January 19, 2018

by AEA in News

Energy Community opens dispute settlement procedure against Albania, Bosnia and Herzegovina and Ukraine

The Energy Community Secretariat initiated ex officio preliminary dispute settlement procedures against Albania, Bosnia and Herzegovina and Ukraine for the lack of unbundling of the countries’ electricity distribution system operators. In its Opening Letters, the Secretariat takes the view that the three Contracting Parties fail to comply with their obligations under the Energy Community Treaty by (completely, partly or incorrectly) not having transposed the unbundling requirements of the Third Energy Package into national legislation and not having taken measures to implement legal and functional unbundling of their national electricity distribution system operators in practice. The electricity distribution system operators of the three countries still have fully integrated legal and functional governance structures for electricity distribution and supply.

Unbundling of distribution system operators is one of the central elements of electricity market liberalisation and has been obligatory in the Energy Community since 2015. Only when separated from other segments of the energy supply chain can distribution system operators act independently and consumers benefit from greater choice of electricity supply companies, which in turn offer improved services at a fair price.

Interested parties may be granted access to the case file and may submit written observations on the present case. All requests for information should be addressed to the Deputy Director and Legal Counsel at [email protected] or +43 1 535 2222 24 and should make reference to the relevant case number.

October 17, 2017

by AEA in News

Fier and Lushnja, the main destination for photovoltaic parks in Albania

The Ministry of Infrastructure and Energy in Albania has announced on Monday that it has received 10 new expressions of interest for the construction of photovoltaic parks in the country.

The requirements of various companies for the construction of these plants have been numerous throughout the summer after the approval of tariffs that the government will apply. The price of 100 euros per MWh for the purchase of electricity and various support schemes has caused many to run after the renewable resources.

Although so far, all requests have come for solar photovoltaic plants and none for the Wind Farm plants.

Fier and Lushnja areas have also received the most numerous applications, 5 only in the latest announcement, but added dozens of other requests since August. Along with the high level of solar irradiance supply throughout the year, and good flat terrain is a factor that has caused Myzeqeja Region to emerge in the demands of private investors.

In the Darëzezë area in Fier region, company SOLAR RENEWABLE ENERGY seeks to utilize 3.6 hectares of land to install a 2MW plant. The value of the investment amounts to 1.7 million euros.

Even in Seman Fier region, the company “3AD Energy” wants to use 2.34 hectares to set up a 1.75 MW photovoltaic park. The investment here amounts to 2.3 million euros.

In Lushnja region, “Plug” area, a temporary joint venture of three companies seeks to invest 3.9 million euros. This joint venture has asked the MEI to use a 10-hectare surface to install a 5MW power plant.

Again in Lushnja region, the temporary association of companies “FAVINA 1” SH.A. and “ARTYKA 2” SH.PK, has expressed the interest to build a 2MW photovoltaic park. The investment in the region thus adds an additional value of 2 million euros.

The company “Favina” wants to invest 2 million euros in Fier, to set up an 8 hectare plant of 2 MW.

Again the company “Favina 1” wants to repeat the same investment in the Korca region. In Korça, a similar investment is required by the companies “HIDROCENTRALI QARR & KALTANJ”, as well as “REJ” sh.a.

In Pilur of Himara region, the company “Max Energy” wants to utilize 3 hectares of land to install a 2 MW photovoltaic park. This investment will reach the value of about 1.92 million euros.

In Durres, Solar – Expert Society wants to utilize 2.5 acres of land to set up a 1.98 MW plant with an investment value of 2.7 million euros.

The Solarium Society wants to build a 1.99 MW photovoltaic park in Vora near Tirana, utilizing 2.53 hectares of land. Here, too, the investment amounts to 2.7 million euros.

The total investment for this block of interest expressions published by the Ministry reaches 23.2 million euros and will increase the country’s power capacity by 22.7 MWh.

August 31, 2017

by AEA in News

Why Albania is THAT important to the Balkans

A couple of weeks ago, Director of IN-VR, Chryssa Tsouraki published an article on Albania’s importance to the Balkans region that went viral: “Albania is far too important for Europe’s energy security to be ignored or even underestimated. Some quick facts about Albania to familiarise yourselves:

– Patos Marinza: The largest oil field in Europe, operated by Bankers Petroleum, Official Sponsor of Balkans Petroleum.

– Delvina Gas Field: a proven gas condensate field. It lies on one of the largest gas structures in southeastern Europe

– TAP:Trans-Adriatic Pipeline will start bringing natural gas from the Caspian Sea to Europe in 2020. Albania has recently formed Albagaz to handle the transmission and distribution of TAP natural gas in the country and its neighbours. IAP is another fascinating Gas project to watch out for.

– Shell’s already invested: in Shpirag-2 and 3, with some very encouraging results.

If you are wondering how you could get involved in Albania, other than obtaining an exploration license, here are some great opportunities still available to a wide range of service providers:

Offshore and onshore oil and gas exploration and production equipment and services
Gas pipeline and Gas station equipment
Oil pipeline equipment (transportation from oil fields to oil terminals and refineries)
Oil storage equipment and underground gas storage equipment
Oil and gas terminal products

Besides its prolific proven oil and gas resources, Albania is a great place to do business in. Led by the wonderful Dorina Cinari, EITI is monitoring all energy activities and makes a great partner to the Ministry of Energy and Industry (MEI).
The MEI has shown incredible stability and progress and has received increased interest from IOCs since we first met in 2012.
Dritan Spahiu, former Director at the MEI, currently on a new powerful role within the state-owned Albpetrol, has been a cornerstone in these efforts.
The entire MEI cabinet and the AKBN have been working really hard to attract foreign investors by continuous education, favourable licensing terms and excellent staff for the IOCs to work with.

I personally view Albania is one of the most promising (yet very under-explored) regions in terms of oil and gas exploration and production, and I’m sure we haven’t seen its full potential yet. There is just so-much-more we should expect from Albania.

Have you visited the MEI or its subsidiaries yet? You will be overwhelmed by the kindness of its people, making them one of the most professional and active Ministries I’ve had the pleasure to work closely with.

Balkans Petroleum and IN-VR Oil & Gas are proud partners of the Albania Energy Association.

So yes, Albania is THAT important to Balkans Petroleum, and we are looking forward to hearing more about potential changes (if any) in the MEI and welcome them at Balkans Petroleum!

Even if there will be post-election changes in the MEI and its affiliates or not, one thing is certain; Albania is open for business.”

If you would like to meet with Bankers Petroleum, the Ministry of Energy and Industry, AKBN, Albpetrol, Abkons, Shell and many more important Albanian leading organisations, secure your place at the Balkans Petroleum summit, taking place 3-4 October at Royal Olympic Athens.

February 15, 2017

by AEA in News

Pennine signs Velca Block PSA, anticipates into Albania’s energy industry.

“Pennine” is pleased to announce that it has signed a Production Sharing Agreement (“PSA”) with Albpetrol Sh.A (“Albpetrol”) for the exploration and development of the Velca Block in Albania.

The finalized PSA contains a license agreement signed by Pennine, Albania’s Ministry of Energy and Industry, and Albpetrol, the country’s state-owned energy firm, for a six(6)-year exploratory lease-convertible to a 25-year production lease, upon discovery of oil and/or natural gas accumulations.

“This is a very exciting day for Pennine. Albania has a long history of oil and gas development dating back nearly a century, and Pennine is excited to bring its expertise to this region” says Chief Executive Officer N. Desmond Smith.

“Albania has mature energy infrastructure, established legislation and regulations, and a recent history of significant foreign investment for the development of its energy sector,” adds Mr. Smith. “We look forward to working in the Republic of Albania, providing value to Pennine shareholders, and bringing prosperity to the people of Albania.”

Pennine intends to initiate a Technical Report in the next 60 days, and with existing data, identify potential drilling targets within the Velca Block.

Pennine is currently working with industry experts from Albpetrol and the Ministry of Energy and Industry in an advisory committee, with Pennine acting as operator.

“Our understanding and experience with Albania has enabled us to develop a partnership with the Albanian government and Albpetrol through a new production sharing agreement. We believe this agreement provides a balanced risk-and-reward contract for the exploration and development of the Velca Block-and, we hope, many other opportunities in Albania,” says Pennine chairman Richard Wadsworth, who led Bankers Petroleum Ltd. in re-developing the Patos Marinza oilfield as its president from 2004 through 2008.

“We look forward to a seamless integration of Pennine into Albania’s oil and gas exploration and development landscape.”

The PSA consists of an Exploration Phase and a Drilling Phase. Under the Exploration Phase, Pennine and Albpetrol will conduct an examination of all currently existing geological, geophysical and well data on the Velca Block, and conduct any processing or re-processing of data to select drilling targets. The Drilling Phase will consist of a commitment to drill a minimum of two (2) wells, to a minimum depth of 2,500 metres.

Pennine will recover all exploration and development costs from 90% of the net operating revenue, after the state’s 10% royalty tax, then subject to an R-factor revenue sharing with Albpetrol, ranging from 2% to 15% of net operating revenue, depending on the multiple of cost recovery to the project. After payout of all costs, the interest in the revenue stream is shared, with 50% earmarked for the Albania Ministry of Energy and Industry and 50% for the participants of the PSA (a 100% working interest before payout and a 50% working interest after payout).

Main terms and conditions of the Velca Block PSA were signed in February 2016. Pennine and Albpetrol agreed in April 2016 to the terms of the PSA and submitted the document to Albania’s Ministry of Energy and Industry for approval. Pennine reviewed the License Agreement, an integral component of the PSA, in December 2016.

In connection with this transaction, Pennine will pay a finder’s fee to an arm’s-length entity through the issuance of up to 7,000,000 common shares subject to TSX Venture Exchange policy.

August 29, 2016

by AEA in News

Wang Yi Holds Talks with Foreign Minister Ditmir Bushati of Albania

On August 25, 2016, Foreign Minister Wang Yi held talks in Beijing with visiting Foreign Minister Ditmir Bushati of Albania.

Wang Yi expressed that Albania is a traditional friend of China. It made historic contributions to recovering the lawful seat of the People’s Republic of China in the United Nations back in the days, which the Chinese government and people bear deeply in mind. China and Albania have built a profound friendship featuring mutual trust and mutual support since the establishment of diplomatic relations 67 years ago. In recent years, the two sides have conducted close high-level exchanges and enjoyed firm political mutual trust. China is willing to work with Albania to earnestly implement the important consensus reached by leaders of both countries, give full play to bilateral cooperation mechanisms in related areas, advance the in-depth and substantial development of bilateral relations, and benefit the two peoples.

Wang Yi noted that both sides should boost high-level exchanges and consolidate political mutual trust. China appreciates Albania for its long-term and valuable support on issues related to China’s core interests and major concerns, and respects Albania’s choice of development path that is based on its national conditions and people’s will. Both sides should deepen practical cooperation and enrich the connotation of bilateral relations. China is willing to speed up the docking of national development strategies with Albania, substantially push forward practical cooperation in various areas including infrastructure construction, energy, industrial parks, agriculture and others, and strive for new breakthroughs in major project cooperation between the two countries. It is hoped that the Albanian side can provide convenience for Chinese enterprises to participate in Albania’s construction. The two sides should intensify people-to-people and cultural exchanges, advance cooperation in such areas as culture, education, tourism and local affairs, and offer more convenience for personnel exchanges, so as to facilitate the connection of the two peoples’ hearts.

Wang Yi stated that cooperation between China and 16 countries in Central and Eastern Europe (CEE) including Albania has grew out of nothing and expanded from small to large, setting a model for sub-regional cooperation. As the “16+1 cooperation” gradually enters into the mature period and the harvest time, China is ready to, together with the 16 CEE countries, push the “16+1 cooperation” for more tangible results, assist the European integration process, and play a constructive role in the development and prosperity of Europe.

Ditmir Bushati said that China has rendered precious support and assistance to the economic construction and social development of Albania for a long time, to which Albania offers deep gratitude. Albania treasures the traditional friendship with China, and always firmly adheres to the One-China policy. Cooperation in various fields between the two countries in recent years has achieved positive outcomes, presenting huge development space in the future. Albania is willing to deepen cooperation with China in such areas as transportation, tourism, education and people-to-people and cultural exchanges, support the “Belt and Road” initiative proposed by President Xi Jinping, and provide favorable conditions and convenience for Chinese enterprises to enter Albania. China, as an important cooperative partner of the “16+1 cooperation”, has played a significant role in regional integration process. Albania is willing to enhance coordination and cooperation with China in international and regional affairs. It is hoped that both sides can join efforts to advance bilateral friendly relations to continuously achieve more outcomes.

Both sides also exchanged views on international and regional issues of common concern.

August 9, 2016

by AEA in News

TAP says construction of pipeline’s Albanian section on track

The Trans Adriatic Pipeline (TAP) AG has announced that the construction of the pipeline on the territory of Albania is progressing without delays.

TAP AG tweeted that 87.5 percent of access roads and bridges in Albania have already been upgraded.

TAP’s route through Albania is approximately 215 kilometers onshore and 37 km offshore in the Albanian section of the Adriatic Sea. It starts at Bilisht Qendër in the Korça region at the Albanian border with Greece, and arrives at the Adriatic coast 17 km north-west of Fier, 400 meters inland from the shoreline.

In the summer of 2015, TAP started the construction and rehabilitation of access roads and bridges along the pipeline’s route in Albania. The work is expected to be completed during 2016.

TAP project envisages transportation of gas from the Stage 2 of development of Azerbaijan’s Shah Deniz gas and condensate field to the EU countries.

The 870-kilometer pipeline will be connected to the Trans Anatolian Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

August 3, 2016

by AEA in News

Greece, Bulgaria ink IGB gas pipeline, LNG terminal agreements

Athens is turning to Sofia in an attempt to re-establish its position in the region, top policy expert tells New Europe.

Greece and Bulgaria agreed to boost energy security in the Balkans in the framework of the European Union, during Greek Prime Minister Alexis Tsipras’ visit to Sofia on August 1.

Tsipras met with his Bulgarian counterpart Boiko Borisov and President Rosen Plevnelev. Within the context of the third high-level cooperation council between

Greece and Bulgaria, they signed a series of bilateral agreements, including the construction of the Interconnector Greece-Bulgaria (IGB) gas pipeline and the creation of a liquefied natural gas (LNG) terminal near the northern Greek city of Alexandroupolis.

“Bulgaria is probably Greece’s closest partner in the Balkans, but more by reflection and less as a result of a strategic plan. There is potential in bilateral relations, especially given the ‘energy connection’, but till nowadays we haven’t seen anything substantive,” Constantinos Filis, director of research at Institute of International Relations, told New Europe on August 2.

“But given the difficulties with Albania, FYROM and the problematic environment with other Balkan states of the Balkan corridor – as they agreed to isolate Athens in cooperation with Vienna – Athens is turning to Sofia in an attempt to re-establish its position in the region. But the Bulgarian government due to its bureaucracy and corrupted mechanisms cannot be trusted in full,” Filis said, adding that in the past, decisions have been overturned without any justification and consultations are usually complicated.

Meanwhile, following the rapprochement between Russia and Turkish, the Turkish Stream gas pipeline, which would transport gas from Russia to Turkey and Greece via the Black Sea, could be revived. Asked if Turkish Stream, which is also now called South European Pipeline, would have a landfall in Bulgaria, Filis told New Europe that Bulgaria is very much attached to the West and especially the United States and therefore it will be Russia’s last resort if the latter chooses to proceed with this project.

“In the case of Turkey, it seems that both states attempt a restoration of ties, which is a positive sign for energy cooperation. But again, SEP’s fate will be defined by other factors like: securing markets, funding and EU’s political consent and making sure that Russian economy can cope with it,” Filis said.

In addition to energy, Tsipras and Borisov also stressed the need to accelerate construction of a railway link from Alexandroupolis to the Black Sea resort of Burgas as a way to boost trade between the two EU member states.

Tsipras said relations between Athens and Sofia are “a model of constructive cooperation for the promotion of peace and stability in the broader region”.

The Greek premier also said that the two Balkan countries remain pillars of security and stability despite the challenges facing the two countries on the EU’s external border.

June 3, 2016

by AEA in News

IENE workshop 2nd : Developing Albania’s Hydroelectricity Potential

Speaking at the second session of the workshop IENE to exploit the hydroelectric potential of Albania, Executive Director of IENE Mr. Kostis Stambolis alleged a position that as it further develops the electric system of the country, mainly based on hydropower, will need the support of the Greek electrical system in order to achieve uninterrupted operation. A support will be based both on bilateral electricity exchanges and technical assistance and investment assistance can offer PPC.

Based on data presented by the Executive Director of IENE, and based on wide reference study has been prepared, the SE Europe Energy Outlook 2016, the total output of Albania electricity will double by 2030, from current levels of 4200 GWh in more from 8,100 GWh .With the vast majority of this electricity production come from hydropower projects by exploiting the confirmed potential of 4500 MW compared to 1460 MW currently in use.

Through presentations and speeches of representatives of the state-owned electricity corporate KESH, the Albanian energy regulator, Dr. Abaz Aliko, as Director of the Energy Department’s Energy Ministry of Policy, Agim Bregasi and Mr. Lorenz Kosta, Director of Transmission of Electricity OST and Mr. Perparim Kalo, Director known legal office Kalo & Partners gave dynamic course and very substantial investment potential of hydropower sector in Albania.

The director of the address hydroelectric PPC Mr. John Argirakis made a comprehensive presentation and valuation of the Company’s activities including large and small hydroelectric projects.

A series of presentations by PPC executives but also by the company TERNA ENERGY by Mrs. Yulia Tsiknakis and from the company Aktor from Mr. John Lefas. The workshop IENE completed with an extensive panel discussion which was coordinated by Mr. Perparim Kalo.

Source: AEA

June 3, 2016

by AEA in Events, News

IENE Workshop in Tirana to Examine the Development of Albania’s Hydroelectric Potential

A one-day workshop on the utilization of Albania’s significant hydroelectric potential is convened by the Institute of Energy for SE Europe (IENE) in Tirana on June 3, 2016. This special IENE event, organized in cooperation with Albanian counterparts and under the auspices of the Albanian Ministry of Energy and Industry and of the Greek embassy in Tirana, will examine the further exploitation and expansion of Albania’s hydropower sector and propose a viable strategy for sustainable development.

With the participation of more than 120 Albanian, Greek and international energy companies, work began this morning the work of the conference organized by the Institute of Energy for SE Europe (IENE) in Tirana to consider further exploitation of large hydropower potential of Albania. The workshop IENE entitled “Development of Albania’s Hydroelectric Potential” is supported by the PPC, numerous delegation which participates in the work with specialized lectures and presentations, and the Federation of Greek Enterprises in Albania.

Opening the work of the Workshop Chairman of IENE Mr. John Chatzivasileiadis referred to the important role that Albania due to high hydroelectric potential, the creation of a dynamic regional electricity market can play. The chairman of IENE explained the very good cooperation that had IENE with all the Albanian entities in the organization of the event which, as the K.Chatzivasileiadis, embraced the initiative of the IENE contributing with their knowledge and experience.

On the same wavelength was and the speech of Greek Ambassador in Albania Leonidas Rokanas, while Albania’s Energy Vice Minister and Industry Mr. Gesim Musabelliu after having welcomed the initiative of the IENE reported in detail in the country’s energy sector giving new emphasis on comprehensive hydropower infrastructure, he said.

More specifically Mr. Gesim Musabelliu mentioned in the new under construction total hydroelectric power units include the 400 MW, including small hydropower plants and two large in the northern part of the country, made mainly from foreign investors but also by the state electricity company KESH. Also the Albanian energy minister informed the audience about the new, under construction, electricity 400 KV interconnection line between Albania and Kosovo are expected to be completed until the end of the year, will significantly enhance the security of energy supply of Albania. Finally, among other Mr.Musabelliu, he emphasized the role of international investors in the hydroelectric project area because only with constant foreign investment can develop this sector because of the many great resources available.

In his speech at the workshop IENE Chairman and CEO of PPC Mr. Manolis Panagiotakis, having hosted a number of key elements for the organization and PPC activities, referred to the role of the Corporation in the SEE region. As he explained Mr.Panagiotakis is within this wider role in supporting this initiative of the IENE wished simultaneously to enhance the possibilities for cooperation with Albanian actors in the electricity sector. Meanwhile, the president of PPC underlined the possibilities sees an investment activity in PPC hydroelectric Albanian area. Completing the work of the First Session of the workshop Ms. Alexandra Psyrri, as.director of finance and investor relations PPC (Public Power Corporation SA), explained the organizational structure and mode of operation of business with special reference to new investments and under construction units.

Source: AEA

February 23, 2016

by AEA in News

Albania-Macedonia power link wins €12m grant

A project to transfer energy between Albania and Macedonia has been granted funding totalling €12 million (£9.3m).

The EU is providing the cash to support the construction of the first electricity interconnector between the two countries as well as the introduction of grid efficiency improvements.

The project is part of the European Commission’s initiative to establish an East-West power transmission corridor between Bulgaria, Macedonia, Albania, Montenegro and Italy.

Christian Danielsson, Director General for Enlargement at the European Commission: “Building this transmission line will improve the security of supply and the stability of the two countries’ power systems.

“It will also help to develop a regional electricity market in which production and transmission capacity can be managed throughout the Western Balkans, rather than national basis. This will reduce waste and excess capacity.”