The Albanian Electricity Corporation (KESH) recently conducted its tenth procurement procedure within a month to secure energy supply for a week, starting from July 31 to August 6.
Divided into two lots, the free-market procurement resulted in the purchase of 33,600 MWh at a weighted price of 106.72 euro/MWh for the first lot, while the second lot secured 5,250 MWh at a price of 92.11 euro/MWh.
In total, these purchases cost KESH approximately 4 million euros, adding to the 24 million euros spent on other imports this year. Meanwhile, KESH’s sales or exports, based on the latest procedure covering June 20-23, amounted to 36 million euros.
Although this year has seen improved hydrological conditions compared to the previous year, the arrival of the summer season and increased energy consumption necessitated KESH’s more extensive purchases in the free market to maintain optimal levels in the hydropower cascade. Until the end of April, the cascade remained above historical average levels, according to official data reported to the Energy Regulator Authority (ERE).
KESH has previously declared that meeting summer consumption demands would involve alternating between hydropower production and free market purchases. While the prices are favorable, these purchases take precedence over the floating power plants located in Vlora.
Given the state of emergency in effect since October 2021, KESH has taken on the responsibility of securing the country’s energy supply, assuming competencies that were previously held by the Electricity Distribution Operator (OSHEE).
In a recent government meeting, the extension of the state of emergency until the end of the year was approved, ensuring KESH continues to be responsible for meeting the nation’s energy needs. During this period, companies will not undertake significant investments, except those related to network operation, and priority producers (up to 15MW) will not be allowed to participate in the free market as they are bound by public service obligations.
Despite the remaining uncertainty, energy prices have seen a notable decrease compared to the previous year and the beginning of this year. On the Hungarian Power Exchange, 1 MWh of energy was sold at 76 euros at the base price and 77.85 euros at the peak. However, for August 1, the price of 1 MWh at the base increased to 93.32 euros/MWh and 97.79 euros/MWh at the peak.
