Albania - EnergyAlbania - Energy
Albania is a net importer of electricity; power supply security is a major challenge. Albania’s domestic generation is almost entirely dependent on hydropower, since the country’s only thermal power plant is currently inoperable.
The total installed generation capacity has increased over the last few years because of new investments in small and medium-sized hydro power plants. In 2018, total installed capacity reached 2,204 MW, of which 1,448 MW are state owned (1,350 MW hydro and 98 MW thermal), with the remainder private. In 2018, several investments in small solar farms were finalized, increasing solar generation capacity to 21 MW.
System infrastructure needs major investment. The sector continues to suffer losses despite improvements over the last four years to curb theft and non-collection. The government has launched energy sector reform to address power theft and modernize distribution, transmission, and generation. The reform strategy aims to ensure security of supply through market reforms, liberalization of the energy market, anti-theft measures, new regional interconnections, and diversification of generation sources.
Construction of new generation sources and transmission lines, improvements to the grid, and investment in renewable energy all represent promising investment opportunities in Albania.
The Trans-Adriatic Pipeline (TAP), which will deliver Azeri gas via Greece and Albania to Europe, is expected to increase demand for gas-fired energy and manufacturing investments in Albania. Construction of TAP is underway and scheduled to finish in 2019, with first gas deliveries to Italy expected in 2020.
Over the past decade, the government has undertaken a series of public investments and initiatives to address sector shortcomings, chiefly with support by international donors. These initiatives include:
Increased Transmission Capacities: The German development bank Kreditanstalt für Wiederaufbau (KfW) has financed various projects in the energy sector, including 400-kv interconnection lines with neighboring Montenegro and Kosovo. The interconnection line between Albania and Montenegro was completed in 2011, and the line with Kosovo in 2016.
The government is also set to build a new 400-kV line with North Macedonia. The Albanian segment is expected to cost 70 million euros, of which the EU would provide a grant of 15.5 million euros through the Western Balkans Investment Framework (WBIF). KfW would loan an additional 50 million euros, and the Albanian transmission system operator would contribute 4.5 million euros.
KfW also has financed construction of the 110-kV ring line in southern Albania.
Increased Distribution Efficiency: In 2009, the government unbundled the Albanian Power Corporation (KESH) into generation, transmission, and distribution entities to improve the efficiency of the system, reduce losses, and improve bill collection. Additionally, the World Bank is financing a USD 150 million power reform effort and recovery project to improve security of supply and reliability.
Diversification of Generation Sources: Investment opportunities exist to expand and convert an idle power plant in Vlore—originally financed by the World Bank but never operational because of cooling system problems—to run on natural gas rather than fuel oil. The government is currently evaluating offers to rehabilitate and operate the plant.
Hydropower: The government has approved concession contracts for construction of more than 300 hydro power plants (HPP) since 2006 with capacities ranging from 1 MW to 320 MW. Most of the HPPs have installed capacity of less than 10 MW. The government continues to grant concession contracts to build hydro power plants.
Wind and solar power: In early 2017, the government approved legislation to promote electricity generation from renewable sources, including wind and solar. Units of less than 2-MW solar and 3-MW wind benefit from approved feed-in tariffs for 15 years. To date, the government has issued ten authorizations to build small solar power plants with an installed capacity of fewer than 2 MW. A consortium of India Power Corporation Ltd, the UAE’s Mining Resources FZE, and Hong Kong’s Midami Ltd won a concession in 2018 to build a 100-MW solar power plant in Akerni, Vlora (50 MW with a power purchase agreement (PPA) and 50 MW with no PPA).
Wind: The National Action Plan for renewable energies promotes the investments in the development of small-scale wind parks of less than 3 MW for a total of 30 MW installed capacity.
Ministry of Energy and Industry
The Energy Regulator
Albanian Power Corporation
The National Natural Resource Energy
Transmission System Operator
Albanian Investment Development Agency
Statkraft
Electric Energy Distribution Operator
Trans Adriatic Pipeline Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The total installed generation capacity has increased over the last few years because of new investments in small and medium-sized hydro power plants. In 2018, total installed capacity reached 2,204 MW, of which 1,448 MW are state owned (1,350 MW hydro and 98 MW thermal), with the remainder private. In 2018, several investments in small solar farms were finalized, increasing solar generation capacity to 21 MW.
System infrastructure needs major investment. The sector continues to suffer losses despite improvements over the last four years to curb theft and non-collection. The government has launched energy sector reform to address power theft and modernize distribution, transmission, and generation. The reform strategy aims to ensure security of supply through market reforms, liberalization of the energy market, anti-theft measures, new regional interconnections, and diversification of generation sources.
Construction of new generation sources and transmission lines, improvements to the grid, and investment in renewable energy all represent promising investment opportunities in Albania.
The Trans-Adriatic Pipeline (TAP), which will deliver Azeri gas via Greece and Albania to Europe, is expected to increase demand for gas-fired energy and manufacturing investments in Albania. Construction of TAP is underway and scheduled to finish in 2019, with first gas deliveries to Italy expected in 2020.
Over the past decade, the government has undertaken a series of public investments and initiatives to address sector shortcomings, chiefly with support by international donors. These initiatives include:
Increased Transmission Capacities: The German development bank Kreditanstalt für Wiederaufbau (KfW) has financed various projects in the energy sector, including 400-kv interconnection lines with neighboring Montenegro and Kosovo. The interconnection line between Albania and Montenegro was completed in 2011, and the line with Kosovo in 2016.
The government is also set to build a new 400-kV line with North Macedonia. The Albanian segment is expected to cost 70 million euros, of which the EU would provide a grant of 15.5 million euros through the Western Balkans Investment Framework (WBIF). KfW would loan an additional 50 million euros, and the Albanian transmission system operator would contribute 4.5 million euros.
KfW also has financed construction of the 110-kV ring line in southern Albania.
Increased Distribution Efficiency: In 2009, the government unbundled the Albanian Power Corporation (KESH) into generation, transmission, and distribution entities to improve the efficiency of the system, reduce losses, and improve bill collection. Additionally, the World Bank is financing a USD 150 million power reform effort and recovery project to improve security of supply and reliability.
Diversification of Generation Sources: Investment opportunities exist to expand and convert an idle power plant in Vlore—originally financed by the World Bank but never operational because of cooling system problems—to run on natural gas rather than fuel oil. The government is currently evaluating offers to rehabilitate and operate the plant.
Hydropower: The government has approved concession contracts for construction of more than 300 hydro power plants (HPP) since 2006 with capacities ranging from 1 MW to 320 MW. Most of the HPPs have installed capacity of less than 10 MW. The government continues to grant concession contracts to build hydro power plants.
Wind and solar power: In early 2017, the government approved legislation to promote electricity generation from renewable sources, including wind and solar. Units of less than 2-MW solar and 3-MW wind benefit from approved feed-in tariffs for 15 years. To date, the government has issued ten authorizations to build small solar power plants with an installed capacity of fewer than 2 MW. A consortium of India Power Corporation Ltd, the UAE’s Mining Resources FZE, and Hong Kong’s Midami Ltd won a concession in 2018 to build a 100-MW solar power plant in Akerni, Vlora (50 MW with a power purchase agreement (PPA) and 50 MW with no PPA).
Wind: The National Action Plan for renewable energies promotes the investments in the development of small-scale wind parks of less than 3 MW for a total of 30 MW installed capacity.
Leading Sub-Sectors
• Transmission and distribution equipment
• Smart grid solution equipment and services
• Renewable Power equipment and technlogies including hydro, solar, and wind.
• Engineering services
Opportunities
The energy sector represents good investment and trade opportunities in a variety of areas. The construction of new generation sources and transmission lines, improvements in the distribution grid and the promotion of energy efficiency all represent opportunities to provide equipment, services, and financing.Web Recources
Ministry of Economic Development, Tourism, Trade and EntrepreneurshipMinistry of Energy and Industry
The Energy Regulator
Albanian Power Corporation
The National Natural Resource Energy
Transmission System Operator
Albanian Investment Development Agency
Statkraft
Electric Energy Distribution Operator
Trans Adriatic Pipeline Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.