MND. Gjergji Simaku

Director

MEI, RES and EE Directory

Adress: Blvd "Dëshmoret e Kombit", 1001 Tiranë-Albania

Cel: +355682021939

E-mail: Gjergji.Simaku@energjia.gov.al

1996-2015

Forging a single European energy market into 3 Directives

2014 – 2020 – 2030/50

RES Directive 2009/28/EU

Energy Efficiency Directive 2012/27/EU

Energy Performance of Buildings Directive 2010/31/EU

New Legal Framework and

Models of Establishment of the ECO_FUND in Albania

1. New National Strategy of Energy 2014-2020-2030/50

2. New Power Sector Law 3rd Package (New Market Model)

3.1 Energy Efficiency draft law in line with 2012/28/EC

3.2 Energy Performance on Building draft law in line with 2010/31/EC

4. Amendment on Renewable Energy Sources Law 138/2013 (FIT-policy)

RE

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ALBANIA-RES MODEL The CHALLENGE GoA have explicitly acknowledged that renewable energy

deployment have the potential to bring benefits to consumers, reduce emissions and have immediate contribution to security of supply.

The DRIVERS 1. Security of Supply, 2. Sustainable development 3. International obligations (EU Acquis on EE, RES )

The TARGET NREAP 1 2011-2020 ( target 38%)

NREAP - draft is fulfilled respectively:

2010, 29.8% 2012 30.2% 2012 31.2% 2013 34.5%.

Highiest values of total targets are reached in Transport 10% (31.000 ton Biodiessel out of 42.000 ton compared by 2020)

RES– STATUS QUO

2011-2012 ( target 31.2%)

Albania did not submit an NREAP by 30 June 2013 under Directive 2009/28/EC. The Secretariat launched an infringement procedure related to this failure in February 2014. 1. National Renewable Energy Action Plan

The provisions related to possible cooperation mechanisms between Albania and Contracting Parties or EU Member States have not been transposed. 2. Cooperation Mechanisms

Directive 2009/28/EC has not been properly transposed by Albania. The timeframe for applications and the coordination between different institutions will be positively affected by the National Centre for Energy Applications, the one-stop-shop for renewable energy projects. The future handling of applications will show whether its establishment will really benefit investors.

Renewable Energy State of Compliance

New Legal Framework and

Models of Establishment of the ECO-Fund in Albania

3. Administrative Procedures The Law on Renewable Energy provides for priority access of renewables to the network. Secondary legislation is still missing. Under the current legal framework, renewable energy producers may claim compensation in case of lack of grid capacity. In practical terms, transmission and distribution system operators have to improve transparency in terms of the costs of connection to the grid or grid reinforcements. Currently, Albania fails to comply with the requirements related to grid access. 4. Grid Access and Operation of the Grids Legislation related to issuing, transfers and cancellation of guarantees of origin remains to be adopted by ERE as the designated body. Currently, there is no compliance with this requirement. 5. Guarantees of Origin

The Law in 2008 had foreseen the renewables share of the transport fuel market at 5% in 2010 which was in line with Directive 2003/30/EC. The new Law on Renewable Energy transposes the 10% target from Directive 2009/28/EC. Beyond transposition, the actual share is not known. The existing Law on Biofuels of 2008 will have to be amended to transpose the requirements for the sustainability regime and to establish a certification scheme and the relevant body as required by Article 18 of Directive 2009/28/EC.

Renewable Energy State of Compliance

New Legal Framework and

Models of Establishment of the ECO-Fund in Albania

HPP of Skavica includes:

• It is located in North-East Albania • Unspoiled part of Drin river (Drini i zi) • Upper HPP in Drini watershed • A regulatory role in cascade of HPP • A preventive role for floods in sub

Shkodra • There is a preliminary feasibility study

for river of Drini i Zi • Most accepted scenarios with two HPP

Skavica and HPP Katundi i Ri

HPP of Skavica includes:

• It is located in North-East Albania • Unspoiled part of Drin river (Drini

i zi) • Upper HPP in Drini watershed • A regulatory role in cascade of HPP • A preventive role for floods in sub

Shkodra • There is a preliminary feasibility

study for river of Drini i Zi • Most accepted scenarios with two

HPP Skavica and HPP Katundi i Ri

HP Dam Altitude Power Energy Costs

Katundi i Ri 445 m 49 MW 206 GWh 99.5 mil. EU

Skavica 385 385 m 119 MW 467 GWh 214 mln EU

Total 168 MW 672 GWh

Alternative:

Katundi i Ri 445 m 49 MW 206 GWh 99.5 mil. EU

Skavica 395 m 395 m 132 MW 488 GWh 248.3 mil. EU

Total 181 MW 694 GWh 337.8 mln EU

This alternative is more acceptable from the point of view of electric power production and regulatory role of Skavica reservoir but it has high environmental and social impact as well as high financial costs of expropriations.

Vjosa river includes: • It is located in South Albania • It is the second river from the

power potential viewpoint • There are no other HPs • Considerable stable and

considerable river feed • There are certified longstanding

measurements There is a preliminary feasibility study:

• There are 3 main segments • There is the possibility of the

construction of 9 HPs in the watershed

Characteristics of HPP Vjosa River

Albania NEEAP 2 and NREAP : The fund MODEL:

New Legal Framework and

Models of Establishment of the ECO-Fund in Albania

WBIF – FOOD FOR THOUGHTS

WB-Energy Efficiency - Lessons Learned from Success Stories

Energy Efficiency indicators - iea Fundamentals on statistics

New Legal Framework and

Models of Establishment of the Energy Efficiency Fund in Albania

• TA for project identification and preparation for loans or public procurement

• ESCO market, with performance contracting and third-party financing

• Legal obligations for utilities (with trading certificates)

• ENERGY-ECO FUNDS (including revolving funds)

• Voluntary agreements/non-financial incentives

• Energy-agency

• Public ESCOs

Albania NEEAP 2: MODES OF FINANCING TO GENERATE FUNDS FOR NEEAP IMPLEMENTATION.

Smart Metering/ central and distributed Intelligence

LED Public Lighting

Renewables sources integration

Smart Cities

Electric mobility

Network automation

Storage and Plug & Play technologies

Multi-directional ‘flows’ management

Envisaging the future infrastructure Smart Grids Vision: Building a smart Energy future

Allowing Smart Interactions between all connected parties to deliver sustainable, economic and secure electricity supply

Smart equipments

Demand Response

Faleminderit!