Tokyo, August 27, Tokyo, August 27, 20082008

NATIONAL AGENCY OF NATURAL RESOURCESNATIONAL AGENCY OF NATURAL RESOURCES

Overview and Institutional Overview and Institutional Obligation of AKBNObligation of AKBN

••

The National Agency of Natural Resources (AKBN), is a The National Agency of Natural Resources (AKBN), is a public institution constituted by the Decision of the public institution constituted by the Decision of the Albanian Council of Ministers No.547, Albanian Council of Ministers No.547, dtdt. 09.08.2006.. 09.08.2006.••

The Agency deals with all petroleum, hydropower, The Agency deals with all petroleum, hydropower, mining activities and, by the Decision of Council of mining activities and, by the Decision of Council of Ministers No.202, Ministers No.202, dtdt. 11.04.2007, takes also care of . 11.04.2007, takes also care of renewable sources of energy, energy efficiency and renewable sources of energy, energy efficiency and National Strategy of Energy.National Strategy of Energy.••

The Agency depends directly from the Minister of The Agency depends directly from the Minister of Economy, Trade and Energy. Economy, Trade and Energy. ••

The Agency is the official and institutional adviser to the The Agency is the official and institutional adviser to the Albanian Government and other state institutions on Albanian Government and other state institutions on mining, petroleum, hydropower and energy activities.mining, petroleum, hydropower and energy activities.••

The Agency is the Albanian institution that promotes all The Agency is the Albanian institution that promotes all natural resources, objects of its own activities. natural resources, objects of its own activities.

DEPARTMENTSDEPARTMENTS

•• MINING DEPARTMENTMINING DEPARTMENT

•• PETROLEUM DEPARTMENTPETROLEUM DEPARTMENT

•• HYDRO POWER DEPARTMENTHYDRO POWER DEPARTMENT

•• RENEWABLE ENERGY DEPARTMENTRENEWABLE ENERGY DEPARTMENT

•• COORDINATION DEPARTMENTCOORDINATION DEPARTMENT

MINING DEPARTMENTMINING DEPARTMENT

••

Consults and collaborates with relevant government Consults and collaborates with relevant government structures, on preparing policies related to mining structures, on preparing policies related to mining sector;sector;••

Applies the governmental policies in mining sector;Applies the governmental policies in mining sector;••

Provides technical expertise, in respect of its own Provides technical expertise, in respect of its own institutional obligations, on studies and projects institutional obligations, on studies and projects concerning mining and post mining activities;concerning mining and post mining activities;••

Promotes Albanian mining resources.Promotes Albanian mining resources.••

Supervises all mining exploitation licenses and asks Supervises all mining exploitation licenses and asks for the correct fulfillment of the implementation of for the correct fulfillment of the implementation of development programs;development programs;••

Supervises post mining activities.Supervises post mining activities.

BRIEF HISTORY OF MINING ACTIVITY IN ALBANIABRIEF HISTORY OF MINING ACTIVITY IN ALBANIA

Albania is a very rich country in mineral resources. Albania is a very rich country in mineral resources. Exploration, exploitation and processing of mineral ores, has Exploration, exploitation and processing of mineral ores, has a significant impact in the Albanian economy. a significant impact in the Albanian economy.

ThThee procesprocesss of rof restructuringestructuring inin miningmining activitactivityy hashas passepassedd through through ::••

The privatization process (from 1994 on);The privatization process (from 1994 on);

••

The rThe restructuringestructuring ofof statestate enterprienterprisseses onon chromiumchromium andand coppercopper sectorsector (1994(1994--1998);1998);

••

The building of a newThe building of a new legal legal frameframeworkwork basedbased onon the the rulesrules ofof marketmarket economyeconomy ((AlbanianAlbanian MiningMining LawLaw 1994);1994);

••

The cThe concessiononcession onon the the assetsassets ofof miningmining industryindustry (1995);(1995);••

The cThe closlosureure ofof nonnon--effectiveeffective minminees s andand the the consconseervationrvation ofof the the potentialpotential minesmines ((from from 1993 1993 onon).).

••

The mining activity is performed in accordance with The mining activity is performed in accordance with the requirements of the requirements of ““the Mining Law of Albania" the Mining Law of Albania" No.7796, No.7796, dtdt. 17.02.1994, amended by Law No.9261, . 17.02.1994, amended by Law No.9261, dtdt. 22.07.2004 and Law No.9667, . 22.07.2004 and Law No.9667, dtdt. 29.12.2007.. 29.12.2007.••

The use of any kind of explosive material during the The use of any kind of explosive material during the mining activity, is performed in accordance with the mining activity, is performed in accordance with the requirements of Law No.9126, requirements of Law No.9126, dtdt. 29.07.2003 . 29.07.2003 ““For civil For civil using of explosives in the Republic of Albaniausing of explosives in the Republic of Albania””, the , the Decision of Council of Ministers No.52, Decision of Council of Ministers No.52, dtdt. 29.01.2004 . 29.01.2004 and the Order No.1, and the Order No.1, dtdt. 12.02.2004 of the Minister of . 12.02.2004 of the Minister of Economy, Trade and Energy.Economy, Trade and Energy.••

Any kind of mining activity related to engineering, Any kind of mining activity related to engineering, assessment, consulting, monitoring, technical assessment, consulting, monitoring, technical supervision etc. is conducted through a Professional supervision etc. is conducted through a Professional Permit.Permit.

LEGAL FRAMEWORKLEGAL FRAMEWORK

PETROLEUM DEPARTMENT PETROLEUM DEPARTMENT

••

Assists the Albanian government, in collaboration with Assists the Albanian government, in collaboration with other institutions, in drafting policies in petroleum other institutions, in drafting policies in petroleum sector;sector;

••

Negotiates all Petroleum Agreements on behalf of the Negotiates all Petroleum Agreements on behalf of the Albanian Government;Albanian Government;

••

Supervises the Petroleum Operations;Supervises the Petroleum Operations;

••

Manages the Petroleum Data;Manages the Petroleum Data;

••

Promotes free areas for exploration, development and Promotes free areas for exploration, development and production of petroleum.production of petroleum.

ATTRACTION OF FOREIGN INVESTMENTS IN ATTRACTION OF FOREIGN INVESTMENTS IN PETROLEUM ACTIVITIES THROUGH:PETROLEUM ACTIVITIES THROUGH:

••

Opening policies on oil and gas industry, in order to Opening policies on oil and gas industry, in order to facilitate free competition and market liberalization;facilitate free competition and market liberalization;

••

Flexible and fast licensing procedures.Flexible and fast licensing procedures.

LEGAL FRAMEWORKLEGAL FRAMEWORK

The legal framework for The legal framework for petroleumpetroleum exploration and exploration and production in Albania is governed by three principal production in Albania is governed by three principal laws:laws:−−

The law The law ““On petroleum (exploration and production)On petroleum (exploration and production)””;;

−−

The law The law ““On the fiscal system on petroleum sectorOn the fiscal system on petroleum sector””−−

The law The law ““On national taxesOn national taxes””..

Specificities of Specificities of petroleumpetroleum legislation:legislation:−−

Deals with technical and general issues;Deals with technical and general issues;

−−

Deals with fiscal issues;Deals with fiscal issues;−−

Is simple; Is simple;

−−

Is clear;Is clear;−−

Offers flexibility.Offers flexibility.

A SHORT HISTORY OF PETROLEUM EXPLORATION A SHORT HISTORY OF PETROLEUM EXPLORATION AND PRODUCTION IN ALBANIAAND PRODUCTION IN ALBANIA

••

Bitumen production since ancient Romanian times;Bitumen production since ancient Romanian times;••

18061806--1913, field mapping, 1913, field mapping, stratigraphicstratigraphic and tectonic and tectonic studies and geological surveys carried out by studies and geological surveys carried out by foreign geologists;foreign geologists;••

1918, the first well was drilled with positive results. 1918, the first well was drilled with positive results. DrashovicaDrashovica oilfield was discovered;oilfield was discovered;••

19181918--1940, intensive 1940, intensive petroleumpetroleum operations by operations by foreign companies and some discoveries;foreign companies and some discoveries;••

19441944--1990, continuation of 1990, continuation of petroleumpetroleum operations and operations and other discoveries.other discoveries.

The first The first Petroleum Petroleum Concessions Concessions granted by granted by Albanian Albanian Government in Government in 19251925

LICENSING ROUNDS ORGANIZED AFTER 1990LICENSING ROUNDS ORGANIZED AFTER 1990

Offshore Licensing Offshore Licensing First Onshore Second Onshore First Onshore Second Onshore RoundRound Licensing Round Licensing RoundLicensing Round Licensing Round

CURRENT PETROLEUM LICENSING SITUATION CURRENT PETROLEUM LICENSING SITUATION IN ALBANIAIN ALBANIA

Block Durres (Offshore) awarded Block Durres (Offshore) awarded in 2004. in 2004. Contractor and operator Contractor and operator Island International Exploration Island International Exploration BVBV;;Block Joni 5 (Offshore) awarded in Block Joni 5 (Offshore) awarded in 2007. 2007. Contractor and operator Contractor and operator Capricorn Albania LimitedCapricorn Albania Limited;;Blocks A and B (Onshore) Blocks A and B (Onshore) awarded in 2007. awarded in 2007. Contractor and Contractor and operator DWM Petroleum AGoperator DWM Petroleum AG;;Blocks D and E (Onshore) Blocks D and E (Onshore) awarded in 2007. awarded in 2007. Contractor and Contractor and operator DWM Petroleum AGoperator DWM Petroleum AG..

JONI 5JONI 5

CAPRICORNALBANIALIMITED

ADRIATIKU

ADRIATIKU 3

ADRIATIKU 2

RODONI 1

1

2

3

45

6

7

8

F

E

D

C

B

A

AlbpetrolINA

P4

Delvina

Velca

Dumre

Panaja

Str eam Oil & Gas

OFFSHORE LICENSED BLOCKS

ONSHORE LICENSED BLOCKS

ONSHORE FREE BLOCKS

OFFSHORE FREE BLOCKS

BLOCKS IN NEGOTIATION

DURRESI

ISLANDINTERNATIONALEXPLORATION &BEACHPETROLEUM

DWM

DWM

DWM

DWM

BLOCKS IN NEGOTIATION

The current licensing situation for The current licensing situation for petroleum exploration in Albania on petroleum exploration in Albania on February 1st, 2008:February 1st, 2008:

Existing Oil and Gas FieldsExisting Oil and Gas Fields

LICENCELICENCE--AGREEMENTS FOR DEVELOPMENT AND PRODUCTION, RELATED AGREEMENTS FOR DEVELOPMENT AND PRODUCTION, RELATED TO EXISTING OIL AND GAS FIELDS ISSUED TO ALBPETROL:TO EXISTING OIL AND GAS FIELDS ISSUED TO ALBPETROL:

LicenceLicence--AgreementAgreement for for PatosPatos-- MarinzaMarinza oilfield issued in 2004. oilfield issued in 2004. Contractor Contractor Bankers PetroleumBankers Petroleum;;

LicenceLicence--AgreementAgreement for for BallshBallsh--HekalHekal oilfield issued in 2007. oilfield issued in 2007. Contractor Contractor Stream Oil & GasStream Oil & Gas;;

LicenceLicence--AgreementAgreement for for CakranCakran--MollajMollaj oilfield issued in 2007. oilfield issued in 2007. Contractor Contractor Stream Oil & GasStream Oil & Gas;;

LicenceLicence--AgreementAgreement for for GorishtGorisht--KoculKocul oilfield issued in 2007. oilfield issued in 2007. Contractor Contractor Stream Oil & GasStream Oil & Gas;;

LicenceLicence--AgreementAgreement for for DelvinaDelvina oil& oil& gas field and gas field and DelvinaDelvina exploration exploration block issued in 2007. block issued in 2007. Contractor Contractor Stream Oil & GasStream Oil & Gas;;

LicenceLicence--AgreementAgreement for for KucovaKucova oilfield oilfield issued in 2007. issued in 2007. Contractor Contractor Sherwood InternationalSherwood International..

LICENSING PROCEDURES ON PETROLEUM LICENSING PROCEDURES ON PETROLEUM EXPLORATION IN FREE AREASEXPLORATION IN FREE AREAS

•• Evaluation of the available data;Evaluation of the available data;•• Presentation of an application for:Presentation of an application for:

−−

Reconnaissance Permit, orReconnaissance Permit, or−−

Petroleum Agreement.Petroleum Agreement.

•• Approval of the applicant;Approval of the applicant;••

Negotiation of the main terms and conditions of the Negotiation of the main terms and conditions of the Petroleum Agreement;Petroleum Agreement;

••

Approval of the main terms and conditions of the Approval of the main terms and conditions of the Petroleum Agreement;Petroleum Agreement;

•• Negotiation of the Petroleum Agreement;Negotiation of the Petroleum Agreement;•• Signature of the Petroleum Agreement;Signature of the Petroleum Agreement;•• Approval of the Petroleum Agreement.Approval of the Petroleum Agreement.

REQUIREMENTS FOR AN APPLICATION RELATED TO REQUIREMENTS FOR AN APPLICATION RELATED TO A PETROLEUM AGREEMENT A PETROLEUM AGREEMENT

••

Information concerning the applicant;Information concerning the applicant;••

The definition of application area;The definition of application area;

••

The proposal for the main terms and conditions of the The proposal for the main terms and conditions of the Petroleum Agreement. Such proposal should provides: Petroleum Agreement. Such proposal should provides: −−

The division of the exploration period in subperiods;The division of the exploration period in subperiods;

−−

The terms of the exploration subperiods;The terms of the exploration subperiods;−−

The minimal work program related to each The minimal work program related to each exploration subperiod;exploration subperiod;

−−

The minimal financial obligation for each exploration The minimal financial obligation for each exploration subperiod;subperiod;

−−

The cost recovery;The cost recovery;−−

The profit sharing;The profit sharing;

−−

The bonuses, training and administration funds and The bonuses, training and administration funds and other issues.other issues.

SOME DATA ON OIL PRODUCTION IN ALBANIA IN 2002SOME DATA ON OIL PRODUCTION IN ALBANIA IN 2002--20072007

YearYearOil production in Albania (ton)Oil production in Albania (ton) Export sales Export sales

deliveries of deliveries of crude oil (ton)crude oil (ton)TotalTotal From From

limestone limestone depositsdeposits

From From sandstone sandstone depositsdeposits

From From foreign foreign

companiescompanies20022002 369 000369 000 137 000137 000 232 000232 000 5 662.15 662.1 --

20032003 410 000410 000 136 300136 300 273 700273 700 44 618.144 618.1 --

20042004 444 000444 000 158 300158 300 285 700285 700 30 755.030 755.0 --

20052005 434 000434 000 127 000127 000 307 000307 000 97 882.197 882.1 3 451.33 451.3

20062006 474 000474 000 119 000119 000 355 000355 000 202 496.5202 496.5 67 099.167 099.1

20072007 562 000562 000 120 000120 000 442 000442 000 282 042.0282 042.0 153 264.9153 264.9

HYDRO POWER DEPARTMENT HYDRO POWER DEPARTMENT

••

Consults and collaborates with relevant government Consults and collaborates with relevant government structures, on preparing policies related to hydro structures, on preparing policies related to hydro power sector; power sector;

••

Applies the governmental policies in hydro power Applies the governmental policies in hydro power sector;sector;

••

Provides the technical expertise, in respect with its Provides the technical expertise, in respect with its own institutional obligations, on studies and own institutional obligations, on studies and projects in hydro power sector;projects in hydro power sector;

••

Supervises hydro power activity;Supervises hydro power activity;

••

Monitors concessionary contracts on hydro power Monitors concessionary contracts on hydro power plants. plants.

••

The hydrographic territory of The hydrographic territory of Albania has a surface of 44,000 Albania has a surface of 44,000 kmkm22 or 57% more than the or 57% more than the Albanian geographic territory.Albanian geographic territory.

••

The average height of the The average height of the hydrographic territory of Albania hydrographic territory of Albania is about 700 m above sea level. is about 700 m above sea level.

••

The average perennial inflow of The average perennial inflow of all Albanian rivers is about 1,245 all Albanian rivers is about 1,245 mm33/s./s.

••

All rivers convey to the sea All rivers convey to the sea about 40 billion cubic meter/year about 40 billion cubic meter/year of water. of water.

HYDROGRAPHIC AREAHYDROGRAPHIC AREA

Distribution of existing HPPDistribution of existing HPP

••

During the time period from 1945 until 1951, it was produced During the time period from 1945 until 1951, it was produced (in average) 10 KWH per resident.(in average) 10 KWH per resident.

••

In 1952, started to operate the Hydro Power Plant in In 1952, started to operate the Hydro Power Plant in SelitaSelita, , with an installed power of 5 MW.with an installed power of 5 MW.

••

In January 1958, entered into operation the HPP in In January 1958, entered into operation the HPP in UlzaUlza, with , with an installed power 25 MW.an installed power 25 MW.

••

In 1970, entered into operation three In 1970, entered into operation three HPPsHPPs: : ShkopetiShkopeti, , BistricaBistrica I and I and BistricaBistrica II, with an all together installed power II, with an all together installed power 51.5 MW.51.5 MW.

••

In the time period 1971In the time period 1971--1978, started to operate two 1978, started to operate two HPPsHPPs; in ; in VauVau i i DejesDejes and and FierzaFierza, 750 MW both., 750 MW both.

••

In 1985 entered into operation the HPP in In 1985 entered into operation the HPP in KomanKoman, 600 MW., 600 MW.

ELECTRICITY DEVELOPMENT HISTORYELECTRICITY DEVELOPMENT HISTORY

THE HYDRO ENERGETIC POTENTIAL OF ALBANIATHE HYDRO ENERGETIC POTENTIAL OF ALBANIA

••

Only 35% of the Albanian hydro energetic potential is so Only 35% of the Albanian hydro energetic potential is so far utilized. far utilized.

The total national capabilities are about 4.500 MWThe total national capabilities are about 4.500 MW

The respective annual generation would be around The respective annual generation would be around 18 18 TWhTWh

The installed capacity is around 1455 MWThe installed capacity is around 1455 MW

The average generation is around 5267 The average generation is around 5267 GWhGWh

MAIN HYDRO POWER PLANTS (HPP) IN ALBANIAMAIN HYDRO POWER PLANTS (HPP) IN ALBANIA

No.No. Nomination of HPPNomination of HPP Installed Installed capacity (KW)capacity (KW)

Annual Annual generation (generation (kwhkwh))

1.1. UlzaUlza HPP (Mat)HPP (Mat) 25 00025 000 120 000 000120 000 000

2.2. ShkopetiShkopeti HPPHPP (Mat)(Mat) 24 00024 000 94 000 00094 000 000

3.3. BistricaBistrica I HPPI HPP (Saranda)(Saranda) 22 50022 500 100 000 000100 000 000

4.4. VauVau DejesDejes HPPHPP (Shkodra)(Shkodra) 250 000250 000 1 000 000 0001 000 000 000

5.5. FierzaFierza HPPHPP (Tropoja)(Tropoja) 500 000500 000 1 800 000 0001 800 000 000

6.6. KomaniKomani HPPHPP (Puke)(Puke) 600 000600 000 2 000 000 0002 000 000 000

TotalTotal 1 421 5001 421 500 5 114 000 0005 114 000 000

POWER GENERATION AND INSTALLED CAPACITIES POWER GENERATION AND INSTALLED CAPACITIES CHART OF BIG SCALE HYDRO POWER PLANTS (HPP)CHART OF BIG SCALE HYDRO POWER PLANTS (HPP)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

HPP Ulez

HPP ShkopetHPP B

istric

a 1HPP Vau

Deje

s

HPP Fierze

HPP Koman Inastalled Power (MW)

Annual Energy Prod. (Gwh)

POWER POTENTIAL IN RIVERS UTILIZATIONPOWER POTENTIAL IN RIVERS UTILIZATION

RiverRiverTotal Total resources resources (MW)(MW)

Power Power potentialpotential((101066)) kwhkwh

Installed Installed capacitycapacity

(MW)(MW)

Power Power generationgeneration((1o1o66) ) kwhkwh

Potential for Potential for utilization utilization

(MW)(MW)

Potential Potential for for

generationgeneration((1o1o66) ) kwhkwh

DriniDrini 1,7801,780 6,7506,750 1,3501,350 4,9004,900 430430 1,8501,850

VjosaVjosa 387387 1,9491,949 00 00 387387 1,9491,949

DevollDevoll 246246 1,3011,301 00 00 246246 1,3011,301

OsumOsum 124124 613613 00 00 124124 613613

MatMat 112112 596596 4949 214214 63,463,4 382382

Hydro Power Plant of UlzaHydro Power Plant of Ulza Hydro Power Plant of ShkopetiHydro Power Plant of Shkopeti

Hydro Power Plant of Bistrica IIHydro Power Plant of Bistrica IIHydro Power Plant of Bistrica IHydro Power Plant of Bistrica I

BIG SCALE HYDRO POWER PLANTSBIG SCALE HYDRO POWER PLANTS

Hydro Power Plant of Vau DejesHydro Power Plant of Vau Dejes Hydro Power Plant of FierzaHydro Power Plant of Fierza

Hydro Power Plant of FierzaHydro Power Plant of FierzaHydro Power Plant of KomanHydro Power Plant of Koman

There are, in Albania, 89 small hydro power plants:There are, in Albania, 89 small hydro power plants:

82 have an installed capacity from 10 KW up to 82 have an installed capacity from 10 KW up to 1MW1MW7 others have an installed capacity from 1MW up7 others have an installed capacity from 1MW up

32 of them, with an installed capacity of 24.432 of them, with an installed capacity of 24.4 MWMW, , are under concession;are under concession;16 are privatized, with 2MW installed capacity;16 are privatized, with 2MW installed capacity;

41 are property of state, with 12.5 MW installed 41 are property of state, with 12.5 MW installed capacity.capacity.

From all 89 small power plants, only 36 are in operation.From all 89 small power plants, only 36 are in operation.

SMALL HYDRO POWER PLANTS (up to 15MW)SMALL HYDRO POWER PLANTS (up to 15MW)

ACTUALLY ADMINISTRATIVE STATUS OF HYDRO ACTUALLY ADMINISTRATIVE STATUS OF HYDRO POWER PLANTSPOWER PLANTS

36%36%

18%18%

46%46% With concessionWith concessionPrivatePrivateStateState

Actual status of hydro Actual status of hydro power plants in Albaniapower plants in Albania

Concession81%

19%workingout of working

Private

56%44%

workingout of working

State property

5%

95%

workingout of working

LEGAL FRAMEWORKLEGAL FRAMEWORK

••

Law No. 9663 Law No. 9663 dtdt. 18.12.2006 . 18.12.2006 ““On concessionsOn concessions””;;••

Decision of Council of Ministers No.27, Decision of Council of Ministers No.27, dtdt. 19/1/2007 . 19/1/2007 ““On approval On approval of rules for evaluation and concession proceduresof rules for evaluation and concession procedures””, changed with , changed with the Decision of Council of Ministers No.87, date 16.01.2008;the Decision of Council of Ministers No.87, date 16.01.2008;

••

Decision of Council of Ministers No.150.dt. 22.03.2007 Decision of Council of Ministers No.150.dt. 22.03.2007 ““For the For the organization and function of Concessionorganization and function of Concession’’s Treating Agencys Treating Agency””;;

••

Order of the Minister of Economy, Trade and Energy No.536, Order of the Minister of Economy, Trade and Energy No.536, dtdt. . 27.07.2007 27.07.2007 ““Regulation for the administration of documents and Regulation for the administration of documents and requests related to concessionary agreementsrequests related to concessionary agreements”” and and ““Bonus Bonus evaluation criteriaevaluation criteria””;;

••

Law No.8987, Law No.8987, dtdt. 24.12.2002 . 24.12.2002 ““On facilitating conditions On facilitating conditions establishment related to new power generation resources establishment related to new power generation resources constructionconstruction””;;

••

Law No.7970, Law No.7970, dtdt. 20.07.1995 . 20.07.1995 ““On the arrangement of electricity On the arrangement of electricity sectorsector””, changed with Law No.9072, , changed with Law No.9072, dtdt. 22.05.2003, changed . 22.05.2003, changed recently with the Law No. 9913, recently with the Law No. 9913, dtdt. 05.05.2008 . 05.05.2008 ““For some adding For some adding and changes in Law No. 9072 and changes in Law No. 9072 …”…”;;

••

Law No.7764, Law No.7764, dtdt. 2.11.1993 . 2.11.1993 ““On foreign investmentsOn foreign investments””;;••

Law No.8093, Law No.8093, dtdt. 21.03.1996 . 21.03.1996 ““On water reservesOn water reserves””..

RENEWABLE ENERGY DEPARTMENT RENEWABLE ENERGY DEPARTMENT

••

Consults, advises and collaborates with all relevant Consults, advises and collaborates with all relevant governmental institutions, on policies related to governmental institutions, on policies related to renewable energy sources, energy efficiency, aiming renewable energy sources, energy efficiency, aiming the improvement of the Albanian National Strategy of the improvement of the Albanian National Strategy of Energy;Energy;••

Promotes the different initiatives and investments in Promotes the different initiatives and investments in renewable energy sources;renewable energy sources;••

Proposes different energy efficiency measures and Proposes different energy efficiency measures and implementation programmes in all the Albanian implementation programmes in all the Albanian economy sectors;economy sectors;••

Compiles and publishes the Annual Energy Balance Compiles and publishes the Annual Energy Balance at national level, based on energy database and at national level, based on energy database and statistics.statistics.

THE MAIN ISSUES DEALING WITH:THE MAIN ISSUES DEALING WITH:

••

The energy planning in both supply and demand side The energy planning in both supply and demand side with less environmental impacts, increasing the with less environmental impacts, increasing the security of supply, etc.;security of supply, etc.;••

The National Strategy of Energy based on:The National Strategy of Energy based on:−−

The Albanian liberalization of the power sector and The Albanian liberalization of the power sector and its integration within regional electricity market; its integration within regional electricity market;

−−

The promotion of renewable energy sources and The promotion of renewable energy sources and energy efficiency policies,energy efficiency policies,

−−

The forecast related to the electricity tariffs, The forecast related to the electricity tariffs, −−

The harmonization of the Albanian legal framework The harmonization of the Albanian legal framework with EU Standards.with EU Standards.

••

The preparation of the Albanian Energy Balance. The preparation of the Albanian Energy Balance.

Energy supply from:Energy supply from:Hydro Power Plants,Hydro Power Plants,Thermo Power Plants,Thermo Power Plants,Technologies of renewable energy Technologies of renewable energy ImportImport

Energy demand from:Energy demand from:Industry,Industry,Residential,Residential,Transport,Transport,Services,Services,Agriculture.Agriculture.

ENERGY PLANNINGENERGY PLANNING

RENEWABLE ENERGY SOURCESRENEWABLE ENERGY SOURCES

SOLAR ENERGYSOLAR ENERGY

••

Solar Energy has been introduced in Albania for domestic Solar Energy has been introduced in Albania for domestic hot water. hot water.

••

Albania has an potential of approximately 240Albania has an potential of approximately 240--260 sunny 260 sunny days/year.days/year. The solar radiation is fromThe solar radiation is from 11200200 toto 116600 kWh/m00 kWh/m22/year/year..

AlbaniaAlbania,, based on its geographic position,based on its geographic position, has favorable has favorable conditions for renewable energyconditions for renewable energy exploitation:exploitation:••

Hydro Hydro ••

SolarSolar•• WindWind•• BiomassBiomass•• GeothermalGeothermal

Territory distribution of annually Territory distribution of annually sunny hourssunny hours

Average daily solar radiationAverage daily solar radiation

WIND ENERGYWIND ENERGY

It is a possibility for electricity generation. There are identified some attractive areas which need for more measurements, in order to define their real potential.

The average wind velocity (The average wind velocity (m/sm/s)) Territory distribution of Territory distribution of annually windy hoursannually windy hours

BIOMASSBIOMASS

GEOTHERMAL ENERGYGEOTHERMAL ENERGY

There are some opportunities to useThere are some opportunities to use::••

Wood and bush,Wood and bush,••

Agriculture residues,Agriculture residues,••

Livestock residues,Livestock residues,••

Urban residues.Urban residues.

Wood is already in use for heat purposes in the Wood is already in use for heat purposes in the rural areas. rural areas.

There are some geothermal sources in our country There are some geothermal sources in our country estimated at low thermal potential (max. temp. 20estimated at low thermal potential (max. temp. 20--3333°°C). C).

LEGAL ENERGY FRAMEWORKLEGAL ENERGY FRAMEWORK

••

Power Sector Law [Power Sector Law [No.9072, 22.05.2003]No.9072, 22.05.2003];;••

Energy Efficiency Law [No.9379, 28.04.2005];Energy Efficiency Law [No.9379, 28.04.2005];••

Energy Saving in Buildings [Energy Saving in Buildings [Law No.8937, 12.09.2002]Law No.8937, 12.09.2002];;••

Law on the Privatization of Local Hydro Power Plants Law on the Privatization of Local Hydro Power Plants [No. 8527, 1999]; [No. 8527, 1999]; ••

Concession Law [No.9663, 18.12.2006];Concession Law [No.9663, 18.12.2006];••

Foreign Investment Law [No.7764, 2.11.1993];Foreign Investment Law [No.7764, 2.11.1993];

••

Still in process draft of Renewable Energy Law Still in process draft of Renewable Energy Law

••

Coordinates the administrative and economical problems Coordinates the administrative and economical problems between the Agencybetween the Agency’’s Departments, offering a specialized s Departments, offering a specialized support and aiming the harmonization of all structures of the support and aiming the harmonization of all structures of the Agency as a solid administrative body;Agency as a solid administrative body;

••

Plans and controls the realization of the economical and Plans and controls the realization of the economical and financial requirements, aiming the effective use of financial financial requirements, aiming the effective use of financial sources and the good administration of the monetary values sources and the good administration of the monetary values and all assets of the Agency;and all assets of the Agency;

••

Organizes and coordinates the work with other departments Organizes and coordinates the work with other departments of the Agency and thirds, in order to better promote all the of the Agency and thirds, in order to better promote all the Albanian natural resources;Albanian natural resources;

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Publishes and updates the AgencyPublishes and updates the Agency’’s activities in its own s activities in its own website, enabling investments from domestic and foreign website, enabling investments from domestic and foreign companies;companies;

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Assists the Chairman of the Agency and its structures, in Assists the Chairman of the Agency and its structures, in making possible the fulfilment in time of all administrative making possible the fulfilment in time of all administrative obligations.obligations.

COORDINATIONCOORDINATION DEPARTMENT DEPARTMENT

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