February 22 (SeeNews) - Albania's state-owned power corporation KESH said it has decided to award a lease contract for a mobile thermal power plant (TPP) to a consortium comprising U.S. oil and gas company Excelerate Energy and Italy's engineering services provider Renco.
The consortium won the tender for the contract, defeating the other bidder - U.S. power plant equipment supplier Distributed Power Solutions, KESH said in a statement posted on its website.
Distributed Power Solutions' offer did not comply with the provisions of the call, KESH added.
KESH in January launched a call for expressions of interest for leasing of a TPP for a period of one to three years in a bid to meet electricity needs at lower costs during the energy crisis. The company was looking for a TPP which can be easily deployed and connected to Albania's transmission grid, it said at the time.
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.
These factors as well as production dependence on the hydro meteorological outcome puts KESH under excessive operational and financial stress, the company said earlier.
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.