Monday, January 09, 2006

"Lights Out"

original article by the Economist
Article by Jon Yannick


On January 5, 2006, the Economist published an article about Albania’s energy shortages in Tirana. Albania’s state-owned electricity utility, KESH, has been unable to keep lights on. This is mostly because of low rainfall and failing to maintain old hydropower plants which generate 90% of the nations electricity supply. As a result of this, the capital had many daily power outages, lasting up to 18 hours. Sali Berisha, the center right prime minister* of Albania, said that making the power supply greater is his first priority. When he won the PM position, he pledged a stop to electricity outages. Because of the shortage of electricity, Mr. Berisha has cut the plans of two transport projects created by his predecessor. Another problem is KESH’s money shortage. They have tried to raise profits installing more meters. In illegally built suburbs outside of Tirana there is a lot of electricity theft. In October 2005, Albania, along with other nations in that region, signed a European Commission-sponsored energy treaty in Athens. It was meant to create a regional energy market. It would cost over $15 billion for a proper electricity market with the infrastructure needed, the World Bank said. Since Albania is the second-poorest nation after Moldova in Europe, they would probably struggle to pay the cost. A diplomat called it “admirably high-minded, but impracticable at present.” Albania’s first thermal-power plant, planned by KESH, is to be built near Vlora. Residents and green groups say that building it right next to a town for future tourists, makes no sense.

“Decisions made in one nation have implications for all regions,” seems to fit this current event better than, “A nation with limited natural resources must interact with other nations to secure its resource needs.” I think this because since Albania is so poor, they might not be a able to pay the money for making the regional energy market, which means they might not be able to create it for the other countries which will affect their economy and the amount of money they have to spend. I think Albania still has a chance of paying for that treaty. If they can make their nation more appealing to tourists by not building the power station near Vlora, but somewhere else, they will get more energy and still keep Vlora a tourist magnet.

tagged Europe

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