Austria's Andritz Secures $148 Million Equipment Supply Contract for Albania's 50-Megawatt Ashta Hydropower Venture

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Ashta hydropower plant in Albania, initiated in 2006 under the purview of the International Finance Corporation (IFC) (Washington, D.C.), is set to take off, with Andritz AG (WBAG:ANDR) (Vienna, Austria) selected to supply plant equipment for the project. Andritz was shortlisted by ENERGJI ASHTA Shpk, a subsidiary of Verbund (WBAG:VER) (Vienna, Austria), Austria's leading power utility, which won the bid for the power plant last year.

Under a $148 million contract, Andritz will provide core electromechanical equipment designed on the basis of its HYDROMATRIX technology, in addition to developing plant infrastructure. Construction operations will be executed in two phases, with each phase comprising 45 HYDROMATRIX turbine generators.

Conceptually, the HYDROMATRIX technology comprises several mini-turbines arranged in a matrix format, with each individual turbine unit operable and maintainable independently. The minimalistic and modular design allows for optimal utilization of space and infrastructure, as well as the force of running water, thereby resulting in reduced costs and environmental impact.

The Ashta hydropower project is among several hydropower plants planned to harness energy from the cascading waters of Drin River, Albania's largest river. Located in the river's watershed region in Ashta village, this project is expected to benefit from the regulated water flow from upstream projects. Upon completion in 2012, the Ashta hydropower plant will add more than 50 megawatts (MW) to Albania's existing hydropower generation capacity.

The Drin River feeds five hydropower plants along its course, including three in Albania and two in Macedonia. The three Albanian hydropower plants at Vau I Dejes, Fierza and Komani have a combined installed power-generation capacity of 1,350 MW, accounting for 98% of the country's power production of 1,460 MW.

Albania primarily depends on hydropower to meet the country's domestic requirements, which are considerably higher than its generation capacities. A couple of years ago, the country imported more than 50% of its total consumption despite implementing load-shedding measures. Since then, Albania has initiated a series of hydropower projects on a build-operate-transfer (BOT) basis to lure foreign investments into this sector. Ashta is the first of such BOT projects in the country, and enjoys a concession contract for 35 years.

Other BOT projects include the 300- to 350-MW Skavica hydropower plant, located further upstream on the Drin River, proposed to be developed at an estimated investment of $814.42 million. Three large hydropower plants, with a total installed capacity of 319 MW, are proposed to be developed on the Devoli River Cascade at an estimated cost of $1.41 billion. The projects are being executed by EVN AG (WBAG:EVN) (Maria Enzersdorf, Austria), and Statkraft AS (Oslo, Norway). The Vjosa River Cascade is another potential site for 400 MW of hydropower plants, in addition to the 93 MW Kalivaci BOT hydropower project, which is slated to begin operations by the end of next year.

About 26 small hydropower ventures, with installed capacity totaling 130 MW, also enjoy concessional contracts. The Albanian government also had initiated studies on harnessing the potential of the Osumi and Vjosa rivers for future hydropower plants. The feasibility study is being funded by the World Bank (Washington, D.C.). The government also has promoted several thermal and wind energy projects to meet the energy shortfall in the country.

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