New balancing market in Albania helps resolving the long-standing Ashta dispute

12 April 2021

Albania has reached another milestone in its electricity market reform. The new balancing rules in force as of 1 April 2021 introduce market based procurement of balancing services and imbalance price formation. Market participants can now offer balancing services in Albania, and may hedge their own balancing responsibility by creating or joining balance groups. This will be important in particular for independent hydro power producers (HPPs), which became responsible parties for their imbalances with the creation of the balancing market as well. A balance group that integrates small HPPs in Albania would ensure efficient integration of these producers into the electricity market and allow them to optimise balancing costs. The Secretariat will support HPPs and their counterparties in designing the most appropriate solutions.   
The entry into effect of the balancing market also opened the door for the resolution of a long-lasting dispute related to balancing responsibility  between a private investor, Ashta HPP, and KESH, the public producer, related to balancing responsibility. Dirk Buschle and Arben Kllokoqi have been mediating the negotiations between the parties for the Energy Community Secretariat’s Dispute Resolution Center. The balance group arrangements between KESH and Ashta which bring the dispute to an end are in operation as of 1 April 2021. 

In Scope:

  • Albania Albania