Speaking to reporters after a regular cabinet meeting, Karakaçi was asked about the licensing process for the two plants and a new 20-million-euro contract for their maintenance over the next two years.

“ERE has not refused to license the two floating power plants, but it has postponed the decision to allow for the completion of several relevant documents, one of which is related to the transfer of ownership of these assets, which until now had been leased, as the license and the lease were both valid for two years,” Karakaçi said.

He said that once the state-owned power utility KESH takes ownership of the plants, they will undergo relicensing to operate under a long-term license.

The minister said the two floating plants were already operational and had an installed capacity of around 100 MW.

“These energy facilities are operational and provide 100 MW of installed capacity. They serve several important purposes, first and foremost as tertiary reserve capacity for the transmission system operator when additional power is needed, which is an important element of energy security,” Karakaçi said.

He added that the assets would remain part of Albania’s energy system, while the relicensing process would allow them to continue operating under a long-term license.

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The two floating power plants that have been leased for two years by KESH are set to be installed at Triport area in the coastal southern city of Vlora.

Speaking at a press conference on the annual performance of the Ministry of Infrastructure and Energy, clarified that lease payments will begin as soon as the power plants will start generating electricity. According to her, work is still underway on their restoration and connection with the national power grid.

“Speculations are frequent. I have worked with the then U.S. Ambassador to Albania Yuri Kim so that we can make these floating power plants operational. We leased the plants during the global energy crisis. We wouldn’t be able to lease the two if it were not for the United States Department of Energy,” Balluku stated.

According to her, the two facilities are owned by the US gas company, Excelerate Energy Inc, which is also cooperating with the Albanian government on the introduction of liquefied gas in Albania, the transformation of the Vlora TPP into gas-fired plant, as well as the construction of a new gasification and LNG distribution terminal, turning Vlora into a regional hub for the liquefied gas.

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KESH clarified that Exelerate Energy and Renco s.p.a. and Distributed Power Solution are the two companies that have offered their bids within the published deadline.

According to KESH,  Exelerate Energy and  Renco” s.p.a. was picked during the qualifying assessment, whereas the Distributed Power Solution expression of interest did not comply with the provisions of the call for expressions of interest issued by the corporation.

The bid forwarded by the Exelerate Energy and Renco s.p.a. was evaluated for selective evaluation according to the call for expressions of interest and was declared the winner.

The offered thermal generating asset consists of two floating vessels in which are mounted generators for the electricity production with a total installed capacity of 110 MW.

According to the technical specifications, the generating asset offered generates electricity through the use of crude oil and light fuel oil secondary material.

Daily rent for generating unit with capacity 110 MW is $ 63,000, daily value of asset operation and maintenance is estimated at $31,500.

The asset provider has given the company KESH the right that at the end of the lease period the asset and ancillary infrastructure will remain in the ownership of KESH sh.a.

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