Responsibilities in the Administration
Public Administration
Public institutions have undergone substantial restructuring since the new government took office in September 2009.
The Albanian Parliament determines and passes primary energy regulation and receives reports from the Electricity Regulatory Agency (ERE), appointing and relieving its members.
The Ministry of Economy, Trade and Energy (METE)
This ministry is in charge of the whole energy sector, and also for the preparation of its energy policy in line with EU Energy Directives.
The Ministry represents the highest state authority responsible for energy policy-making. Their mission is to promote a steady, sustainable economic development through:
- Preparation and periodic revision and update through the National Energy Agency (NAE) of the National Strategy of Energy;
- Drafting of the legal framework;
- Demand forecast for different energy sources;
- Promotion of EE and RES including SHPPs;
- Approving the National Energy Efficiency Action Plan;
- Approving the National Renewable Energy Sources Action Plan;
- Promotion of private investments, domestic or foreign ones in the energy sector creating an attractive environment climate for these investments;
- Boosting of market reforms in the energy sector to achieve the national objectives for integration with EU, and development of a regional electricity market;
- Support of the energy public companies for final privatization.
The Ministry defines policy documents on the national level, and the strategies and policies in the field of energy efficiency. Furthermore, the Ministry of Economy, Trade and Energy reviews energy documents and the medium and long-term strategies according with contemporary standards. Finally it prepares the action plans for the implementation of all energy policies, including environmental issues.
METE is composed of the following Directorates: electro-energy, hydrocarbons and mines (including coal), industry and has under its auspices the National Agency of Energy, the National Resources Agency, the Institute for Product Quality of Oil and Gas, Institute for Pressurized Vessels and Electricity Appliances, National Scientific Centre of Hydrocarbons Research (Oil and Gas Institute), and the Energy Efficiency Centre Albania-EU.
Based on the Law no.7512, dated 20.04.1995 "On transformation of state enterprises into commercial companies", the Ministry has the authority to monitor the activities of energy public companies such as KESH, Albpetrol, ARMO and SERVCOM. According to above-mentioned law, the Minister has the right to appoint the members of the Supervisory Council of these companies. The role of the Ministry becomes more important with the beginning of privatization process for these companies as long as this Ministry is responsible for implementation of the privatization strategy approved by law of Nr. 8306 of the year 1998. The Ministry has an important role regarding the competition and avoidance of abuse of monopoly issues which could be an issue also in the energy sector. The Competition Directorate related to this ministry is the organism responsible for monitoring the competition of energy operators, such as the transmission and distribution of electricity.
[METE]
Natural Agency of Natural Resources
The National Agency of Natural Resources (AKBN) is a public entity, which protects and well-administrates the interests of Albanian Government in the area of mining, hydrocarbons, hydropower and energy.
The Agency (AKBN), as subordinate institution under the Minister of Economy, Trade and Energy, advises and provides government opponent on studies and projects within its activity area, and it promotes the natural resources of the country, too.
AKBN has to assume a number of further responsibilities specifically in the framework of the implementation of the new concession law. Accomplishment of studies, including the feasibility studies, for the utilisation of the new energy resources and of evaluation of the unsolicited proposals which can be initiated by private investors, would offer a good basis for the preparation and launching of the different concessions by METE, performing the functions of the unit for treatment of concessions as it is foreseen in Article 8 of law no 9663, dated 18.12.2006 “On concessions”. In order to do this, this agency has to rely on the necessary human and financial resources aiming at involving experienced specialists in the energy sector which shall be able to accomplish the detailed studies of feasibility including the respective technical projects. In addition to the activities where AKBN has already been involved, in the future it shall be involved even for the accomplishment of the studies in the field of exploitation of the hydro energy resources, which can be provided through the concessions.
AKBN is responsible for:
• Prepare Energy Strategy of Albania,
• Evaluate the implementation process of the National Energy Strategy.
• Prepare different development scenarios and carry out analyses in energy field (including energy efficiency) with the goal of orienting the Government toward a sustainable development of energy sector.
• Gathering, assembling and analyze the data dealing with production, supply and consumption of energy sources in all economic sectors, creating a database according to IAE and EUROSTAT standards.
• Prepare annual energy balance of the country according to IAE and EUROSTAT formats.
• Prepared studies for the evaluation of potential for EE and RES including SHPPs.
• Forecasts and proposes action plans for rational and efficient use of energetic fuels in different economic sectors.
• Carry out studies for promotion of using of renewable energy sources.
• Prepare, in cooperation with other institutions, the environment norms related to exploitation of energy sources.
• Draft legal and by-legal acts in the energy sector.
Energy Related Organisations
National Petroleum Agency (NPA)
The National Petroleum Agency was established according to the Government Decree no.445, dated 3.09.1993 in view of implementing the law no.7746, dated 28.07.1993 "On hydrocarbons (Exploration and production)". NPA is subordinated to the Minister responsible for energy and it is responsible for:
- Negotiation of all agreements with domestic or foreign subjects that have interest in the field of exploration and production of hydrocarbons.
- Preparation of all documentation and procedures for granting licenses and authorizations to carry out activities of exploration and production of hydrocarbons.
- Monitoring of all contractors and licensees operating in exploration and production of hydrocarbons.
- Selling the production share belonging to the state for each production sharing agreement.
- Taking part in preparation of development plans of oil and natural gas sector.
On November 2006, the National Petroleum Agency was merged into the National Resource Agency as one of its most important departments with the same tasks.
Electricity Regulatory Authority (ERE)
The regulatory functions of the state in the power sector are exercised by the Electricity Regulatory Authority. ERE was officially established in May 1996 with the appointment of three members of the Supervisory Council by the Government with the decree no.263, dated 22.04.1996 in compliance with the law no.7970, dated 13.07.1995 "On regulation of power sector". ERE's functions as an independent institution are as following:
- Approval of rules and requirements for applications, granting, amending and withdrawing of licenses to companies carrying out generation, transmission, distribution, supply, export and import activities.
- Setting the wholesale and retail tariffs as well as terms and conditions of electricity service.
- Protection of interest of electricity consumers.
- Settling the disputes between the licensees and consumers and amongst the licensees themselves.
- Maintaining the balance between interests of the licensees, consumers, state and other participants in the power sector.
- Promotion of competition in power sector.
- Approval of market rules, grid code and other codes governing the licensees activities in the power sector.
[ ERE ]
Scientific Centre of Hydrocarbons Research (Oil and Gas Institute)
This Centre was established dated on 11.06.2001, according to a Government decree Nr. 410, which is composed by Oil and Gas Institute and Geophysical Treatment of the Information. This centre is dealing with scientific studies and activities in the hydrocarbon sector, improving the exploitation of technology of existing sources and discovering new hydrocarbons ones. In November 2006, the Centre was merged into the National Resource Agency as one of its department with the same tasks.
The Institute of Study of the Hydro Technique Units
which is an institute functioning as subordinated of the Ministry of Territory and Tourism Regulatory. This institute has undertaken a lot of studies regarding the possibilities of exploitation and construction of new hydro energetic capacities. In November 2006, this Institute merged into the National Resource Agency as one of its department with the same tasks.
Energy Efficiency Centre Albania-EU (EEC Al-EU)
Energy Efficiency Centre Albania-EU was established by a Government decree in June 1995, based on an agreement between the Government of Albania and EU. Its role has been and continues to be the promotion of energy efficiency and use of renewable energy sources. EEC Al-EU is involved also in the implementation of a number of projects in the energy efficiency field. This centre functions as a non-government and non-profit organization, but in close co-operation with the government institutions.
Central Technical Inspectorate
The Central Technical Inspectorate (IQT) was established in 2006. It was established as a result of the merging of former State Inspectorate of Oil and Gas Control, former Inspectorate of Containers under Pressure and Inspectorate of Electrical Equipment and Installations, it can be considered as a relatively new institution.
The consolidation of this inspectorate shall be one of the priorities of METE, since the role of this inspectorate shall assume a greater importance with the establishment of the standards and norms which are approximated to those of EU. This institution shall insure that all the technical norms and standards established by Council of Ministers or METE be implemented in practice, which shall make possible improving security and protection of human life and environment.
As a relatively new institution, while its performance has to be adjusted within a short period of time to a dynamic development in the sector for the employees of this inspectorate there is required training for boosting the professional capacities. On the other hand, a system of stimuli for the employees of this inspectorate would increase efficiency of the control carried out by the inspectors on all the entities operating in the energy sector.
In addition to strengthening the professional capacities of the employees of this inspectorate, of special importance for the success of its activity is the provision with modern laboratory equipment.
Ministry of Environment, Forestry and Administration of Waters
Mission of the Ministry of Environment, Forests and Water Administration (MoEFWA) is to draft and propose policies, strategies and action plans for the protection and administration of the environment, forests, waters and fisheries in order to achieve sustainable development, and to improve the quality of life and enable the country to join the European Union. The accomplishment of this mission is carried out through participation, initiation and coordination of the activities that lead to long term developments and well being, by protecting the nature and raising the awareness of the public opinion.
The MoEFWA’s main tasks include:
- implementing relevant national policies,
- defining priority environmental and forestry investments,
- development of national research programs in the environmental field,
- coordinating environmental protection-related activities of the other ministries and local authorities.
The MoEFWA may propose measures for the protection and preservation of the environment, forestry and water resources and is responsible for the implementation of water policy and forestry policy.
[MoEFWA]
Energy Study Application Institute
The Institute advises on specific energy issues, energy auditing and energy efficiency.
[ managenergy ]
REC Country Office Albania
There is an office of the Regional Environmental Centre for Central and Eastern Europe in Albania.
Albanian Ecological Club International Friends of Nature
The Albanian Ecological Club has 3700 members. It organized the first Environmental Engineer postgraduate student of Tirana University in March 2004 and wrote a project for the first Biogas Plant in Albania using manure from 200 cows. The club hopes to publish how to construct solar panels for hot water in its ecological magazine "Round and round". It aims to create new experience especially with young people to work for more biogas plants and other Renewable Energy activities.
[ managenergy ]
