Modelling System Generation: Towards the New Model in Albania and SEE Countries


Karapici, V., & Matraku, D. (2024). Modelling System Generation: Towards the New Model in Albania and SEE Countries. New Energy Exploitation and Application, 3(1), 90–107.


  • Valbona Karapici Economics Department, Faculty of Economy, University of Tirana, Rr: Arben Broci, 1023 Tirana, Albania
  • Doriana Matraku
    Economics Department, Faculty of Economy, University of Tirana, Rr: Arben Broci, 1023 Tirana, Albania

The electricity utility industry is undergoing rapid and irreversible changes resulting from volatile fuel costs, transmission access, less predictable load growth and a more complex regulatory environment. Due to the rising importance of renewable (and variable) energy sources, power systems are now more vulnerable to uncertainties and intermittent in supply. Hydropower plays an important role in the energy mix and power market, helping in providing base and peak load power as well as being the ‘fuel’ (water) not subject to fluctuations in the market; these paving the way toward a clean energy by 2030 and net-zero emissions by 2050 as part of de-carbonization agenda. All production and conversion processes in the energy sector require Water for nearly including fuel extraction and processing (fossil and nuclear fuels as well as biofuels) and electricity generation (thermoelectric, hydropower, and renewable technologies). This paper’s objective is to analyze cross-border trade in SEE through economic electricity exchange, while also exploring reasons for promoting Hydroelectricity. This is achieved through the following objectives: first, an overview is made of the available energy and economic data in the region; second, a model is developed for regional least cost expansion planning when allowing for cross-border trade. These aim to assess electricity supply and demand in the region with the purpose of making a comparative analysis regarding energy resource endowments.


electricity industry regulatory environment energy efficiency

Author Biography

Valbona Karapici is graduated at Faculty of Economy, Bologna University Italy, March 2006 in Economy. The studies for the thesis where in Financial Mathematics, with core focus, “CAPM and CVaR, Capital Asset Pricing Model and Conditional Value at Risk. In 2012 completed the master studies on Market Policy, Faculty of Economy, Bologna University, Italy. The thesis researches were devoted in the field of quantitative analysis, subject: “Modelling and forecasting Electricity Prices in the Italian Electricity Market”. The thesis concentrated in analyzing of the models most suited to forecast as best as possible the electricity market prices in the Italian Electricity Market, special focus IPEX in relation to European electricity market, the main characteristics of electricity prices, exposure of models useful for forecasting, empirical analysis of a time series of prices for the Italian electricity market. In May 2017 accomplished the PhD studies at Bamberg University in Germany. The PhD studies aimed to analyse the role generation assets in relation to the power markets in emerging countries, title: “Electricity Trade opportunities in the SEE region- the case for an integrated market”. This research project subjected the prospect of investments in generation, this in order to determine a least cost expansion plan for commissioning new generation units up to 2025 for Albania and a group of Balkan countries within SEE (Albania, Kosovo, Macedonia, and Montenegro). A theoretical platform is constructed for electricity costs formation, from which key determinants of the generation portfolio and associated costs are calculated using optimization problem software, proofing that costs under the interconnected scenario are lower compared with those achieved when countries operate as individual system operators, implying that there are economic benefits from the creation of a pool. In this context, since the involved countries could benefit from the comparative advantages that arise in terms of generation costs due to the creation of a regional common power market. From autumn 2006 and current, working in the University of Tirana, Faculty of Economy, as Lecturer in Macroeconomics, Introduction to Economics. Since 2016 engaged in the Centre for Economic Research and Graduate Education – Economics Institute project, known as CERGE-EI.


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