Low-Carbon Process Plan ALBANIA - LOCSEE Carbon Process...Low-Carbon Process Plan for Albania 7 Uncertainty in terms of GHG emissions should be in the range of 12.66 percent, and the

Low-Carbon Process Plan ALBANIA

Ministry of the Environment

Tirana • December 2014

Prepared by: Dr. Eng. Besim Islami

Low-Carbon Process Plan for Albania 2

The Low-‐Carbon Process Plan for Albania was prepared by Dr. Besim Islami in the framework of Action 6.1 of the project Low Carbon South East Europe (LOCSEE) (SEE/D/0166/2.4/X).

The LOCSEE project is co-‐funded by the South East Europe Transnational Cooperation Programme.


CONTENTS 1 INTRODUCTION .................................................................................................................................. 5

1.1 Status of the First, Second and Third National Communications ......................................... 5

1.2 Trends in GHG emissions .......................................................................................................... 9

1.3 Actual Energy Strategy, Energy Efficiency Action Plan and RES Action Plan to reduce GHG emissions ................................................................................................................................... 11

2 SCOPE AND MISSION OF THE PROCESS PLAN ...................................................................... 17

2.1 Background data and information ........................................................................................... 17

2.2 Structural elements of the low-carbon process plan ............................................................ 18

2.3 Goal and objectives of the low-carbon process plan ........................................................... 20

3 INVOLVEMENT OF STAKEHOLDERS ........................................................................................... 21

3.1 Main stakeholders affected ...................................................................................................... 21

3.2 Organisational and institutional issues ................................................................................... 25

4 GOALS, TARGETS AND MILESTONES ........................................................................................ 25

4.1 Base-year share of RES .......................................................................................................... 26

4.2 Flat-rate increase ...................................................................................................................... 27

4.3 Residual effort ............................................................................................................................ 27

4.4 Results of the RES target for Albania ..................................................................................... 28

4.5 Technologies analysis for meeting the RES target for Albania .......................................... 29

4.6 Actual EE/RE financing schemes ........................................................................................... 34

4.7 Data sources and the first results of NEEAP monitoring ..................................................... 38

5 IMPLEMENTATION STRATEGY ................................................................................................... 40


6 MONITORING AND EVALUATION MECHANISMS ..................................................................... 45

6.1 Energy efficiency indicators ..................................................................................................... 45

6.2 Database requirement .............................................................................................................. 46

6.3 Top-down methods ................................................................................................................... 46

6.4 Bottom-up methods ................................................................................................................... 47

7 COMMUNICATION ACTIVITIES ...................................................................................................... 56

8 LITERATURE AND DATA SOURCES ............................................................................................. 58


1 INTRODUCTION 1.1 Status of the First, Second and Third National Communications The second GHG emissions inventory for the year 2000 by sources and sinks for Alba-nia was compiled under the project to develop Albania’s Second National Communica-tion to the UNFCCC between 2005 and 2009. Efforts to improve the quality of the GHG inventory were made under the Global Environment Facility (GEF) regional project “Building capacities to improve the quality of GHG inventories in Eastern Europe and CIS”, which used key sources and the IPCC Good Practice Guidance as cost-effective approaches to improve the quality of data inputs.

Albania’s third GHG inventory covers all sources and sinks, as well as all gases man-dated by Decision 10/CP.2. Albania’s first GHG inventory considered five main modules: energy, industrial processes, agriculture, waste and land-use change and forestry (LUCF), based on the revised IPCC guidance of 1996. Solvents were also considered. The national inventory considers three direct GHGs (CO2, CH4 and N2O) and three indi-rect GHGs (CO, NOx and NMVOC). Estimates of key sources were provided. Aggregat-ed GHG emissions and removals, expressed as CO2 equivalent (CO2eq), were also provided. Estimates of GHG emissions and sinks were made according to the 1996 re-vised IPCC guidelines. In addition, the IPCC Good Practice Guidance was used for the uncertainty assessment and key source estimates.

Emissions of CO2 from energy and transport were estimated using two approaches: a top-down and a bottom-up approach, according to which emissions from separate sec-tors and source categories were estimated, and then emissions were also summarised. By using these two approaches, Albania was able to evaluate the full spectrum of CO2 emissions (top down), and sector distribution (bottom up). In both approaches, the de-fault IPCC emission factors for each fuel type were used. The estimation indicated a difference between the two approaches of about 2.33 percent. A detailed analysis was also carried out concerning CO2 emissions from other economic sectors: LUCF, agricul-ture, waste and industrial processes.

Methane emissions from the agriculture, waste, energy, transport, industrial processes and LUCF sectors were also estimated. To evaluate the quanitity of emissions from coal mining and hydrocarbon fuel extraction, the amount of extracted fuel was multiplied by the emission factor, which depends on the type of coal mining or the stage of fuel pro-cessing in the oil and gas sector. Methane emissions from livestock were evaluated by multiplying the number of head of livestock (cattle, sheep etc.) by the corresponding emissions coefficients.


Emissions of N2O from fossil fuel combustion were estimated by multiplying the energy content of the consumed coal, oil products and gas by the corresponding emission fac-tors, as given in the IPCC guidelines.

Emissions of indirect GHGs such as CO and NOx were estimated according to the IPCC methodology. Estimates were based on the activity data gathered by the Institute of Sta-tistics (INSTAT) and the Ministry of Transport, and for solvent use on the activity data provided by the customs offices of Albania.

All activity data for each sector were national. The main activity data source/provider was INSTAT, although the institute did not provide activity data for GHG inventory pur-poses according to the IPCC nominations. Other data providers/sources were the Na-tional Agency of Natural Resources (formerly the National Energy Agency), the Ministry of Environment, the Ministry of Energy and Industry, the Ministry of Transport, the Na-tional Directorate of Forestry, the Taxation Department, customs offices and various da-tabases, surveys and studies prepared by international organisations (such as the World Bank, UNDP, EBRD and EIB), universities and NGOs. The emission factors used were the default factors provided in the IPCC 1996 revised guidelines.

Activity data gaps identified for Albania’s third GHG inventory were mainly related to da-ta availability (disaggregated activity data or inconsistency with the IPCC format) and their variability after the 2000s. In most cases, reported activity data were in aggregate form or inconsistent with the IPCC format, which made the estimation of emissions very difficult.

Most activity data were characterised by their variability after the 2000s, when the coun-try entered a period of rapid economic development. In the course of these years, some sectors, including transport, agriculture, industry and waste, saw rapid growth. The problem of data gaps becomes significant when source categories for which data could not be obtained are identified as key. This was the case for mobile combustion, enteric fermentation, fuel combustion in industry, fuel wood burned for energy purposes, and solid waste treatment. Based on the experience gained, different methodologies were used to fill the gaps under the third national communication, the most important being: correlation; interpolation; extrapolation; and surveys.

With respect to the energy sector, great uncertainty was apparent in relation to tradi-tional biomass burned for energy purposes, a large proportion of which is illegal cutting by farmers to meet their energy needs. It therefore became very important to clarify the situation concerning wood consumption per economic sector (especially in households, in the service sector and in small industries).


Uncertainty in terms of GHG emissions should be in the range of 12.66 percent, and the main contributor to this is fuel wood consumption by different sectors (residential, public and private services and small agro-food industries). A second contributor to uncertain-ties about GHG emissions is fuel consumption by industrial cement factories. Undertak-ing a biomass survey to define GHG emissions broken down between fuel consumption and industrial processes was very helpful in reducing the high level of uncertainty.

Albania’s third national GHG inventory involved a process of calculating all sources, and it therefore considered three direct GHGs (CO2, CH4 and N2O) and other indirect GHGs (CO, NOx, SOx). Estimates for Albania’s second national communication regarding the GHG inventory include the year 2005 and the whole period from 2000 to 2009. As re-gards emission factors, the default factors provided in the IPCC 1996 revised guidelines were used.

The IPCC recommends presenting inventory results in both real units and relative units of CO2eq. The latter are used to compare the contribution of emissions of various gases to total emissions and depend on the global warming potential (GWP) (Table 1).

Table 1 Global warming potential, GHG chemical formula lifetime GHG/time period 20 years 100 years Carbon dioxide (CO2) 1 1 Methane (CH4) 12±3 21 Nitrous oxide (N2O) 120 310

Source: IPCC (1996, revised)

Emissions of GHGs are closely connected with activity data for the Albanian economy. This session therefore provides a short summary of Albanian economic development for the period 2001–2009. After a period of economic contraction (1997–2000), Albanian economic activity returned to positive growth rates for the period 2001–2009 according to the National Bank of Albania. This growth relied mainly on rapid economic expansion in different sectors and numerous fiscal and monetary growth drivers, which managed to take economic growth rates into a positive direction. In line with developments in eco-nomic activity, labour market indicators showed signs of stabilisation. The unemploy-ment rate fell from about 40 percent (2001) to approximately 18 percent (2013). Howev-er, it is still higher, reflecting the mismatch between labour market supply and demand. In the meantime, the capacity utilisation rate, following a significant improvement in 2001–2006, dropped again in 2007 and increased slightly for 2008–2013.

Between 2001 and 2013, the Albanian economy was characterised by gradually im-proved aggregate demand, consolidated macroeconomic stability and decreased risk


premiums. According to available data, the Albanian economy grew by about 6 percent between 2001 and 2007, while average annual inflation ranged close to the Bank of Al-bania’s target. The budget deficit to GDP decreased by 4 percentage points. Economic growth was supported mainly by foreign demand and increased Albanian exports, while domestic demand was sluggish. The latter was also affected by consolidated public fi-nances and a reduced budget deficit in 2009–2013, while consumer spending and in-vestments were constrained due to uncertainty about the future and spare capacity.

In sectoral terms, the development of the Albanian economy was supported primarily by growth in the service and industry sectors. The construction sector continued to contract over the first five-year period, while agriculture registered satisfactory growth. Economic growth is supported mainly by foreign demand, while domestic demand continues to provide a low contribution. Ongoing global economic recovery and its positive impact on demand for exports supported the country’s economic growth during the period 2001–2013.

Economic activity recovered in 2009–2013, reflecting mainly the strong growth in indus-try, followed by the growth in the service and agricultural sectors. In the meantime, the construction sector saw the contraction that began in late 2009 deepen further. During 2003–2008, construction experienced double-digit growth, supported by the upward trend in approved permits for private constructions, high demand for housing, dynaic demographic movements, as well as favourable funding support. The decline in added construction volume over during 2009–2013 was driven by a decline in demand for resi-dential buildings, reduced public investments, the expansion of enterprise manufactur-ing capacities and lower lending to construction compared to preceding years. In partic-ular, the demand for housing decelerated in response to consumer uncertainty about the future and consumer expectations for house price corrections.

Agricultural added value grew on average about 5.8 percentage points over the whole period 2001–2013. As a result, this sector is estimated to have provided a substantial contribution to annual GDP growth. Higher agricultural prices on the global markets conveyed appropriate incentives for the long-term growth of agricultural production in the Albanian economy. Reforms and structural developments (aimed at enhancing effi-ciency in agricultural production, facilitating the access of Albanian agricultural products to domestic and international markets, as well as financially supporting agricultural busi-nesses and farms) should be a priority in Albania’s economic development.

The service sector continued to provide a major contribution to generating positive eco-nomic growth rates for the period 2001–2013. Service value-added contributed an aver-


age annual growth of between 3.2 and 7 percentage points to GDP for the above period. Transport and other services saw accelerated annual growth rates. Other services, re-lated mainly to health, education and financial intermediation, contributed about 60 per-cent to economic growth in the third quarter. In the meantime, the added value of the trade, hotels and restaurants sub-branch, related closely to consumer spending, record-ed a slower growth rate, especially for the period 2007–2009.

1.2 Trends in GHG emissions Indicators of CO2 emissions are of prime importance in the debate on GWP and may signal a significant change in the level of efforts among developed countries and coun-tries in transition (such as Albania). For the purposes of comparison among countries, Figure 1 shows the position of Albania in terms of CO2 emissions per inhabitant and per energy sector for the years 1994, 2000, 2005 and 2009. The trend is for the resident Al-banian population, which has been reduced due to high rates of emigration over the pe-riod.

Figure 1. Emissions of CO2 from the energy sector per capita for selected countries (tonnes CO2

per capita). Source: Energy Review in the World, IEA 2012)


According to Figure 1, Albania follows Armenia with 3.24 and 3.46 tonnes of CO2 emis-sions per capita for 2005 and 2013 respectively. This is around 3.3 to 4.5 times lower than the average for industrialised countries and has the following explanations:

• Energy consumption per capita in Albania is still the lowest among the selected countries.

• Electricity production is based almost entirely on hydro energy (more than 98 percent of electricity is generated by hydropower plants).

• Different energy services in the residential sector, such as space heating, domes-tic hot water and cooking, are based almost entirely on electricity (the residential sector consumes 67 percent of total electricity).

Figures 2 and 3 show the trend in GDP and CO2 emissions per GDP for the whole peri-od. Figure 2 shows both trends in CO2 emissions for GDP (in USD x 1,000) and CO2 emissions per capita, and a very important conclusion can be drawn: CO2 emissions per capita have increased (which shows greater energy consumption in Albania, associated with higher living standards for Albanians); and, on the other hand, CO2 emissions per GDP have fallen, especially for the period 2000–2009, and this was very important to take into consideration, especially during the establishment of the GHG mitigation sce-nario.

Figure 2: Trend in GDP and CO2 emissions per GDP in Albania.

Figure 3: Trend in CO2 emissions (tonnes) per capita and CO2 emissions per GDP in Albania


1.3 Actual Energy Strategy, Energy Efficiency Action Plan and RES Action Plan to reduce GHG emissions Albania’s national efforts to reduce GHG emissions have always focused on the energy sector, as justified by the high contribution (almost 60 percent, according to the latest national GHG inventory) by this sector to the country’s total GHG emissions. Effective low-carbon policies for achieving ambitious national targets for emissions reductions by 2030 and 2050 must therefore be developed for this sector. There are two very important strategic documents approved by the Albanian Govern-ment dealing with the energy sector and energy efficiency (EE) in buildings:

• Decision of the Council of Ministers (DCM) No. 424, dated June 26, 2003, on the Adoption of the National Energy Strategy up to 2015

• DCM No. 829, dated September 9, 2003, on the Adoption of the Action Plan for the Implementation of the National Energy Strategy up to 2015

In addition to addressing the further development of the oil extraction and processing sector and of the electricity and gas sectors, the 2003 Energy Strategy and Action Plan had a particular focus on developing renewable energy sources (RES) and promoting the efficient use of energy. These were considered critical factors in ensuring the strate-gy’s effective implementation. In fact, the main focus of the scenarios established in the strategy was on EE improvements in all sectors, and particularly in the building stock. For this reason, a large part of energy policy in Albania is driven by EE considerations, especially in relation to the building sector, which has the greatest potential for energy saving out of all economic sectors.

The Ministry of Energy and Industry (MEI) is currently preparing the Energy Strategy for the period 2015–2030. It is envisaged that USAID will assist the MEI and the National Agency for Natural Resources to establish the following:

• National baseline scenarios, where EE improvements in the building sector are likely to feature prominently again. These are important in the context of the Energy Performance of Buildings Directive (EPBD), because they will help to determine the baseline for cost-effectiveness.

• Power and natural gas sector scenarios, which will be important in deter-mining the primary energy factors that provide input into EPBD calculations.


• Energy efficiency requirements for meeting Albanian targets, which will pro-vide input for the determination of the baseline for cost-effectiveness.

• RES requirements for meeting Albanian targets, which will provide input for the determination of the baseline for cost-effectiveness.

The National Energy Strategy was approved in 2003 and determined the need for the development of the energy sector, in terms of:

• the system for the extraction and processing of oil; • the development of RES; and • energy efficiency.

Albania is a signatory to the Energy Community Treaty (EnCT) and a member of the Task Force on Energy Efficiency, which was established by the EnCT in February 2008. In order to align local legislation with EU legislation on energy efficiency, and to achieve conformity with the requirements set out in EU Directive 2006/32 (on end-use efficiency and energy services), the government adopted Administrative Instruction No. 2008/15 on the Promotion of the Utilisation of Efficient Energy by Final Consumers and Energy Services.

In applying the objectives set out in the EnCT, the MEI (or, more correctly, its predeces-sor the Ministry of Economy, Trade and Energy) was obliged to prepare the National Energy Efficiency Action Plan (NEEAP).

The NEEAP was to be implemented at national level, covering the period 2009 to 2018. It was prepared with respect to the overall directions in the 2003 Energy Strategy and enacted by DCM No. 619, dated September 7, 2011, on the adoption of the National Energy Efficiency Action Plan, 2011–2018. The MEI is currently preparing the second NEEAP required by the EnCT.

The NEEAP represents the first attempt at a long-term energy efficiency plan for Alba-nia, covering the period 2011 to 2018. It contains indicative targets for energy savings in:

• the short term, 2010–2012; • the intermediate term, 2013–2015; and • the long term, 2016–2018.


The savings targets established in the NEEAP are shown in Table 2. For the sake of simplicity and legibility, only the short- and long-term targets are presented.

Table 2: National indicative energy savings targets

National indicative annual energy sav-ings target, 2018 (Ktoe)

168

National indicative annual energy sav-ings target for the short term, 2012 (Ktoe)

26

Sector Annual ener-gy savings expected by 2012 (ktoe)

Annual ener-gy savings expected by 2018 (ktoe)

Annual CO2 emissions re-duction by 2012 (kg CO2)

Annual CO2 emissions reduction by 2018 (kg CO2)

Residential 5 37 2,693 19,925

Tertiary 5 32 7,345 47,008

Industry 6 42 13,117 91,816

Transport 8 52 24,680 160,420

Agriculture 2 5 5,448 13,620

Total energy savings expected: 26 168 53,282 332,789

Source: Albanian National Energy Efficiency Action Plan, MEI (METE)/National Agency of Natural Re-sources (AKBN)

As shown in Table 2, the residential sector is expected to contribute 22 percent of the planned energy savings by 2018, while the tertiary (or services) sector (which is also largely characterised by buildings) represents a further 19 percent of the total savings over the same timeframe. Even for a country like Albania, where over 95 percent of electricity and 20 to 23 percent of total primary sources are provided by hydro, the use of other RES is important be-cause it improves the security of energy supply and contributes to energy sector sus-tainability. If we add to these positive facts the reduction in the foreign trade deficit — as Albania is a net importer of electricity — it becomes clear that developing domestic RES can provide significant benefits to the country.

Worldwide, in the last decade, most of the debate concerning the promotion of RES was focused on financial support schemes and on improving grid access conditions. No doubt these are essential issues, which will continue to be at the centre of policy mak-ers’ attention in the future. However, during the last few years the importance of identify-


ing and tackling non-economic barriers to renewable electricity has attracted the atten-tion of analysts and governments1.

The national consultant has prepared this study with the objective of providing an in-depth assessment of the country’s renewable energy project development process as set out by laws, regulations, precedents and established procedures; identifying critical barriers that are hindering or slowing down renewable energy investments in the coun-try; and providing targeted conclusions and recommendations for overcoming the identi-fied barriers. The focus of this study is the feed-in tariff for small hydropower plants (SHPPs), based on the formula contained in Article 15 of the RES Law approved by the Albanian Parliament on May 13, 2013.

The national consultant undertook a comprehensive review of barriers to non-economic RE project development and identified solutions in accordance with good practices worldwide. However, the study had to address the fact that Albania’s energy legislative framework will change dramatically in a short time. The study therefore presents the sit-uation at the time the report was drafted, but at the same time takes into account the situation that will emerge after the new laws have been revised and implemented. Lib-eralisation of the electricity markets, for example, will eliminate the wholesale public supplier and will affect the way that green electricity is accessible to the grid. The exist-ence of provisions on certifications of origin will help with tracking and exporting this electricity when another country accepts the Albanian certification procedure, etc.

In recent years, the Government of Albania has tried to improve the legal and regulatory frameworks for energy. It has made numerous attempts to amend existing laws and to promote a more competitive environment for energy markets. Along with a series of im-provements for the concession law, three key laws for the power sector, for renewables, and for energy efficiency, have been drafted and revised (the RES Law) and approved by the government. These will be presented to the Albanian Parliament for final approv-al. These laws are aimed at liberalising the electricity market, increasing competition, promoting efficiency, boosting the development of renewables, and attracting foreign investment to the sector. The adoption of these laws is crucial for sustainable energy reform. While the intention is good, unfortunately the timespan for initiating and promot-ing these laws was too long, the decision was delayed, and a number of opportunities were lost because investors were reluctant to spend their money in a country where the legal framework is not yet attractive. The adoption of challenging but realistic targets and trajectories up to 2020 for the share of RES in Albania’s energy mix is essential in order to show the government’s commitment to deploying RE. Without the approval of the action plan already prepared by the Ministry of Energy, assisted by UNDP, the tar-gets will not be defined and appropriate policy will not be developed. Also, domestic and foreign investors and the respective banks in this domain will not be confident about im-plementing RE projects.

1 Assessment of non-cost barriers to renewable energy growth in EU Member States, AEON DG TREN No. TREN/D1/48 – 2008. Final Report


Without a clear, sustainable and reliable regulatory framework, the country cannot at-tract domestic and foreign investors and the respective banks in any domain, but espe-cially in RE. All three laws have to be approved and then implemented through appro-priate secondary legislation and regulations. Concerning RES, the primary need is for clear tariff methodologies – which explains why the focus of this study is on the calcula-tion of feed-in tariffs for SHPPs as the most important RES source in Albania. There is also a need for a fair and streamlined licensing process, dispute settlement procedures, and reliable green electricity billing. Any further delays in solving such issues will be costly, especially at this time of European financial crisis when competition for invest-ments is tough. Albania will need donor coordination to provide technical assistance to help the government meet such stringent requirements.

Recognising the importance of legal barriers, the present study focuses on defin-ing/calculating a feed-in tariff for SHPPs as the most important scheme for supporting new RES business in Albania. For a successful RE business there are two essential conditions: a friendly general business environment through the appropriate definition of a feed-in tariff; and fair and transparent conditions for project developers. According to two World Bank studies, Albania has made some progress in developing a more friendly general business environment in terms of how easy it is to start up a business; how dif-ficult and expensive it is to obtain a construction permit; how difficult and time-consuming it is to acquire property registration/rights; and how easy it is to resolve a commercial dispute.

The roadmap was consistent with the National Renewable Energy Action Plan (NREAP) for 2020 that was adopted in 2010, and in this context three scenarios were developed:

· Existing policies, leading to a 40 percent reduction in CO2 emissions from the en-ergy sector by 2050 compared to 2005, and involving a moderate penetration of renewable energies and measures for improving energy efficiency.

· Continuation of the maximisation of renewable energies, leading to a 100 percent

penetration of renewable energies in electricity generation, a 60 to 70 percent re-duction in CO2 emissions by 2050 compared to 2005, and significant energy sav-ings in buildings.

· Least-cost environmental measures, achieving the same CO2 emissions reductions

as the second scenario, but with a penetration of renewable energies in the power sector such that the relevant investment cost is minimised.

In building these scenarios, the latest available data at the time of the roadmap’s devel-opment (i.e. 2012) were utilised. This means that the period of Albanian economic re-cession (2011–2014) and its impacts on the Albanian energy market and GHG emis-sions were not taken into account.


This drawback, along with other aspects including the drastic changes in the energy market model, is hopefully being dealt with in a new strategic plan for the development of the Albanian energy sector in 2030 currently being prepared by the MIE and the Na-tional Agency of Natural Resources (AKBN). The status of Albania regarding the exist-ence of a low-carbon process plan within the context of the LOCSEE project is therefore peculiar. In order to deal with these particular circumstances, a work team formed by the Ministry of Environment and external experts has decided to highlight what are, from its point of view, the most important issues to be considered under each step of such a process plan, as presented schematically in Figure 4. Figure 4. Major steps towards a low-carbon process plan (Source: Template for the development and improvement of low-carbon process plans, developed by EURAC for the purposes of WP6 of the LOCSEE project)


2 SCOPE AND MISSION OF THE PROCESS PLAN

2.1 Background data and information This section provides an overview of the GHG inventory for Albania for the period 2000–2009. Emissions for each gas are presented below in more detail. Figures 1 to 6 show total emissions for the most important GHGs (CO2, CH4, N2O). In Figures 7 and 8, total emissions of CO2, CH4 and N2O are expressed as CO2 equivalents in six main catego-ries, as recommended by the IPCC: energy activities (including all types of activity relat-ed to the extraction, transportation, processing and combustion of fossil fuels); industrial processes; solvent use and other products; agriculture; LUCF; and waste. The main contributor of CO2 is the energy sector (44 to 61 percent) due to fuel combus-tion activities. The second contributor is industry, the share of which increased between 2000 and 2009. Other sectors, including waste and agriculture, have no contribution. The main contributor of CH4 emissions for Albania over the whole period 2000–2009 is agriculture (from 71 to 56 percent). The second biggest contributor is waste (23 to 37 percent) followed by energy (4.2 to 5.4 percent). Emissions of N2O came from all eco-nomic sectors, the main contributor being the waste sector with 72 to 73 percent for the period 2000–2009. The second biggest contributor in this category is the energy sector (24 to 26 percent), followed by the agricultural sector (from 2.7 to 0.7 percent over the period). The contribution of direct GHG emissions are expressed in CO2eq, calculated according to the IPCC methodology. The figures show that in terms of CO2eq, the main contribu-tors are energy (36.73 to 50 percent), industry (14.8 to 31.3 percent), agriculture (from 13.8 to 11 percent), waste (5.2 to 8.1 percent), and LUCF (29.2 to [-25] percent)2. It is important to note that, from being a very high emitter in 2000, the LUCF sector had been transformed to the role of sink by 2009 (Figures 5 and 6).

2 Values for this chart are taken from all sheets of the overview module IPCC-GHG Draft Inventory (2000–2009) (prepared for the Third National Communication).


Figure 5: CO2eq emissions from all economic sectors (Gg) (Draft TNC GHG Inventory, May 2014)

Figure 6: CO2eq emissions from all economic sectors (%) (Draft TNC GHG Inventory, May 2014)

Total emissions of gases with a direct greenhouse effect (CO2, CH4 and N2O) and their values in CO2eq are also shown in Table 2 above. The data presented indicate that for the whole period 2000–2009, energy was the main GHG category in Albania, with a share of 36.71 percent in the year 2000, and a share of 50.23 percent in 2009. Among final consumption sectors, transport saw the highest increase in GHG emissions during 1990–2013. Emissions generated by energy industries and other sectors (resi-dential, tertiary and agriculture) increased, and manufacturing industries and construc-tion had an average annual rate of increase of almost 2.5 percent.

2.2 Structural elements of the low-carbon process plan It is clear from the above that as energy accounts for the vast majority of GHG emis-sions in Albania, it should be prioritised in terms of emissions reductions. For this rea-son, this energy sector, which encompasses the whole cycle from energy imports and transformation up to final demand, must be the main target of a low-carbon process plan for Albania. Nevertheless, the plan must take other sectors into consideration to some extent, especially those where there are promising low-carbon strategies that are also linked to the efficient implementation of EU environmental policy and to strategic national objectives for economic development. Examples are the solid waste and agri-cultural sectors.


Since the sector includes a number of sub-sectors and activities that are present in all regions of the country, while the administrative structure in Albania is such that deci-sions affecting the development and implementation of low-carbon policies are central-ised to a very large extent, the territorial level adopted for this plan is national. Regarding the timing of actions, the planning horizon must extend at least to 203, as this represents the next target year for the reduction of GHG emissions at EU level since the 2020 targets should already have been planned for and are at the core of EU and international negotiations on GHG emissions reductions. Targets for 2050 must be considered to some extent in this plan, since energy investments have a long lifetime and thus decisions taken in the next decade on the way to 2030 will certainly affect the carbon path towards 2050. As for the availability of the data necessary for compiling and evaluating the low-carbon strategies that fall under the scope of this plan, no major gaps exist regarding energy transformation (refineries, electricity production). In final energy demand, although there is information from national statistics on the energy equipment that is used by house-holds, there is not sufficient information on the way this equipment is used. In addition, regarding the tertiary sector, available data are not sufficient as the sector includes sev-eral different sub-sectors with very diverse energy behavior. Energy data therefore need to be significantly enhanced and disaggregated in order to provide all the necessary in-formation for the evaluation of low-carbon strategies. The methodology to be used for setting low-carbon actions and establishing monitoring and evaluation mechanisms must be consistent with the following elements, inter alia:

• The methodologies (GHG emission factors, IPCC tiers per sector/sub-sector, etc.) applied in the national inventory of GHG emissions by sources and remov-als by sinks, which is submitted annually to the European Environment Agency (EEA) and the UNFCCC within the framework of the EU Monitoring Mechanism and the Kyoto Protocol.

• The methodologies applied for developing official GHG emissions projections at national level, again within the framework of the EU Monitoring Mechanism and the Kyoto Protocol.

• Basic structural elements included in major sectoral energy plans, such as the National Renewable Energy Action Plan (NREAP) developed in accordance with Directive 2009/28/EC, the National Energy Efficiency Action Plan (NEEAP) de-veloped in accordance with Directive 2006/32/EC, etc., together with necessary changes (where applicable).

• The national inventory system for estimating anthropogenic emissions by sources and removals by sinks of all GHGs and for reporting and archiving inven-tories.


2.3 Goal and objectives of the low-carbon process plan Increasing the share of RES and improving energy efficiency are important pillars of the EU’s climate change strategy. For the 2020 Climate and Energy Package, the EU agreed on three key objectives for 2020:

• To reduce GHG emissions by about 20 percent by 2020. • To increase the share of RES in energy consumption by about 38 percent by 2020 (the

definition of this target will be described in further detail below). • To improve energy efficiency by about 9 percent by 2018 (according to the NEEAP) and

by 10 percent by 2020 (based on the objective of the Energy Strategy). The aim is to achieve the EU 20-20 targets, as headline targets of the EU 2020 strategy for in-clusive growth, via the implementation of a set of binding legislation. Since increasing the share of RES in energy consumption is directly included within the set of legislation, via the implemen-tation of the Renewable Energy Directive (2009/28/EC) in 2013, EE improvements are not di-rectly addressed. This was done via the Energy Efficiency Plan introduced in 2011, aimed at saving more energy through concrete measures and the introduction of the Energy Efficiency Directive (2012/27/EU). The Renewable Energy Directive (2009/28/EC) imposed individual RES target achievement ob-ligations on Albania as part of the Energy Community, including participation in achieving the shared target of a 38 percent increase in the share of RES in energy consumption by 2020. Be-sides this individual target an additional 10 percent renewable energy target for energy con-sumed in transport has been set for Albania as part of the Energy Community. Based on Article 4 of the Renewable Energy Directive, each member state had to establish a National Renewa-ble Energy Action Plan (NREAP) demonstrating how it plans to meet the target set by the di-rective. The Energy Efficiency Directive (2012/27/EU) puts forward binding measures for improving en-ergy efficiency over the whole energy supply chain, from transformation to distribution and con-sumption. It also sets indicative national EE targets for 2020. Albania has to reduce final energy consumption by 8 percent by 2018.


3 INVOLVEMENT OF STAKEHOLDERS

3.1 Main stakeholders affected Regardless of the final content of the National Energy Strategy and GHG emission sce-nario (under TNC) towards 2030, which are currently under development, there are a number of stakeholders who need to be considered in the planning of specific actions to be included in an Albanian low-carbon process plan that focuses on the energy sector. These include co-competent ministries, mainly the Ministry for Environment and the Ministry for Energy (which deals with issues related to industry and energy), the Ministry of Finance (responsible for the provision of financial tools and mechanisms), the Minis-try for Tourism, the Ministry for Transport, and the Ministry for Agriculture. The main ac-tivities of each ministry and subordinate institutions related to EE and RE issues are presented below. The Ministry of Environment (ME) has overall responsibilities regarding the protection of the environment and forests, climate change, and water management. This mnistry is responsible for issuing the environmental permits required for any project that has an environmental impact, including energy projects. The ME licenses those persons carry-ing out environmental impact assessments (EIAs) according to specific procedures as approved by the Council of Ministers. On the other hand, the ME and the regional envi-ronment agencies are also responsible for reviewing the impact assessment evaluations carried out by licensed persons for different projects. The ME is responsible for climate change–related policies and serves as the contact point for the Albanian Government under the UNCCC and Kyoto Protocol. The ME is also the national designated authority for CDM projects under the Kyoto Protocol in Albania.

The Ministry of Energy and Industry (MEI) has overall responsibility over the energy sector. The MEI is the responsible institution for developing energy policy and medium- and long-term strategies for the energy sector. The ministry also has responsibilities re-lated to evaluating and reviewing requests for concession rights for the construction of hydropower plants and for authorisations of other types of RES power generation tech-nologies such as wind, biomass, photovoltaics etc.

The ministry’s mission in the energy sector is to promote steady, sustainable economic development through:

• the preparation and periodic revision and updating of the National Energy Strate-gy;

• the promotion of EE and RES, including SHPPs; • demand forecasts for different energy sources;


• the promotion of private investments, both domestic and foreign, in the energy sector, and the creation of an attractive legal climate for these investments;

• the development of market reforms in the energy sector to achieve the national objectives for integration with the EU and the development of a regional electrici-ty market;

• the drafting of the necessary legal framework; and • the preparation of energy public companies for privatisation.

The MEI has a number of subordinate institutions and agencies with specific responsi-bilities in specific areas:

- The National Agency of Natural Resources, which is responsible for the de-velopment and supervision of the rational exploitation of natural resources based on government policies, and the monitoring of their exploitation, in the sectors of mining, hydrocarbons and hydropower. - The National Licensing Centre, a public institution established according to the law with a mission to facilitate the procedures of licensing, authorisations and permits issued by public authorities. The NLC is designed to function as a one-stop shop for all licences, authorisations and permits issued by public authorities. - The Agency for the Treatment of Concessions, a unit established according to the concession law to support the contracting authority in the evaluation and negotiation of concessions in all areas subject to concessions, including hydro-energy. - The Central Technical Inspectorate, an institution with responsibilities to safeguard people’s safety with respect to goods placed on the market. This in-spectorate is competent to supervise the safety of electrical appliances and in-stallations, including the safety of power generation, transmission and distribution facilities.

The Energy Regulatory Authority (ERE) is an independent public body responsible for the regulation of activities in the electricity and natural gas sectors. The ERE is the competent body for issuing licences for carrying out activities related to the gen-eration, transmission, distribution, supply and trade of electricity. It is responsible for approving the grid codes that provide connection with and access to the transmis-sion and distribution networks to all power producers. The ERE also has compe-tences for approving the feed-in tariffs for all priority RES producers, including the access, transmission and distribution tariffs.


The Ministry of Public Works and Transportation has responsibilities for develop-ing policies on spatial planning and issues licences for design, construction, supervi-sion and testing. This ministry is also responsible for issuing professional licences for individuals engaged in the design, supervision and testing of construction works.

The National Territory Council (NTC) is the decision-making body responsible for enacting national planning instruments in line with the stipulations contained in the law. The NTC is established under the Council of Ministers and is headed by the prime minister.

The NTC:

• decides on approvals, approvals with amendments, adjourning or non-approval of national territory planning instruments;

• decides on approvals of the determination of national importance in matters of territorial planning;

• assesses and approves the compliance of local instruments with the plan-ning instruments in force; and

• encourages the drafting of national and local territorial plans by the relevant planning authorities and ensures that they meet the technical and procedur-al standards stipulated by the law.

The National Territorial Planning Agency (NTPA) is a public institution subordinated to the Council of Ministers that:

• supports horizontal coordination among national authorities in territorial planning in order to harmonise issues of national importance belonging to various areas and sectors by bringing the responsible authorities and stakeholders together and being present at the settlement of disputes among them;

• provides technical support to local government units on developing policies and acts that are linked with urban planning and management, as well as development control;

• develops the professional and technical skills of national and local planning authorities through training and direct assistance;

• informs the public regarding planning processes and provides information and advice to planning authorities on the procedures and rules in territorial planning processes;

• drafts and publishes methodological manuals on territorial planning, and designs and delivers training programmes on drafting planning documents; and

• supports international cooperation in the area of territorial planning.


The Albanian EU Energy Efficiency Centre was established by the Albanian Gov-ernment and the EU as an NGO and is financially and administratively independent. It has been designated as the national coordination centre for RES and EE. It coordinated the implementation of the NEEAP and was a key contributor to the elaboration of the NREAP. The independent power transmission operator OST sha was established in compliance with the requirements of EU Directive 2009/72/EC regarding the legal and functional unbundling of the transmission functions of vertically integrated undertakings participat-ing in electricity markets. The Albanian electricity distribution network operator is responsible for the power distri-bution grid and for the operation, maintenance, improvement and updating of the distri-bution network, the connection of first-time users and the fulfilment of users’ requests (to increase the power supply of existing connections, network rearrangement services etc.). Within these responsibilities, the distribution operator defines the rules for the connection of small (~ less than 15 MW) RES installations and RES installations on is-lands to the electricity distribution grid, and consequently influences the time schedule for the full-time operation of these projects The Institute of Statistics of Albania (INSTAT) is responsible for carrying out official sur-veys at national level regarding a number of issues, including those related to energy. Any planning for the future enrichment of such surveys in order to collect more detailed data on the ownership and use of energy equipment, the number and energy character-istics of buildings etc., must consider INSTAT among the affected stakeholders. In the field of RES and EE there are a small number of professional associa-tions/unions, covering the producers and retailers of technologies/equipment, as well as engineering companies dealing with the design, installation and set-up of EE and RE applications. There are a small number of NGOs in Albania dealing with (among other issues) low-carbon, RES and EE policies. Their role in the development and implementation of the-se policies varies. In several instances their role is constructive and realistic, but some-times at local level they have managed to block investments in RES, especially wind energy and large RES projects. Regarding this latter type of investments, their argu-mentation is often not scientifically sound. The development and implementation of RES applications is influenced by local authori-ties hosting the public consultation process (as part of the EIA procedure) on RES pro-jects to be carried out within their territory; and regional authorities that approve the en-vironmental terms of small and medium-sized RES projects, or give their opinion on the terms of large projects. They are therefore able to block or speed up the implementation


of investments. It should also be noted that local authorities are rarely part of the in-vestment scheme for an RES project, while countervailing charges imposed on RES in-vestors and provided to local communities are often not well utilised.

3.2 Organisational and institutional issues Taking into account that the role of energy is crucial in achieving any national GHG emission reduction targets, as well as the fact that the MEI is the ministry responsible for handling energy issues, it is the Ministry of Environment together with the Ministry of Energy that should assume responsibility for coordination between ministries and other major shareholders and for the implementation of the low-carbon process plan for Alba-nia. Despite this fact, a clear and permanent institutional scheme must be developed for the proper implementation of the plan. To date, some of the necessary activities within this context have been performed by the Ministry of Environment. However, this is not enough, as these assignments do not involve all stakeholders and have been per-formed in several cases on an ad hoc basis. There are many alternatives to be consid-ered, ranging from an interministerial permanent committee to an independent authority or a climate change office directly under the minister (or even the prime minister). All these options have been exploited in EU member states, thus their implementation ex-periences can already prove valuable. Nevertheless, major characteristics that need to be present regardless of the institutional scheme to be selected are permanence and the inclusion of all major stakeholders. Efficient and stable means of collecting and pro-cessing information from the implementation of low-carbon policies in Albania under the leadership of the Ministry of the Environment are also needed. 4 GOALS, TARGETS AND MILESTONES The three main pillars of European and national policy to tackle climate change and re-duce GHG emissions in the energy sector are:

• Increasing the share of RES in gross final energy consumption. • Strengthening, expanding and improving the functioning of the EU Emission

Trading Scheme (ETS). • Substantially improving energy efficiency compared to a baseline scenario.

To flesh out these pillars, the European Commission (EC) adopted a legislative package on energy and climate change (‘‘20-20-20 by 2020’’). In this context, Directive 2003/87/EC on emissions trading (amended by Directive 2009/28/EC), aims to reduce


GHG emissions by at least 20 percent by 2020 compared to 1990 levels through the implementation of unified rules across the EU. No additional goals therefore need to be specified at national level for the functioning of the ETS. The target of a 20 percent pen-etration of RES in the EU’s gross final energy consumption by 2020 has been further disaggregated at national level, with Albania being assigned a binding 38 percent target, increased from 29 percent, which was the actual level in 2009. The calculation of the RES target for 2020 under the Renewable Energy Directive com-prises three elements:

• the baseline share of renewable energy; • a flat rate increase; and • additional residual effort determined on the basis of the relative per capita

GDP. The premise behind this is an equivalent level of ambition as the EU’s 20 percent RES target, but recognising the different baselines of the contracting parties.

4.1 Base-year share of RES The starting point of target determination for each party is the share of RES in gross fi-nal energy consumption (GFEC) in the baseline year. Gross final energy consumption is defined as consumption measured before transmission and distribution losses and in-cluding own use by the heat and power sectors, but excluding non-energy use. As per the Eurostat methodology, the GFEC is calculated by adding own consumption and dis-tribution losses back to total final consumption (TFC), as shown in the equation: Calculation of GFEC:

GFEC = TFC + Transmission/distribution losses + own consumption

In addition, actual renewable energy consumption should be adjusted to account for the fact that it may have been an abnormally wet or dry year in terms of hydroelectric gen-eration. The EU methodology requires that hydro production should be normalised against 15 years of historical data — that is, a national “average” generation level should be used based on the average load factor seen since 1995. Since most of the EC contracting parties do not have data available so far back, the statistics collated by the US Energy Information Administration (EIA)3 were used to perform this normalisa-tion. The ratio of 2009 renewable energy consumption with normalised hydro production to GFEC thus provides the base renewable energy share.

3 International Energy Statistics, US Energy Information Administration (1995–2009)


4.2 Flat-rate increase The initial additional renewable energy share to be achieved by all parties is a flat 5.5 percentage points of GFEC by 2020, over and above the proportion achieved in the baseline year. This figure was based on the 27 EU member states equally sharing half of their total ambition to increase renewable energy from 2005. Energy Community par-ties started the process much later and based on a different baseline year, and it may be that a different flat increase is appropriate. This will be subject to negotiation with the EC, but for the purposes of this report the original EU effort is maintained.

4.3 Residual effort The other half of the EU’s ambition was split amongst the member states in accordance with their relative GDP per capita. The same approach was used as for the Energy Community contracting parties, assuming the same average EU effort of 0.16 toe per citizen, adjusted by the ratio of each party’s respective GDP per capita to the EU27 av-erage in 2009 of EUR 23,5004. This adjusted effort per citizen is then multiplied by the population of the respective party in 2009 to determine an aggregate residual effort per party.

In order to express this residual effort as a target share for 2020, a forecast of GFEC in 2020 is also required. Experts have used a top-down econometric approach to deter-mine this, based on a forecast carried out on the update of the energy policies of each country.

Forecasts for GDP growth from the World Economic Outlook (WEO)5 produced by the International Monetary Fund (IMF) in April 2011 were used as the basis for this calcula-tion. The IMF estimates up to 2016, thus the extrapolation to 2020 was made using the same real annual growth rate as over the 2013–2016 period, when the forecasts tended to reach a steady state after the recession6.

Using 2020 GDP, a forecast for energy intensity, and thus gross energy consumption, is derived, which is converted to a GFEC forecast by assuming the same ratio as in 2009. The ratio of the absolute renewable residual effort to this energy consumption thus gave the residual effort share to be achieved by each party by 2020.

4 Source: Eurostat (June 10, 2011). 5 European Energy Trends to 2030 – Update 2009, European Commission Directorate-General for Energy (August 4, 2010). 6 The nominal GDP forecasts were expressed in real 2005 terms for consistency with the PRIMES forecasts using the individual GDP deflators for each contracing party and converted to euro terms with historical 2005 exchange rates sourced from the IMF’s International Financial Statistics.)


4.4 Results of the RES target for Albania Two elements are very important: GFEC2009 = 1,895.13 ktoe and GFEC2020 = 3,355.9 ktoe. Both values are appropriate against the Albanian energy balance for the year 2009 and the energy forecast for 2020 based on various reports such as the updated National Energy Strategy (2008); the document on Albanian integration into the EU (Energy Chapter), approved by a decision of the Council of Ministers on March 2010); the Na-tional Energy Efficiency Action Plan (approved by Decision No. 619 of the Council of Minister, dated September 7, 2011).

Table 3 presents the final calculation for defining the RES target for Albania. Calcula-tions were made for two variants: taking into consideration the NEEAP; and without tak-ing into consideration the fulfilment of EE targets. Also, two sub-scenarios are prepared for each of them: the first one taking the flat rate of 5.5 percent; and the second one tak-ing a lower rate of 4 percent.

Table 3: Detailed calculation of 2020 RES target for Albania (Draft RESAP, MIE, April 2013)

Parameters

Not considering the NEEAP Considering the NEEAP

New energy balance cor-

rected for 2009) Flat rate to 5.5%


rected for 2009); Corrected flat

rate to 4%


rected for 2009)

Flat rate to 5.5%


rected for 2009); Corrected flat

rate to 4% Total final energy consumption 2009, ktoe 1,783.8 1,783.8 1,783.8 1,783.8 "+" losses (electricity), ktoe 105.50 105.50 105.50 105.50 "+" losses (heat), ktoe 2.10 2.10 2.10 2.10 "+" own consumption (electricity sector), ktoe 2.05 2.05 2.05 2.05 "+" own consumption (heat sector), ktoe 1.68 1.68 1.68 1.68 Gross final energy consumption 2009, ktoe (A) 1,895.13 1,895.13 1,895.13 1,895.13 Hydro generation, ktoe 449.82 449.82 449.82 449.82 ÷ hydro load factor 2009 47.20% 47.20% 47.20% 47.20% × average hydro load factor 1995–2009 36.40% 36.40% 36.40% 36.40% Normalised hydro generation, ktoe (B) 346.90 346.90 346.90 346.90 Other RES, ktoe (C) 216.65 216.65 216.65 216.65 Total normalised renewables, ktoe (D) = (B) + (C) 563.55 563.55 563.55 563.55 Renewable energy share 2009 (E) = (D) / (A) 29.74% 29.74% 29.74% 29.74% Flat rate increase (F) 5.50% 4.00% 5.50% 4.00% GDP per capita 2009 (EUR) 2,720 2,720 2,720 2,720 ÷ EU27 average GDP per capita (EUR) 23,500 23,500 23,500 23,500 GDP per capita index 11.57% 11.57% 11.57% 11.57% × Residual effort per EU27 citizen, toe per capita 0.170 0.170 0.170 0.170 Residual effort per citizen, toe per capita 0.0197 0.0197 0.0197 0.0197 × population 2009, m 4.19 4.19 4.19 4.19 Residual effort, ktoe (G) 82.445 82.445 82.445 82.445 GDP 2009, EUR bn (real 2005) 8.15 8.15 8.15 8.15 Forecast GDP 2016, EUR bn (real 2005) 10.76 10.76 10.76 10.76 Annual GDP growth 2016–2020 (equal to 2013– 4.74% 4.74% 4.74% 4.74%


2016 average) Forecast GDP 2020, EUR bn (2005) (J) 12.95 12.95 12.95 12.95 Energy intensity 2009, toe/EUR m (2005) 231.33 231.33 231.33 231.33 Forecast total energy supply 2020, ktoe (J) × (K) 3,251.52 3,251.52 2,926.37 2,926.37 × ratio of GFEC to TES (assumed constant as 2009) 0.00% 0.00% 0.00% 0.00% Forecast 2020 gross final energy consumption, ktoe (H) 3,355.9 3,355.9 3,030.8 3,030.8 Residual effort 2020 share (I) = (G) / (H) 2.46% 2.46% 2.72% 2.72% Total 2020 renewable energy target (E) + (F) + (I) 37.69% 36.19% 37.96% 36.46%

Based on the above analysis, it can be concluded that the maximum final RES target for Albania should be 37.96 percent, rounded to 38 percent. This figure will serve as the national RES target for the year 2020. Also, it is important to mention that all future cal-culations for the fulfilment of the RES target are based on the value of 38 percent.

4.5 Technologies analysis for meeting the RES target for Albania To achieve the objectives and targets set for the penetration of RES and the promotion of energy efficiency, a variety of technologies and interventions can be utilised, depend-ing on the existing RES potential per country, national circumstances etc. The determi-nation of the portfolio of these technologies/interventions, as well as the timing of their implementation, are crucial for achieving the objectives set. Decisions should be based on:

• estimates for the evolution of energy consumption and the associated GHG emissions according to a baseline scenario and the stringency of the targets set;

• an analytical review of available RE and EE technologies/interventions; • the effectiveness and economic performance of the technologies/interventions; • an analysis of the main barriers hindering their large-scale utilisation; and • the co-benefits and adverse side effects associated with their implementation.

To this end, the utilisation of energy models is of particular importance for analysing the performance of the technologies in question and estimating the potential impacts asso-ciated with their implementation. In Albania, the long-range energy alternatives planning system (LEAP) model and greenhouse gas costing model (GACMO) methodological approaches were used to determine the portfolio of RE and EE technologies to be used to meet the targets set. Specifically, the action plans outlined below have been com-piled, specifying the role of each technology. The draft NREAP in the scope of Directive 2009/28/EC was prepared by the Climate Change Unit (UNDP and the Ministry of the Environment) and specifies the role of a va-


riety of RES technologies in achieving the targets set for 2020. The NREAP shows the trajectory of RES utilisation in power generation, for heating and cooling, and in the transport sector, and describes the policy instruments that will be used for their devel-opment. Figure 7 shows the foreseen penetration of RES in the power generation sector disaggregated by type of technology based on their selection according to a least-cost concept, as well as by establishing the respective calibration of their respective penetra-tion achieved by 2013. Tables 4 and 5 give an overview of RES utilisation for the three basic scenarios examined for the compilation of the Albanian NREAP.

Figure 7: Foreseen and achieved penetration of different RES technologies in the power

generation sector up to 2020 (Source: Second Progress Report of NREAP, 2014)


Table 4: Forecast of all RES technologies to cover RES targets (ktoe)

ktoe 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Final Energy Consumption 2009, ktoe 1783.8 1879.4 2001.7 2127.5 2256.5 2388.7 2524.2 2663.0 2805.0 2950.5 3099.3 3251.5 "+" Losses (electricity), ktoe 99.5 98.9 99.2 99.5 99.7 98.9 99.9 99.9 99.7 99.4 99.0 98.5 "+" Losses (heat), ktoe 0.0 0.0 0.2 0.4 0.6 0.8 0.9 1.1 1.3 1.4 1.5 1.6 "+" Own consumption (el. sector), ktoe 2.1 2.2 2.3 2.5 2.6 2.7 2.9 3.1 3.3 3.5 3.7 3.9 "+" Own consumption (heat sector), ktoe 0.0 0.0 0.0 0.1 0.1 0.2 0.2 0.2 0.3 0.3 0.3 0.3 Gross Final Energy Consumption 2009, ktoe (A) 1885.3 1980.4 2103.5 2229.9 2359.5 2491.3 2628.1 2767.2 2909.5 3055.1 3203.9 3355.9

Hydro Generat ion, ktoe 507.4 649.8 351.6 383.0 380.6 407.1 404.6 437.7 434.9 496.8 493.6 596.1 ÷ Hydro Load Factor 2009 0.5 0.6 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 × Average Hydro Load Factor 1995-2009 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4 Biocarburants in Transport Sec tor, ktoe 0.0 0.0 0.0 2.5 6.9 13.1 23.4 35.9 49.6 66.8 86.7 114.1 Normalised Hydro Generation, ktoe 342.5 379.9 372.5 401.9 451.2 487.9 503.2 545.8 561.1 625.7 641.0 738.5 Normalised Wind Generation, ktoe 0.0 0.0 0.0 0.0 0.0 2.3 4.3 6.3 8.2 10.2 12.2 14.2 RES_Wood-Biomass, ktoe 210.0 212.1 214.4 216.8 219.2 221.6 224.0 226.5 229.0 231.5 234.0 236.6 RES_New-Biomass (Agriculture), ktoe 0.0 0.0 0.0 7.0 8.8 9.5 10.2 10.9 11.8 12.6 13.6 14.6 RES-Solar, ktoe 5.1 5.9 7.9 10.2 12.7 15.6 18.9 22.6 26.4 29.7 32.5 34.7 RES-Biomass CHP_HEAT, ktoe 0.0 0.0 0.0 0.0 1.7 3.3 5.0 6.7 8.3 10.0 11.7 13.3 RES-Biomass CHP_Electricity, ktoe 0.0 0.0 0.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 RES-Biomass-Olive Seeds CH_Heat, ktoe 0.0 0.0 0.0 0.0 2.1 4.1 6.2 8.2 10.3 12.3 14.4 16.4 RES-Biomass-Other Fruits Seeds CH_Heat, ktoe 0.0 0.0 0.0 0.0 3.1 6.2 9.3 12.3 15.4 18.5 21.6 24.7 RES-Geothermal_HEAT, ktoe 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.2 RES-Heat Pumps_HEAT, k toe 2.4 2.6 6.5 9.7 12.2 14.8 17.5 20.4 23.4 26.6 29.9 33.4 RES-Heat Pumps_Cooling, ktoe 1.6 1.7 4.4 6.8 8.7 10.6 12.6 14.8 17.0 19.4 21.9 24.5 RES-Solar Absorpt ion Systems_Cooling, ktoe 0.0 0.0 0.0 0.0 0.7 1.5 2.2 3.0 3.3 4.3 4.7 6.5 ALL RES NORMALISED, ktoe 561.6 602.2 605.7 654.9 729.2 794.5 842.9 921.5 974.0 1079.8 1138.3 1287.7

(Source: Draft RESAP, MIE, April 2013) Table 5 presents the contribution of each RES technology towards meeting targets.


Table 5: Contribution of each RES technology to meeting targets RES Techn. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 RES_Biocarburants in Transport 0.00% 0.00% 0.00% 0.11% 0.29% 0.53% 0.89% 1.30% 1.71% 2.19% 2.71% 3.40% Normalised Hydro Generat. 18.17% 19.18% 17.71% 18.02% 19.12% 19.58% 19.15% 19.73% 19.28% 20.48% 20.01% 22.01% Normalised Wind Generation 0.00% 0.00% 0.00% 0.00% 0.00% 0.09% 0.16% 0.23% 0.28% 0.33% 0.38% 0.42% Wood-Biomass 11.14% 10.71% 10.19% 9.72% 9.29% 8.89% 8.52% 8.18% 7.87% 7.58% 7.31% 7.05% New-Biomass (Agriculture) 0.00% 0.00% 0.00% 0.31% 0.37% 0.38% 0.39% 0.40% 0.40% 0.41% 0.42% 0.44% RES_Solar Hot Water System 0.27% 0.30% 0.38% 0.46% 0.54% 0.63% 0.72% 0.82% 0.91% 0.97% 1.02% 1.03% RES_Biomass CHP_HEAT 0.00% 0.00% 0.00% 0.00% 0.07% 0.13% 0.19% 0.24% 0.29% 0.33% 0.36% 0.40% RES_Biomass CHP_Electricity 0.00% 0.00% 0.00% 0.00% 0.08% 0.16% 0.23% 0.29% 0.34% 0.39% 0.44% 0.48% RES_Biomass-Olive Seeds CH_Heat 0.00% 0.00% 0.00% 0.00% 0.09% 0.17% 0.23% 0.30% 0.35% 0.40% 0.45% 0.49% RES_Biom.-Other Fruits Seeds CH_Heat 0.00% 0.00% 0.00% 0.00% 0.13% 0.25% 0.35% 0.45% 0.53% 0.61% 0.67% 0.74% Geoth_HEAT 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.01% Heat P_HEAT 0.13% 0.13% 0.31% 0.44% 0.52% 0.59% 0.67% 0.74% 0.81% 0.87% 0.93% 1.00% Heat P_Cooling 0.09% 0.09% 0.21% 0.31% 0.37% 0.43% 0.48% 0.53% 0.59% 0.63% 0.68% 0.73% Solar Absorption Systems_Cool. 0.00% 0.00% 0.00% 0.00% 0.03% 0.06% 0.09% 0.11% 0.12% 0.14% 0.15% 0.20% ALL RES NORMALISED 29.79% 30.41% 28.80% 29.37% 30.91% 31.89% 32.07% 33.30% 33.48% 35.34% 35.53% 38.37% RES Techn. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 RES_Biocarburants in Transport 0.00% 0.00% 0.00% 0.39% 0.95% 1.65% 2.78% 3.89% 5.10% 6.19% 7.62% 8.86% Normalised Hydro Generat. 60.98% 63.08% 61.50% 61.37% 61.88% 61.41% 59.69% 59.24% 57.61% 57.95% 56.31% 57.35% Normalised Wind Generation 0.00% 0.00% 0.00% 0.00% 0.00% 0.29% 0.51% 0.68% 0.85% 0.95% 1.07% 1.10% Wood-Biomass 37.39% 35.22% 35.40% 33.11% 30.06% 27.89% 26.58% 24.58% 23.51% 21.44% 20.56% 18.38% New-Biomass (Agriculture) 0.00% 0.00% 0.00% 1.07% 1.21% 1.19% 1.21% 1.19% 1.21% 1.17% 1.19% 1.13% RES_Solar Hot Water System 0.91% 0.97% 1.31% 1.55% 1.74% 1.96% 2.24% 2.45% 2.71% 2.75% 2.86% 2.70% RES_Biomass CHP_HEAT 0.00% 0.00% 0.00% 0.00% 0.23% 0.42% 0.59% 0.72% 0.86% 0.93% 1.03% 1.04% RES_Biomass CHP_Electricity 0.00% 0.00% 0.00% 0.00% 0.27% 0.50% 0.71% 0.87% 1.03% 1.11% 1.23% 1.24% RES_Biomass-Olive Seeds CH_Heat 0.00% 0.00% 0.00% 0.00% 0.28% 0.52% 0.73% 0.89% 1.06% 1.14% 1.26% 1.28% RES_Biom.-Other Fruits Seeds CH_Heat 0.00% 0.00% 0.00% 0.00% 0.42% 0.78% 1.10% 1.34% 1.58% 1.71% 1.90% 1.92% Geoth_HEAT 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.01% 0.00% 0.01% 0.01% 0.01% 0.01% Heat P_HEAT 0.43% 0.44% 1.07% 1.48% 1.67% 1.86% 2.08% 2.22% 2.41% 2.47% 2.63% 2.60% Heat P_Cooling 0.29% 0.29% 0.73% 1.04% 1.19% 1.33% 1.50% 1.60% 1.75% 1.80% 1.92% 1.90% Solar Absorption Systems_Cool. 0.00% 0.00% 0.00% 0.00% 0.10% 0.19% 0.27% 0.32% 0.34% 0.40% 0.42% 0.51% ALL RES NORMALISED 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% (Source: Draft RESAP, MIE, April 2013) The following conclusions can be drawn:

• The final RES target for Albania to be approved should be 37.69 percent (without EE), – 37.96 percent (with EE), or approximately 38 percent.

• The two main RES will be hydro (57.14 percent) and biomass (18.53 percent). • Solar energy can contribute 12.69 percent of extra RES demand, or 3.04 percent

of total RES demand by 2020. • Biofuels in transport will contribute 3.40 percent by 2020. • Wind farms will contribute 0.38 percent by 2020. • New biomass will contribute 1.87 percent by 2020. • Olive seeds (biomass) will contribute 0.49 percent by 2020.


• Other fruit seeds (biomass) will contribute 0.74 percent by 2020. • Geothermal energy will contribute 0.01 percent by 2020. • Heat pumps will contribute 1.68 percent by 2020.

The first NEEAP (2009–2018) pursuant to Directive 2006/32/EC, published in Septem-ber 2011, describes and evaluates all the EE measures that have been or are being im-plemented, or that are planned, for final demand sectors in Albania. Despite the fact that the plan describes a great number of EE interventions, it does not provide quantitative data on the intended application/penetration levels of each EE technology. Instead, it gives quantitative estimates of the expected reduction in energy consumption per final demand sector for 2018. However, this level of information hinders the effective monitor-ing of EE interventions and the planning of corrective actions if needed. The progress report that covers results up to 2012 partially addresses some of these shortcomings. The main characteristics that have been identified and underlined through the analysis of the historical development and possible future trends in Albania’s energy sector, are described below:

• An increase in electricity consumption by consumers during the transition period has led to high levels of non-technical losses and reduced security of supply.

• Lack of electricity price liberalisation has led to its massive use for different ser-vices in the household and service sectors (space heating and cooking).

• Relatively high prices for other alternative energy sources have forced consum-ers to focus more on electricity use.

• Since 2000, energy intensity (energy use per economic output, GDP) has im-proved but this is more related to the growth in GDP due to foreign aid and in-come from Albanians working abroad, and to the collapse of heavy industries, than to improvements in energy efficiency.

• The growth rate in the consumption of diesel and gasoline, especially in the transport sector, is far higher than can be accommodated by the supply of do-mestic oil by-products, which has therefore led to an increase in imports. As de-scribed in Figure 8, the transport sector is the main energy consumer in Albania, accounting for 38 percent of total final consumption, followed by the residential sector (25 percent), while the services sector, which accounts for 59 percent of GDP, is only responsible for 4 percent of total final energy consumption.


Figure 8: Final consumption of primary energy by sector in 2012 (MIE/AKBN, Energy Balance 2012)

Source: AKBN (2012)

4.6 Actual EE/RE financing schemes The financing of EE/RE is currently at a very early stage in Albania. An analysis of the current status of the different programmes offered by different banks is provided below. With respect to the availability of EE/RE loan products in Albania, the following points should be noted:

• ProCredit Bank has been active in EE/RE lending since 2009 and since then has taken on a leading role in this area, in terms of lending in all sectors: residential, service, industry, transport and agriculture.

• As part of the gradual implementation of EE/RE lending by the International Fi-nance Corporation (IFC) via partner banks, Credins Bank and Société Générale have also been active in the area of EE/RE lending since October 2010. The rig-orous expansion of these banks’ EE/RE activities to date suggests that both banks should increasingly be viewed as strong competitors.

• In addition to the three banks named above, two smaller financing institutions of-fer EE/RE loan products to private individuals: Fondi BESA, NOA Financojme (“We are financing”) (under the IFC programme).


• The EBRD is not currently involved in any noteworthy activity with respect to EE/RE lending through partner banks. The Western Balkans Sustainable Energy Financing Facility II was created in 2009 and envisaged the inclusion of Albania. Most of the financing from the EBRD has been for six SHPPs.

• According to information from KfW, the project “Promotion of Renewable Energy and Energy Efficiency” was launched in January 2007. The project is financed by the German Government through KfW Bank. The project has a budget of EUR 9 million: EUR 2 million of this is for technical assistance to small HPPs, banks and EE consultants; EUR 3.5 million is for small HPPs as a bank guarantee; and EUR 3.5 million is for EE as bank guarantees. This latter EUR 3.5 million funding is aimed at supporting energy efficiency in different sectors, mainly in the public sector: kindergartens, official buildings etc. Up to the end of March 2013, only EUR 0.3 million had been discussed (one project in 2009 and two in 2010). The programme was updated with the aim of restart the project in September 2013 with total funds of EUR 5.6 million.

• According to KfW, a second programme was planned in relation to a potential EE/RE lending programme that would include partner banks. This was to be dis-cussed and agreed upon with the Albanian Government, with the aim of launch-ing the programme in late 2013/early 2014.

The project “Energy Planning and Energy Efficiency in Korca Public Buildings” was fi-nanced by the municipality of Korca with equity and a loan from ProCredit. Activities un-der this project included: the evaluation of the energetic situation in the district of Korca; feasibility studies for the implementation of EE measures; measures in the public build-ings stock; 4) support to the pilot implementation of EE measures in selected public buildings. This is likely to lead to increasingly rigorous competition in the area of EE/RE lending. Table 6 shows details of the individual loan conditions.


Table 6: Terms and conditions for EE/RE lending by different banks. (Information col-lected by the author based on the website of each bank.)

Financial institution

Product name Amount Maturity Collateral

ProCredit Bank

Energy effi-ciency loan

ALL ≤ 6 mln (ALL, EUR, USD)

≤ 10 years (≤ 15 years tem-porary offer)

Collateral

Credins Bank Energy effi-ciency loan ALL ≤ 5 mln ≤ 7 years

ALL ≤ 0.6 mln: non-collateral (guarantor) or collateral, ALL > 0.6 ≤ 1 mln: guaran-tor and collateral ALL > 1 mln: collateral (mortgage)

Societe Gen-erale

E3 (Econom-ical Energy Efficiency)

Non collateral: ALL 0.1–0.5 mln Collateral: ALL 0.5–70 mln (ALL, EUR, USD)

Non collateral: ≤ 5 years Collateral: ≤ 10 years

ALL ≤ 0.5 mln: non-collateral (guarantor) ALL > 0.5 mln: collateral

Fondi BESA Energy effi-ciency loan ALL ≤ 3 mln ≤ 7 years collateral

NOA Finan-cojme

Energy effi-ciency loan n/a n/a n/a

The IFC, with the support of the Government of Canada, is helping Credins Bank Alba-nia to expand its financing of RE and EE projects, promoting the efficient use of re-sources and reducing GHG emissions. The IFC will provide EUR 10 million in financing to the bank, including up to EUR 1 million from the IFC–Canada Climate Change Pro-gram. This helps the bank to provide loans to Albanian companies interested in invest-ing in energy-efficient technologies and RE projects. The Government of Canada’s con-tribution was instrumental in making the financing package viable.

It should be noted that, in addition to the specialised EE/RE lending options offered by the above-mentioned institutions, other banks are offering loans for home improvements (e.g. Raiffeisen Bank, Intesa Sanpaolo Bank, NBG) or for new business investments. These loans are not explicitly earmarked as EE/RE loans, but nevertheless can be used to finance applicable EE/RE investment projects. On the whole, it can be observed that


banks active in Albania are gradually starting to expand their lending activities to include EE/RE investments.

ProCredit Bank: ProCredit Bank was the first to launch an energy efficiency loan as a separate product, emphasising the fact that the interest rate for this loan is 1 percent less than for a standard home renovation loan. Like most banks in the country, Pro-Credit Bank therefore relies on addressing price sensitivity as the core need. ProCredit Bank has made some efforts to increase market awareness and educate the market about what energy efficiency is and what it means to final consumers. Such efforts have been made most at the below-the-line (BTL) and PR level and are as yet quite limited in scope and effect.

Credins Bank: Positioned as a local bank, Credins claims to be understanding and flexi-ble. Its energy efficiency loan product has been positioned separately from its home renovation or personal loans but is mostly sold as an extension to existing products with a preferential rate. As in the case of ProCredit Bank, efforts to educate the market on energy efficiency and related products are keys to success.

Societe Generale: A prestigious bank that presents itself as trustworthy and reliable, it also emphasises service ability. Societe Generale does not have a different position for each of its products and places emphasis on packaging and labelling them to pinpoint the service levels of the bank, which is in line with its overall positioning. It is one of the only banks in the country that does not differentiate or position itself according to price but rather according to service. Societe Generale launched an energy efficiency loan as a separate product, known as E3, at the end of September 2012. Communication about the product emphasises what it serves for (the benefit of final consumers) and pricing is almost absent from all media used, thus the full focus is on the benefits of having a bet-ter lifestyle and living conditions as the core need that is being served.

Raiffeisen Bank: Positioned overall as the leading bank in the country, Raiffeisen is characterised by trust, reliability and traditional values. All its products are positioned within the same framework and context. Personal loans and home improvement loans are positioned mostly according to pricing (better interest rates) or loan amount. Raif-feisen Bank is very active in the individual lending market, where it ranks second. How-ever, this position has been gained mainly due to its very wide branch network through-out the country, which gives the bank a big competitive advantage. The latest position-ing of the bank’s personal loans is on small instalments that are easy to repay (again, an example of price-sensitive positioning).


4.7 Data sources and the first results of NEEAP monitoring

The evaluation of Albania’s EE measures provided below is based on the June 2011 monitoring report compiled with the support and leadership of GiZ, the German provider of international cooperation services for sustainable development. Many emails, direct phone calls and visits were exchanged in order to collect all the data needed for the monitoring of EE measures implemented in the years 2010, 2011 and 2012.

Data were obtained from the following sources:

• Suppliers of efficient space heating boilers and efficient central heating systems • Suppliers of solar water heaters • Suppliers of efficient lighting solutions • Suppliers of efficient A-category split-unit air-conditioning systems and efficient

central air-conditioning systems • Suppliers of efficient A-category electrical boilers • Information from KfW regarding the project “Promotion of Renewable Energy and

Energy Efficiency” • ProCredit Bank’s EE Programme • Credins Bank’s EE Programme supported by the IFC • Fondi BESA’s EE Programme supported by the IFC • NOA Financojme’s EE Programme supported by the IFC • The project “Energy Planning and Energy Efficiency in Korca Public Buildings”

Several meetings with EE/RE suppliers allowed a greater insight into the implemented EE/RE measures, especially the availability of specific technologies or brands, as well as reliable manufacturers and providers of EE/RE products and services. These findings helped to identify reputable EE/RE suppliers and to collect all the data needed for eval-uating the scale of the NEEAP’s achievement in 2010–2012 in Albania.

By collecting data on suppliers, such as their relationship with clients and the products they offer, it was possible to identify many companies offering EE/RE technologies and equipment. Special attention was paid to brands, market prices and the efficiency of the products.

Thanks to the many interviews with suppliers, it could be established that the equipment and machinery available is mostly of good quality and highly efficient. Wholesalers and


direct representatives of well-known and state-of-the-art producers in Western Europe are able to offer all types of machinery and equipment on the Albanian market. The suppliers themselves do not offer second-hand machines and a market preference for new machines was observed. Enterprises in particular are looking for new, high-quality products. The technological potential for saving energy by installing more efficient ma-chinery and equipment can be considered to be very high in the residential, service, in-dustry, transport and agricultural sectors, and suppliers revealed that suitable technolo-gy is readily available on the market.

Detail analysis based on the above data sources leads to some very important conclu-sions:

• The NEEAP for Albania for 2010, 2011 and 2012 achieved 0.58 percent (com-pared to a target of 1 percent), 1.49 percent (target 2 percent) and 2.61 percent (target 3 percent) respectively.

• These are good results, taking into consideration that the NEEAP was prepared in 2009 and approved in 2011, thus implementation began two years late.

• Short-term EE targets for the period 2010–2012 were not fulfilled and the rate of implementation of EE measures should be increased for the period 2013–2018 to compensate for the results not achieved in the short-term period.

• The highest achievement related to values for total savings was in the services sector during the years 2010, 2011, 2012, equal to 18.44 GWh, 36.71 GWh and 48.05 GWh respectively.

• The second highest achievement was related to the values for total savings reached in the residential sector during the years 2010, 2011, 2012, equal to 16.07 GWh, 31.68 GWh and 41.03 GWh respectively.

• The sector with the third highest achievements related to total savings is agricul-ture, with values of 7.75 GWh, 15.50 GWh and 23.26 GWh for the years 2010, 2011 and 2012 respectively.

• The fourth highest achievements are in the transport sector, with total savings of 14.37 GWh, 11.63 GWh and 11.19 GWh for the years 2010, 2011 and 2012 re-spectively.

• The fifth highest achievements were in the industrial sector, with total savings of 0.94 GWh, 3.15 GWh and 5.40 GWh for the years 2010, 2011 and 2012 respec-tively.

• These figures show a very low level of achievement compared to the EE targets for the industrial, agricultural and transport sectors.


• The biggest energy savings among end users are related to the installation of ef-ficient space-heating boilers and efficient central heating systems.

• The second biggest energy savings among end users are related to the installa-tion of solar water-heating systems.

The second NEEAP was due to be submitted in the second half of 2014, integrating measures under the latest Directive on Energy Efficiency (2012/27/EE), which amends Directives 2009/125/EC and 2010/30/EU and repeals Directives 2004/8/EC and 2006/32/EC.

For the period beyond 2020, the Albanian Government is in the process of elaborating the National Energy Strategy, presenting long-term basic strategic guidelines. In this context, reducing dependence on imported energy, maximising the penetration of re-newable energies, achieving a significant reduction in CO2 emissions by 2030, and rein-forcing the protection of final consumers are the main pillars of the national energy planning strategy. The promotion of RES and the implementation of EE measures are the basic interventions for achieving these targets. The National Energy Strategy will provide analytical data regarding RES penetration per type of technology for various scenarios examined, while quantitative information on the levels of penetration for each specific EE intervention is limited, focusing mainly on the aggregated energy perfor-mance of the final demand sectors.

It is clear that final government decisions on this issue depend on the outcome of nego-tiations within the EU and the legal nature of binding targets on some or all of the above elements. Thus, when these decisions are made, it will be possible to define the specific implementation actions of the low-carbon process plan for Albania.

5 IMPLEMENTATION STRATEGY

Achieving the objectives and targets set in the context of a policy framework requires the identification and implementation of appropriate policies and measures (PAMs). In turn, the implementation rates of the adopted PAMs have a direct effect on the outcome. Monitoring the implementation rates of adopted PAMs is therefore an integral part of the policy process, as it allows for an early identification of potential problems and/or suc-cessful case studies and facilitates the timely revision of PAMs. The need for an effec-tive monitoring process is even more imperative in the case of low-carbon policies for all


sources of GHG emissions and especially for the energy sector, since:

• a large number of stakeholders (including end users) are directly or indirectly in-volved in the implementation of PAMs;

• existing energy-related infrastructure and energy investments decided now affect future performance due to their long lifetime; and

• uncertainties exist in almost all issues related to climate change (e.g. physical impacts of climate change, cost of abatement options, future GHG emissions, etc.)

In this context, defining appropriate indicators for each of the adopted PAMs (quantita-tive but also qualitative) is necessary for the evaluation of progress made. Indicators should be based on a solid methodology, while quantification should be done by means of reliable/official data sources. Roles and responsibilities as well as the timing of the quantification should be clearly defined. Five broad categories of low-carbon PAMs for energy production and consumption are already in place in Albania and are expected to be in place in the future:

1. Renewable energy sources for electricity generation, including combined heat and power (CHP)

2. Renewable energy sources for heat generation 3. Energy conservation in buildings and industry 4. Transport-related interventions that aim at increased use of public transport 5. The EU ETS

In addition to these categories there are interventions related to infrastructure develop-ment, such as:

• the interconnection of islands' electricity transmission systems to the mainland transmission system and the enhancement of grid capacity in congested main-land regions — such grid infrastructure works will enable increased RES electrici-ty penetration;

• the expansion of the transmission and distribution network for natural gas, includ-ing transboundary pipelines; and

• the modernisation of port facilities, the expansion of the (electrified) rail network, and integrated logistics.


These interventions, although related to low-carbon PAMs, serve the broader devel-opmental needs of the Albanian economy and in some cases (e.g. transboundary nat-ural gas pipelines) are projects of common interest at EU level, and therefore are not considered in the context of this process plan. Table 7 presents indicators that can be used in order to assist the monitoring process. With respect to roles and responsibili-ties for calculating these indicators, competent departments within the Ministry of Envi-ronment, Energy and Climate Change have the capacity and experience to undertake the task (either internally or by outsourcing).


Table 7: Indicators for monitoring PAMs

Categories of low-carbon PAMs

PAMs Indicators

RES

RES for electricity genera-tion, including CHP

- Feed-in tariffs and/or feed-in premiums to assist the operation of RES projects

- Subsidies for new installa-tions

- Other economic incentives (e.g. tax credits)

- Installed capacity per RES

- Electricity generation per RES

- % of RES electricity in total final energy generation

- % of RES in gross final consumption

RES for heat generation - Subsidies for new installa-tions

- Other economic incentives (e.g. interest-rate subsidies)

- Financial instruments to mobilise public and private funds

- Building codes

- Installed capacity per RES

- Heat generation per RES

- % of RES in gross final consumption

Energy conservation in buildings

- Subsidies and other eco-nomic incentives (e.g. inter-est-rate subsidies, tax cred-its)

- Financial instruments to mobilise public and private funds

- Building codes

- Appliance standards and labelling

- Number of households ap-plying improvement interven-tions

- Area of buildings insulated

- Number of boilers replaced per fuel used

- Number of energy-efficient appliances sold

- Amount of energy saved in buildings

Energy conservation in in- - Subsidies and other eco- - Amount of energy saved in


dustry nomic incentives (e.g. inter-est-rate subsidies, tax cred-its)

- Voluntary agreements

- Performance benchmarks (e.g. Directive on Industrial Emissions)

industry

Transport-related interven-tions

- Urban planning

- Road and parking pricing

- Investments in public transport vehicles, facilities and infrastructure

- Total passengers transport-ed (p-km)

- Passengers transported per transport means (p-km)

- Transport load replaced (p-km)


6 MONITORING AND EVALUATION MECHANISMS The Energy Services Directive (ESD) is a framework directive that covers a range of dif-ferent aspects in relation to energy efficiency. The purpose of the directive is to make the end use of energy more economic and efficient by:

• establishing indicative targets, incentives and the institutional, financial and legal frameworks needed to eliminate market barriers and imperfections that prevent the efficient end use of energy; and

• creating conditions for the development and promotion of a market for energy services and for the delivery of energy-saving programmes and other measures aimed at improving end-use energy efficiency.

The directive applies to the distribution and retail sale of energy; and the delivery of measures to improve end-use energy efficiency, with the exception of activities included in the GHG emissions trading scheme, and, to a certain extent, by the armed forces. It targets the retail sale, supply and distribution of extensive grid-based energy carriers, such as electricity and natural gas as well as other types of energy such as district heat-ing, heating oil, coal and lignite, forestry and agricultural energy products and transport fuels.

The ESD provides a general framework for the measurement and verification of energy savings. In Annex IV, the ESD requested the EC to provide a harmonised, bottom-up model before January 1, 2008, for all member states. However, in order to assess the progress made towards achieving energy-savings objectives and to focus resources on promoting the most effective EE improvement measures and programmes, a harmo-nised framework for measuring, verification and reporting is still indispensable. Accord-ing to Article 15 of the ESD, the EC shall, with the assistance of a committee, refine and complement the general measurement framework in order to facilitate the reporting of energy savings. The following sections provide an overview of the bottom-up methods for the calculation of energy savings developed with GiZ assistance for Albania, focus-ing especially on EE measures in the building stock (including both the residential and service sectors).

6.1 Energy efficiency indicators

Energy efficiency indicators describe the development of energy consumption in relation to a reference value (or, in other terms, a baseline year value). Energy consumption in


this case may not be considered separately, but always with reference to either eco-nomic or structural parameters, so as to show in an exemplary way the amount of ener-gy needed for the maintenance of current living standards, or in order to demonstrate the extent to which energy consumption changes with each additionally produced item.

Generally, three types of efficiency indicators are used:

• Economic indicators: energy intensity, carbon intensity (kWh/EUR, CO2/EUR) • Technical indicators: energy consumed per unit physically produced (kWh/tonne

of production, kWh/EUR of production, etc. [production index]); and specific con-sumption (kWh/application, kWh/residential unit, kWh/m2 of heated area; li-tres/100 km, etc.)

• Diffusion indicators: market share of energy-efficient appliances, RES, efficient procedures (e.g. degree of market diffusion of energy-efficient lamps, A++ appli-ances, solar thermal systems, modal split in [freight] transportation, etc.)

6.2 Database requirement

For the metering of energy savings using bottom-up methods, it is essential to capture all measures aimed at EE improvements in a consistent and comprehensive way. As a means to more efficient data handling, the most important EE monitoring unit, in Albania the National Agency of Natural Resources, with the support of GIZ, planned to set up a database. After registration, any enterprise or public institution carrying out EE im-provement measures would be able to enter these measures into the database from the year 2012 onwards. This is also contained in the draft RES and EE Laws. Savings achieved by these measures are calculated in real time, and according to the Directive on Energy Efficiency and Services they contribute to gross energy savings achieved at national level. Savings appraised in this way will be accessible at any time in aggregat-ed form but grouped according to the residential, private, services, public, industrial, transport and agricultural sectors.

6.3 Top-down methods

Top-down calculation methods use data compiled per sector or nation as a starting point for the appraisal of the extent of energy saved. Data expressed per annum have to be adjusted by balancing external influencing factors, such as heating degree days (HDD) and cooling degree days (CDD), structural changes, product mix etc. in order to achieve a reliable impression of the overall EE improvement. Top-down methods do not provide


precise detailed measures, nor do they demonstrate causal interrelationships between measures and energy savings. On the other hand, they are often simpler and cheaper, and as they are able to show development trends they are often referred to as “EE indi-cators”. When developing top-down calculation schemes, according to the Energy Effi-ciency and Services Directive, existing methods such as the ODEX model have to be applied as far as possible. The Albanian National Agency of Natural Recourses, as a partner in the ODYSSEE project, contributes to the further development and ongoing updating of the ODEX model. The EE indicators developed in this project will be adopt-ed in the Methodology for Monitoring EE Measures as far as possible and adapted where necessary.

Advantages of the method: • Simple, with well-defined calculation process and inputs • Less costly to implement then detailed bottom-up methods

Disadvantages of the method:

• Does not consider individual EE measures and their impact • Does not show cause and effect relationships between measures and their re-

sulting energy savings

Typical problems with this method: • Requires huge amounts of data (not only energy statistics, but whole sets of

macro- and microeconomic data that influence energy consumption in all end-use sectors), including many questionnaires for each sector to follow trends in con-sumer behaviour.

• Data availability and reliability: Are data officially approved and controlled by a competent body?

• Frequent need for a lot of modelling and expert judgments to overcome lack of data.

6.4 Bottom-up methods

Bottom-up methods make it possible to assess or estimate energy savings resulting from single measures and expressed in energy metering units. They are subsequently added to energy savings achieved by other specific measures (i.e. bottom up). It is im-portant to avoid the double counting of energy savings. Assessments or estimations of energy savings are based on the data and methods outlined below.


Invoices received from suppliers and retailers:

• energy sales figures • figures for equipment and systems sold • end-use load data • estimates based on simple technical appraisal without inspection • estimates based on extended technical appraisal after inspection

The EC announced the presentation of a harmonised bottom-up model by early 2008 and each member state was obliged to present a national bottom-up methodology. The-se were discussed in a participatory process with all stakeholders affected by the ESD. In the case of the bottom-up approach, energy savings obtained through the implemen-tation of a specific EE improvement measure are evaluated. Two methodological ap-proaches are used:

• Ex post — comparison of measurements of energy use before and after the im-plementation of an EE measure:

- may be very costly due to measurement equipment - recommended only for large-scale EE improvement projects

• Ex ante — EE measure is awarded with a certain amount of energy savings prior to its actual realisation

- has significantly lower costs and is particularly appropriate for replicable measures with well-known impacts - should be used whenever possible, especially for simple measures suita-ble for wide replication and with known impacts, by the standardisation of proce-dures for calculating and reporting

• Hybrid approach — combines ex ante estimations and ex post measurements

The focus of this section is on the bottom-up methodology, drawing on the most valua-ble experiences from the large EU project “Evaluation and Monitoring of the EU Di-rective on Energy End-use Efficiency and Energy Services (EMEEES)”. The main re-sults of the EMEEES project will be described in detail, along with the vast work carried


out by experts to prepare national values for Albania for each coefficient of each meas-ure.

A monitoring and verification system is needed not only for evaluating the policy (i.e. NEEAP implementation), but also when developing the NEEAP. The main methodologi-cal challenge related to the NEEAP is to assess the relationship between the potential, the targets and the effects of measures (Figure 9) based on the document prepared by GiZ (Dr. Armin Teskeredzic).

Figure 9: The role of monitoring and verification in EE policy

The importance of the monitoring and verification system is clearly defined in Article 4 of the ESD: energy savings must be measured and verified, and achievements must be compared with the established targets for energy savings. Setting up a monitoring, veri-fication and evaluation system for EE policy is also a complex and time-consuming pro-cess. But if all actions towards the transforming of the EE market are carried out appro-priately, step by step, and following a systematic approach, the chances of establishing an effective EE policy implementation platform are significantly higher. Isolated actions can give short-term results, but these actions have no real chance of success. The sys-tematic approach proposed here is therefore based on our assumption that strategic changes in the EE field have not yet taken place.

The preconditions for establishing a monitoring, verification and evaluation system are:

• appropriate energy statistics; • involved stakeholders and a legal framework for EE in place; and • the appropriate institutional set-up in place (this will be the outcome of the pro-

ject).


The prescribed bottom-up calculation formulas cover the most common technologies and energy-using equipment in buildings and fall within defined categories of energy ef-ficiency improvement measures or programmes:

1. Refurbishment measures in existing households and the public and private build-ing stock in Albania (walls, roofs).

2. The replacing of existing windows in households and in the public and private building stock in Albania with double- or triple-glazed windows.

3. The replacement of heating supply equipment in households and in the public and private building stock in Albania.

4. The replacement of water heating equipment in households and in the public and private building stock in Albania.

5. The replacement of heating equipment with solar water systems in households and in the public and private building stock in Albania.

6. The replacement of air-conditioning systems (<12kW) in households and in the public and private building stock in Albania.

7. The replacement of electrical appliances (fridges and freezers, washing ma-chines, dishwashers, televisions, etc.) in households and in the public and private building stock in Albania.

8. The replacement of office equipment in households and in the public and private building stock in Albania.

9. The replacement of lighting in households and in the public and private building stock in Albania (systems or components).

10. The construction of new buildings according to energy-related building codes in the case of new houses and in the public and private building stock in Albania.

11. The replacement or new installation of lamps in service (commercial and public) buildings.

12. The replacement or installation of new office equipment in existing and new ter-tiary-sector buildings.

It is clear that since Albania is not yet an EU member state, it does not have to comply with all EU directives and legal acts related directly or indirectly to climate change, in-cluding the penetration of RES, EE measures, etc. Regarding 2030 and 2050, legally binding national targets for GHG emissions reduc-tions have not yet been agreed. However, as also mentioned in Chapter 4 of the present process plan, the EC has proposed a target to reduce EU domestic GHG emissions by 40 percent below the 1990 level by 2030. This target will ensure that the EU is on a


cost-effective track towards meeting its objective of cutting emissions by at least 80 per-cent by 2050, while by setting its level of climate ambition for 2030, the EU will also be able to engage actively in negotiations on a new international climate agreement that should take effect in 2020. According to the proposal, to achieve the overall 40 percent target the sectors covered by the EU ETS will have to reduce their emissions by 43 per-cent compared to 2005, while emissions from non-ETS sectors will have to be reduced by 30 percent below the 2005 level. In addition, the proposal mentions that “…this effort should be shared equitably between the Member States in the form of binding national targets.”

Regardless of the exact figures, it is probable that, at a certain point in the future, na-tional legally binding targets for GHG emissions reductions will be agreed and thus monitoring and evaluation mechanisms ensuring the fulfilment of these commitments should be in place.

At present, the process for the monitoring and evaluation of low-carbon policies in Alba-nia is rather fragmented and not coordinated. Structural elements and gaps in the cur-rent process that should be considered in the development of a complete, integrated and efficient monitoring and evaluation process for low-carbon policies are:

• The penetration of RES. Following the provisions of Directive 2009/28/EC, Al-bania is to submit a report to the EC on progress made in the promotion and use of energy from RES. The report is to be submitted every two years (starting in 2015)

• Promotion of energy efficiency. Article 24 of the Energy Efficiency Directive defines a monitoring and review process for progress in implementation, given the indicative national targets of each member state. By 2015, and every three years thereafter, members states shall submit an NEEAP, while annual reporting is foreseen on progress towards national EE targets. Albania has already submit-ted the indicative national target, while the formulation of its second action plan is in progress. The establishment of a monitoring mechanism in line with the provi-sions of Article 24 of Directive 2012/27/EU will therefore ensure the monitoring, review and evaluation of progress made in the field of energy efficiency.


Evaluation of nationally appropriate mitigation actions in the context of the EU and the UNFCCC. The concept of low-emission development under the UNFCCC provides a framework for countries to formulate their approaches to sustaining long-term national growth in the context of the mitigation of GHG emissions. A special support mechanism for develop-ing and implementing nationally appropriate mitigation actions (NAMAs) has been es-tablished under the UNFCCC, including the new Green Climate Fund (GCF). A NAMA is a mitigation action, programme or policy voluntarily undertaken by developing countries in the context of sustainable development, supported and enabled wholly or in part by technology, financing and capacity building from developed countries. An initial inventory of potential NAMAs in Albania was established with UNDP support (2013–2014). On the basis of a multi-criteria analysis, and considering the benefits for a range of sustainable development areas, priority NAMAs were established, including the NAMA described in this document. In early 2014, an inventory of NAMA proposals in Albania was made. A multi-criteria analysis was carried out and discussed in early 2014 at a UNDP-supported roundtable. The main criteria and sub-criteria listed in Table 8 were assessed. Table 8: A multi-criteria analysis (Climate Change Unit, UNDP)

CRITERIA Specific sub-criteria for each criterion

I. NATIONAL ECONOMY (30 points)

1) Capacity to implement (30 points) 2) Compatibility with national plan (30 points) 3) Probability of political consensus (20 points) 4) Positive impacts on other sectors (10 points) 5) Permanent stakeholder behaviour change (10 points)

II. FINANCING (30 points)

1) Attraction of international finance (30 points) 2) Financial self-sufficiency (20 points) 3) Private finance options (30 points) 4) Capital expense (10 points) 5) Emissions reduction costs (10 points)

III. SUSTAINABLE DEVELOPMENT

(20 points)

1) Reduced household energy bills (30 points) 2) Public health improvements (30 points) 3) Job creation (10 points) 4) Reduced non-GHG emissions (20 points)


5) GHG reduction potential (10 points)

IV. OTHER CATEGORIES

(20 points)

1) Ease and transparency of MRV (30 points) 2) Social acceptability (20 points) 3) Business co-benefits (20 points) 4) Freedom from risk (20 points) 5) Access to technology (10 points)

Figure 10: Results of the multi-criteria analysis of NAMAs in Albania

Two NAMA concepts presented in Figure 10 were selected for further development (with UNDP support): NEEAP implementation (the present NAMA); and resource effi-ciency in the cement industry.

The proper implementation of a low-carbon process plan in Albania means that low-carbon policies and measures are properly implemented and real progress is achieved. A large share of the indicators necessary for monitoring and evaluating this plan should


thus aim to assess low-carbon progress. In addition, there are “horizontal” indicators of a more procedural nature that complete the overall picture. A list of proposed indicators is given in Table 9. Table 9: Proposed indicators for the monitoring and evaluation of the low-carbon process plan

INDICATOR

A. SECTORAL INDICATORS A1. RES AND CHP

Wind energy Total installed capacity (MW) Small hydro (< 10 MW) Total installed capacity (MW) Large hydro Total installed capacity (MW) Roof-top PVs Total installed capacity (MW)* Other photovoltaic Total installed capacity (MW) Biomass for electricity Total installed capacity (MW) Geothermal energy for electricity Total installed capacity (MW) Biofuels Annual energy consumption (ktoe) Solar energy in the residential sector for heat production Total area of solar collectors (m2) Solar energy in the tertiary sector for heat production Total area of solar collectors (m2) Solar energy in industry for heating Annual use of solar energy in industry (ktoe) Biomass use for heating in industry Total energy consumption (ktoe) District heating with biomass Total installed capacity (MWth) High-efficiency CHP Total installed capacity (MWe and MWth)

A2. INDUSTRY Energy saving Conservation of heat (ktoe)

Conservation of electricity (ktoe) A3. TRANSPORT

Promotion of public transport Share of passenger load covered by public transport in urban centres (%)

Promotion of electric vehicles Number of electric vehicles

* As the PV-net metering scheme is expected to be launched soon, additional sub-indicators may be developed.

A4. RESIDENTIAL & TERTIARY SECTORS

Promotion of energy-efficient lighting Total number of energy-efficient light bulbs in the residential and tertiary sectors

Improvement of thermal behaviour in existing residential buildings (insulation of external walls, roof insulation, energy-efficient win-dows, etc.)

Total number of households in old buildings (originally without insulation) where improve-ment work has been undertaken


Improvement of thermal behaviour in existing buildings in the tertiary sector

- Total area of old buildings insulated (m2) - Total area of buildings renovated as nearly zero-energy buildings (m2)

Replacement of old central heating boilers Total number of old boilers replaced

Use of energy-efficient cooling devices Total number of energy-efficient cooling de-vices installed

Energy-efficient electric devices Total number of energy-efficient electric de-vices sold

Automated lighting Total building area where automated lighting is in operation (m2)

A5. WASTE

Energy recovery from waste - Annual quantity of waste used as input in energy-recovery plants (tonnes) - Annual quantity of waste used as input in energy-recovery plants compared to annual quantity of waste generated (%)

B. HORIZONTAL INDICATORS

Efficiency - Number of sectoral indicators not quantified by deadline set for the preparation of the (an-nual) evaluation report - Delay in completing the uploading of the (annual) evaluation report (in weeks)

Transparency - Number of downloads of the (annual) eval-uation report uploaded on the Internet - Number of co-competent ministries and na-tional authorities to whom the (annual) evalu-ation report was sent


7 COMMUNICATION ACTIVITIES Communication activities are particularly important for the proper implementation of low-carbon policies, as they ensure that:

• information is efficiently exchanged between stakeholders; • good practices are identified for adoption; • sufficient and reliable data are collected for the purposes of monitoring and eval-

uation; and • evaluation is carried out according to a common knowledge base.

As mentioned in Section 6, it is proposed that data and information collected for the purposes of monitoring and evaluation are fed into a single database. Such a database — possibly linked with relevant databases and information systems operating in other ministries, national authorities and other agencies — will ensure that all stakeholders communicate among themselves according to a common information basis and in a transparent way. A database with these characteristics does not exist at present and thus needs to be developed. The database needs to be operated and regularly updated by the entity coordinating the monitoring and evaluation process (as mentioned in Sec-tion 6.1, it is proposed that AKBN should undertake this responsibility). The database should be web based and provide free access to all users, including the general public. A second important communication activity is the public consultation, due to take place as soon as the new Albanian Energy Strategy up to 2030 (currently being prepared by the AKBN under the leadership of the MEI) has been finished and uploaded to the web-site of ministry. It is important that participation in this consultation is as broad as possi-ble, which means that the AKBN must use efficient means of communication, apart from simply posting the consultation document on its website. It is equally important to upload any important additional material that is needed by stakeholders in order to properly un-derstand the basic assumptions and choices that lie behind the results obtained. Another crucial communication activity must be undertaken by the AKBN as soon as the National Committee for Long-Range Energy Planning finalises the strategic document to be used as a guide for energy investments in Albania in the next 15 years, and once this strategy has been accepted by the Ministerial Council. Since this strategic document will comprise the specific targets and implementation actions that the Albanian Government has agreed to undertake in order to achieve a low-carbon path towards 2030, it must be


complemented by the division of responsibilities and the definition of specific implemen-tation actions to be undertaken by each stakeholder (with an emphasis on ministries, national/public authorities, and national agencies). This must be communicated to all stakeholders so that they are aware of their expected contribution to the process. The involvement of the private sector (industries, commercial businesses, banks etc.) in the low-carbon effort as a whole is of the utmost importance, as this sector is called up-on to implement a very large share of the low-carbon measures, while at the same time it may have available, or may be able to access, private funds that can complement public funds through public-private partnerships (PPPs) and other forms of collabora-tion. A crucial element for creating sustainable private investments in the energy sector that will yield the expected GHG emissions reductions in a cost-effective way is to set fair and stable “rules of the game” regarding the participation of the private sector. Rules and conditions for developing low-carbon measures must be clear, stable and commu-nicated to private investors in advance so that they can plan their investments, which will ensure the proper implementation of low-carbon measures and consequently the achievement of national low-carbon targets in the energy sector. Last but not least, a set of communication activities concerns households, or in other words the general public. A careful, modern and effective communication strategy must be developed by the AKBN and other competent agencies and ministries in order to convince citizens that it is worth investing in a low-carbon society. Such a strategy has to highlight, among other things, the risks to production systems, infrastructure and eco-logical services created by climate change, as well as the economic benefits (direct and co-benefits) from low-carbon measures in the residential sector. It is also important to efficiently communicate any financial mechanisms introduced by the Ministry of Energy, the Ministry of Environment and other ministries to support households in undertaking low-carbon measures.


8 LITERATURE AND DATA SOURCES Ministry of Energy and In-dustry/AKBN

National Energy Strategy (approved June 2003)

Ministry of Energy and In-dustry/AKBN

Updated Draft Energy Strategy (August 2009)

Ministry of Environment/ Climate Change Unit/UNDP

Second National Communication (October 2009)


Albanian Government Energy EU Integration Questionnaire (ap-proved March 2010)


National Energy Efficiency Action Plan (approved September 2011)


Revised National Energy Balances for the years 2008–2013

IPCC IPCC Guidelines on Greenhouse Gas Inventory, 1995 and 1996 (revised), Volumes 1, 2 and 3

INSTAT Annual Statistical Book of Albania for 2000–2009

INSTAT Production and Consumption of All Energy Commodities in the Republic of Albania (Albania in Figures, 2010)

Ministry of Energy and In-dustry (based on the Year-ly Energy Balance pre-pared by the AKBN)

Production and Consumption in the Republic of Albania, Yearly Energy Balance, 2000–2009

Ministry of Energy and In-dustry (based on the Ener-gy Strategy prepared by the AKBN)

Forecast of Energy and Electricity Demand and Financial Evalua-tion of the Expansion of the Power Sector in Albania, 2000–2015

KESH Electricity Balance (based on the Yearly Ener-gy Balance prepared by the AKBN)

Electricity Balance: Production and Consumption in the Republic of Albania, 2000–2009


Oil By-products Balance (based on the Yearly Ener-gy Balance prepared by the AKBN)

Oil Production, Oil Derivatives Imported and Exported – Production and Consumption in the Republic of Albania, 2000–2009

Albanian Energy Regulator (ERE)/Albanian Transmis-sion System Operator (OST)

Electricity Import-Export Balance of the Republic of Albania, 2000–2009

Ministry of Energy and In-dustry

Strategy for Non-food Industries, 2005

Ministry of Environment List of industries in Albania selected for the emissions inventory, 2013

Ministry of Environment, UNEP

National Action Plan to Phase out Ozone-Depleting Substances, 2003–2010

Ministry of Agriculture and Food Industry

Agricultural Production in Albania, 2000–2013

Veterinary Scientific Re-search Institute

Livestock of Albania, 2000–2009

Bank of Albania Agriculture —value added (% of GDP) in Albania http://www.tradingeconomics.com/albania/agriculture-value-added-percent-of-gdp-wb-data.html

INSTAT http://www.instat.gov.al/al/figures/statistical-databases/select.aspx?rxid=23f2ca58-3015-4ace-8036-1a4d7ce1a0e6&px_tableid=BU0020;

World Bank Albania http://data.worldbank.org/country/albania

FAO An Assessment of the Competitiveness of the Dairy Food Chain in Albania (2009): Available from: http://www.euroqualityfiles.net/AgriPolicy/ Re-port%202.1/Albania%20Agripolicy%20D2-1.pdf

Prof. Andrea Shundi Country pasture/forage resource profiles

Michael J. Gibbs et al. CH4 emissions from enteric fermentation — Good Practice Guidance and Uncertainty Management in National Green-house Gas Inventories


FAO http://www.fao.org/wairdocs/lead/x6116e/x6116e01.htm

Institute of Chemistry Urban Waste in Albania, 2000–2013

National Committee of En-vironment

National Waste Management Plan for Albania

Ministry of Transport Oil By-products Consumed in the Transport Sector, 2000–2013

Ministry of Finance Annual statistics related to GDP sectoral contributions, 2000–2013

INSTAT and Customs Of-fices of Albania

Solvents imported into Albania, 2000–2013

Agrotec spa Albanian National Forest Inventory (2004)

S. Botema Late Quaternary Vegetation History of Northwestern Greece. Groningen, 2000–2009

IPCC IPCC Special Report on Land Use, Land-Use Change and Forestry. IPCC, 24 June 2006

Regional Environmental Center (REC)

Illegal Logging in SEE and EE (Governance, Implementation and Enforcement): Illegal logging activities in Albania, Diagnostic Audit (2010) http://illegallogging.rec.org/publications/AL_IL%20Diagnostic%20Audit_Final.pdf

Ministry of Environment, Forests and Water Admin-istration

Forestry cadastre for the year 2012

UNFCCC Decision /CP.9

Good Practice Guidance for Land Use, Land-Use Change and Forestry in the Preparation of National Greenhouse Gas Invento-ries under the Convention

FAO Forestry paper 172: Climate Change Guidelines for Forest Manag-ers

M.G.R. Cannell, R.V.O. Cruz, W. Galinski, W.P. Cramer

Climate Change Impacts on Forests


WMO/UNEP

J.A. Lakeman

Climate Change 1995. The Science of Climate Change. Contribu-tion of WGI to the Second Assessment Report of the IPCC

Liu HongYan and Yin Yi Response of Forest Distribution to Past Climate Change: An In-sight into Future Predictions

A.C. Imeson and I. M. Emmer

Implications of Climate Change on Land Degradation in the Medi-terranean. Climate Change and the Mediterranean. Environmental and Societal Impacts of Climate Change and Sea-Level Rise in the Mediterranean Region. Edward Arnold. A division of Hodder & Stoughton. London, New York, Melbourne, Auckland.

National Environment Agency

Report on the State of the Environment 2000–2009

Ministry of Environment (EU CARDS project)

Regional waste management plans

EU CARDS project Mercological Composition of Urban Solid Waste in Albania

EU CARDS project Distribution, location and extension of dumpsites in Albania

FAO database FAO nutritional data http://www.fao.org/infoods/infoods/en/

FAO database World development indicators

Dietary energy and protein consumption http://www.fao.org

World Bank Albania, 2011: Albania Climate Change and Agriculture Country Note, February 2011 http://siteresources.worldbank.org/ECAEXT/Resources/258598-1277305872360/7190152-1303416376314/AlbaniaupdateCountryNote-final.pdf

Documents

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