KESH to Start Energy Imports Using WB Fund
Albanian Daily News
Published August 22, 2017
The World Bank authorized the Albanian Energy Corporate (KESH) to use Euro 22.4 million loaned fund to import energy.
Right after the authorization, KESH officially appealed private companies to present their bids.
KESH wants to buy 126.000 MW of energy from September 1st to 30th. However, this includes just one part of the import that is needed for total consumption.
According to sources, the Energy Distribution Operator needs 400.000 MW for September, the same amount they needed in August. The rest will be bought by OSHEE.
In the past two months, July and August, Albania has imported more than 50 million EUR of electricity to cover the low domestic production, dictated by drought.
The entire bill so far has been covered by the OSHEE funds, some of it in the next months will be paid by KESH.
In 2014, when the government started the program for renewing the energy sector, they signed for a 150 million USD loan with the World Bank to fund the reform. Part of this was also a 23 million EUR loan to buy energy in extraordinary situations, such as drought.
Albania has faced a prolonged drought in recent months and this situation has lowered the water level in country’s main hydro power plants. Albania is largely dependent on the energy produced by water resources and for this reason the energy operators have been forced to launch import of energy to meet consumers’ demand.
Only a few days ago, the government also approved the changes to the budget for 2017, increasing the funds for energy imports. This was the government’s move at a time when the energy operators have had high costs due to the loans as well as previous imports. Therefore, government allocated Lek 3 billion more for this sector in order to guarantee uninterrupted energy supply in this period when the consumption is still high.