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 aimed at strengthening energy-security reserve arrangements.
KESH seeks licence for longer-term operation
State-owned utility KESH currently operates the vessels under two-year leasing arrangements. In July, it 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.
Role of heavy-fuel-oil units in system support
The heavy-fuel-oil units are intended 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. The units are also described as providing rapid support during system stress.
Ownership and positioning of the floating plants
The vessels are owned 90% by US-based Excelerate Energy and 10% by Italy’s Renco. They were brought to Albania in 2022 amid heightened concern over security of supply during the European energy crisis. The units were positioned beside the existing Vlore thermal plant to use nearby grid infrastructure.
Impact of acquisition on control and dispatch value
If acquired, the arrangement would end the temporary leasing model and give KESH direct control over a backup source. The backup capacity could become increasingly valuable during dry hydrological periods. Albania remains heavily dependent on hydropower, leaving its domestic balance exposed to rainfall and volatile regional import prices.
The acquisition is expected to improve operational control, but it would not address cost and environmental disadvantages associated with heavy-fuel-oil generation. Its commercial value would depend less on annual output than on how often Albania needs expensive emergency capacity when water levels fall.
