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.

July 26, 2016

by AEA in News

New Power Line to Link Albania to Macedonia

A German bank loan of 50 million euros opens the way for the construction of 126km high voltage 400kV line from Elbasan in Albania to Bitola in Macedonia, designed to integrate the energy trade in the region.

Albania’s government on Tuesday will sign an agreement for a loan of 50 million euros with the German state-owned development bank KfW, that will open the way for the construction of a high-voltage 400kV interconnection line with Macedonia.

The project that in Albania will start in Elbasan and will end in Bitola in Macedonia has been mulled for a long time between the two governments.

The total cost is estimated at 70 million euros. Besides the loan from KfW, funds will come from the Albanian Transmission System Operator, OST, and from the EU.

Once financial cover for the project is arranged, work in the field is expected to start at the beginning of 2017 and finish in 2018.

The new energy line with Macedonia comes after Kosovo and Albanbia finished another high-voltage 400kV power line that will enable higher levels of energy exchange between mostly lignite-powered generation capacities in Kosovo and the hydro-generation capacities of Albania.

Pajtim Bello, chairman of the Supervisory Board of OST, told BIRN that the construction of the line with Macedonia will complete Albania’s plan to connect itself with its neighbours by land.

“After the high inter-connection voltage lines that we built with Montenegro, Greece, and Kosovo, Macedonia is the last one. After that, Albania will finally able to transmit and receive energy from all over the region,” he stated.

Bello said the the project was important in terms of integrating regional systems of electricity, increasing energy security and enabling Albania and Macedonia to develop an energy market.

The project also creates new energy opportunities for the south of Albania. “We aim to stimulate the Fieri region – a big local energy consuming area – to returning to an energy production region. The interconnection line will enable access for energy production through gas, wind, and sun,” he said.

In December 2015, when the project was first floated at a roundtable of officials of the two countries, the Albanian Energy Minister, Damian Gjiknuri, said the high-voltage line with Macedonia would not only connect up the regional energy market but create opportunities for energy transmission to Italy as well.

“The line will open up an opportunity for a connection by an underwater cable with Italy and the European Union,” he stated.

June 8, 2016

by AEA in News

Greece to launch tender for power grid operator end June

Greece’s main power utility will formally launch the sale of a stake in its power grid operator ADMIE in June, a step towards opening up its electricity market and complying with the terms of its international bailout.

PPC controls almost 95 percent of the Greek retail market and must reduce this to below 50 percent by 2020 under its third bailout.

Greece has also promised to sell up to 24 percent in ADMIE, a grid of more than 11,000 km of high-voltage power cables which is fully owned by PPC.

PPC’s Chairman and Chief Executive Manolis Panagiotakis said on Wednesday the tender process is expected to start at the end of the month and conclude in October. He said however that it was important that it remained under state control.

“The launch of the tender will be approved by the general assembly (on June 30) and will be published a few days later,” Panagiotakis told Reuters on the sidelines of a press briefing.

“We hope that it will be concluded by mid-October and that there will be interest from investors.”

Earlier, he said that it was important that PPC received ‘just compensation’.

Greece has tried to sell PPC before. Soon after winning parliamentary elections, Greece’s leftist Syriza government froze the process, but later pledged that to keep the asset at least partly state-controlled.

Panagiotakis called conditions “adverse and unprecedented”.

Owed about 2.5 billion euros ($2.8 billion) in unpaid bills after Greece’s deep recession, the company has announced a 15 percent tariff cut for customers who pay consistently on time, a move which may crimp revenues.

Panagiotakis could not estimate the exact impact and said it could be ‘negligible’.

However the company was optimistic that collection of overdue payments would improve overall and that state arrears would be settled after the disbursement of fresh bailout loans expected this month.

ADMIE planned to invest in Albania’s electricity market, he said, and would also revise costs and take investment and business initiatives.

PPC reported a 10 percent rise in first-quarter core profit, helped by energy savings from declining oil prices and lower provisions for unpaid bills. It plunged into loss last year as it set aside hundreds of millions of euros to cover the unpaid bills. ($1 = 0.8793 euros)

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