Abstract.The global trend of electrical energy price, in the conditions of a normal economic development, increases progressively. Albania is a developing country and the consume of electrical energy per individual is growing up during the two last decades. The hydropower installed capacity of Albania is only 35% of hydropower potential.The increase of generating capacity in the Albanian Power System and therefore the increase of the electricity production is one of the most high priorities of the policy sector. This has made possible, through construction of new generation facilities and optimal use of existing generation capacities, to ensure harmonization of all aspects related to indicators of operation security of the system, the quality of service of the good electrical energy and its cost. This paper presents the development performance of generation capacities focused to the economic aspects as well as to the impact of Small Hydro Power Plants (SHPPs) in the country's energy production balance.
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