Methods for Cross-Border Exchange of Power System Reserves Between Kosovo and Albania

The project is funded by the United States Agency for International Development (USAID) and is implemented by AECOM International Development. The project's primary objective is to enhance the reliability and efficiency of the power grid in the region by enabling the exchange of reserve capacity between Kosovo and Albania. The European legal framework for cross-border exchange of power system reserves is governed by several guidelines, including the Guideline on Electricity Balancing (GLEB), the Guideline on Electricity Transmission System Operation (SOGL), and the Guideline on capacity calculation and congestion management (CACM). These guidelines provide a framework for the exchange of reserve capacity between countries, including the use of frequency containment reserve (FCR), automatic frequency restoration reserve (aFRR), manual frequency restoration reserve (mFRR), and replacement reserve (RR). Several European countries have implemented practical experience and methods for treating cross-border transmission capacities for cross-border reserve exchange. For example, the European practice in reserve capacity usage, procurement, settlement rule, and cost recovery scheme is well established. In Kosovo and Albania, the current practice in reserve capacity and balancing energy is limited, and the remaining cross-border capacity between the two countries is significant. A cross-border transmission capacity assessment was conducted to determine the scope of the needs and potential services to be shared between Kosovo and Albania. The assessment revealed that reserve capacity needs in Kosovo and Albania are significant, and a cost-benefit analysis was conducted to determine the feasibility of cross-border reserve sharing. The results of the analysis indicate that cross-border reserve sharing can provide significant benefits to both countries, including reduced reserve capacity costs and increased income from cross-border capacity allocation. The project proposes updates to the legal framework in Albania and Kosovo to support cross-border exchange of services between the two countries. The current status of the legal framework in both countries is reviewed, and recommendations are made for updates to support cross-border reserve sharing. The project concludes that cross-border reserve sharing can provide significant benefits to both Kosovo and Albania, and that updates to the legal framework are necessary to support this goal. The project also includes a literature review and annexes that provide additional information on the project's methodology and data sets. The annexes include background information on the project, data comparison, and conclusions. The project's findings and recommendations are presented in a clear and concise manner, providing a comprehensive overview of the project's objectives, methodology, and results.