Czech power utility CEZ has taken control of Albanian distribution company Operatori i Sistemit te Shperndarjes (OSSH sh.a.) after winning a tender for a 76 per cent share in the company.
CEZ says its bid of EUR102 million has been given preliminary approval by a special commission established for the sale and that it will enter negotiations with the government to finalise the privatisation contract.
The deal will help CEZ to realise its ambition to become a leading player in the south-east European electricity market. It has already bought energy firms in Bulgaria, Poland and Romania and holds a seven per cent stake in MOL of Hungary.
OSSH distributes electricity to nearly one million customers in Albania and its gross annual electricity supply amounts to 5.3 TWh.
If CEZ’s bid is approved by the government, it is likely that the company will have to make significant investments to improve the performance of the grid and to help meet rapidly rising electricity demand.
According to CEZ, there has been little investment in the Albanian power system in recent decades and the country relies heavily on imports of power from Greece and other countries. Per capita electricity consumption is less than one-third of that in the Czech Republic and less than a quarter of that of Western European countries.
ABB recently won a contract with the operator of Albania’s electricity transmission network to install a monitoring and control system that will improve grid reliability. Under the $20 million contract, ABB will deliver a Network Manager Supervisory Control and Data Acquisition/Energy Management System (SCADA/EMS) system that enhances stability by making it easier to preserve the balance between generation and consumption.
The project, for Operatori Sistemit Trasmetimit, will also align Albania’s network with European standards and facilitate power trading with nearby countries. It is scheduled to be complete within three years.
“Reliable power supply is essential to support economic growth”, said Peter Leupp, head of ABB’s Power Systems division. “Our technology will strengthen Albania’s grid and facilitate energy flows between the country, Eastern Europe and Greece.”
The SCADA/EMS system will enable the transmission system operator to regulate the network from a single control room in the capital Tirana. ABB will also supply the communication system to collect and distribute data from more than 50 power plants and substations using about 400 km of high-capacity optical fiber, including all necessary substation adaptations.
Electricity consumption in Albania is expected to grow by around five per cent per year.
