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Sustainable Energy for Albania” Project

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Sustainable Energy for Albania” Project ABBREVIATIONS BCHP – Biomass Combining Heating Power CDM – Clean Develop Mechanisms CER – Certificate of Emitting Reduction CHP – Combining Heating Power DH – District Heating EEC – Energy Efficiency Center ERE – Albanian Electricity Regulatory Authority GEF – Global Environment Facility GHG – Green House Gas GPP – Geothermic Power Plant HPP – Hydro Power Plant IHM – Institute of Hydro Meteorology IHW – Institute of Hydraulic Work KESH – Albanian Electro Energy Corporation MEFWA – Ministry of Environment, Forest and Water Administration METE – Ministry of the Economy, Trade and Energy NAE – National Agency of Energy NSE – National Strategy of Energy PVPP – Photovoltaic Power Plant RES – Renewable Energy Sources RET – Renewable Energy Technologies SCHP – Small Combined Heating Power SHPP – Small Hydro Power Plant SWHS – Solar Water Heating System Toe – Ton Oil Equivalent TPP – Thermo Power Plant UNDP – United Nations Development Programme WEC – Wind Electro Central WPP – Wind Power Plant 2 EXECUTI VE SUMMARY The world is living the end of the fossil fuel regime and the transition towards a new energy regime. The history of mankind knows a lot of civilizations, which failed due to the destruction of their energy regime and the lack of abilities to generate them. The civilization we are living is in a critical moment. The actual energy system, based since 20-30 years on the fossil fuels, is expected to pass through a huge shock. This is one of the main reasons why the developed countries have been directed towards other ways of using the renewable energy sources. The actual energy system in Albania is currently based completely at the hydro- energy. There are enormous doubts on its sustainability, as there are limited generation capacities towards the growing demand. On the other side it is limited with a considerable number of technical and non technical problems related to the net work loss and leading to a multi-year energy crisis. One of the main challenges of the Albanian energy sector is the diversification of the energy sources and the fulfilment of the needs by own country resources, decreasing the import dependence. The energy local crisis that has stucked Albania in the recent years is deepening the difference between the development of our country and more developed ones. Obviously, taking action based of the National Strategy of Energy (NSE) will bring about an improvement and fulfil the emergent energy demand. However, NSE does not provide a coherent vision on the long-term energy situation in Albania, as it does not take into account the international trends concerning fossil fuel prices and development in prices for renewable energy technologies (RET). Consequently Albania will soon be under the effect of another crisis, the global energy one. The indicators of this crisis are becoming quite visible and they are related to global energy system replacement from oil towards toward renewable energy sources. The study on “Assessment of the Renewable Energy Potentials in Albania” is closely focused in this area. It includes initially a space and quantity assessment of the renewable energy sources, identifying their locations and potentials. Further steeps of this study are: historical analyses of the energy sources used by different economy sectors followed by projection of energy demand and supply for the next 25 years, which are based on the NSE, taking into account future developments (growth of 3 economy, reduction of fossil fuel resources, EU accession and European policy on RES/energy/climate change). Based on some scenarios, which have been considered as optimistic-realistic, a provision has been performed leading to an assessment of the amount of energy provided by RES for the next 25 years. The objective has been the assessment of the quantity, financial ($/kWh per produced energy) and quality (assessment of the emitting generated in case of other energy sources use) approach. This enables a better view on the importance of the renewable energy sources use towards the reduction of the energy import and the contribution on the total energy demand. 4 TABLE OF CONTENTS ACKNOWLEDGEMENTS ............................................................................................. 1 ABBREVIATIONS...................................................................................................... 2 EXECUTIVE SUMMARY .............................................................................................. 3 TABLE OF CONTENTS ............................................................................................... 5 LI ST OF FI GURES AND TABLES .................................................................................. 7 I. Climate characteristics of Albania ........................................................................... 9 1.1 Air Temperature............................................................................................ 10 1.2 Solar radiation .............................................................................................. 10 1.3 Rain falls...................................................................................................... 11 II. Renewable energy sources in Albania ................................................................... 12 2.1 Biomass....................................................................................................... 12 2.1.1 Background ............................................................................................ 13 2.1.2 Potential ................................................................................................ 13 2.1.3 Installed capacity .................................................................................... 16 2.1.4 Characteristic features for Albania ............................................................. 16 2.2 Hydropower.................................................................................................. 17 2.2.1 Background ............................................................................................ 17 2.2.2 Potential ................................................................................................ 18 2.2.3 Installed capacity .................................................................................... 20 2.2.4 Characteristic features for Albania ............................................................. 21 2.3 Geothermal resources.................................................................................... 21 2.3.1 Background ............................................................................................ 22 2.3.2 Potential ................................................................................................ 23 2.3.3 Installed capacity .................................................................................... 27 2.3.4 Characteristic features for Albania ............................................................. 27 2.4 Wind energy................................................................................................. 27 2.4.1 Background ............................................................................................ 27 2.4.2 Potential ................................................................................................ 28 2.4.3 Installed Capacity.................................................................................... 32 2.4.4 Characteristic features for Albania ............................................................. 32 2.5 Solar energy................................................................................................. 33 2.5.1 Background ............................................................................................ 33 2.5.2 Potential ................................................................................................ 34 5 2.5.3 Installed capacity .................................................................................... 37 2.5.4 Characteristic features for Albania ............................................................. 38 III. Projection of energy supply and demand in Albania ............................................... 39 3.1 Extracting and use of the energy sources in Albania ........................................... 40 3.2 The energy provided by the HPP and TPP.......................................................... 42 3.3 The provision of the energy demand divided by sectors ...................................... 43 IV. The forecast of the RES percentage in the overall fuel mix ...................................... 45 4.1Contribution of each RET on the energy demand projection .................................. 45 V. Evaluation of the energy/thermal unit cost for each RET .......................................... 49 VI. The reduction of the GHG emission based on the utilisation of RES........................... 52 6.1 Fossil fuel impact to human health and environment .......................................... 52 6.2 Emission reduction of RES use ........................................................................ 53 6.3 Kyoto Protocol and Clean Development Mechanisms Projects............................... 55 VII. Conclusions..................................................................................................... 59 VII. Recommendations ........................................................................................... 61 VIII. Literature .....................................................................................................
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