Solar energy determinant on the policy 2020

Solar energy determinant on the policy 2020

Author: Dr. Lorenc Gordani

Legal Adviser on Energy Market

determinant on the policy 2020 energy determinant on the policy solar energy determinant determinant on the policy july 2018

The development of alternative renewable energies, and especially those from the sun and wind, in order to diversify and optimize the energy production in Albania, have become the main objective in the strategic energy sector. In this regard, while is being implemented in practice the first floor of photovoltaics by 20 MW, the renewed action plan (NREAP 2020) has triple the total amount of photovoltaic capacity, ranging from 40 MW at 120 MW, and doubling as far as that of the wind.

A strategic development that come as part of an agreement between the energy ministry and the EBRD signed the beginning of May 2017, and then between the EBRD and the Energy Secretariat in Vienna, which sees the possibility of meeting ever-increasing demand (last year 4.9%) focusing on photovoltaics to reach the 2020 target. An approach that has been recently associated with the exemption from any customs duties on imported photovoltaic components.

On this regard, the normative framework for these investments has been revised by the energy ministry and is also working to prepare the international tender mechanism for the first large scale plants. At the same time, the new foreign investment framework, which is currently being developed, provides a better basis for absorbing foreign investment, with a more effective mechanism for solving the problems, making useless the recourse to courts.

Among most important technical-legal aspects, typical of alternative energies and especially photovoltaic, such is the issues to connect to the network, briefly the investments see the provision of the guarantee by the ministry through the public company of the access of the photovoltaic system to the national network, through a preliminary contract with the network operator.

A contract that simultaneously guarantees the purchase of all production for 15 years, based on the price set by the Energy Regulatory Entity, also sanctioning the payment obligation between the parties. Moreover, in these projects the paid tariff in the authorization agreement is fixed (type feed-in) and expressed in euro (at 100 euros MWh), giving the maximum security to business plans and eliminating any financial risk.

Disclaimer: The ownership and the opinion expressed pertain to their author. While all the effort are made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations may differ and should be discussed with an expert. For any specific technical or legal advice on the information provided and related topics, contact us through “lorenc_gordani@albaniaenergy.org”.

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