‘Our goal is to turn Kesh into a new model for the Albanian economy’

Kesh and the European Bank for Reconstruction and Development supply the voltage to reignite Albania’s energy sector

Albania suffers from high electricity consumption, a problem it has been struggling to fix. To combat the conundrum, a national energy strategy was put into place to guarantee the security of supply and promote the efficient and economic use of electricity. A regional energy platform was also created, allowing Albania to form bilateral agreements with neighbors. Behind these efforts is the national electricity company, Korporata Elektroenergjetike Shqiptare (KESH).

KESH is in charge of the generation, supply, import, export and distribution of electricity. It is currently undergoing privatization, set to be completed by 2008. The process will begin with the separation of the power distribution division from Kesh and its subsequent privatization, which should take eighteen months. The process is based on a contract signed between the International Finance Corporation (IFC) and Albania’s Ministry of Energy, Economy and Trade.

Meanwhile, KESH is looking to attract assistance from international donors and private sector investment. Last October, the European Bank for Reconstruction and Development (EBRD) loaned the company €16 million to finance the rehabilitation of six outdated transmission substations. Previous loans have contributed to the upgrade of transmission and distribution networks and the construction of a new thermal power plant in Vlora which will supply the network with 20 percent more electricity. New work on hydro-power plants will soon be underway, projecting a total capacity increase of almost 50 percent by 2010.

KESH has all the potential of being a catalyst for energy-related activities in Albania, a role that will benefit local businesses and residents, and ultimately allow Albania to participate in and contribute to the regional energy market in Southeast Europe. Gjergj Bojaxhi, General Director of Kesh, says, “Our goal is to turn Kesh into a new model for the Albanian economy.”