Development of Energy Security Policy in Albania in the Context of

106 Pages·2012·2.35 MB·English

MASARYK UNIVERSITY, BRNO
Faculty of Social Studies
Department of International Relations and European Studies

Thesis topic:

Development of Energy Security Policy in Albania in the
Context of International Cooperation

Author: Granit REXHA (učo 380526)
Field of Study: FSS EP European Politics (Eng.)
Programme: Master's degree programme

Supervisor: Mgr. Petra Kuchyňková, Ph.D.
I hereby declare that this thesis I submit for assessment is entirely my own work and has
not been taken from the work of others save to the extent that such work has been cited
and acknowledged within the text of my work.

Date: Signature:

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Acknowledgments

I would like to thank my supervisor Mgr. Petra Kuchyňková, Ph.D., for the support and
advice she offered throughout the entire process of creating this thesis.

I want to thank my Family, who have always supported me, and thank them cordially,
and this Thesis I dedicate to them.

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“The release of atomic energy has not created a new
problem. It has merely made more urgent the
necessity of solving an existing one.”

Albert Einstein

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Table of Contents

Abstract ............................................................................................................................................................. 6
Acronyms ......................................................................................................................................................... 7
1. Introduction .................................................................................................................................................... 8
1.1. Description of Albania .......................................................................................................................11
1.2. Map of Albania ......................................................................................................................................12
2. Definition of Energy Security..................................................................................................... 13
2.1. What Is Energy Security? .................................................................................................................13
2.1.1. Global Energy Security .........................................................................................................13
2.2. Energy Security in the Theories of International Relations ...............................................14
2.2.1. Realists and Idealists, Point of View ...............................................................................17
2.2.2. Environment and Security ..................................................................................................19
2.3. Short-term Energy Security.............................................................................................................20
2.4. Long-term Energy Security..............................................................................................................21
3. Energy Security in Albania ......................................................................................................... 23
3.1. Primary Energy Consumption by Fuel ........................................................................................23
3.1.1. Residential Energy Efficiency ............................................................................................27
3.1.2. Transport and Industry as a Consumer .........................................................................32
3.1.2.1. Transport and Its Role in Energy Consumption .........................................33
3.1.2.2. Industry Role, and Its Consumption ...............................................................35
3.2. Imports and Exports of Energy Sources .....................................................................................38
3.3. Reserves ..................................................................................................................................................40
3.4. Problems .................................................................................................................................................41
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3.4.1. Energy Challenges ..................................................................................................................43
3.5. Assessment of Climate Change .......................................................................................................44
3.5.1. Gas Emissions ..........................................................................................................................45
3.6. Assessment of the Energy Development in Albania ..............................................................47
4. Relations with the International Organizations, the EU, and the United States ...... 49
4.1. Albania and the International Organizations ...........................................................................49
4.2. Albania-EU Relations .........................................................................................................................51
4.2.1. Achievements of Albania in Cooperation with the EU .............................................56
4.3. Albania-U.S. Relations ........................................................................................................................59
4.4. Role of United Nations Development Programme .................................................................60
4.5. Economic Development as a Result of Cooperation ..............................................................64
4.5.1. Foreign Direct Investment in Albania ............................................................................67
5. Neighborhood Cooperation and Future Plans ..................................................................... 72
5.1. Cooperation with Neighboring Countries ..................................................................................72
5.2. Albania's Energy future.....................................................................................................................76
6. Conclusion ........................................................................................................................................ 84
Appendix .......................................................................................................................................... 90
Bibliography .................................................................................................................................... 95

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Abstract

The thesis will start with explaining energy security as a key factor for economic development
in a country. The base for the research will be the process of political developments in the
area of Albania's energy security.
Particular attention will be devoted to international cooperation in the field of energy policy
of Albania, where major investments in the sector of energy are as a result of cooperation
with European Union, but also with other international organizations.
The impact of these actors on improvements in the area of Albanian energy policy and energy
security will be the main research topic of the thesis. The concept of energy security will be
dealt with in dimensions of availability, accessibility, affordability, acceptability and
reliability of supplies (resources, fossil fuels, alternative energy resources, import and export,
stocks and other options for maintaining stable energy supply when necessary), survivability
in the case of damages and sustainability of energy relations (environmental dimension).

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Acronyms

EU European Union
US Unites States
LNG Liquefied natural gas
TAP Trans-Adriatic Pipeline
TPP Thermal power plant
ktoe Thousand tons of oil equivalent
kWh kilowatt hour
LPG Liquefied petroleum gas
Mtoe Million tons of oil equivalent
MW Mega watt
IMF International Monetary Found
ČEZ Czech Energy company České Energetické Závody
WB World Bank
CO₂ Carbon dioxide

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1. Introduction

The breakdown of communist regime in Republic of Albania, as in other communist
countries of former Yugoslavia, placed the countries in front of many challenges which
hindered their overall functioning. Countries were having difficulties in many sectors, such
as political, social, healthcare, financial sector, and a number of others in relation to
education.1 While, energy security was considered as potential and main sector for
development of the country, it was thought as a way that asserts the state toward Western
Integration.2
Especially after 1997 Economic sector in Albania was mainly oriented on Energy
Security. Moreover, even nowadays the main Albanian politics are oriented on providing
Energy Security. However, Albania’s achievements in terms of Energy would not be
possible without the support of international community, especially the European Union
and other international organizations, that supported and cooperated with Albania toward
the development of state’s energy security.3
Since the thesis is focused on energy security of Albania, except Albania’s
achievements, I want to clarify flounders and other policies that should be taken into
consideration on developing the country toward EU Energy Security level, where the main
goal of my academic work will be based on Albania’s cooperation with foreign investment,
and what role such international investments of energy plays in the social life of Albania.

1 - Ballkani dhe renia e komunizmit ne Shqiperi – (Balkans and the fall of communism in Albania). Article
written by Anisa Ymeri on Tuesday, 23 October 2007, in the newspaper "Koha Jone".

2 - Fourth London Ambassadors’ Balkans Discussion Group. Improving Energy Security and regional
integration in the Balkans Region: EBRD Overview and Approach.European Bank.March 2011. p4 - p6

3 - Energy Efficiency Center. Inaugurated by the European Commissioner of Energy, Mr. Ch. Papoutsis, and the
Prime Minister of that time Aleksandër Meksi. The latest developments in the Energy Policy of Albania affect the
western branch of the Greek territory. 01.01.1997.
<http://www.prometheusgas.gr/view.asp?pid=180&cid=&sid=45&ssid=&lang=1>.
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Furthermore, which movements should attract foreign investors and the European Union
for development of energy security in Albania?4
In this regard, my thesis will focus and try to explain the issue of energy security and
its impact in economic development of the country. Therefore, I will try to describe and
elucidate the steps that Republic of Albania has undertaken in development of effective
policies on environment and energy.
Particular attention will be given to international cooperation of Albania in the field
of economy that results on increasing economic level and energy situation in general,
where major investments were done in cooperation with European Union and other
organizations. Moreover, I will discuss their impact on process of designing the policies of
improvements and deficiencies in this area.5
The fundamental principle of this research will be the process of political
developments, successes and shortcomings of Albania's energy security. What has been
achieved, and what has not? Are there meaningful policies in the energy security sector?
Which are the key factors in the development of Albania in the energy policy?
Another important element that will be taken into account are the supplies
(resources, fossil fuels), alternative energy opportunities, import, and export, stocks, and
other options for maintaining stable energy when is necessary, as well as the survivability
in the case of damages. Other factors that have an impact on the energy security will be
analyzed, as well. Among those are the availability, reliability, affordability, and
sustainability.
Energy Security is a key factor of any modern efficient energy supply system that
should be able to serve as a reliable base for overcoming current economic and financial
crisis. Ensuring the Energy Security includes a series of interrelated aspects, such as,

4 - Albania - EU Energy Efficiency Centre. Official vision of Energy Security of Albania and efficiency towards the
EU. <www.eec.org.al>.

5 - EU Report 2011. Energy Community. 3.15. Chapter 15: Energy
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