Albania is one of the best countries of the Western Balkans for renewable energies. With high irradiation factors, the great hydro and wind potentials and its dense interconnected network with its neighbouring countries, Albania has a key role to play in the generation of clean electricity. Very soon Albania could become a net exporter of renewable electricity.

In 2017, to encourage the power generation from different renewable sources, Albania enacted a new law promoting all renewable energies. Furthermore, in 2018, the Council of Ministers adopted the Decision #179 “On the approval of the National Renewable Energy Action Plan (NREAP) 2018 – 2020.

Since then, the government has put in place several mechanisms to attract investors. There are among others the feed in tariffs for small photovoltaic (PV) plants and small wind power plants, the international tenders for solar and wind sponsored by the European Bank for Reconstruction and Development (“EBRD”). To date, the Ministry of Infrastructure and Energy of the Republic of Albania (“MIE”) have successfully awarded 2 projects in such tender processes: Karavasta Solar and Spitalla Solar, both awarded to Voltalia.

In addition to these solar projects, the MIE with the sponsorship of EBRD has launched a wind tender that is still on-going.

Other sponsors have also been investing in renewable energy projects. Some develop greenfield utility-scale solar, wind and hydropower units, other provide equipment and services for solar rooftops. The sector is expected to grow fast in the coming years with new projects being built and providing cheap electricity to Albania.