1. ABATEMENT GHG EMISSIONS SCENARIO FOR ENERGY&TRANSPORT SECTORS Ministry of Industry and Energy National Agency of Energy PhD. Besim ISLAMI Chairman of NAE Copenhagen, on June 29-30, 2004

2. BULGARIA MACEDONIA ALBENIA BOSNIA & HERZRGOVINA GREECE TURKEY UKRAINE HUNGARY SLOVAKIA AUSTRIA POLAND CZEKIA ITALY YUGOSLAVIA SERBIA KOSOVO MONTENEGRO VOJVODINA CROATIA ROMANIA MOLDOVA SLOVENIA

3. Energy Sector Challanges (1990 currancy)

4. Energy Cons. for each sector (kTOE)

5. Elect. Cons. for each sector (kTOE)

6. Primary En. Supply - kTOE

7. Elec. Generation & Import, GWh Elec. Generation & Import, GWh

9. GHG BASELINE EMISSION SCENARIO IN ENERGY AND TRANSPORT SECTOR The software used for development of Energy & Transport baseline emissions scenario is LEAP system which is a computer-based accounting and simulation tool designed to assist policy makers in evaluating energy policies and developing sound, sustainable energy plans. LEAP, as an integrated energy and environmental planning tool, can help in the formulation of more rational and environmentally beneficial energy policies since it expands the boundaries of analysis in two important ways.

10. GHG BASELINE EMISSION SCENARIO IN ENERGY AND TRANSPORT SECTOR First, demand-side measures for improving efficiency are placed on an equal footing with energy supply options. Second, environmental effects are explicitly considered in the evaluation of alternative energy plans. The developed long-term scenario, uses a Bottom-Up approach, end-users and technologies. LEAP is developed by the Stockholm Environment Institute - Boston (SEI-B) with support from UNEP and other agencies, LEAP has been used by more than 140 organizations in over 60 countries.

11. Driving FACTORS for GHG BASELINE and ABATMENT EMISSION SCENARIOS IN ENERGY AND TRANSPORT SECTOR

12. GHG BASELINE EMISSION SCENARIO IN ENERGY AND TRANSPORT SECTOR - 1000 ton

13. The Mitigation Scenario is divided in two parts: First Part: Reduction of GHG Emissions throught introduction of different energy efficiency measures in each economic sector Second Part: Reduction of GHG Emissions throught introduction of natural gas power plants versus HFO plants and introduction of different renewable energy sources (solar energy, small hydro power plants, wind energy, biomass energy, biogass, etc)

14. Introduction of different energy efficiency measures in Household Sector 1.Thermal insulation of existing stock (zone III & II) and all new stock to be based in Approved New Energy Building Code, 2.Efficient Refrigerators; 3.Efficient Lighting; 4.Thermal Time-switches for electric boilers; 5.Prepayment Meters; 6.Solar Water Heaters System for substitution of electric boilers.

15. Introduction of Thermal Insulation/Household

17. Introduction of all different energy efficiency measures in Household Sector

18. Introduction other measures in Household The proposed measures will include all about mentioned above but may not be limited only to them. The following measures also produce reduction of GHG emissions, while they will be analysed during the Second National Communication in Household Sector. 1.Central Heating Systems for substituting individual heaters in multi-stored buildings; 2.District Heating Schemes in new districts in urban areas; 3.SSCHP and DH Schemes in new districts in urban areas. 4.Carry out awareness campaign to promote energy efficiency for all measures in Household

19. Introduction of different energy efficiency measures in Service Sector In Abatement GHG Emissions Scenario by implementing the following energy efficiency measures in Service Sector considering a proper norm of penetration, the energy demand will be reduced bringing in the same time abatement of green house gases from service sector. 1.Efficient Refrigerators, 2Efficient Lighting, 3.Efficient Electrical Motors.

20. Introduction of different energy efficiency measures in Service

21. Introduction other measures in Service The proposed measures will include all about mentioned above but may not be limited only to them. The following measures also produce reduction of GHG emissions, while they will be analysed during the Second National Communication in Service Sector. 1.Solar Water Heaters Systems in public and private service buildings; 2.District Heating Schemes in existing and new public and private service buildings; 3.SSCHP and DH Schemes in existing and new public and private service buildings. 4.Carry out awareness campaign to promote energy efficiency for all measures in Service

22. Introduction of different energy efficiency measures in Industry Sector Historically, energy intensity in industrial sub- sectors has been very high. The following measures are selected for introduction in industrial sector in order to reduce GHG emissions: 1.Efficient Heavy Fuel Oil fired Boilers; 2.Efficient Coal fired Boilers; 3.Efficient Electrical Motors; 4.Improvements of Power Factor; 5.Efficient Lighting.

23. Introduction of different energy efficiency measures in Industry Sector

24. Introduction other measures in Industry The following measures also produce reduction of GHG emissions, while they will be analysed during the Second National Communication in Industry Sector. 1.Improvements of energy consumption as a consequence of a better management; 2.District Heating Schemes in existing and new industrial consumers; 3.SSCHP and DH Schemes in existing and new industrial consumers. 4.Carry out awareness campaign to promote energy efficiency for all measures in Industry

25. Introduction of different energy efficiency measures in Transport Sector Both GHG Scenarios and projections of the sector itself, assume that the energy demand for the Transport Sector will continue to develop with the same trends. The qualitative measures are the following: Improvement of the difficult situation of the existing roads and construction of new ones; Increasing the share of public transport for passengers and goods; Increasing the taxes for second hand category cars; etc.

26. Introduction of different energy efficiency measures in Agriculture Sector With the objective of reducing the energy consumption according to the Abatement Scenario, the following quantitative and qualitative measures will be taken into consideration and analyzed in Second Communication: 1.Reduction of 10% of energy intensities due to a better management. It will be achieved by restructuring the agriculture sector and establishing farmer groups that will enable the use of mechanized machineries. 2.Application of biomass schemes and production of biogas from plants and agriculture and animal farming wastes. 3.Use of solar collectors that produce hot air for drying up of different cultures. 4.Use of existing irrigation reservoirs to install SHPP where economically efficient (with a total capacity of 20- 25 MW). 5.Installation of 20 wind energy power plants close to 20 pumping stations to protect lands from flooding.

27. Introduction of Energy Transformation GHG abatement measures related with energy transformation sector are also very important. In Albania, main efforts in this category of abatement measures will be focused on power sector and utilization of renewable energy sources.The following measures will be introduced: GHG abatement measures related with energy transformation sector are also very important. In Albania, main efforts in this category of abatement measures will be focused on power sector and utilization of renewable energy sources. The following measures will be introduced: 1.Hydro Power Plant instead of HFO Plant; 2.Hydro Power Plant instead of Natural Gas Plant; 3.Gas Power Plant instead of HFO Power Plant; 4.Minihydro versus diesel generator; 5.Wind Turbines versus diesel generators; 6.Wind Turbines versus natural gas power plant; 7.Solar PV versus diesel generator.

28. Hydro Power Plant instead of HFO Plant

29. Schematic Layout of Drin River Cascade

30. Hydro Power Plant instead of HFO Plant Schematic Layout of Vjosa River Cascade

31. Hydro Power Plant instead of HFO Plant Schematic Layout of Devolli River Cascade

32. Small Hydro PP instead Diesel Sets There are 84 SHPP with a total capacity of 14 MW and only 25 of them are working. Privatization process for them has started on 1998, so actually all of them are in final stage of privatization We have started a Program with kfW to finance with soft loan for the best SHPP in three phase: 1.Rehabilitated the best one with 7 MEURO 2.Rehabilitated others based in cost benefit analize the best one with 10-12 MEURO 3.Build new ones with a total capacity 50-70 MW with a total investment of 40-60 MEURO

33. KOSOVA solar energy for hot water kWh/m 2 yearSunshine hours/years

34. Solar energy for hot water in service kWh/m 2 year HFOSolar Lek/kWh 1 USD = 100 Lek

35. Wind Energy

36. Introduction of different measurments in Energy Transformation Sector

37. Introduction of different measurments in Energy & Transport

39. ALL ENERGY AND TRANSPORT ABATEMENT MEASURES IN MILLION TONS OF CO2 EQUIVALENT FOR THE YEAR 2020 RANKED IN THE DECREASING ORDER

40. OF SELECTED GHG EMISSIONS ABATEMENT MEASURES BASED ON COST OF REDUCTION [USD/CO2 EQUIVALENT]