State plan for dispatchable reserve near Vlore
Albania is preparing to place 100 MW of dispatchable reserve capacity under state control through the proposed acquisition of two floating thermal power plants stationed near Vlore. The plan is positioned as an energy-security reserve measure. The two units are intended to support the power system when other supply sources are constrained.
The vessels are associated with the existing grid infrastructure near the Vlore thermal plant. They were brought to Albania in 2022, during the European energy crisis, when concern over security of supply increased.
KESH leasing model and ERE licence application
State-owned utility KESH currently operates the floating units under two-year leasing arrangements. In July, KESH applied for a longer-term operating licence from energy regulator ERE. Energy Minister Enea Karakaci said the ownership transfer is among the remaining steps required before approval.
The heavy-fuel-oil units are designed primarily for tertiary reserve rather than continuous baseload generation. They can supply electricity to transmission system operator OST when hydropower production or imports are insufficient.
Role during system stress and ownership structure
The units are also described as providing rapid support during system stress. Their operational role is linked to periods when hydropower output is constrained or regional imports are volatile. Albania’s domestic balance remains heavily dependent on hydropower, leaving it exposed to rainfall variations.
The vessels are owned 90% by US-based Excelerate Energy and 10% by Italy’s Renco. Acquiring the units would end the temporary leasing model and give KESH direct control over a backup source.
Heavy-fuel-oil constraints and value tied to emergency use
The acquisition would improve operational control, but it would not address cost and environmental disadvantages associated with heavy-fuel-oil generation. The commercial value is expected to depend less on annual output than on how often Albania needs expensive emergency capacity when water levels fall.
The proposed reserve capacity is therefore linked to system conditions during low hydrological periods. This includes scenarios where hydropower production is insufficient and imports do not cover demand.
