TIRANA, March 26 /ATA/ – By Maela Marini/- Transformation of energy sector brought about a reduction by half of the grid losses as well as liberalization of energy market in the country.
During the presentation of National Energy Strategy, Prime Minister Edi Rama brought back to attention the collapse of this sector a few years ago and the achievements in the last years.
“The main threat to finances and our economy came from this sector. The very epitome of this threat was the energy distribution company which we found on the edge of collapse in all terms, from its existence to legal aspects,” Rama said.
According to him, the govt. led a profound transformation in every aspect such as restoration of legitimacy in the sector of energy and transformation of this company from a high-risk asset for the public finances to one appreciating at steady rates on a day- to- day basis.
“To keep the distribution system up and running and provide power supply for consumers, the state budget used to subsidize EUR 150 mln a year in compensation for the mass thefts and totally outdated network,” Rama said.
“We inherited a situation with grid losses estimated at 50 percent, while today they have dropped by half to go to 10 percent target set in the strategy, also the average rate of all EU countries.”
Regarding the energy market, Rama described the liberalization process as courageous, adding that the next few years will see a 100 percent openness of the energy market.
This, according to him, will create a new atmosphere of relations between the consumers and distribution sector, elevating the efficacy of company to a higher level.
Work is well underway to offer the citizens until the end of the year the opportunity to become shareholders as part of the ambition to build a company with a mass participation of the citizens as shareholders, which will be mutually beneficial for the company on one hand and the contributing citizens on the other hand.
Although it is beyond imagination, this move is necessary to lead the company to a new stage.
Rama expressed conviction that market liberalization brings tremendous improvement to any aspect of the sector activity. “Investments in interconnection, from that materialized with Kosovo to that with Macedonia, will significantly increase the share of Albania in the joint energy market of the region, which for us is the only viable perspective to increase the contribution of this sector to economy and finances of the country and Albanian families,” Rama said.
We are aware of the necessity for further capacity building, PM said. Although 400 megawatt capacity is a considerable addition, yet it is insufficient to meet the entirety of domestic demand.
Introduction of a new element in the sector of energy, such as gas and gasification as a whole, according to Rama, is on the one hand a great potential and on the other hand a great challenge to maximize the use of TAP pipeline as well as to continue with IAP pipeline, as well as the potential connection of Albania and Kosovo to the natural gas network.
Harmonization of our domestic market with regional energy market and with European one is not that easy, it is associated with challenges and unknowns.
However, this process is crucial in pressing ahead with liberalization of domestic market, guaranteeing full competition, high transparency and promotion of solar and wind energy conversion.
The sector of energy in Albania was a major problem, a hole which had a knock-on effect and posed a constant threat. Today it is quite a potential set on the track to exploitation that remains an open challenge. The strategic document spanning 2018-2030 addresses this open challenge,” Rama said.
Although it seems never-ending, PM said it took us 25 years to turn the steering wheel to the right track and keep it from spiralling into the abyss.
The transforming challenge has spanned 12 years attaching fundamental importance to each passing day, as years go by quickly the results improve on a constant and sustainable basis every step of the way, he said.
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