The Albanian government has launched the first stage of a process to help households instal solar panels to heat water, thus helping keep energy costs low for lower-income families.
On average, heating water accounts for 20% of energy usage in Albanian households and with energy costs rising and the government only just managing to subsidise rates, the pressure is on to bring down consumption.
“In the framework of the difficult energy situation that the country and Europe are facing, and by the National Energy Strategy and the National Plan for Energy and Climate, incentive schemes for reducing electricity consumption for family subscribers have been provided,” the announcement reads.
Energy Minister Belinda Balluku said her ministry would cover 70% of the cost for 2000 families to equip their homes with solar thermal connectors. These systems use solar energy to heat water and then store it in insulated tanks.
The first stage of the process invites companies to apply to be government-approved suppliers under the scheme. This means they will be obliged to provide and install 200-litre water tanks with high rust resistance and a five to seven-year warranty.
The cost of the system must not exceed EUR 1200, meaning the maximum price for families would be EUR 360. Based on an average electricity bill of EUR 40 a month, families would make back their investment in savings in three years.
Companies have until 18 October to apply under the scheme.
An increase in global electricity prices is yet to impact Albanian customers as the state energy company OSHEE and the government have spent more than EUR 300 million on subsidies. Albania gets most of its power from hydropower plants, but due to droughts, mismanagement and the inability to store the energy, it also relies on fossil imports from abroad.
On 1 September, the government announced it would increase the energy cost for those using more than 800kWh per month. This would see prices remain low for the first 800kwh, with the rate quadrupling to the market rate for every kwh over that band. Ministers and the prime minister also called on consumers to reduce consumption by switching off lights and washing clothes on a lower setting.
But at the end of the month, the government did a u-turn, stating demand had dropped and water reserves feeding into hydropower plants and risen.
Also in September, a draft law was tabled “On promoting the use of energy from renewable sources”, which is expected to replace the current law of 2017, creating spaces for a more flexible treatment of self-producers of energy from renewable sources.
The current law allows the production of energy from the sun or wind for personal business or family needs up to an installed capacity of 500 kW a month. This year some producers, mainly businesses, have asked the Ministry of Energy that the balance of produced energy be annual, not monthly to allow for seasonal fluctuations.
The current law provides that, per the metering scheme, a small or medium-sized utility or a household customer can install a total capacity of up to 500 kW for the production of electricity from wind or solar to cover part or all of the energy needed for its needs and inject the excess energy produced into the distribution network.
Under the net energy metering scheme, customers must install a two-way meter at their own expense, and the net balance and billing are done monthly for each metering point.
As well as allowing more flexibility by measuring annually it will also give small producers the right to sell surplus energy at a fair market rate, not a rate set by the energy authorities.
