electrical energy

Prior to 1991 Albania’s electrical energy sector focused almost exclusively on hydropower, with the majority of the main hydro-power plants having been built under the communist regime. In the last decades, the electrical energy sector has experienced various developments whether in the form of the passing of legislation that encourages other forms of renewable energy, the opening of the market for smaller private operators, or the establishment of an active energy market. Currently the government is focused on energy diversification and many renewable energy projects and initiatives are in the development or implementation phase.

Our partners’ involvement and expertise in the electrical energy sector is indeed unique in depth, scope, and impact. Frost & Fire Consulting members have been involved in the following areas related to the sector:

  • Project Finance. The development, financing, construction, operation, mergers & acquisitions, restructuring of natural gas, electricity, renewable energy, energy efficiency and emissions reduction projects.
  • Legislation. All legislative aspects of the sector, including the drafting of macro-legislation that contributed to the creation of the energy market, licensing of third-party operators, and increased foreign investment, as well as related administrative acts and model documentation, including contracts for distribution and collection, procurement and construction of power stations, interconnection and transmission lines, and power supply agreements at wholesale and retail level.
  • Concession. Negotiating the agreements and overseeing the issuance of some of the most significant concession contracts in the energy sector (from hydropower plants to wind farms).
  • Regulation. Sector regulation, including:(i) licensing of market operators operating in all levels of the electrical energy market. (ii) regulated tariff application. (iii) dispute resolutions between the market regulator and its licensees.
  • Infrastructure building. Projects relating to the construction of new sources of electrical energy, including hydropower plants (HPPs), the Vlora Thermal Power Plant (the first significant investment in domestic power generation in 25 years), as well as sector infrastructure, including substations and low- and high-voltage power lines (including 400 kV substation and interconnection lines).
  • Financing. Financing projects with the international financial institutions involved in the development of the sector such as the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank, etc.
  • Management. Running the day-to-day business of the companies operating in this sector with specific experience in the drafting, negotiation, and execution of contracts relating to:(i) the import or export of electrical energy. (ii) electrical energy supply between qualified suppliers and qualified clients. (iii) electrical energy supply to the tariff customers. (iv) power transmission between qualified suppliers and the transmission system operator (TSO). (v) power distribution between qualified suppliers and the distribution system operator (DSO). (vi) procurement of electrical energy, as well as the settlement of disputes between market operators.
  • Internationally. The sale of shares of large international companies operating in the sector such as the global offering of the shares of the leading Italian electricity transmission company TERNA in the United States, Italy, and Canada.

Throughout our individual and firm representative experience, we have assisted a wide spectrum of international and national clients in the energy sector that include a number of major international energy companies, developers, international financing institutions, equity investors, lenders, contractors, project companies, manufacturers, the Albanian government and its departments/agencies, and state owned companies.