Italy's Marseglia to Develop $1.3 Billion Renewable Energy Park in Albania

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Marseglia Group (Monopoli, Italy) has entered into an agreement with the government of Albania to develop a $1.3 billion energy park in Lezhe, near the Adriatic coast in northern Albania. The project will include, among other facilities, a renewable energy plant fueled by liquid biomass or biodiesel, with an installed power generation capacity of 140 megawatts (MW). Marseglia will also develop two 234-MW windfarms in the region.

Power generated from the park is expected to be sold in the Italian and other international markets, in addition to addressing the local power shortage. The project includes the necessary interconnector infrastructure to transport the energy generated from Albania to Italy. Subsea cable ducts under the Adriatic Sea between Apulia and Albania, and convertor substations will also established as part of the venture. On the Italian side, the subsea high-voltage cable ducts will be integrated with the country's energy network.

The project will be executed by Biopower Green Energy, a subsidiary of Marseglia, while the link-up with the Italian power grid will be established by Terna-Rete Elettrica Nazionale SpA (BIT:TRN) (Rome, Italy). Terna will be responsible for the planning and construction of a new 380-kilovolt electrical switching station north of Apulia. Terna will also be required to obtain necessary authorizations at the regional and ministerial levels for construction and operation of the switching station. The schedule for project commencement and commissioning is yet to be disclosed.

Founded in 1974, the Marseglia Group is a pioneer in the manufacture and export of vegetable oils. The group has diversified its operations since 2000 to include renewable energy production from solar, wind and liquid biomass sources. The total installed capacity of its clean energy ventures is expected to reach 1.6 billion kilowatt-hours (kWh) by 2009, with about 900 million kWh of production being targeted for the current year.

Marseglia is also a leading producer and a pioneer exporter of biodiesel, an alternate fuel to the conventional gas oil. The eco-friendly, pre-treated biofuel is extracted from soy, rapeseed, and sunflower seed oils. The biodiesel plants at Veneto and Apulia produce 1,500 tons of fuel per day mainly for the export market. In addition, Marseglia also has interests in real Estate, tourism and finance. The group's overseas ventures are currently focused in the Balkan Peninsula.

Albania mainly relies on hydroelectric ventures fed by the seasonal rains for power generation, with more than 50% of the power requirement met through imports. The country is in the process of implementing an Energy Restoration and Restructuring Program to formulate a regulatory policy for the renewable energy sector, in addition to privatizing energy generation, with aid from the US.

The United States Agency for International Development (USAID) (Washington, D.C.) has assisted Albania in setting up an energy regulatory entity. It will also assist the country in privatizing energy production and distribution over a period of two years. In addition to providing necessary counsel to the Albanian government, the USAID will help create a regulatory legal market framework that would attract private investors and bring transparency to the operations of the clean energy sector to ensure compliance with the European Union standards. By means of the Balkan Electricity Market Partnership Program established by the USAID, Albania will be able to meet the standard requirements of the Southeast Europe Energy Treaty and also enter into the competitive energy market of the region.

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