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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Nowadays IPP's power plant construction is encouraged by the current deregulatory climate, and the financing technique employed to implement these projects is often the project financing formula. This means that an investor consortium, usually foreigner, plan, build, operate the power plant, and sell the generated electricity to the host utility. The sale price is determined from the expected IPP's production cost, enhanced of the expected welfare obtainable by selling electricity. This paper proposes a methodology for linking the uncertainty of the future production cost with the price of the electricity generated by an IPP. This is a stochastic approach to the sale price definition problem, while usually a deterministic procedure is used.

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