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THE ALBANIAN ENERGY SECTOR ITS POTENTIAL AND INVESTMENT OPPORTUNITIES SUZANA GUXHOLLI PRIME MINISTER ECONOMIC ADVISER Slide 2 ALBANIA Albania is located in the western part of the Balkan Peninsula, at the eastern coast of Adriatic and Ionian seas. Population resident: 3.6 million Area: 28 748 km 2 Capital: Tirana Average GDP growth: 6% Inflation rate: 3% Unemployment rate: 13% Total Primary Energy Supply: 2.4 Mtoe Total Final Consumption: 2.064 Mtoe Energy Consumption: 0.68 toe/capita Electricity Consumption : 1906 kWh/capita Slide 3 Hydro-Power Oil and Gas Coal Mining Wood (Biomass) Renewable Energies (Solar, Wind and Geothermal) ALBANIAN ENERGY SOURCES Slide 4 Opening up the energy market: Unbundling the Former Albanian Electrical Corporation in three distinct companies: Generation, Transmition and Distribution; Successful privatization of Distribution; Appliance of EU-based Energy Market Model (Liberalization of the energy market) Full appliance of the core EU Energy Directives; Mining Sector: fully opened to Foreign Investors (FI) No restriction, no discrimination, full protection of FI, full Government support; First to come, firs to serve -- notion applied; Government Policy on Energy Slide 5 Attracting investments on Renewables: Hydroenergy through successful PPP model and in, Solar, Wind Biomass--through Fast Track Licensing procedures;(AIDA/QKL) Enhancing transparency, reducing bureaucracy through One-Stop-Shop model National Licensing Centre - QKL (www.qkl.gov.al)www.qkl.gov.al Government policy on Energy Slide 6 The hydrographic territory of Albania has a surface of 44,000 km 2 or 57% more than the national area of our country. The average height of the hydrographic territory of Albania is about 700 m above sea level. The average perennial total inflow of Albanian rivers is about 1,245 m 3 /s. All our rivers convey to the sea about 40 billion water cubic meter/year. Distribution of existing HPP HYDROENERGY IN ALBANIA Slide 7 Albania has huge hydro energetic potential; The total installed capacity is 1,461 MW; The average power production is 4.8 TWh; To date only 35% of Hydro-Energetic potential of the country is utilized ; Total hydro energetic resources are about 4,500 MW; HYDROENERGY RESOURCES Slide 8 Skavica Hydropower Plant: 200 MW expected installed power Located on northern Albania (Drin River Cascade) Vjosa River: 350 MW expected installed power Located in the central Albania Osumi River: 100 MW expected installed power Located in the central Albania Investment Opportunities Slide 9 Albania is an oil bearing country; The oil production operators in Albania are: ALBPETROL, the State Oil Company Foreign companies The exploration operators are some foreign companies; Oil production is increasing as a result of important investments and new technologies appliance. PETROLEUM INDUSTRY IN ALBANIA Slide 10 Total original oil in place: 437 million tons, divided : 78% reserves of sandstone fields 22% reserves of limestone fields Actual proven reserves of associated gas is 3.6 billion m 3 Natural gas proven reserves are 22 million m 3 OIL & GAS RESERVES Slide 11 MINING SECTOR Mining Activity Structure of mining activity today in quantity Slide 12 MINING SECTOR Minerals Reserves in million/ton Chromium 37.3 Copper 52.2 Ferro-Nikel 266.6 Nikel Silikat 102 Coal 712 Torfe 156 Lime stones Unlimited reserves Olivinite 59 Bazalte Unlimited reserves Slide 13 Chromium Mines Present Geologic Reserves in four regions are as follows: Category B+C1.21.8 million tons Category C2 .15.1 million tons Total : B+C1+C2 ..36.9 million tons Due to the studies have been determined the main directions of the perspective prospecting- Slide 14 COOPER Based on the geological conditions of ophiolites position, their morphology, genetic and mineralogical components, etc., are distinguished four main types of copper deposits, as: 1.Hydrothermal-Methasomatic and Volcanogenic-Sedimentary Deposits, as: Munella, Qaf-Bari, Gurthi, Rruga Rinise, etc. 2.Main type Volcanogenic-Hydrothermal- Methasomatic Deposits, as: Tui, Spaci, Derven, Paluca, etc. 3.Volcanogene-Sedimentary Deposits, as: Munella, Gjegjan, Palaj, Karma, Rubik 4.Metasomatic Sulphide Massif Deposits, as: Kurbneshi, Golaj, Thirra, Nikoliqi, etc. Copper: 53 million tons with 1.3-2.5% Cu Slide 15 NICKEL The mineral of nickel in Albania is located mainly in 3 regions: 1.Devoll (Bilishti, Bitincka, etc) 2.Pogradec-Librazhd (Guri Kuq, Cervenaka, etc), (Prrenjasi, Skroska, Xixillasi, Bushtrica) 3.Kukes (Mamez, Trull Surroj, Nome) The nickel is in form of iron-nickel (Pogradec, Librazhd) of a grade of 0.8-1.1 % Ni and in form of nickel- silicate (Devoll, Kukes) of a grade of 1.11.4 % Ni. Slide 16 Central region, about 86% of reserves; South-east region, 10% of reserves; South region, 4% of reserves. Coal reserves in Albania are approximately 794 million tons, located in three main regions: Deposits of Coal Coal in general is of lignit type. Calorific value in coal: 2000-5600 kcal/kg FOSSIL FUEL SOURCES COAL Slide 17 The wind regime in Albania is closely connected with the regime of baric centres, with its position relating to these centres, with the direct influence of Adriatic and Ionian Seas. Wind Energy is a potential possibility for power generation use in Albania. The average speed of wind, throughout the year, is around 4-6 m/s (10 m height) and the average annual energy density of 150 W/m 2. Annual average wind speed WIND ENERGY Slide 18 In Albania, average annual solar radiation is 1500 kWh/m 2 ; Maximal annual radiation is 2200 kWh/m 2 ; The annual sunshine of the whole territory of Albania is about 240-250 days; In Western coastal part and South-Western, the sunshine duration, is about 260-270 days per year. RENEWABLE ENERGY SOURCES Average quantity of sunny days SOLAR ENERGY Slide 19 Total proven reserves on wood resources as fuel is about 6 Mtoe; Wood resources production for 2007, is 215 Ktoe/year; Wood resources are classified in : High forests, which represent 47-50% of the total wood resources; Cropses, which are 29-30% of total wood resources; Bushes, which are 24-25% of total wood resources. WOOD RESOURCES Slide 20 The geothermic situation of Albanides presents two directions for use of geothermic energy: The thermal sources with low enthalpy The usage of the depths of the abandoned wells Albania, actually is in the assessment phase of the geothermic energy use potential. Temperature at depth of 100 m GEOTHERMAL ENERGY Slide 21 THANK YOU FOR YOUR ATTENTION