Optimal use of the hydro resources in Albania

Abstract

This Master thesis analyzes the optimal use of the hydro resources in Albania. Albania is a country totally dependent on hydro power. More than 90% of the electricity today comes from hydro power, mainly from the Drin river system. There are three hydro power plants located in the Drin river system: Fierze (500 MW), Koman (600 MW) and Vau Dejes (250 MW). Only one third of Albania s hydro power potential is today exploited, and Albania is a net importer of energy. The main objective with this study is to analyze the utilization of the hydro resources in Albania and look at potential improvements in the short term (next years) and the long term (after Albania joins the regional market). Two scenarios were worked out. The first scenario focuses on the present market situation in Albania. Investigations are done through simulations with the EOPS model. The results were analyzed and compared with historical data to discover potential upgrades of the utilization of water in Fierze, Koman and Vau Dejes. In the simulations the production in Drin river system is increased with 1.3 TWh in an average year. Fierze power plant has the highest potential with 25% more production in the simulation than what is shown through historical data. Under the process towards a liberalized market, the optimizing problem regarding the production planning will change. Today the main task is cost minimization given an expected demand. In a free market it will be profit maximizing given a price expectation. A second scenario dealing with the potential market situation in Albania in 2020 was worked out. In addition to the new market situation four new power plants were included in the EOPS model. With new plants in the Drin and a functioning market it is possible to achieve 1 TWh more production during an average year compared with the simulation for the present market situation in Albania. If the implementation of the market, new power plants and transmission lines are accomplished, the supply situation in Albania will improve substantially through more secure power delivery. However a participation in a regional market forces the production company to plan each day like the participants in the Nordic market, both in the long and short the term, to be able to exploit the technical and financial opportunities and develop their country.