Power system analysis: The case of Albania

Abstract

Climate change, sustainability and supply security are today priority themes worldwide. This paper presents the results of an Albanian power system analysis. An energy system analysis model based on linear programming is used for modelling and optimization. The analyses cover a number of scenarios where the studied system is subjected to changes by introducing other renewable energy sources, energy conservation measures and measures to promote renewable energy. The study shows that because of a combination of cheap hydropower, low electricity prices and rather high investment costs, it is very hard for new non-hydro renewable energy sources to be profitable with the prevailing market condition. Regional power exchange based on bilateral agreement in some way or another encourage dependency on import instead of facilitating the introduction of new renewable energy sources. On the other hand, solar wind power could be viable if market-based power prices or other policy measures are introduced to promote the use of solar and wind power.