Albania's dilemma: produce energy or protect the environment?

25/09/2007

Albania's Sali Berisha says thermal power plants are the best way to meet the country's energy needs. But plans to build such a facility at a top tourist destination have local residents crying foul.

By Erlis Selimaj for Southeast European Times in Tirana -- 25/09/07

Albania depends on hydropower plants for its energy. [AFP]

Over the last decade, life in Albania has become seriously affected by energy shortages. This summer, the public faced up to 12 hours of power cuts a day, at the peak of the tourism season.

Prime Minister Sali Berisha has vowed action. He says neither energy imports nor conservation efforts are enough to solve the problem, and that new facilities must be built. "I think that the Albanian government has to plan in its budget the funds for a new thermal power plant every year," he said.

The authorities have given the go-ahead for a thermal plant in the southwestern port city of Vlora. However, the initiative has triggered opposition from environmentalists and local residents.

Situated off the Adriatic coast, Vlora is one of the most popular tourist destinations in the country. Beautiful beaches and lagoons, as well as ancient and medieval monuments, make it an appealing travel destination. Vlora is also famous for its biodiversity and its wine, olive oil and fish.

The thermal facility would be part of an industrial park covering a 560 hectare area, close to several protected lagoons. As the entire city area of Vlora is 1,120 hectares, and the industrial zone will be located 1.5 km from the centre within a residential area, residents are worried about the negative impact on social life and on the tourism potential. Environmentalists, meanwhile, say the project's main goal is not to improve the energy situation at home, but to facilitate exports abroad.

"Despite the government's assurances that the power plant should provide a remedy to the increasingly acute energy situation in Albania, there are indications that the fulfillment of Albania's energy demand features only as secondary to the export of electricity to the European energy market, particularly the Italian market," says Aleksander Mita, representative of the Alliance for the Protection of Vlora Gulf.

The Albanian authorities and international financial institutions say measures will be taken to limit the impact, and that the plant will adhere to EU environmental standards.

The plant is expected to have a production capacity of 97 megawatts. Construction costs are estimated at around 110m euros. To cover expenses, the Albanian Power Corporation will take a 40m-euro loan from the EBRD. The World Bank and the European Investment Bank will also cover a part of the expenses.

At the moment, Albania can only meet half its electricity needs. Roughly 90% of these are covered by hydropower, and this generation is dependent on weather conditions. In addition to new thermal power plants, the government wants to build eight new, small hydropower facilities.

Berisha came in power in 2004, and one of the campaign promises made by his Democratic Party was to resolve the energy crisis. Now, three years later, Berisha says a severe drought has made this difficult.

"I am not regretting that I haven't fulfilled the promises," Berisha said. "If we hadn't had this drought, the promises would have been fulfilled. Albanians know that we never had a drought like this. But we are working on resolving the problem by funding different projects in the energy field."