THE ALBANIAN ENERGY SECTOR ITS POTENTIAL AND INVESTMENT OPPORTUNITIES SUZANA GUXHOLLI PRIME MINISTER ECONOMIC ADVISER

ALBANIA Albania is located in the western part of the Balkan Peninsula, at the eastern coast of Adriatic and Ionian seas. Population resident: 3.6 million Area: 28 748 km2 Capital: Tirana Average GDP growth: 6% Inflation rate: 3% Unemployment rate: 13% Nje pershkrim i shkurter i te dhenave makroekonomike te Shqiperise, me theks ne stabilitetin makroekonomik Economic growth beyond 6%; National Income per capita about USD 4,000 USD in 2010; Inflation 3.5%; Foreign Direct investments have reached over 1 Billion USD in 2010. Unemployment reduced to 13.2 percent; High export growth rate of 25 percent/per year in the years 2006-2010; Total Primary Energy Supply: 2.4 Mtoe Total Final Consumption: 2.064 Mtoe Energy Consumption: 0.68 toe/capita Electricity Consumption : 1906 kWh/capita

ALBANIAN ENERGY SOURCES Hydro-Power Oil and Gas Coal Mining Wood (Biomass) Renewable Energies (Solar, Wind and Geothermal) Besoj se ketu mund te thuhet se Shqiperia eshte shume e pasur me burime natyrore, ujra, minerare, dite me diell, biomase etj…, Duke bere nje hapje per te gjithe prezantimin, dhe duke shprehur ate qe do te trajtosh ne prezantimin tend

Government Policy on Energy Opening up the energy market: Unbundling the Former Albanian Electrical Corporation in three distinct companies: Generation, Transmition and Distribution; Successful privatization of Distribution; Appliance of EU-based Energy Market Model (Liberalization of the energy market) Full appliance of the core EU Energy Directives; Mining Sector: fully opened to Foreign Investors (FI) No restriction, no discrimination, full protection of FI, full Government support; “First to come, firs to serve” -- notion applied;

Government policy on Energy Attracting investments on Renewables: Hydroenergy through successful PPP model and in, Solar, Wind Biomass--through “Fast Track Licensing” procedures;(AIDA/QKL) Enhancing transparency, reducing bureaucracy through “One-Stop-Shop” model National Licensing Centre - QKL (www.qkl.gov.al)

Distribution of existing HPP HYDROENERGY IN ALBANIA The hydrographic territory of Albania has a surface of 44,000 km2 or 57% more than the national area of our country. The average height of the hydrographic territory of Albania is about 700 m above sea level. The average perennial total inflow of Albanian rivers is about 1,245 m3/s. All our rivers convey to the sea about 40 billion water cubic meter/year. Sektori i energjise elektrike ne Shqiperi i eshte nenshtruar nje reforme te thelle qe prej vitit 2006. Tregu i energjise elektrike ne Shqiperi eshte i liberalizuar plotesisht: eshte liberalizuar prodhimi i energjise elektrike, tregtimi dhe transmetimi i saj (thekso third party access) Eshte ndare prodhimi nga trasnmetimi dhe nga shprendarja, kjo e fundit eshte privatizuar me sukses Ne vitin 2006 ne kemi miratuar ligjin per Koncesionet , i cili i ka hapur rrugen investimeve te medha ne sektorin e prodhimit nepermjet formules se PPP. Ky ligj eshte ne perputhje te plote me praktikat me te mira boterore per trajtimin me koncesion te objekteve apo pasurive te ndryshme. Ky ligj, per sektorin elektrik, jo vetem qe siguron perzgjedhjen e projekteve energjetike me te mira, per nje shfrytezim sa me optimal te burimeve, por ne menyre te veçante, siguron nje transparence te larte ne realizimin e garave, ku mund te marrin pjese pa dallim kompani vendas apo te huaja. Keshtu, jane nenshkruar rreth 110 kontrata koncesionare, qe parashikojne ndertimin e rreth 300 hidrocentraleve, me fuqi te instaluar prej rreth 1 400 MW dhe qe parashikohet te ndertohen me nje financim prej rreth 3 miliarde Euro. Distribution of existing HPP

HYDROENERGY RESOURCES Albania has huge hydro energetic potential; The total installed capacity is 1,461 MW; The average power production is 4.8 TWh; To date only 35% of Hydro-Energetic potential of the country is utilized ; Total hydro energetic resources are about 4,500 MW; 7

Investment Opportunities Skavica Hydropower Plant: 200 MW expected installed power Located on northern Albania (Drin River Cascade) Vjosa River: 350 MW expected installed power Located in the central Albania Osumi River: 100 MW expected installed power Nje pershkrim i shkurter i ketyre projeteve: thirrje investitoreve te marrin pjese: Garat do te hapen brenda pranveres se vitit 2012. Kuadri yne rregullator eshte transparent, ne nxisim dhe mbeshtesim te gjitha investimet e huaja 8

PETROLEUM INDUSTRY IN ALBANIA Albania is an oil bearing country; The oil production operators in Albania are: ALBPETROL, the State Oil Company Foreign companies The exploration operators are some foreign companies; Oil production is increasing as a result of important investments and new technologies appliance. Shqiperia eshte ne te njeten kohe edhe mjaft e pasur me hidrokarbure, nje pjese e tyre e zbuluar por ka ende rezerva te medha te pazbuluara: Ne total jane 7 kompani qe bejne shfrytezim/ekstraktim dhe 7 qe bejne kerkim ne territorin e Shqiperise. Ne krakasim me vinin 2005 prodhimi i naftes eshte dyfishuar dhe ka arritur ne 850.000 ton ose afersisht 5.5 milion fuci (barrel) Kuadri yne rregullator eshte plotesisht i njejte me ate te vendeve te tjera te BE-se

OIL & GAS RESERVES Total original oil in place: 437 million tons, divided : 78% reserves of sandstone fields 22% reserves of limestone fields Actual proven reserves of associated gas is 3.6 billion m3 Natural gas proven reserves are 22 million m3 Albpetroli do te privatizohet: mund ta permendesh si mundesi per investime

Mining Activity Structure of mining activity today in quantity MINING SECTOR Mining Activity Structure of mining activity today in quantity Shqiperia eshte shume e pasur me minerare. Kuadri yne rregullator eshte ne perputhje me praktikat me te mira boterore legjislative minerare. Parimi i aplikuar eshte “first to come, first to serve” Qeveria shqiptare nxit dhe mbeshtet ardhjen e investitoreve te cilet duan te ndertojne edhe industri perpunimi. Sot Shqiperia ka industri te perpunimit te krom,it dhe prodhimit te ferrokromit.

MINING SECTOR Minerals Reserves in million/ton Chromium 37.3 Copper 52.2 Ferro-Nikel 266.6 Nikel Silikat 102 Coal 712 Torfe 156 Lime stones Unlimited reserves Olivinite 59 Bazalte Unlimited reserves Rezervat e minerareve ne Shqiperi Ne Shqiperi jane prezent kompani si: Tyrex kanadeze Beroner Turke baker Jab Resources krom Hamilton Krom

Chromium Mines Present Geologic Reserves in four regions are as follows: Category B+C1…………….21.8 million tons Category C2 …………….15.1 million tons “ Total : B+C1+C2 …………..36.9 million tons “ Due to the studies have been determined the main directions of the perspective prospecting- Slidet 11-14 kaloi shume shpejt

COOPER Based on the geological conditions of ophiolites position, their morphology, genetic and mineralogical components, etc., are distinguished four main types of copper deposits, as: Hydrothermal-Methasomatic and Volcanogenic-Sedimentary Deposits, as: Munella, Qaf-Bari, Gurthi, Rruga Rinise, etc. Main type Volcanogenic-Hydrothermal-Methasomatic Deposits, as: Tuçi, Spaci, Derven, Paluca, etc. Volcanogene-Sedimentary Deposits, as: Munella, Gjegjan, Palaj, Karma, Rubik Metasomatic Sulphide Massif Deposits, as: Kurbneshi, Golaj, Thirra, Nikoliqi, etc. Copper: 53 million tons with 1.3-2.5% Cu Slidet 11-14 kaloi shume shpejt

NICKEL Devoll (Bilishti, Bitincka, etc) The mineral of nickel in Albania is located mainly in 3 regions: Devoll (Bilishti, Bitincka, etc) Pogradec-Librazhd (Guri Kuq, Cervenaka, etc), (Prrenjasi, Skroska, Xixillasi, Bushtrica) Kukes (Mamez, Trull Surroj, Nome) The nickel is in form of iron-nickel (Pogradec, Librazhd) of a grade of 0.8-1.1 % Ni and in form of nickel-silicate (Devoll, Kukes) of a grade of 1.1–1.4 % Ni.

FOSSIL FUEL SOURCES COAL Coal reserves in Albania are approximately 794 million tons, located in three main regions: Central region, about 86% of reserves; South-east region, 10% of reserves; South region, 4% of reserves. Slidet 11-14 kaloi shume shpejt Coal in general is of lignit type. Calorific value in coal: 2000-5600 kcal/kg Deposits of Coal

WIND ENERGY Annual average wind speed The wind regime in Albania is closely connected with the regime of baric centres, with its position relating to these centres, with the direct influence of Adriatic and Ionian Seas. Wind Energy is a potential possibility for power generation use in Albania. The average speed of wind, throughout the year, is around 4-6 m/s (10 m height) and the average annual energy density of 150 W/m2. Shqiperi po terheq gjithnje e me shume investime te medha ne energjine e eres. Kontratat te nenshkruara arrijne vleren e 3 miliard eurosh, jane licencuar 8 kompani te cilat po vazhdojne punimet Kuadri yne rregullator i percankon si “licenca” proceduren perkatese per kete sipermarrje. Ligji yne per energjine e rinovueshme percakton qartazi “feed-in-taiffs” per te gjitha llojet e energjise se rinovueshme: uje, ere, diell, biomase etj…

Average quantity of sunny days RENEWABLE ENERGY SOURCES Average quantity of sunny days SOLAR ENERGY In Albania, average annual solar radiation is 1500 kWh/m2; Maximal annual radiation is 2200 kWh/m2; The annual sunshine of the whole territory of Albania is about 240-250 days; In Western coastal part and South-Western, the sunshine duration, is about 260-270 days per year. Shqiperia gjithashtu mirepret edhe investimet ne energjine diellore

Total proven reserves on wood resources as fuel is about 6 Mtoe; Wood resources production for 2007, is 215 Ktoe/year; Wood resources are classified in : High forests, which represent 47-50% of the total wood resources; Cropses, which are 29-30% of total wood resources; Bushes, which are 24-25% of total wood resources. Te pergjithshme

The thermal sources with low enthalpy Temperature at depth of 100 m GEOTHERMAL ENERGY The geothermic situation of Albanides presents two directions for use of geothermic energy: The thermal sources with low enthalpy The usage of the depths of the abandoned wells Albania, actually is in the assessment phase of the geothermic energy use potential. Te pergjithshme

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