The prolonged draught and high temperatures are wreaking havoc on the Albanian energy system. The country is nearly fully dependent on hydropower, and the level of many reservoirs, including the crucial Fierza lake, has dropped to record low levels.
In order to avoid a full-blown energy crisis, the Albanian Energy Corporation (KESh) has been forced to buy 80% of the energy for August from the international energy markets. In July and August alone, KESh spent €52 million on foreign energy.
If the draught continues for the rest of the month, Albania will most probably have to import 100% of its energy in September.
In order to confront the rising costs of the extreme weather conditions, the Albanian government has applied for a €22.4 million credit line at the World Bank, which, however, has not yet arrived.