Energy regulation: a French technical assistance project to enable Albania to meet the challenges of the future
Albania has a high potential in renewable resources, which is scarcely exploited today. The current electricity mix is 100 % dependent on hydropower. As a result, the country is highly vulnerable to climatic variations and reliant on imports.
Albania joined the Energy Community (EnC) in 2006 and has since then made strong commitments to adopt the energy “acquis communautaire”. The reform of the sector and corporate governance, the setting of prices to ensure cost recovery, the establishment of the electricity market and the development of renewable energies are all essential elements to ensure the sector’s financial resilience and sustainability.
Alongside cultural and institutional support, French public institutions accompany institutional actors of the Albanian Energy sector in their transition towards sustainable development. The Albanian energy sector has shown visible advancement. The ongoing ambitious reform of the energy sector should implement the numerous measures still needed to provide long-term stability and tackle future challenges.
Developing a modern regulatory framework with AFD
In addition to the granting of a budget support loan, a technical assistance (TA) project has been launched by the Agence Française de Développement (AFD) in cooperation with the Albanian ministry of Infrastructure and Energy. This assistance accompanies the development of a modern regulatory framework. A special focus is placed on the reinforcement of Energy regulatory Entity (ERE) and Energy Efficiency Agency in Albania, in their endeavor to establish an optimal market environment, based on best international practices.
The creation of a transparent energy market, as promoted by the reform, will spur economic growth in the country and encourage private sector investment. AFD supported the Albanian government to define an agenda for the energy sector’s reform and to commit to its completion. The change is well underway. Promoting the development of intermittent renewable energies, strengthening investment planning while analyzing the impacts of the reform are all dimensions of this program leading to the reinforcement of the capacity of actors to adapt to the new sectoral context and the implementation of a reform process that is financially, socially and environmentally sustainable.
The implementation of the TA project has been entrusted to Expertise France, the French national agency for technical cooperation, which has worked closely with the French Energy Regulator (Commission de Régulation de l’Energie - CRE) to deliver specialized training to Albanian Energy Regulator (ERE).
A bilateral cooperation between the two Energy Regulators coordinated by Expertise France
The start of this binational cooperation project between the two Regulators was marked by the visit of the President of the CRE Mr. Carenco to Albania, where he held bilateral meetings with his counterpart the Chairman of the ERE Mr. Ahmeti. They agreed to enhance the cooperation between the two institutions. The President of CRE invited the Chairman of ERE and his staff to visit CRE’s offices in Paris so they extend their cooperation beyond the structured training of the current TA project.
The technical trainings were organized by Expertise France and delivered by CRE. The first objective of these training sessions was to advise ERE in its application of international best practices of market and operations monitoring. Monitoring is necessary to identify potential market manipulation and abuse, and trainings offered insight on how to build sufficient capacities internally to prevent those market shortcomings. The second objective was to review the operational resources of the regulatory authority. The training provided recommendations on adequate human resource staffing and capacity to carry out the powers of the ERE. In that process, CRE shared its experience and best practices in human resources.
At the end of the trainings, the general secretary, Mr. Elton Radheshi thanked the CRE staff and highlighted his high appreciation of this cooperation and support process. He congratulated the timeliness of the subjects tackled in the training, especially concerning market monitoring, given the ongoing reform of the energy sector in Albania and the current energy crises. The French regulator expressed its gratitude and availability to continue this bilateral cooperation in the future. ERE hopes that this cooperation project will enable it to develop an action plan in consultation with Energy Community. This would pave the way for participation of ERE in the Working Groups of the European Union Agency for the Cooperation of Energy Regulators with Observer status, which would allow the latter to participate in the work of the EU internal energy market, thus moving Albania closer to the EU community.