The Energy Community Secretariat presented the Ministerial Council the latest update of the List of Priority Investments in Dec 2009. Some electricity projects, especially interconnections, in this part A have made progress as expected, or at least enough progress to give confidence that these will go through in the near future.
Electricity Interconnections
The construction of the OVHL 400 kV interconnection Albania – Montenegro is progressing well on both sides and the line is expected to be commissioned by mid 2010; “the line will represent a valuable asset for Albania and constitutes an important missing link in the regional power network”.The construction of the OHL 400kV transmission between Tirana and Elbasan (Albania) is also progressing accordingly and expected to be finished by April 2010.This is not only an important link in Albania, but also for the regional electricity market.
The OHL 400kV interconnection between Albania and Kosovo1 has made some limited progress in the sense that the two TSOs signed an agreement to build this ramification from the interconnection between Albania and Montenegro, already being built; the financial agreement with KfW Entwicklungsbank is under negotiations; the construction is expected to start in 2010 and finish 2012.
The OHL 400kV interconnection between Croatia – Hungary that started in 2008 is expected to be finalized by June 2010; construction is progressing according to plans; this has been also co financed under the EU TEN – E Projects of common interest; the line is expected to increase the energy security of Croatia, as well as the region.
The OHL 400 kV between the Former Yugoslav Republic of Macedonia and Serbia has also progressed well in Serbia which finished Section I of the line and works are ongoing for Section II; in former Yugoslav Republic of Macedonia, the Environment Impact Assessment study is progressing with IPA IPF funding and the financing is being finalized with the World Bank. The line will increase the net transmission capacity at the border and two more substations will be connected at the Serbian side.
Power generation
In power generation, progress was registered in Albania: the CCTP Vlore was commissioned and operates at partial capacity (25-30MW); it is expected to be fully operational by end of October 2009;
The construction of Ashta HPP on Drin River also made progress with the mechanical equipment being contracted in September 2009 and the environmental clearance granted by the Ministry of Environment in April 2009; this is expected to be operational in 2012, reducing Albania’s power deficit.
Another very important decision was made by the authorities in Kosovo1 regarding the downsizing of the planned 2000MW lignite fired “Kosovo C” power plant now re-named “New Kosovo” power plant; after the tender launched in 2006, three international consortia: EnBW (Germany)/ WGI (US), Enel (Italy)/ Sencap (Greece US) and CEZ (Czech Republic)/AES (US) and the energy company RWE AG (Germany) were selected to advance in the prequalification procedure. In summer 2009, two of the prequalified investors (EnBW/WGI and RWE AG) withdrew from the tender, and later, in October 2009, the Ministry of Energy and Mining announced the decision to build a smaller TPP, of 2x500 MW, with a first phase of 500 MW. Strategic environment assessment study was prepared. Guidelines for Transaction Advisors for preparing Request for Proposal for short listed investors are being prepared. The negotiations with the investor are expected to be closed in 2010; the new estimate value of the mine and the power plant is 2.7 billion Euros.
Lack of progress or limited progress with projects listed in Part A
Construction of interconnection line: the former Yugoslav Republic of Macedonia - Albania – Italy:
The Italian TSO, TERNA took the decision to invest in a HVDC undersea interconnection Montenegro – Italy (375 km); under these circumstances MEPSO will review the feasibility of a new interconnection project comprising only of the 400 kV OHL Bitola (former Yugoslav Republic of Macedonia) – Elbasan (Albania) and will consider the new issues arising from the latest Albanian and Italian development strategy.
1 Pursuant to UN Security Council Resolution 1244.
