Hydropower accounts for the largest share of Albania’s electricity generation, representing around 95% of the country’s installed power capacity. This means Albania’s energy mix has one of the highest shares of renewable energy in South East Europe; however, it has also been highly dependent on annual rainfall. The consequent vulnerability to climatic externalities creates notable fluctuations in domestic energy production which has not been able to meet demand; Albania is, therefore, on average, a net energy importer. Energy imports restrict economic growth considerably, have a negative effect on the country’s trade deficit and leave the country open to supply shocks.
KESH, the Albanian state-owned power utility, operates a cascade of 1,350 MW installed capacity, structured in three hydropower plants (HPPs): Fierza, Koman and Vau I Dejes.
The development of a pump storage scheme (PSP) on existing KESH generation assets presents an opportunity for KESH to provide on-peak and balancing energy in Albania, Kosovo* and the region. The investment consists of using the already installed 500MW capacity at Fierza HPP and the 600MW of installed capacity at Koman HPP to implement a pump storage scheme, primarily for balancing, peak and emergency purposes. The PSP scheme entails the use of tunnel(s) to pump water between the Fierza and Komani lakes. Typically, in a PSP scheme, when electricity prices are lowest, the water is pumped from the lower lake (Komani) to the upper lake (Fierza), and when prices are highest, the PSP generates electricity by pumping water from the upper lake (Fierza) to the lower lake (Komani).
This investment will increase the energy production from renewable sources, increase the security and resilience of the country's energy system, especially during pick demand, and decrease the electricity import dependence and CO2 emissions.
Technical assistance, provided through WBIF, will cover the preparation of the Feasibility Study with Conceptual Design, Environmental and Social Impact Assessment, and Preliminary Design for the development of a proposed pump storage scheme (PSP).
* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.
