its integration on 8th Regional Area & EU IEM. The ACERC mission aim to provide a qualified contribution to the promotion of the liberalization and the effective integration as well as the efficient use of energy resources.

ACERC main activities profiles briefly consists in the release reports, articles and periodicals. In cooperation also with collaborates the offering of the activities that support capacity building of market actors, such as national and regional seminars, trainings and conferences. Initiatives completed by advocating in the energy sector promoting a forum called in Albanian School of Regulation.

For more visit us at the Official Website of Acerc | Albanian Energy Market - AEM Group in LinkedIn

Interconnection Infrastructures in the Mediterranean: A Challenging Environment for Investments

AEL Updates July 2015Posted by Adv. Lorenc Gordani, PhD Sun, July 26, 2015 09:11:42

While the Mediterranean region displays a great diversity of population, languages and cultures, it is as well a place of convergence. Starting with the Euro-Med Conference (Barcelona, November 1995) the economic and financial partnership between European Union and Southern Mediterranean countries has been constantly developed. In this context, energy has been recognized as a pivotal aspect of the Euro-Mediterranean regional cooperation.

The Barcelona Declaration specifically referred to increasing crossborder investments in the regional energy markets in order to support the development of Mediterranean national economies, as well as strengthen cooperation and intensify exchange of experiences among Mediterranean countries. Following the 1995 Declaration, the Barcelona process accomplished progress through several meetings: the Conferences of Athens, Rome and Naples (2003), the Conference of Brussels (2006), the Conference of Limassol (2007), and the Algiers Declaration (2010).

Moreover, in June 2008 the Union for the Mediterranean (UfM) was launched, with the aim to capitalize into a permanent institution the work done and the synergies emerged throughout the Barcelona process. The Mediterranean energy sector has a high degree of interdependence, both for electricity and gas. Constant contacts and strong cooperation among Mediterranean countries is therefore necessary to ensure countries with proper flows of energy, both for commercial use and to guarantee proper security of supply.

Currently, several cross-border interconnections exist in the region. As for electricity, the three Maghreb countries (Algeria, Morocco and Tunisia) are interconnected and further linked with the European Union. As for the Eastern side of the Mediterranean, the interconnected grids of Jordan and Egypt form the South East Pool. The main gas interconnections of the region lay on the South shore - North shore axis. It is foreseeable that diversification of supply will pave the way for more intense transport infrastructures along the East-West corridor.

Current interconnections are not sufficient to guarantee a proper development of the region. Electricity and gas interconnections around the Mediterranean region need to be substantially improved in order to allow an effective and well integrated regional energy market. It should also be considered that investments in energy grids and generation facilities require a medium-to-long term commitment on the part of companies, regulator and the political power, so to create a stable and well governed environment where payback is guaranteed in due time.

Moreover, Mediterranean national energy markets are today at very different degrees of maturity. In the Southern shore utilities are state-owned and operate either based on sp-vertically integrated service providers or using a single buyer model. Most of these utilities are running at high degree of subsidies, which do not provide a right price signal for private investors. Therefore, most of the investments are financed by the state. However, states face increasing difficulties in keeping the current level of subsidies. Reform of the electricity and gas sectors are being discussed in various Southern countries.

Egypt, for example, is currently designing a substantial reform of its electricity sector. The presence of independent regulators is pivotal to guarantee that the reform balances between the needs of investors and consumers, and to subsequently provide investors with a clear framework of rules.

Several initiatives are active in the region to increase investments in the energy sector and enlarge their scope: governments, regulators (MEDREG), TSOs (Med-TSO), operators (Observatoire Mediterraneen de I’Energie, - OME, Res4Med, Medgrid, Desertec - Dii and others), as well as international financial institutions (IFIs). Also, the EU implements a program of financial and technical assistance to the region, called the European Neighborhood and Partnership Instrument (ENPI).

In particular, international financial institutions (such as the European Bank for Reconstruction and Development - EBRD, the European Investment Bank - EIB, the African Development Bank - AfDB and the World Bank - WB) are today in a key position to support energy investments, most notably in infrastructure, provided that appropriate cooperation takes place among the different actors involved. Regulators are among those actors.

Indeed, regulators should dedicate increasing attention to enhance the level of efficiency interoperability and the quality of planning of energy infrastructure. Crossborder infrastructures are crucial to boost the upgrade of internal grids and overcome the actual fragmentation of the Mediterranean energy system. The creation of adequate, integrated and reliable energy networks is a prerequisite to deliver a properly functioning energy market that will enhance security of supply, integration of renewable energy sources, energy efficiency and will enable consumers to benefit from new technologies and a smart use of energy.

Currently, Mediterranean countries are mainly concerned with two priority corridors: the North-South electricity corridor and the Southern gas corridor. These projects should also take into account future energy demand, which is expected to substantially rise. For more find in the here report.

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ACERC publishes the report on unit investment costs for electricity and gas infrastructure, 22 July 2015

AEL Updates July 2015Posted by Adv. Lorenc Gordani, PhD Fri, July 24, 2015 08:07:59

ACER publishes today the report on unit investment cost indicators and corresponding reference values for electricity and gas infrastructure. The report is the result of collaborative work carried out by national regulatory authorities (NRAs) cooperating in the framework of the Agency.

The report contains separate volumes for electricity and gas infrastructure. In electricity, it covers overhead lines, underground cables, subsea cables, onshore AC substations, and HVDC converters. In gas, it cover pipelines, compressors stations, and to a lesser extent LNG and storage facilities. The indicators and the corresponding reference values contained in the report may be used as a reference in the context of the Ten-Year Network Development Plan (TYNDP), to complement the cost information provided by project promoters. They could also be used as a point of reference in the context of the selection of projects of common interest (PCI) and for the development of better informed cross-border cost allocation (CBCA) decisions.

A complementary objective is to provide transparency regarding the levels of costs of infrastructure in the European Union, as well as the changes in these levels, in the structure of the costs, and the role of various factors affecting the costs. For reasons explained in the report, the indicators and the corresponding reference values should be used with caution and must not be regarded as a substitute for the due diligence in each instance of an existing or planned investment in infrastructure.

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Creating a sound environment for energy investments in the Mediterranean region: MEDREG’s recommendations

AEL Updates July 2015Posted by Adv. Lorenc Gordani, PhD Thu, July 16, 2015 18:56:24

The Association of Mediterranean Energy Regulators (MEDREG) published a report providing the vision of Energy Regulators on the current situation of Infrastructure investment in the Mediterranean region. This document maps current and projected interconnection infrastructures for electricity and gas and discusses the current financing challenges, in the absence of an harmonized regulatory framework at regional level. In a context of strong investment needs, one of MEDREG’s key objectives is to advocate in favour of a sound regulatory framework in all 21 member countries. MEDREG works as a facilitator to ensure that all Mediterranean countries establish an independent national regulatory agency both for the electricity and gas sectors.

Through this report, MEDREG aimed at encouraging an active debate among governments, international financial institutions (IFIs), Transmission System Operators (TSOs), multilateral organizations, and the academic world. The Association submitted its preliminary results to a public consultation process, which gathered 37 responses from stakeholders that contributed to improve and clarify the final version of the study. MEDREG is confident that this report can represent a meaningful step to tackle and address barriers to energy investments in the Mediterranean region. The main data in support of this report were kindly provided by MEDREG member regulators.

Click in the photo to download the investment report and here the appendixes.

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Scientific support to energy transition from a European perspective, ACERC Post on: 10 July 2015

AEL Updates July 2015Posted by Adv. Lorenc Gordani, PhD Fri, July 10, 2015 09:12:18
JRC European forum for science and industry

This report presents the main lines of arguments and discussions among the participants of a series of four Round Tables on Scientific Support to Energy Transition from a European Perspective hosted by the Joint Research Centre within its European Forum for Science and Industry between July and December 2013.

Participants from the electricity sector, industry, financial services, consumer organisations and European and Member States authorities held discussions on the key questions outlined below: Integration of renewables: How should renewable energy sources best be integrated into grid and market to make renewable electricity production more responsive to system needs? How and at what costs can the increased need for flexibility of generation and energy demand be provided?

Grid operations: Is the traditional focus of networks well placed to fully accommodate the on-going process of energy transition and to provide the security of supply in a least-cost approach? How to improve cross-border cooperation? What can be learned from existing initiatives of regional and bilateral cooperation between grid operators and regulators? Would common minimum standards for data quality from power plant operators help to create forecasts to optimise regional balancing power markets? Market design: In order to ensure the security of supply, what is the need of coordination in/between Member States for balancing, re-dispatch and storage? How to improve the convergence of renewables support schemes?

Which role could European regional markets play in coordinated scenario building in view of asset optimisation? Financing issues: What are the market-based tools able to create the right conditions for investment in generation, transmission and distribution? Which governance framework is needed to trigger more capital for investments? Which are the interactions between energy and financial markets to be taken into consideration in favour of lower electricity prices to consumers? The report intends to contribute to a better science-based understanding of the challenges for the electricity system created by intermittent energy sources and to lead to further analysis of the current energy challenges including political, economic and technological aspects.

For more find it here below:

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