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Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects
The SAVi assessment concludes that the Poçem and Kalivaç hydropower projects are not preferable electricity solutions for Albania, as their lifetime costs, societal burdens, and tax losses outweigh their benefits. The analysis shows negative cost-benefit results of EUR 233 million for Poçem and EUR 321 million for Kalivaç, driven by adverse effects on ecosystems, agriculture, and tourism along the Vjosa River. Financial analysis indicates that these projects are not financially attractive based on domestic market offtake prices, with an internal rate of return (IRR) of 9.32% falling below the 13.5% hurdle rate. The report suggests that solar photovoltaic energy represents a more beneficial and viable alternative for generating comparable electricity in Albania.
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Document type: Report
Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects
The SAVi assessment finds that the Kalivaç and Poçem hydropower projects (HPPs) are uneconomic, producing higher costs and societal burdens than benefits. When integrating externalities, the HPPs' levelized cost of electricity (LCOE) is more than 2.5 times higher than that of solar PV. The report highlights significant negative externalities, particularly the loss of agricultural land and tourism potential along the Vjosa River, and notes that the projects are not financially attractive at domestic electricity prices of EUR 55/MWh.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Report