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Albania's KESH seeks to lease TPP to meet electricity needs

Albania's KESH seeks to lease TPP to meet electricity needs Author: Patrick.

TIRANA (Albania), January 17 (SeeNews) - Albania's state-owned power corporation KESH is inviting expressions of interest from international parties for leasing of a thermal power plant (TPP) in a bid to meet electricity needs at lower costs during the energy crisis, it said.

KESH is seeking to lease a thermal power plant, which will be connected to Albania's transmission grid, for a period of one to three years, KESH said in a tender notice published on the corporate website.

The planned leasing of a TPP is expected to secure enough electricity for the country's needs while keeping the costs below the market price, as well as to optimise the production of electricity from both hydro and thermal resources to meet demand throughout the whole year. KESH also expects to benefit from surplus revenues from commercial transactions in the free market by exploiting the opportunities of increased market prices, it explained.

Albania's government authorised KESH in December to temporarily lease a TPP in order to help it satisfy public demand for electricity and mitigate the risks stemming from the surge and unpredictability of electricity prices in the regional markets at a lower cost, KESH said.

These factors as well as production dependence on the hydro meteorological outcome puts KESH under excessive operational and financial stress, the company said.

Albania produces over 90% of its electricity from hydro power plants, most of which are located along the Drin river, in the northern part of the country.

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