Page 13 - bne_newspaper_August_10_2018

Southeast Europe
August 10, 2018 www.intellinews.com I Page 13
Hydropower rebounds in the Western Balkans
Clare Nuttall in Bucharest
After a severe drought caused hydropower generation to slump in the Western Balkans last year, the latest data from countries in the region show a sharp rebound in hydroelectricity production in the first half of 2018.
Hydropower makes up an important part of the energy mix in countries in the region, especially Albania, which is almost entirely dependent
on hydro, with any shortfall having to be supplemented by electricity imports.
Serbia has the largest installed hydropower capacity in the region, 2,835 MW, which is mainly located on its border with Romania, making up 30% of its total generation capacity. Hydropower usually makes up 41% of Bosnia’s generation capacity and 31% of Montenegro’s, according
to data from the International Hydropower Association, though the figure tends to fluctuate from year to year depending on weather conditions.
Hydro generators in the region were hard hit by last summer’s drought, and temperatures soaring above 35°C for weeks on end during the heatwave dubbed Lucifer that affected most of southern Eu- rope with a devastating effect on agriculture and created perfect conditions for deadly wildfires.
At one point, Albania, the most hydro-dependent country in the region, was importing around 80% of the electricity consumed within the country.
This year, however, it is northern Europe that has been scorching under an intense heatwave that has seen temperatures of over 30°C up
With a capacity of 600 MW, HPP Komani is the largest of state-owned KESH's three HPPs on the Drin river, providing some 65% of Albania's electricity.
to 300km inside the Arctic Circle, and severe droughts and forest fires in countries like Latvia. Southeast Europe, meanwhile, has been enjoying a rainy summer with temperatures somewhat below average in July and early August in several countries across the region.
This has already resulted in stronger results for hydropower producers in the region. Albania’s state-owned KESH, for example, posted a net profit of ALL6.2bn (€49mn) in the first half of 2018, according to the company’s preliminary data. By contrast, the company ended 2017 with a net loss of ALL52.7mn.
KESH is the key power producer in Albania, producing electricity from its Fierze, Komani and Vau i Dejes hydropower plants on the Drin river, with a total installed capacity of 1,350 MW.
Meanwhile, Albanian state-run power distribution company OSHEE reported a slim net profit of only ALL1.8bn (€14.5mn) in 2017, just one-tenth of the profit a year earlier, mainly due to the prolonged drought last year. This is OSHEE's worst financial result in the past three years, after the power distributor turned profitable in 2015 as a result of a nationwide campaign to put an end to electricity thefts and collect hundreds of millions of euros in accumulated unpaid bills.
In neighbouring Montenegro, the majority state-run energy firm EPCG said it achieved earnings before interest, taxes, depreciation and amortisation (Ebitda) of €49.3mn in the first half of 2018, which was 58% above plan, while