WB Snapshot of June 2013 in the
Albanian Energy Market
Prepared by Adv. Dr. Lorenc Gordani
The Albania Country Program Snapshot of the June 2013, delivered by the World Bank Tirana Office, regard the keys priority for the energy sector listed “the continue reforming the sector and improving electricity supply”.
Indeed the Albanian Government embarked in 2008, on a major reform of the power sector “including unbundling the state-owned electricity company (separate generation, transmission, and distribution companies), privatizing its distribution and retail supply, and taking steps to liberalize the electricity market”. Firstly during the period 2009 - 2010, the situation improved, but just with the first “combination of drought, harsh winter, and institutional weaknesses in the system once again decreased the security of supply and necessitated significant energy imports, adding a major stress to power utilities and the state budget”.
Therefore, the country has to reduce the sector’s vulnerability to changes in rainfall and climate with the diversifying the sources of energy supply. With regard “there was some progress made on improving the security of the energy supply through the construction of several small hydropower plants, transmission network improvements (through the Bank’s SEE Energy Community Transmission Project), and continuing efforts to liberalize the electricity market”. By the other part “operation of the newly constructed thermal power plant, financed by the EBRD, EIB, and World Bank, was delayed due to technical problems with off-shore installations”.
In the given framework the report, mention that the World Bank Group’s will continue extensively to support the energy sector like in the over past years. Furthermore, in the conclusion is also remember that “major further efforts are needed to restore the sector’s financial viability, enhance the security of supply, strengthen market rules, and maximize revenue management”. The report also stress that in above framework the Bank Group in coordination with other international financial institutions, will continue to be “engaged in a dialogue with the Government to prepare and support a comprehensive sector recovery and reform plan”.