those who provide the best goods at the lowest price. It provides an - - PowerPoint PPT Presentation

▶
those who provide the best goods at the
SMART_READER_LITE
LIVE PREVIEW

those who provide the best goods at the lowest price. It provides an - - PowerPoint PPT Presentation

Mar 18, 2024 5 likes •146 views

Pure competition means compensation to those who provide the best goods at the lowest price. It provides an immediate and natural reward that a crowd of rivals is anxious to opt, and acts with greater effectiveness of a distant punishment,

slide-1
SLIDE 1

«Pure competition means compensation to those who provide the best goods at the lowest price. It provides an immediate and natural reward that a crowd of rivals is anxious to opt, and acts with greater effectiveness of a distant punishment, from which each anyone can hope to escape.» Adam Smith, Wealth of Nations, 1776

slide-2
SLIDE 2

A l b a n i a n E l e c t r i c i t y M a r k e t a t a C r o s s r o a d s : L a t e s t D e v e l o p m e n t

  • n t h e L i b e r a l i z a t i o n P r o c e s s
  • Adv. Lorenc Gordani, PhD

Director of Legal Office AREA

slide-3
SLIDE 3

Albanian Electricity Market at a Crossroad: Latest Development on Liberalization Process

T h e m a i n b u l l e t p o i n t s c o v e r e d :

  • I. EU Forward Looking to the Renewables Investments
  • II. Assessment on the state of art in the RE in Albania
  • III. Legislation in the Promotion of Renewable in Albania
  • IV. Projection on RES Deployment Policy in Albania
  • V. AREA Position on the New Legal Framework
slide-4
SLIDE 4

EU Forward Looking to the Renewables Investments

“Our challenge ahead is to make Europe number one in

  • renewables. We must prepare for an energy system in which

more than half of electricity consumption is powered by renewables.” Miguel Arias Cañete In this new world, the core question is “which is the right design to our electricity market?”

slide-5
SLIDE 5

Assessment on the state of art in the RE in Albania

  • Law on Renewable Energy adopted in May 2013
  • Legal obligation to issues by-laws within six months
  • Failure to submit the NREAP by 30 June 2013
  • Suspended March 2014
  • Secretariat case against Albania to MC 15th October

2015

slide-6
SLIDE 6

Albanian Res Development of the GFEC

Source: Energy Community, 2015

slide-7
SLIDE 7

Expected renewable energy share in 2020

Source: Energy Community, 2015

slide-8
SLIDE 8

Assessment on the state of art in the RE in Albania

Albania's NREAP on 21 Mar 2016:

  • Without public consultation as required by law no.

146/2014 of 30 October 2014

  • Concerns on the verifies of the data reported
  • 10 year moratorium on forest protection 10% GFEC
  • ECS evaluate the adequacy of the measures envisaged

(Article 3(2))

  • Enter to the Eurostat statistics (Regulation (EC) No

1099/2008)

slide-9
SLIDE 9

Legislation in the Promotion of RES in Albania

Source: Energy Community, March 2016

slide-10
SLIDE 10

Albanian Energy Regulator (ERE)

Violations of the Legal Biding Procedure of Law No 138/2013 "On Renewable Energy Sources"

Council of Ministers shall Approve Methodology Prepared Methodology Interest Parties Consulting Opinion Methodology a) Allows ROE b) Cap & Floor; c) Social and economic impact d) Inflation index ALL/Euros e) Formula of the Fee for end-users Decide Tariffs HubX Methodology Arbitrary Decision ERE Tariffs based in Economic Reason (ROE) Albanian Energy Regulator (ERE)

  • Fig. Source Area The establishing the electricity Feed-In

Tariffs to be paid to Priority Producers for all specified types of installations that use renewable energy sources for generation of electricity

slide-11
SLIDE 11

Projection on Deployment Policy of RES

MEI of the new draft law on RES (Recast of 138/2013):

  • PPA concluded before get fixed feed in tariff and the

right to switch

  • 6.31 €/MWh to 5 MW per company
  • 5.54 €/MWh to 10 MW per company
  • 5.34 €/MWh per kilowatt-hour 15 MW per company

Forgotten that tariffs applying for capacity:

  • 12.5 €/MWh under 0.5 MW per company
  • 8.25 €/MWh. 0.5 - 2 MW to MW per company

The financial support for a 20-year duration period

slide-12
SLIDE 12

AREA Position on the New Legal Framework

  • (i)

the historical price formula PU = PI * 1.1 * REX considered elements of market price for an "all-in" resulted to All 9,3/kWh (approximately c€6.6/kWh).

  • (ii) the implementation of an power exchange price for

the which reflects conventional power generation prices in a market other than Albania (which would lead to a breach of the investment protection criteria).

  • Existing hydro installations: fixed historical price to ALL

9.3/kWh for PPAs timeframe (for a period of 15-20 years) and no use of system, transmission loss and imbalance charges on PVE. New Small Producers ROE

slide-13
SLIDE 13

Thank you for Your Attention!

slide-14
SLIDE 14