Albania's state-owned power corporation KESH is inviting expressions of interest from international parties for leasing of a thermal power plant (TPP) in a bid to meet electricity needs at lower costs during the energy crisis, it said.

KESH is seeking to lease a thermal power plant, which will be connected to Albania's transmission grid, for a period of one to three years, KESH said in a tender notice published on the corporate website.

The planned leasing of a TPP is expected to secure enough electricity for the country's needs while keeping the costs below the market price, as well as to optimize the production of electricity from both hydro and thermal resources to meet demand throughout the whole year. KESH also expects to benefit from surplus revenues from commercial transactions in the free market by exploiting the opportunities of increased market prices, it explained.

Albania's government authorized KESH in December to temporarily lease a TPP in order to help it satisfy public demand for electricity and mitigate the risks stemming from the surge and unpredictability of electricity prices in the regional markets at a lower cost, KESH said.

These factors as well as production dependence on the hydro meteorological outcome puts KESH under excessive operational and financial stress, the company said.

The TPP must also be “fit to be deployed” near Vlora’s existing thermal power plant so it can easily use the existing interconnection infrastructure.

Currently, Albania produces almost exclusively hydropower, however, this is only the case during the spring and summer. During the winter, it is forced to import power from neighbouring countries. Despite the unsustainability of hydropower, the government is continuing to push for more hydropower plants, instead of looking at solar and wind alternatives.

In October, Prime Minister Edi Rama declared a state of energy emergency and promised to protect homeowners and businesses. A couple of days later, he said energy prices would not rise for these groups and unveiled a plan guaranteeing uninterrupted power for all residents.

Between January and November 2021, Albania spent some Euro 213 million on importing energy. The total, the highest on record, represents half of the state energy companies revenue of Euro 481 million.

The Narta Power Plant sits in Vlora on one of the region’s most pristine beaches. Since its construction and completion in 2005, it has not generated a single watt of power and has been plagued by issues with its cooling system.