Last developments in the sustainable energy market in Albania

Last developments in the sustainable energy market in Albania

Analysis by Dr Lorenc Gordani

Head of the Department of Professional Masters

Tirana Business University (TBU)

#Investments #Net-metering #PV #Wind #Energy Market #Strategy #Finance #Research #Albania #WBs #EU

Based on the last updates, the here article on Albania towards the era of Power Exchange, sustainability and energy efficiency, it wants to start mentioning that recently, the WEF’s Energy Transition Index 2021 ranks Albania as the best in the Western Balkan region, taking the 25th spot.

Private sector involvement and developments in RES

Twenty new plants have entered production over the last year, out of which 18 in hydro and two photovoltaic. Their total installed capacity is estimated at 227 MW, where most of this capacity belongs to the Moglica Hydropower Plant.

In total, the installed capacity of private generation power plants reached 1058 MW.

In April, the Albanian Parliament approved the law on a special procedure for negotiating with Bechtel International, Inc., to design and construct the Skavica Hydropower Plant.

Albania was the first country in WB’s to introduce an auction for renewable energy with the support of the ECS and EBRD. A new framework that sees the engagement for developing around 700 MW capacity in alternative renewable within 2020.

The first contract has awarded to the French renewables company Voltalia to build the large-scale 140 MW Power Plant Photovoltaic of Karavasta. The company has already started the construction in February 2021.

In March, the company Voltalia has also won the contract for the construction and operation of a 100 MW solar plant located in the area of Spitalla, Durres.

Soon, in Albania will be open competition for the construction of a floating photovoltaic plant by 12.9 MW on the Vau i Dejes Hydropower Plant. The EBRD has extended a 9.1 million euro loan to Albanian state-owned power utility KESH.

Meanwhile, KESH has started working to install a photovoltaic plant on the Dam, again in the Vau i Dejes Hydropower Plant, with a nominal power of 5.14 MWp.

The deployment of alternative renewable resources has become a vital priority for Albania. As a result, the country has adopted the most favourable net-metering option, operative from June 2019.

Albania has announced, at the end of 2020, the launching of the country’s first hybrid auction for utility-scale onshore wind power plants. The auction is prepared with the support of EBRD and expected in the weeks ahead for a total capacity project by 150 MW to receive support measures.

As a source for energy production, the wind has not yet been exploited, despite the high potential it presents, and above 4200 MW licences awarded from the end of 2007.

The above framework agreement was finalised with the Consolidated NREAP 2019-2020, which raises the biomass support measures from 8 MW to 41 MW.

Albania is experiencing a growing trend of using electric cars. During 2020, electric vehicles registered were 317 unity. So far, in Tirana, there are around ten taxi services that use electric vehicles.

The open of energy market services: development in energy audit and management

The Agency for Energy Efficiency announced on May 2021, reaching the 4360 Energy Performance Certificates in Buildings in less than three months.

In particular, recently, the law transposing the EU directive 27 of 2012 has been revised firstly in 2019 and further in 2021 to harmonize and fully comply with the requirements of the acquis European. In addition, Law no. 116/2016, “On the energy performance of buildings” has been completed with more than ten sub-legal and regulatory acts.

The above has brought to the first energy performance certificate issued in Albania on February 2021.

New prospective open by market integration with the SEE region and Italy

ALPEX was established last October by Albanian Transmission System Operator (OST) and Kosovo’s counterpart KOSTT.

Recently, Albania has reached another milestone in its electricity market reform. The new balancing rules are in force from 1 April 2021, introducing market-based procurement price formation.

The Albanian Power Exchange (ALPEX) has just completed the public call for the electronic trading platform. It aims to implement the European Union’s target model for the day-ahead and intraday markets at the end of the year.

The distribution utility OSHEE has been transformed into a holding company with three subsidiaries from 2018. Then, today the OSHEE is legally unbundled, while functional unbundling is still ongoing.

The liberalization of the energy market started in 2012, including the customers connected to the 35-kilovolt from 2018, was accompanied by the needed investments, already completed even for 20 kV.

Strengthing the interconnection with the trans-European networks

In November 2017, the Albanian Parliament ratified a law between the Government of the Republic of Albania and KFW regarding the Project 400 kV transmission line Albania-North Macedonia.

Along with April 2021, the Greece company Mytilineos announced that it has entered into a contract agreement with OST to develop a 400kV network in Albania.

Further, the Croatian company Končar signed a contract agreement to upgrade the SCADA/EMS system with OST.

For more, it can discover through the Dr Lorenc Gordani Presentation’s on the “Albania towards the Era of Power Exchange, Sustainability and Energy Efficiency” at the “All Things Energy Forum” kept 02-04 June 2021.

Disclaimer: All opinions expressed pertain to the author. While all efforts are made to ensure this publication’s accuracy, 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 its related topics, you can contact us through “”.

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