Amid the global energy crisis, exacerbated by the war in Ukraine, Albania is working to diversify it’s energy sources, including by introducing gas and windpower.
Albania currently generates almost 100% of its power from hydropower plants. This energy cannot be stored so it is sold to other countries during the spring and summer when production is higher. But then, come winter, demand means the state has to purchase fossil fuels from neighbouring countries to meet needs.
Despite multiple warnings over the years to reduce reliance on hydropower, the government has continued to issue permits for dams and plants throughout the country, often against the wishes of local residents.
But the government has recently announced plants to gasify the country. The Commission for Industrial Activities (KVP) said that a total of six projects would need to be implemented in the country to achieve efficient distribution of natural gas.
In particular, these include expanding the Ionian-Adriatic pipeline and the development of the Vlora thermal power plant.
Minister of Energy, Belinda Balluku spoke of the country’s gasification in parliament, stating that works are underway to complete two large projects that will help the country’s transition to gas.
“For two years we are completing two major projects and gasification of the country. It’s a project with America’s biggest companies. They will finish it in record time. Not only the ignition of TEC, but also the gas pipeline from the port of Vlora to the TAP area in Seman. It will start to be distributed either in Italy or in countries like Bulgaria,” she said.
This so-called “gasification” has an estimated pricetag of EUR 4 billion according to stakeholder estimates.
But the use of gas, especially by countries that are not currently dependent on it, has raised concerns from environmental stakeholders.
European Commission Asked to Stop Funding Balkan Fossil Fuel Projects
One example is a recent letter to the European Commission from civil society and environmental organisations asking them to stop funding gas project in the region and instead focus on sustainable energy solutions.
The coalition of organisations, totalling 36, addressed a letter to European Commission President Ursula von der Leyen calling for an end to gas dependence.
“We therefore request that the European Commission refrain from promoting new gas infrastructure in the Western Balkans, whether in public statements or in its investments such as those under the Economic and Investment Plan. Instead, we ask the Commission to redouble its efforts to encourage genuinely transformative investments which are receiving insufficient attention in the Western Balkans,” the letter reads.
It notes that the signing of the Sofia Declaration on the Green Agenda in November 2020, commits to decarbonisation by 2050 which requires the cessation of using fossil fuels. While the Balkans are not yet highly gas dependent, governments plan to greatly expand its use and have been “actively encouraged by the European commission.”
They fear that money will be wasted on expensive, time-consuming projects that are not sustainable and will lock in the region to gas, as the rest of Europe wants to move towards renewable energy.
Other concerns include presenting Azeri gas an alternative.
Azerbaijani gas is problematic as the ruling regime grapples with issues of corruption at a high level, particularly involving gas deals. Furthermore, the Azerbaijani Laundromat is an EUR 2,9 billion slush fund being used to bribe EU politicians, lobby the EU, Council of Europe and UNESCO, and pay kickbacks related to business and gas interests.
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The organisations condemned the EU for actively encouraging gas and using “unsupported claims about its benefits”.
Instead, they should focus on “Much-needed investments such as tackling electricity distribution losses, increasing the use of heat pumps and deep renovation of residential buildings do not receive half as much public attention as gas does”, noting these are essential for a sustainable energy transition.
Prime Minister Edi Rama visited Azerbaijan this week to discuss further steps in the energy field. This, according to Azerbaijan media, included the issue of supplying gas to Albania and the tasking of a technical team to start working on the issue.
“This is a very good sector for cooperation, with a great potential to grow even further. Our representatives are holding meetings on a broader portfolio of our cooperation in the field of energy, which includes natural gas, transit supplies, and electricity”, President Ilam Aliyev said after the meeting.
Serbia is also looking to receive gas from Azerbaijan in the future, according to Serbian Mining and Energy Minister Zorana Mihajlovic.
But asides from controversial gas from controversial countries, Albania is also looking at wind and solar power.
There are currently at least 13 solar projects in the pipeline with a capacity of 1.24 GW between them. In addition, a recent windfarm proposal has been given strategic investment status in the country. If built, the project will have a combined capacity of 234MW.
