Albanian Electric Power Corporation (KESH sh.a.) has published on its website the call for expressions of interest for the lease of a thermal energy production asset on 05.01.2022 based on the Decision of the Council of Ministers (DCM) no. 620 dated. 22 October 2021 on “Approval of the conditions of Public Supply Obligation (PSO) for licensed entities of the Albanian Electricity Sector during the Emergency Status of Electricity Supply to prevent and cope with the consequences of the global energy crisis” imposed by KESH with the obligation to provide all the electricity needed to meet the Universal Service Provider (FSHU) requirement
Based on the above provisions of the DCM, KESH has published the call on its website, on the website of an international newspaper and in the Public Procurement Bulletin. Within the published deadline, the following companies have expressed interest:
Exelerate Energy and Renco s.p.a.
Distributed Power Solution
From the above expressions of interest, the expression of interest of Exelerate Energy and Renco s.p.a., is qualified during the qualifying assessment.
The Distributed Power Solution expression of interest did not comply with the provisions of the Call for Expressions of Interest. Offer from Exelerate Energy and Renco s.p.a. was evaluated for selective evaluation according to the Call for Expressions of Interest and was declared the winner.
Following the evaluation between the parties, the phase of negotiation and signing of the contract continued. At the end of the lease period, the thermal generating asset together with the ancillary infrastructure will be transferred to the ownership of KESH sh.a .
Based on the Decision of the Council of Ministers no. 620/2021, amended, after concluding the contract, find below the details of the winning bid.
1.Winning companies of the call for expressions of interest for the lease of a thermal energy production asset.
The winning companies are Exelerate Energy, based in the USA and Renco spa., Based in Italy.
2. Production Capacity of the Asset offered.
The offered thermal generating asset consists of two floating vehicles in which are placed motors for the production of electricity with a total installed capacity of 110 MW. Technical documentation of attached assets and published.
3. Energy source of thermal generating asset
According to the technical specifications, the generating asset offered generates electricity through the use of Heavy Fuel Oil raw material and Light Fuel Oil secondary material. HFO and LFO standards as described in the technical specifications.
4. Financial Lease Offer and Maintenance Operation for the asset offered.
The financial offers presented are:
Daily rent for generating unit with capacity 110 MW – 63,000 (sixty three thousand) US Dollars.
Daily value of Asset Operation and Maintenance – 31,500 (thirty one thousand five hundred) US Dollars.
(Prices offered do not include VAT.)
5. The required asset availability is at least 85% of the installed capacity throughout the year.
6. The connection of the thermal generating asset with the transmission system will be realized at the connection point Nst / TEC Vlora – Nst / Babica 220KV.
7. The rental period offered is 2 (two) years) from the moment of commissioning.
8. Emission of gases from the thermal generating asset, declared in accordance with IFC / World Bank Emission Guidelines (plant ≥ 50MW to ≤ 300 MW), 31 May 2017.
9. The specific fuel consumption is 220 Kg / MWh.
10.The fuel will be procured by KESH sh.a. according to the need of generation.
The asset provider has given the company KESH the right that at the end of the lease period the asset and ancillary infrastructure will remain in the ownership of KESH sh.a.
