REGIONAL ANALYSIS REPORT Vlora University
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Contents USERS TEST QUESTIONNAIRES, REGIONAL ANALYSIS – ALBANIA .............. 5 PA’s QUESTIONNAIRES REPORT .............................................................................. 5 1.
Administrative Authorities represented in this survey: ............................................. 5
2.
What is Green Public Procurement (GPP)? .............................................................. 6
3.
Is there a GPP policy in your country (Albania)? ..................................................... 6
4.
If yes, can you please describe it briefly ................................................................... 6
5.
And the regional regulation? (in case of existence) .................................................. 7
6.
In your opinion, what is electronic Public Procurement? ......................................... 7
7. Does a National Regulation for electronic Public Procurement exist in your country? ............................................................................................................................ 7 8. What does the National Regulation for electronic Public Procurement in your country state? .................................................................................................................... 7 9.
Is Public Procurement in your country centralized? ................................................. 7
10. In this section, you are to answer just one of the questions being posed in accordance with your answer to question 8 above ........................................................... 8 11. Does your Centralized Administration use an electronic Public Procurement system? ............................................................................................................................. 8 12.
Does your Administration use Green Public Procurement policies and criteria? . 8
13.
Which certificates are requested by the tenders to assure Green designation? ..... 9
14.
How do you weigh the Green certification in the tendering process? ................... 9
15. Does your administration know the existing SMEs that offer green product/services in its geographical area? ........................................................................ 9 16. Which of the following sectors does your organisation plan to include in your energy program? (Several answers possible) ................................................................... 9 17. Main reasons of the potential/current use of an electronic GPP in your organization .................................................................................................................... 10 18. Main external barriers that your Authority faces in a potential/current use of a GPP 10 19.
What kind of training PAs like to receive ........................................................... 11
20.
Would you be willing to pay a fee if the training could not be provided for free? 12
21. What Operating System(s) does your organization use (You can choose more than one)? ....................................................................................................................... 12 2|Page
22.
Staff competences in using computers ................................................................ 12
23.
Browsers and document formats used within the organization ........................... 12
RESULTS ANALYSIS OF SMEs QUESTIONNAIRES .............................................. 14 1.
What is Green Public Procurement (GPP)? ............................................................ 14
2.
Is there a GPP policy or a regional regulation in Albania? ..................................... 14
3.
What is electronic Public Procurement? ................................................................. 14
4.
Does a National Regulation for electronic Public Procurement exist in Albania? . 14
5. What does the National Regulation for electronic Public Procurement in Albania state? ............................................................................................................................... 15 6.
Does your company offer green products or services? ........................................... 15
7.
Area of green services or produce green products offered? .................................... 15
8. Do you have knowledge on the exact specs required (e.g. ISO) for each of these products/services? ........................................................................................................... 16 9.
Certificates assure Green designation ..................................................................... 17
10. Information about published tenders on Public Procurement by the different Administrations .............................................................................................................. 17 11.
Participation in a GPP ......................................................................................... 18
12.
Main reasons to participate in an electronic GPP ................................................ 18
13.
Main external barriers to access to GPP, electronic or not .................................. 18
14.
Training requested ............................................................................................... 19
15. Would you be interested in paying a fee if the training could not be provided for free? 20 16.
How could the Public Administration help you? ................................................ 20
17.
What Operating System(s) does your company use ............................................ 20
19.
Staff competences in using computers ................................................................ 21
20.
Browsers and document formats used by organizations ..................................... 21
COMPARISON BETWEEN TWO GROUPS ............................................................... 23 1.
What is Green Public Procurement (GPP)? ............................................................ 23
2.
Is there a GPP policy in your country (Albania)? ................................................... 24
3.
In your opinion, what is electronic Public Procurement? ....................................... 24
4. Does a National Regulation for electronic Public Procurement exist in your country? .......................................................................................................................... 25 5. What does the National Regulation for electronic Public Procurement in your country state? .................................................................................................................. 25 6.
Is Public Procurement in your country centralized? ............................................... 25
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7. Which of the following sectors does your organisation plan to include in your energy program? (Several answers possible) ................................................................. 25 8.
What kind of training PAs like to receive ............................................................... 27
9.
Would you be willing to pay a fee if the training could not be provided for free? . 28
10. What Operating System(s) does your organization use (You can choose more than one)? ....................................................................................................................... 28 11.
Staff competences in using computers ................................................................ 28
12.
Browsers and document formats used within the organization ........................... 28
ANALYSIS AND EVALUATION OF THE RESULTS IN RELATION WITH THE ECONOMIC STATE OF YOUR REGION ................................................................... 30 Quick Facts ..................................................................................................................... 30 ENERGY IN ALBANIA ................................................................................................ 31 SOLAR ENERGY .......................................................................................................... 34 WIND ENERGY ............................................................................................................ 35 FAVORABLE ENERGY POLICY................................................................................ 35 NEW PRACTICES TO BE INTRODUCED ................................................................. 37 BEST PRACTICE – GREEN ENERGY PARK (GEP)................................................. 38 E- PROCUREMENT SYSTEM IN ALBANIA ............................................................. 41
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USERS TEST QUESTIONNAIRES, REGIONAL ANALYSIS – ALBANIA This analysis is based on the 24 questionnaires collected by different public authorities (national, regional and local) and SME-s in Albania. The survey was realized during October 2013 – mid of January 2014. It was realized in these areas, Tirana, Durres, Fier, Vlora and Shkodra.
Number of questionnaires collected 14 10
Public Authority
SME
PA’s QUESTIONNAIRES REPORT Below there are the results of the answers given by public Authorities :
1. Administrative Authorities represented in this survey: The administrative authorities that participated in the survey were: A Regional / National Authority – 3 participants 5|Page
A Local Authority – 7 participants
2. What is Green Public Procurement (GPP)? Regarding the understanding of what is Green Public Procurement participants answered that they are set of EU criteria and / or national specifications that are more economic and in the same time environment friendly, (seven participants), while three of the participants could not give a definition about GPP.
3. Is there a GPP policy in your country (Albania)?
Is there a GPP policy in your country 6
4
Yes
No
4. If yes, can you please describe it briefly The participants answered that this regulation if exists should be at the online procurement portal, or at the website of the National Commission of Public Procurement, but none of them was clear about any regulation or knowledge regarding it. 6|Page
5. And the regional regulation? (in case of existence) Again the participants were not sure if there is any regional regulation about GPP. They have never heard about it. According to them maybe the government has signed any regional act about this, but they were not aware if it really exists.
6. In your opinion, what is electronic Public Procurement? Regarding Electronic Public Procurement all participants said that they were very informed about it. They knew the portal, the way to use it, how to participate in tenders and how to publish a tender on it. Electronic Public Procurement was a centralized governmental agency that allows all the public entities to tender their services, supplies and to invite tenderes to submit online their offers.
7. Does a National Regulation for Procurement exist in your country?
electronic
Public
All participants answered Yes to this question.
8. What does the National Regulation for electronic Public Procurement in your country state? It is the law approved by the parliament that states all the online tendering procedures, from the specifications’ preparation till the contract award and complaints procedures if necessary. It has the deadlines and the criteria to award the winner.
9. Is Public Procurement in your country centralized? 7|Page
Yes, all participants stated that the Public Procurement is centralized through the Public Procurement Portal.
10. In this section, you are to answer just one of the questions being posed in accordance with your answer to question 8 above Yes, the central authority identified is the public procurement agency and the deadlines are stated in the law of public procurement. All the public tenders should be organized through this procurement agency.
11. Does your Centralized Administration electronic Public Procurement system?
use
an
How does your entity interact with the central authority to get the tender process going? Does your Administration use an electronic Public Procurement system?
Yes, all the participants stated that they use the National Public Procurement System. They have specific usernames and codes to access and use it. Of course they cannot have access in the offers before the closing of a specific tender.
12. Does your Administration Procurement policies and criteria?
use
Green
Public
None of them answered that they use Green Procurement Policies during a tendering procedures, neither during preparation of specifications, nor during tender application participation.
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13. Which certificates are requested by the tenders to assure Green designation? In Albania according to the participants in this survey No certificate to assure green designation is requested. There are requested only assurance and quality certificates. If these certificates comply with this kind of green designation, than there are processed tenderers who have the best certificates.
14. How do you weigh the Green certification in the tendering process? None of them weigh the Green certification in the tendering process, what they take into consideration and request as part of tender package application are quality assurance certifications.
15. Does your administration know the existing SMEs that offer green product/services in its geographical area?
Energy efficiency Renewable energies Services No, none of them know any SME that offers green products. But they were aware that there were some ISO standards that the products have.
16. Which of the following sectors does your organisation plan to include in your energy program? (Several answers possible)
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Which of the following sectors does your organisation plan to include in your energy program? 10
2 0 Energy efficiency:
Renewable energies:
Services:
17. Main reasons of the potential/current use of an electronic
GPP in your organization (For each reason, circle one number, where 7=most important):
Save time
Very Important / 7
Flexibility
Very Important / 7
Save money
Very Important / 7
Environmental commitment of Somehow Important / 3 my organization 18. Main external barriers that your Authority faces in a
potential/current use of a GPP (For each barrier, circle one number, where 7=most important):
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Main external barriers that your Authority faces in the current use of a GPP 7
Higher cost of green products or services Lack of information & useful tools on…
5
Insufficient demand for green products or…
5
Lack of legal experience
4
Bureaucracy, a very long process
4
Raises issues with potential suppliers
4 3
Lack of coordination between regional and… Overly-restrictive criteria that disallow…
2
19. What kind of training PAs like to receive (For each kind, circle one number, where 7=most important)
Trainings 7
Identification of specs for Green… 6
Training about Quality Management… 5
Manuals elaboration: guides, brochures… Benchmarking and Good Practices events
4
Sectorial workshops: necessities-advice
4
Training on GPP Legal Framework at…
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4
20. Would you be willing to pay a fee if the training could not be provided for free? If the institutions pay it, yes. These trainings are expensive for their salaries.
21. What Operating System(s) does your organization use (You can choose more than one)? All the participants were using Windows operating system in their institution, but none of them have ever used Electronic Data Interchange (EDI) software? 22. Staff competences in using computers (from 1 - 7, where 7=highest) The average of the all values entered by the participants was 5. 23. Browsers
and
document
formats
used
within
organization (You can choose more than one)? The involved institutions were using Chrome (10), Explore (4) and Mozilla (4)
10 8 6
10
4 2
3
4
0 CHROME
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EXPLORE
MOZILLA
the
And the below document formats: PDF (10) MS Word 97, 200 or 2003 (0) MS Word 2007, 2010 or 2013 (10) XPS (0) Open Office (0) HTML (10) XML (0)
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RESULTS ANALYSIS OF SMEs QUESTIONNAIRES
1. What is Green Public Procurement (GPP)? Answers of the participants (7) state that a green procurement is that procurement that in the specifications of the tender are included specifications that protect the environment, use renewable energy, save energy and have a long life of the product. Seven participants answered that they do now know what is a green procurement, maybe it is related to the environment (green).
2. Is there a GPP policy or a regional regulation in Albania? All participants answered NO about if there is any GPP policy in Albania. Regarding if they know about any regional regulation that allow green procurement all participants answered that they do not know if there is such regulations in place in Albania that derives from any signed convention, memorandum or any other agreed decision.
3. What is electronic Public Procurement? As it was also presented in the PA results, also SMEs were informed and they knew very well what is an electronic Public Procurement.
4. Does a National Regulation Procurement exist in Albania?
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for
electronic
Public
The answer again was positive from all participants. They answered that there is a public agency, a website and the tenders are realized through this portal it is sure that there are clear procedures about the functioning of the electronic public procurement in Albania.
5. What does the National Regulation for electronic Public Procurement in Albania state? None of the participants was clear about what the regulation states, but they know that it is a law that facilitates all the tendering procedures.
6. Does your company offer green products or services? The participants said that all of them were offering products that were certified with different certifications (ISO standards), also they were offering also products with no certificate.
7. Area of green services or produce green products offered? Services 12 participants answered that their services are green, they protect the environment and promote renewable and energy saves services.
Renewable energies 9 participants answered that they can offer renewable products, but these products are more expensive compared to other products.
Energy efficiency 6 participants answered that they can offer energy efficiency products. 15 | P a g e
12 10 8 12 9
6
6
4 2
0 Services
Renewable energies
Energy efficiency
8. Do you have knowledge on the exact specs required (e.g. ISO) for each of these products/services? Do you have knowledge on the exact specs required (e.g. ISO) for each of these products/services? 6
6
5
5 4 3
3 2 1 0 yes
no i don’t know
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9. Certificates assure Green designation
Which certificates assure Green designation
8 6 4
Maybe ISO
ECO standards
10. Information
about
I don't Know
published
tenders
on
Public
Procurement by the different Administrations (local, regional, national, European) All participants answered to this question yes, and they identified the agencies as below.
Can you look for information about published tenders on Public Procurement by the different Administrations
14
14
3 •
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Local
•
Regional
2 •
National
•
European Union
11.
Participation in a GPP
All participants answered to this question NO,
12. Main reasons to participate in an electronic GPP (For each reason, circle one number, where 7=most important):
Reasons of No participation in GPP 1
Lack of economic resources
3
Perceived low probability of success
4
Non-fulfillment of tender established‌ Lack of legal experience
5
Lack of human resources
5
Lack of staff time
5 6
Low probability of success based on‌ Lack of interest
6
Lack of information
6 0
1
2
3
4
5
6
13. Main external barriers to access to GPP, electronic or not (For each barrier, circle one number, where 7=most important):
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Barriers of Participation Perceived low probability of success Lack of coordination between regional and national… Lack of information & useful tools on Administration… Restrictive criteria that disallow own product from… Lack of economic resources Bureaucracy, a very long process Lack of legal experience Higher cost of green products or services Insufficient demand for green products or services 0
2
4
6
14. Training requested (For each kind, circle one number, where 7=most important)
Trainings Identification of specs for Green…
7
Training about Quality Management…
7 6
Manuals elaboration: guides, brochures…
Benchmarking and Good Practices events Sectorial workshops: necessities-advice Training on GPP Legal Framework at…
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3 5 6
8
15. Would you be interested in paying a fee if the training could not be provided for free?
Will you pay a fee for particiation in a training? 8
7
7 6
5
5 4 3
2
2 1 0 yes
no
i don’t know
16. How could the Public Administration help you? (For each need, circle one number, where 7=most important)
How can Public Authorities can Help you Security Rapidity Less bureaucracy More transparency in the tender process
More openness to products / services… Less stringent language requirements Harmonisation at the level of systems… Legislation harmonisation Periodic information about published…
More information on the benefits of… 0
1
2
3
4
5
6
7
8
17. What Operating System(s) does your company use (You can choose more than one)? 20 | P a g e
(3) MS Windows 8 (11) MS windows 7
12 10 8
11
6 4
3
2 0
MS Windows 8
MS Windows 7
18. Has your organization ever used Electronic Data Interchange (EDI)
software? If yes, what platform have you used? None of the participants have ever used this software.
19. Staff competences in using computers (Please circle one number, where 7=highest) The average rate by participants was 5. 20. Browsers and document formats used by organizations You can choose more than one)?
The involved institutions were using Chrome (14), Explore (8) and Mozilla (4)
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14 14 12
8
10 8
4
6 4 2 0 CHROME
EXPLORE
And the below document formats PDF (14) MS Word 97, 200 or 2003 (3) MS Word 2007, 2010 or 2013 (11) XPS (0) Open Office (0) HTML (14) XML (0)
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MOZILLA
COMPARISON BETWEEN TWO GROUPS There were conducted in total 24 interviews, 10 questionnaires with public institutions and 14 questionnaires with SMEs.
Number of questionnaires collected 14 10
Public Authority
SME
1. What is Green Public Procurement (GPP)? Participants in the survey define GPP as: A set of EU criteria and / or national specifications that are more economic and in the same time environment friendly, (seven participants),. Procurement that in the specifications of the tender are included specifications that protect the environment, use renewable energy, save energy and have a long life of the product. While three of the PA participants and Seven SME participants answered that they do now know what is a green procurement, could not give a definition about GPP, stating that maybe it is related to the environment (green).
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2. Is there a GPP policy in your country (Albania)?
Is there a GPP policy in your country 6 4
Yes
No
The above graph shows the answers of PAs, while all SME participants answered NO about if there is any GPP policy in Albania. Regarding if they know about any regional regulation that allow green procurement all participants answered that they do not know if there is such regulations in place in Albania that derives from any signed convention, memorandum or any other agreed decision.
3. In your opinion, what is electronic Public Procurement? Regarding Electronic Public Procurement all participants said that they were very informed about it. They knew the portal, the way to use it, how to participate in tenders and how to publish a tender on it. Electronic Public Procurement was a centralized governmental agency that allows all the public entities to tender their services, supplies and to invite tenderes to submit online their offers.
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4. Does a National Regulation for Procurement exist in your country?
electronic
Public
All participants answered Yes to this question.
5. What does the National Regulation for electronic Public Procurement in your country state? It is the law approved by the parliament that states all the online tendering procedures, from the specifications’ preparation till the contract award and complaints procedures if necessary. It has the deadlines and the criteria to award the winner.
6. Is Public Procurement in your country centralized? Yes, all participants were well informed that the Public Procurement is centralized through the Public Procurement Portal. The central authority identified is the public procurement agency and the deadlines are stated in the law of public procurement. All the public tenders should be organized through this procurement agency. All the participants in this survey stated that they use the National Public Procurement System. They have specific usernames and codes to access and use it. They cannot have access in the offers before the closing of a specific tender. But none for PAs and SMEs answered that they use Green Procurement Policies during a tendering procedures, neither during preparation of specifications, nor during tender application participation.
7. Which of the following sectors does your organisation plan to include in your energy program? (Several answers possible)
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Which of the following sectors does your organisation plan to include in your energy program? 10
2 0 Energy efficiency:
Renewable energies:
Services:
12 10 8 12 9
6
6
4
2 0 Services
Renewable energies
Energy efficiency
This question directed to PAs is not reflected on where SMEs can offer services that can be identified ans green services or produce green products offered? Services 12 participants answered that their services are green, they protect the environment and promote renewable and energy saves services. Renewable energies 9 participants answered that they can offer renewable products, but these products are more expensive compared to other products. Energy efficiency 26 | P a g e
6 participants answered that they can offer energy efficiency products.
8. What kind of training PAs like to receive (For each kind, circle one number, where 7=most important)
PAs Trainings 7
Identification of specs for Green… 6
Training about Quality Management… 5
Manuals elaboration: guides, brochures… Benchmarking and Good Practices events
4
Sectorial workshops: necessities-advice
4 4
Training on GPP Legal Framework at…
SMEs Trainings Identification of specs for Green…
7
Training about Quality Management…
7 6
Manuals elaboration: guides, brochures…
Benchmarking and Good Practices events Sectorial workshops: necessities-advice Training on GPP Legal Framework at…
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3 5 6
What it goes in line with the GRASP project is that the training needs identified by PAs and SMEs are almost the same, where identification of specifications is the most requested.
9. Would you be willing to pay a fee if the training could not be provided for free? Regarding participation fee, PAs will participate is their institutions pay the fee, while SMEs say that they will participate also if there is a fee.
10. What Operating System(s) does your organization use (You can choose more than one)? All the PAs and SMEs participants were using Windows operating system in their institution, but none of them have ever used Electronic Data Interchange (EDI) software. 11. Staff competences in using computers (from 1 - 7, where 7=highest) The average of the all values entered by all participants was 5. 12. Browsers
and
document
formats
used
within
organization (You can choose more than one)? The involved institutions were using Chrome (10), Explore (4) and Mozilla (4)
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the
10 8 6
10
4 2
3
4
0 CHROME
EXPLORE
MOZILLA
14 14 12
8
10 8
4
6 4 2 0 CHROME
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EXPLORE
MOZILLA
ANALYSIS AND EVALUATION OF THE RESULTS IN RELATION WITH THE ECONOMIC STATE OF YOUR REGION
Quick Facts Position:
Southwest of the Balkan Peninsula
Borders:
Greece, Macedonia, Kosovo, Montenegro, Italy
Surface area:
28,747 sq. km
Population:
2.9 million
GDP:
$12.65 billion (2012)
GDP growth:
0.7 % (2013)
FDI:
$1.04 billion (2011)
Government:
Parliamentary democracy
Membership:
NATO, WTO, Associated to EU (expecting candidacy)
Figure 1 Map of Albania. 30 | P a g e
Albania is located in south-western part of Balkans peninsula, Southeast Europe. The country is linked with the rest of the world via land, sea and air routes. Characterized by a distinct mountainous landscape, the average altitude of Albania is 700 meters above the sea. Based on the structure, composition and shape of the landscape, four zones are distinguished: Alps, Central Mountainous Region, Southern Mountainous Region and Western Lowland. The landscape is intersected by the valleys of Vjosa, Devoll, Osum, Shkumbin, Erzen, Mat and Drin rivers, eastward and westward, which enable the connection of Adriatic Sea with the internal part of the country and the Balkans Albania lies in the Mediterranean climatic zone, characterized by a hot dry summer, strong sunshine and generally mild winter with abundant rainfalls. Annual average rainfall is 1430 mm. Situated along the Adriatic and Ionian Sea coast, Albania constitutes one of the key points of intersection for the roads crossing the Western Mediterranean into the Balkans and Minor Asia. Albania ensures via sea routes the connection with other world countries and that of the central regions of the Balkans Peninsula with the Adriatic coast. Albania started its economic reforms to have a more open policy to western countries only after 1990. During this initial period it became clear that the country seriously lacked financial resources and needed a heavy infusion of foreign capital for the economic development of the country. After a precrisis decade with a 6 percent average growth rate, average growth fell to 2.4 percent between 2009 and 2013.
ENERGY IN ALBANIA Main electricity energy source in Albania is hydropower energy. Electric power derived from all sources, during year 2013 increased by 16.7 percent compared with 2012. . Total electricity production of hydropower plants (HHP) represents 75.1 % of this total energy, which rose by 47.2 percent compared with the production of 2012.
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The production from public big HPP represents 83.6 percent of total energy production and energy production from private plants concession comprises 16.4 percent of hydropower energy in Albania. Electricity produced by private concession plants increased of 64.5 percent compared with a year ago. Albania has also thermal power plants, but they were not producing electricity in 2013.
Table 1: Balance of electric power
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Fig2: Generation, Import, Including exchanges and total sources of electric energy Source: Instat (Institute of statistics, Albania)
In 2013, the consumption of electricity by domestic users increased 4.2 percent compared to 2012. The available quantity for final consumption reached 4,551 GWh from 4,369 GWh in 2012 and represent 48,9 percent of the total quantity of electricity for final use.
The final consumption of electricity consumed by households and other consumers increased respectively by 4.9 percent and 3.4 percent compared with the previous year.
Figure3: Consumption of electric power by users 33 | P a g e
The combination of total dependence on hydropower generation, and its vulnerability to weather patterns, the lack of self-generation capacity, and the extremely high level of distribution losses that require significant power imports, is adding financial stress to the sector and to the whole population. Some of the arguments that the government gives about investments in renewable energy (RE) in Albania are:
RE is number one priority sector of the Albanian economy and a strong commitment by the Government to develop a green energy-driven economy
Guaranteed and increasing domestic demand – current production does not meet consumption needs
Albania has and International trade potential as it is in the center of one of Europe’s largest net importing electricity market
Albania has a liberalized energy market and trade policies and it gives incentives and governmental support and facilitation of investments
Albania has high-quality and experienced engineering and technical workforce, in particular in the hydropower sector.
SOLAR ENERGY Albania belongs to the sub-tropical belt and the Mediterranean climatic zone. The country has a hot, dry summer and a relatively short and mild winter. Due to its climate, the high intensity of solar radiation and its relatively long duration, Albania has favorable conditions for development of solar energy. Albania’s solar radiation is calculated at more than 1,500 kWh/m2/yr. The average daily solar radiation is about 4.1kWh/m2, reaching more than 4.6kWh/m2 in the southwestern part of the country. The country has on average about 2,400 hours of sunshine per year, 2,500 hours in the western part and a record of about 2,850 hours in certain locations. 34 | P a g e
Solar energy is being increasingly used for heating purposes, while photovoltaic energy is still unexplored.
WIND ENERGY Albania has untapped wind power potential, in particular along he Adriatic coast. A number of areas with high wind energy potential, - average annual wind speed of 6-8 m/s and energy density of 250600 W/m2, - are already identified. At least, 20 potential eolic electricity centrals can be constructed in these areas. Albania does not have any wind power production facility yet. Several domestic and foreign investors have already been licensed to explore wind power production opportunities, while a major investment for a 150 MW wind farm is in the planning phase. The Government’s target for the year 2020 is to generate 5 percent of total electricity from wind sources.
FAVORABLE ENERGY POLICY Albania has introduced a modern and effective legal framework and supporting mechanisms in the field of energy. The Law on Concessions establishes objective, fair and transparent procedures for awarding concessions in the energy sector. Energy trade is liberalized and producers may sell electricity to all markets, including domestic non-household customers, traders and foreign customers, at commercially agreed terms. Prices for selling to the Wholesale Public Supplier are regulated. The adopted Electricity Market Model establishes a feed-in tariff mechanism which offers great advantages to private producers of energy. Small HPPs (under 15 MW) are guaranteed sales to the Wholesale Public Supplier through long term purchasing agreements. There are no grid access restrictions for electricity generated by renewable resources and regulations for issuing the certificates of guarantees of origin have been defined. 35 | P a g e
A number of other incentives are offered to investors in the field of hydropower generation. Most importantly, investments in new plants, with an installed capacity over 5 MW, are exempt from customs duties on imported machineries and equipment. Very soon, the import of machinery and equipment as well as the import of cement and steel used for the construction of hydropower plants, will also be exempt from VAT tax. The Albanian Government is currently drafting a number of policy proposals that will offer various types of incentives for promotion of the wind and solar energy production. Financial availability and incentives Albanian Government has been able to raise the interest of various international financial institutions to provide financing facilitation schemes and incentives for investments in the sector.
Some of the main existing schemes are: �� In 2013, IFC begin to provide loans, channeled through a local bank, for renewable energy projects in the country. �� The Italian Government has established a €5 million renewable energy fund for Albania which provides grant financing to projects that contribute to reduction of CO2. �� The German KfW has established a €9 million facility to support local banks to invest in renewable energy by providing risk guarantees up to 50 percent of loan amounts, and to assist banks in loan appraisals and project selection. �� The Italian Development Program for Small and Medium-sized enterprises, with a €25 million fund, supports projects in the field of renewable energy offering fi nancing up to €0.5 million per project. �� The Government of Japan has also expressed interest to offer, through Albanian Government, grant financing for investment in small hydropower stations.
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�� EBRD’s Western Balkans Sustainable Energy Direct Financing Facility (€50 million) provides direct loans of €1-6 million to renewable energy projects in the Western Balkans, including Albania. Major international financial institutions, in particular WB, IFC, EBRD, and other development partners like Swiss Cooperation, Italian Cooperation, USAID, etc. have a strong commitment to the Albanian renewable energy sector and have already provided or are in the process of providing direct loans or grants amounting in hundred millions of Euros, to investments in the field.
NEW PRACTICES TO BE INTRODUCED Albania has a long tradition in the production of renewable energy, in particular hydro production. While for the past 50 years the sector has been developed only through domestic investments, in recent years it has attracted significant large and medium foreign investments. But also the below examples can be used and have attracted the interest of investors.
Bio-diesel, bio-ethanol, biogas and other fossil-derived transport fuels This sector in Albania covers the use of: 1. Biomass-derived fuels 2. Bioethanol 3. Biodiesel 4. Pure plant oil 5. Biogas
Main policy areas that are under the priorities of strategies and respective government institutions are: 1. The Transport Fuels Obligation 2. Carbon savings and sustainability of bio-fuel production 37 | P a g e
3. Duty levels for transport fuels 4. Opportunities for high-blend transport fuels and the vehicles, which use them
The focus of this sector is to facilitate the establishment of an efficient and enduring bio-fuels market. The introduction of an effective transport fuels obligation is therefore a key focus for this sector, which is providing input to the scheme design and procedures for carbon accounting and sustainability assurance. Biomass is a renewable energy source because we can always grow more trees and crops, and waste will always exist. Some examples of biomass fuels are wood, crops, manure, and some garbage. This can be a good source of energy for Albania. Biomass fuels are another important energy type for Albanian energy sector. People in Albania are trying to develop ways to burn more biomass and less fossil fuels. Using biomass for energy can cut back on waste and support agricultural products grown.
BEST PRACTICE – GREEN ENERGY PARK (GEP) The promoter of the Green Energy Park (GEP) is the Qendra e Transferimit te Teknologjive Bujqesore – Shkoder - QTTB (Center for Technology Transfer in Agriculture - Shkoder - CTTA). GEP creation started in 2012 and it is still in its initial stage. This project consists in creating a network of institutions and private entities that promote and enhance the use of renewable energy sources in agriculture, agri-food and tourist centers in Northern Albania.
The impact of the Green Energy Park Production of energy from agriculture is not developed yet in Albania. Though agriculture production is one of the most important income sources for almost 50 % of the population, the present income from agriculture is constantly reducing and the market situation is not stable, due to saturation from imported goods. Therefore more and more farmers are seeking new income sources from the agriculture sector. 38 | P a g e
Unfortunately, development activities directed to energy production from renewable resources directly or indirectly are still limited due to lack of know-how and scepticism. The installation of pilot RE production facilities in farms, greenhouses, agri-tourism and households will encourage common people to adopt new solutions for energy production from renewable sources, fostering environment protection, with a direct impact on farmers and common people living in the area of intervention and in particular: • Creation of new jobs in rural areas; • Use of local resources; • Increase of supply provision for rural areas; • Improving living conditions and environment for the economic development of the rural areas.
This project has started to create Demonstration Centers that will:
Raise the awareness of the general public, businesses, farmers, and other specific categories with regard to renewable energy applications in various sectors, among which particular attention will be reserved for the applications in agricultural and touristic sectors; Provide information on existing installation in the area (functioning, benefits, costs, etc.) and on the companies that produce them; Create of a network of contacts with companies, universities, research centers, institutions and other relevant stakeholders to enable the diffusion and the improvement of the network on the territory; Promote of demonstrative initiative in the Northern Albania area and potentially in other areas of Albania.
Installation at the Center for Technology Transfer in Agriculture of Shkoder The Center for Technology Transfer of Shkoder is developing, with the support of the Dutch NGO, SNV, a greenhouse of 2,000 square meters, for cultivation of a variety of native sage 39 | P a g e
Installation at the Professional Training Center of Laboratories Activities related to professional training for the SWH and PV are already realized in the Professional Training Centre (PTC). These activities are essential for ensuring the maintenance of equipment installed in any facility included in the Technology Park. Installation at Mrizi i Zanave agritourism The restaurant-agritourism Mrizi i Zanave represents an excellent sounding board for Technology Park activities and therefore constitutes a point where to display some applications, and where to promote the other demonstrative centers of the Park. Installation at the AMT Laboratory of Agribusiness Center of Puke. AMT Agribusiness Center will be equipped with a SWH system to supply the room for drying herbs and mushrooms and a photovoltaic system energy supply to the equipment for production of traditional products. A micro-biogas device for pig shed heating will also be designed and implemented. Installation in Agro-Zadrima Cooperative, Cellar and Crusher Krajen. An intervention of an application to biomass will be made in this company, which has large amounts of waste production from agricultural production. Keeping in mind that Zadrima Cooperative operates within the grounds of Krajen Mission where there is also a technical agriculture school, the system educational value, the possibility of access for the concerned would be assured. Installation in Vivaldi Restaurant. A heating system powered by a high efficiency stove (pellet stoves or similar) will be designed Installation of micro-water system in Vermosh. A micro-water plant for electricity production for business has already been created in B & B Vermosh. Educational interventions. Educational interventions will be carried out along with the installation through the creation of a specific course about technology in use, with the representatives of institutional and private actors involved in the GEP. Informational interventions. Activities will be promoted which will seek on the one hand to disseminate information about applications of Technology Park and on the other hand to promote the various subjects that are part of the network. 40 | P a g e
E- PROCUREMENT SYSTEM IN ALBANIA E - procurement System, is established in the framework of the Project of Millennium Challenge Threshold Agreement Albania, managed from USAID. This system is operating since December 2007. E - procurement provides more transparency and efficiency regarding the public procurement procedures.
Legislative framework where it is based this system: Law Nr. 9643, date 20.11.2006 “On Public Procurement”, amended with Decision of Council of Ministers Nr. 659, dated 03.10.2007 “On approval of public procurement rules by electronic means”;
The actual Legislation provides:
The possibility to accomplish public procurement procedures by electronic means; Applicable rules to accept the offers and requirements to participate through the electronic transmission means, based on the principle of nondiscrimination; Functional, legal and technical requirements to accomplish the e-procurement procedures;
EU accession of Albania requires the introduction of adequate institutional organization in accordance with the EU best practices and consistent implementation of regulations in all segments of public procurement. MSA – The agreement between Albania and EU states that further improvements in the integrated public procurement system are needed to be implemented in order to increase efficiency of the public procurement system, further harmonization with EU directives
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and other EU acts and encouraging sustainable economic growth of Albania and improvement of the living standard. All recommendations for development of the procurement system must focus on the following: Development of human resources involved in public procurement process, Defining the code of ethics and standards of action, involving observance of the main principles of the public procurement system, including the fight against corruption and conflict of interest in the public procurement procedure, Monitoring of implementation of the law and standards and procedures from the aspect of legality and justification of provisions, Guidelines for the public procurement procedure (models that the contracting authorities should follow), Supervising the harmonization of procedures, advantages resulting from the public procurement procedures in Albania and making sure that all recommendations support observance of the Law, Development of the system of “Green Procurement� – procurement involving implementation and observance of the principles of environmental protection and taking into consideration various socio-economic issues in the public procurement procedures.
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