Albania Transmission Network Development Plan

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ALBANIA TRANSMISSION NETWORK DEVELOPMENT PLAN

1. Albanian Power System Overview The Power System of Albania has 445.7 km of 400 kV lines, 1250 km of 220 kV lines, 34.4 km of 150 kV line and 1606.7 km of 110 kV lines. The main power plants of “Drin River” Cascade in the Northern part of Albania are connected in the 220 kV transmission network which is also the main connection to the biggest load in the area of Tirana, Elbasan, Durres and Fieri. The 110 kV network, majorly part is closed in rings and in some part radial. It covers all urban areas of the country in order to supply the Distribution System that nowadays is operated by OSHEE and is 100% state owned.

Transmission grid development in compliance with the long term forecasts and electricity sector development plans, in general, represents one of OST fundamental functions comprising a necessity for the performance of its functions. The electricity demand in Albania still remains at very high rates. Referring to the data for the last ten years, the power supply by transmission system to distribution Substations and eligible customers of the country connected to the transmission network has been growing about 2.5% annually rate.

The application for connection of new generating sources to the transmission system have increased and according to forecasts, important power plants, mainly HPP and Renewables, are expected to be built in the coming years. Taking account the last 15-years, it is evident that domestic production does not fully cover the demand for electricity and the country needs to import large amounts of electricity in the dry years. In order to realize the exchanges for a safe operation of transmission system, and create favorable technical conditions to develop an integrated market of electricity in the region there need to be increased the exchange capacity with the neighbor systems and strengthening of the interconnection network.

Transmission System Operator (OST) operates the transmission system in Albania and provides capacities necessary for:

 Supply of distribution system substations (OSHEE) and eligible consumers directly connected to transmission grid;

 Transmission of electricity generated by Power Plants;

 Transitions and exchanges of electricity with neighboring countries.

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______OST owns and operates in total fifteen Substations (400 kV, 220 kV, and 150 kV) with a total installed capacity of 4096 MVA. Albania has six Interconnection lines with the neighboring countries: • 400 kV line Zemblak - Kardia (Greece) • 400 kV line Tirana 2 - Podgorica (Montenegro) • 400 kV line Tirana2 - Kosovo B (Kosovo) • 220 kV line Koplik - Podgorica (Montenegro) • 220 kV line Fierze - Prishtina (Kosovo) • 150 kV Bistrica 1 - Igumenice (Greece). The 400 kV Tirana2 (AL) – Kosovo-B (KO) is constructed, the project is fully commissioned and ready to be in operation.

The figure below shows in a schematically way the structure of the transmission network in Albania.

ALBANIAN TRANSMISSION SYSTEM STRUCTURE

I N 126 MVA 237 MW T E 1538.74 MW R 35, 20, 10, 6 kV C O 400 kV 120 MVAr N N 1200 MVA 2390 MVA E 411.44 MW 220 kV C T 300 MVA O R S 80 MVA

150 kV 110 kV

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______More than 70% of the total generated installed capacity is connected in the 220 kV network. Autotransformers 220/400 kV have a capacity of 1200 MVA and the 110 kV grid is connected with the 400 kV Rings by two 150 MVA Autotransformers installed in the south-eastern part of the network in Zemblak Substation.

Transmission of electricity from the main sources of generation to the major centers of consumption is done through the 220 kV grid and further through the 220/110 kV transformation (2390 MVA). The 110 kV network that supply all the 110 kV substations previously represented the main load nodes while actually are connected around 20% of the installed generation capacity.

In the following picture it is shown the Albanian Transmission map updated recently in the ENTSO-E framework.

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Albanian Power System, ENTSO-E map.

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______2. Current situation of the network, electricity demand and generation forecast.

2.1 Electricity consumption for the period 2005-2017.

Economic and demographic factors in the last decade have significantly affected the fluctuations of the energy consumption in different regions of the country. In this period fluctuations in electricity consumption has been mostly in urban areas, such as Elbasan, Fier, Burrel, Shkodra, Korca and in some remote areas. In some regions there have been considerable increases in demand for transmission capacity from industrial consumer or small hydro generation. These fluctuations become stable after 2009. Below is given: (i) the historic development of the annual consumption of electricity transmitted by the transmission network during the period 2005-2017; (ii) Hourly Load and the (iii) Load Duration Curve for year 2017.

Electricity in the Transmission Network 2005-2017 (GWh)

8,000

6,000

4,000

7,413

7,612

6,876 7,091

7,344

6,747

7,145

6,596

6,463

5,642

5,319

6,151 5,738 2,000

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Hourly Load - 2017 1600 1400 1200 1000

800 MW 600 400 200 0 1 1001 2001 3001 4001 5001 6001 7001 8001 Hours

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Load Duration Curve - Year 2017 1600 MW 1400 1200 1000 800 600 400 200 0 Hour 1 1001 2001 3001 4001 5001 6001 7001 8001

2.3 Losses in the Transmission Grid As a result of Continuously Strengthen of the Transmission System, electricity losses in the transmission network have been reduced over the years. The following graph shows the electricity losses during the period 2005-2017.

Losses in % (2005 - 2017) 4.56%

3.73% 3.77%

3.08% 3.02% 3.03%

2.33% 2.21% 2.32% 2.25% 2.09% 2.03% 2.08%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Implementation of very important projects has led to the strengthen of the Transmission System and the future development of the grid will have a significant impact in reducing electricity losses. The goal for the year 2025 is to reduce the level of losses under 2%, but for sure this is related also by the operation conditions of the largest hydropower plants of Drini River Cascade.

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3. Transmission System Development Plan

During the recent years are realized and are in operation important projects that have increased significantly: (I) The reliability of the Power System, (II) Exchange capacities with neighboring countries and (III) Quality of service for the transmission system clients.

Other important benefits of the new projects are the reduction of non-served electricity and the reduction of transmission losses. From 2005 to 2017 the electricity demand is increased 19%, while electricity losses are reduced from 4.56% to 2.08%.

3.1 Forecasting electricity consumption up to 2025

Based on real consumption of electricity for the period 2005-2017 as well as the methodology followed so far, it is needed to make an accurate and a wide range of the forecast of electricity demand. To achieve this are carried out calculations for the three main scenarios.

The first scenario (Realistic) based on the load trend of the transmission grid over the years by region, the second scenario (Pessimistic) is based on the calculation for a growth rate of lower demand, and the third scenario (Optimistic), which takes into account a large increase in demand for electricity, directly impacted by the economic development of the country. The three scenarios are presented in the diagram below.

Long Term Forecast of Electricity Demand 2017-2027 12,000

11,000

10,000

9,000

8,000

7,000

6,000 Optimistic Op. Realistic Op. Pessimistic Op. 5,000

In the above picture it is evident that the growth of electricity demand will about 2-2.2%/y.

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3.2. New Generation Capacity Forecast for years 2015 - 2025

Nowadays OST is facing a large number of requests for connection of new power plants in the transmission system and according to the forecast, in the next few years are expected to be built several important sources of electricity, mainly hydro-power plants, and also a lot of renewables, especially photovoltaic.

Regarding the expansion of the new generation capacity in the future are taken into account some New large HPP as Devolli River Cascade, Fan River Cascade and some small power plants which are under construction, but is still undefined the time of the commissioning some other big power plants. Based on the information obtained from National Agency of Natural Resources and other corresponding institutions, the private investments in the generation capacity that are more reliable by 2025 are shown in the following table.

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3.3 Albanian 400/220/110 kV Single Line Diagram for Year 2025 ALBANIAN SINGLE LINE DIAGRAM - YEAR 2020-2025

PRISHTINE

PODGORICE HPP V.DEJA HPP KOMANI HPP FIERZA KOPLIK 5 x 50 MW 4 x 150 MW 4 x 125 MW PRIZREN

220kV 26.9MW 90MVA Curraj 105MW 7.5 MW Mal.Solar 110kV 345MVA 220kV 20.524MW 220kV 220kV Dragobi

Renc V.Deja A

Shkod.1 A V

V Iballe M

M B.Curri

a 25MVA B.C.Ri

l 0

a Shala

Z k

110kV e 83.45MW

. r

e 16.5MW

W W

W Lura

M M

M 10MVA 9

2x120MVA 9 8.85MW

. 4 4 5.8+2.3MW

4 Fierze 1 1 6 MW HPP Ulez Shkod.2 Malla 72MW FANGU 6.38MW G.Bardhe Ashta1 4x6.4MW Kurbnesh Lusa1&2 7.6MW 11.3MW Ashta2 Prella 34MW Shutri Dardhe Klos 28.5MW PESHQESH Suc Darsi 6MW 14.8MW 19.7MW A V Mati Kosmac SHKP1 30.78MW M Stavec Lume 0

35MW 6 x

Velipoje 2 Wind Kalimash 220kV 38MW 2x12MW Reps Rreshen F.Arrez Kukes Prizren BURRELI Ternove LEZHE 9.3MW

Bulqize 0 SHKP2 2 Zall Bulqize x Skuraj 2 Rubik Gojan Tunel SETA Resfiks Lapaj Lezhe Kolacem 5.35MW 120MVA Gjorice 38MW 220kV 31.5MW 7.6MW Lac-2 9 MW 5.5 MW 11 MW Kruje Kalivar Lumzi Lashkiza Shupenze 7.5 MW TITAN Mal.Solar 220kV 10.5MW Mamuras Martanesh 13.6MW Vojnik 5.2MW Peshkopi F.Kuqe 14.9MW F.Kruje 20 kV

Milot A V

Wind Lac-1 M 3

30MW 6 TIRANA-1 x ELBASAN1 2 220kV 220kV ELBASAN2

Kashar 220kV

A A

A KURUM

V V

M M

0 0

2 0

1 3

x x

2 2 3 Ibe 110kV 400kV Fiber Gostime Farke Fe-Cr Traktora Qender GSA 16.1MW Met.2 Kusarth Lunik1&2

A 21.5MW

Gj.Lalez V Cerrik NI-CO 7 MW

Selite M Fushbull 0

Kombinat 5 1 Rapun3&4 Bitola

X Kajan

2X120MVA 2 Belsh 11.34MW 2X300MVA TIRANA3 Banje Librazhd Moglice Sukth 71.4MW 220kV Rapun1 110kV Gramsh 8.25MW Berat P.Romano Kucove Qarisht 37.3MW 400kV Shkozet Orenje 2x150MVA 16.72MW Golem 9.5MW 171.2MW RRASHBULL 220kV Uznove Hotolisht 7.77MW Ylldon Egnatia 6 MW 8MW Kavaje 400MVA Bushtrica Marinez 16.73MW Corovode Lushnje FIER 220kV Prenjas 2.5 MW 11MW

A Bishnice Sllabinje V

M Shpella 0

2 Kukur

1 G.Kuq

3 W

110kV 3.6 MW W Grabove

M M

Kafaraj A 23MW

2 M

Vlora2 0 Sllab-2D 4 Novosele x 2x100MVA 30MW 20 kV 2 PV Pogradec Ballsh 9.8 MW Vlora1 4.37MW Selenice Drenove Llenga Lozhan Lugano ZEMBLAK 110kV PV 2x150MVA 3.53MW Orikum 40MW Krahes BABICE Shushice 14.9MW 220kV 220kV Denas

Vernik Memaliaj Korce 11.68MW 220kV Pilur-1 400kV Wind 14.97MW 6.39MW Erseke Himare 111 MW 99.5 MW Cemerice 35MW HPP KALIVAC HPP POCEM

Sarande Gjirok.Re Tepelene A

97MW Gjirokaster Kelcyre A V

200MW TPP VLORE V

0 Pilur

2 8

Bistrice 1 Wind Suha1&2 KARDIA 150kV 10.585MW 12MW 10.35MW 3x7.5MW Igumenice Langarice

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______In the meantime other important projects are in the implementation phase and OST has a clear plan for the development of the transmission system.

 Recent realized projects in Albanian Transmission System

1. 400 kV Interconnection line Elbasan – Tirana – Podgorica.

The Project consists of two parts: • Construction of new 400 kV transmission line Elbasan – Tirana, 48 km financed by Italian Cooperation, 13 million

Euro. • 400 kV transmission line Tirana – Podgorica, 155 km (125 km Albanian part) financed by German Government through KfW bank, 42 million Euro. The new 400 kV line Elbasan 2 - Tirana 2 – Podgorica was put into operation on 10 May 2011.

2. 400/220/110 kV Tirana 2 Substation.

The project is financed by Italian Cooperation, 25.8 million Euros and consists on:

• Two 400/220 kV autotransformers of 2x300 MVA, • Two 220/110 kV autotransformers of 2x120 MVA, and respective 400 kV, 220 kV and 110 kV bays for the connection to the transmission grid. The substation was put in fully operation on 22 July 2011.

3. Rehabilitation of eight substations of transmission system.

Rehabilitation of Transmission Substations is realized by three projects: • Rehabilitation of 220 kV Tirana1, Elbasan1 and Fieri Ss financed by World Bank, 17.9 million Euro. • Rehabilitation of 220 kV Burrel Ss and 400

kV Elbasan2 Ss, financed by EBRD, 7.8 million Euro. • Rehabilitation of 220 kV V.Deja, Koman and Fierza Ss, financed by EBRD, 9 million Euro.

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The projects consisted on the replacement of the depreciated primary equipment and in the realization of a new monitoring control and protection system of all bays, a new automated and computerized control system of substations. 4. The construction of the 400 kV interconnection line, Tirana 2 – Kosova B The project is a German Government investment financed by KfW Bank, 42 mil.€ Albanian Part and includes: • Substations Extension: New 120 MVAr shunt reactor in Tirana2 Ss; • 400 kV overhead line. Total length of the line 242 km (162 km new line and 80 km completion of second circuit of the part of Tirana-Podgorica line, from Tirana to Lac Qyrsaqe), 90 km Kosova part, and 152 km Albanian part.

The full project was commissioned on June 2016 and the line is ready to put into operation.

5. Strengthening of the 110 kV transmission network of the South of Albania The project is a German Government investment financed by KfW, 49 million Euro and includes the construction of: • New 110 kV line Vlore – Saranda, approximately 105 km; • New 110 kV line Erseke – Permet, approximately 55 km; • The reconstruction of the 110 kV lines Korce – Erseke and Permet - Kelcyre- Memaliaj approximately 79 km; • The second circuit of double circuit line Zemblak- Korce, 13 km. • The strengthening of the 400/110 kV Zemblak substation, 150 MVA.

The full project was commissioned and putted in operation in December 2015.

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 Ongoing Projects

1. Extension of 400 kV Koman Ss with an Auto-Transformer 400/220 kV

The project includes the:

• Extension of Koman Ss, with a new AT-345 MVA 400/220 kV, 400 kV double busbar and two 400 kV line bays.

Benefits: • This investment is necessary to enable a better balance between the 220 kV and 400 kV grids by distributing the power flows generated by Koman HPP with the lowest losses; • Significant improvement will also be felt in the voltage profile during good hydrology.

The project is under implementation stage and is expected to be in operation on the end of 2018.

 New very important Projects on the development of the transmission network

1. New 400 kV Interconnection Line Fier – Elbasan – Bitola (MK).

The project includes the:

• Construction of a new 400 kV transmission line Elbasan - Ohrid – Bitola, 151 km (56 km in Albania territory) • Extension of Elbasan2 Ss and installation of new 120 MVAr shunt reactor. • Construction of 68 km new 400kV line, from Elbasan2- Fier.

• Extension of Fier Ss, with 1 new AT-400 MVA.

Benefits: • Development of the existing 400kV network by closing the 400kV ring between Albania – Macedonia – Greece, • Improved network capacity to facilitate anticipated load and transit growth, new generation connections, in the context of improving transmission capacity in Albania and Macedonia, and in the Balkans region generally,

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______• Improvement of the reliability of the regional network, the overall security of supply, and flexibility in the operational of the power system, • A decrease of the technical losses in the transmission system, • Elimination of overload in the national 220 kV ring. • Improving the quality of electricity supply (normalize the voltage levels, stabilize the load flow and the frequency fluctuations, etc.), • Supporting the potential to develop the regional energy market in South East Europe and creating trading opportunities with Bulgaria and Italy, • Mutual support between Macedonia and Albania because of complimentarily of generation types (Albania – hydro, Macedonia – thermal), • Reducing the cost of providing reserve capacity, and providing mutual emergency support.

The project construction phase is foreseen to start by the end of the 2019 and is expected to be in operation on 2021.

2. New 220 kV Double Circuit Transmission Line Tirana2 – Rrashbull.

The project includes the construction of: • New 18.5 km double circuit 220 kV line Tirana2-Rrashbull; • Upgrade of Rrashbull Ss with 2 AT 150 MVA The benefits: • This project is crucial for the Albanian transmission system because it relates to the following problems; existing line loaded at maximum, N-1 security criteria not fulfilled, high transmission losses, and significant amounts of non-served electricity. • Will improve the supply of electricity in a very broad geographical area that includes the district of Durres, Kavaja and throughout the southern part of Albania. • The project fulfills the requirements of the Albanian and European legislation regarding the

environment protection. • The proposed investment is expected to have a positive impact on the total economy and to improve the quality of life for the Albanian population; • The project will increase opportunities for tourism development due to the improved power supply;

The project construction phase is foreseen to start by the beginning 2019 and is expected to be in operation by the end of 2021.

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______3. Construction of the 400/110 kV Tirana3 Ss and reinforcement of 110 kV Tirana Ring.

The project includes the construction of: • Construction of a new 400/110 kV Tirana3 Substation, with 2 New AT-150 MVA. • Reinforcement of the 110 kV Tirana transmission network.

The benefits: • Transit of the flow from 400 kV interconnection grid to 220 kV national grid; • Increase the security of system operation; • Transit of the flow from 400 kV interconnection grid to 220 kV national grid; • Increase the security of system operation considerably; • Greater quality of electricity supply as well as a more reliable supply for the Tirana area; • Decrease the losses in the transmission network; • Reduction of the non-served electricity. • The project fulfills the requirements of the Albanian and European legislation regarding the environment protection.

The project construction phase is foreseen to start by the beginning 2019 and is expected to be in operation by the end of 2021. This project and the previous one will be financed by a common financing package from KfW Bank.

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