Total installed solar photovoltaic (PV) capacity in Albania was approximately 240 MW.⁷

Albania is set to significantly increase its solar energy capacity by 2030, with a projected total solar panel production capacity of 490 MW. This is aligned with The National Energy Sector Strategy, aiming for a 42% share of Albania renewable energy in total primary energy supply by 2030.⁸

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• Hydropower – $99/kWh for small HPP, up to $223/kWh for big hydropower projects
• Wind power – $138/kW
• Solar power – $83.64/kWh

Until 2019, Albania’s electricity production was entirely dependent on hydropower. That year marked the beginning of solar energy generation in the country. However, in 2022, more than 99 percent of Albania’s power came from hydropower, with solar sources contributing less than 1%.¹¹

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The average daily availability of electricity is approximately 23 hours.

This figure takes into account regular power outages and fluctuations in supply due to hydrological conditions affecting hydropower generation and distribution losses (5%).

In 2019, the country experienced an average of 1.5 power outages per month, typically lasting only a few minutes, with fewer incidents in Tirana compared to rural areas.

As of 2023, the number of prosumers, households or entities generating their own electricity through solar panels, has surpassed 1,000, indicating a growing trend towards self-sufficiency in energy production. Prosumers in Albania connected to the distribution grid have a combined capacity of 102 MW.¹⁴

In 2024, the Albanian government has committed to assisting 2,000 families in installing solar panels as part of a program that covers 70% of the installation costs.¹⁵

As of now, the Karavasta Solar Power Plant, with a capacity of 140 MW, is the largest solar¹⁶¹⁷¹⁸

Facility operating in Albania and the entire Western Balkans.
There are two other solar projects under construction or in the planning stages:

• Spitalla Solar Power Plant: Located near Durrës, it is set to have a capacity of 100 MW.
• Vau i Dejes Solar PV Park: Planned in Shkoder, with a capacity of 12.9 MW, it is expected to begin commercial operations in 2025.

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Recently, Albania provided subsidies for 2,000 families to install solar water heating systems.

Solar systems have significantly improved the lives of people in rural Albania, benefiting approximately 125 families, guesthouses, and farmers. These solar solutions have provided reliable electricity in off-grid areas, enhanced agricultural productivity, and supported eco-tourism initiatives.

However, there is still significant potential for off-grid solar in remote mountainous regions, where over 5,000 people remain disconnected from the national grid. Many rely on costly and polluting alternatives like candles, kerosene lamps, and diesel generators, highlighting the need for expanded solar energy to improve living conditions and reduce environmental impact.

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The on-grid market demand for solar panels in Albania is currently experiencing growth, driven by government initiatives and increasing interest from both residential and commercial sectors.

The government has implemented several incentives to promote solar energy, including:

• Net Metering: For PV systems up to 500 kW.
• Feed-in Tariffs (FiTs): For projects up to 2 MW.
• Auction Schemes: For larger-scale solar facilities.

As of March 2023, there are approximately 1,025 prosumers in Albania who have installed solar power panels for their own consumption. This reflects a substantial increase, with 627 new installations added in the previous year. Notably, 59% of these prosumers are located in urban areas, particularly in Tirana and Durrës.

As of 2024, there are several significant large-scale solar projects under development with total capacity of over 300 MW, ranging from 10 MW to 100 MW each.

• The average monthly salary in Albania is approximately $600.²²
• Solar Energy Systems Engineer: the average monthly salary is approximately $1,040.²³
• Solar Photovoltaic Installer: the average monthly salary is approximately $658.²⁴

The current population of Albania is 2,786,128.²⁵

Estimate for Factory Rent ²⁶

In Tirana, Albania, the monthly rent prices for industrial and logistics spaces vary based on location, size and amenities, ranging approximately $1.40 – $6.25 per m2.

Industrial Electricity Rates ³

As of March 2024, the average electricity price for businesses in Albania is approximately $0.143 per kWh.

Water Costs ²⁷

As of 2020, the water tariff in Albania is approximately $0.84 per cubic meter, including drinking and used water (sewage).

Salaries and Wages ^{23 24}

Monthly salaries of workers in solar industry in Albania ranges from $658 to $1,040, depending on the position.

Rent for Office Space ²⁸

The monthly rent for office space in Tirana, Albania, varies significantly based on location, size and amenities, ranging approximately $7 – $12.5 per m2.

Insurance ²⁹

The average spending per capita on non-life insurance in Albania is projected to be approximately 3,274 in 2024.

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Albania’s energy infrastructure is characterized by a strong reliance on hydropower, ongoing development in renewable energy, and evolving regulatory frameworks.

Energy Mix

Albania’s energy supply is predominantly derived from hydropower, accounting for approximately 95% of its electricity generation. Albania has over 25 operational hydropower plants, with ongoing plans for new developments like the Skavica plant. This reliance makes the country vulnerable to climate variability.

Key Institutions

• Ministry of Infrastructure and Energy: Oversees the energy sector and formulates policies.
• National Agency of Natural Resources (AKBN): Implements energy policy and regulates hydrocarbon sectors.
• Energy Regulatory Entity (ERE): Established in 1995, responsible for regulating the energy market and electricity prices.

Infrastructure and Interconnections

Limited gas production exists, primarily for industrial use. The country is not currently connected to international gas networks but has the Trans-Adriatic Pipeline (TAP) running through its territory.

Export / Import

Albania is a net importer of electricity, especially during years of low hydropower output. In 2022, the country imported approximately 922 GWh to meet domestic demand while exporting around 2,123 GWh during rainy seasons. This highlights the country’s vulnerability to climate change impacts on hydropower generation.

Policy Goal

The National Energy and Climate Plan (NECP) aims for a 52% share of renewables by 2030, alongside targets for improving energy efficiency and reducing greenhouse gas emissions.

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Albania has established a comprehensive regulatory framework to promote solar energy production, primarily through the Law no. 24/2023 on the Promotion of the Use of Energy from Renewable Sources. This law, which came into effect on April 29, 2023, aims to enhance renewable energy production and aligns with the European Union’s directives.

Key Provisions of Law no. 24/2023:

• National Objectives: The law sets a target for renewable energy sources to account for 54.4% of gross final energy consumption by 2030.
• Support Mechanisms: Various support schemes are introduced, including:
  • Energy Purchase Agreements
  • Contracts for Difference (CfD)
  • Premium Contracts, which can be either fixed or sliding premiums based on market prices.
• Self-Production and Net Metering: The law introduces provisions for self-producers:
• Small and medium enterprises (SMEs) and households can install up to 500 kW for self consumption and sell excess energy back to the grid.
• A two-way meter is required to measure energy production and consumption.

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Major Investments

Karavasta Solar Park – 140 MW, making it the largest solar park in the Western Balkans.

Investment Amount was approximately $164.15 million. The project was co-financed by the European Bank for Reconstruction and Development (EBRD), which allocated over $32.83 million for its construction.

Solar Park in Spitallë – Voltalia plans to construct another solar park in Spitallë, near Durrës, with a capacity of 100 MW, expected to begin construction in 2024/25.

Belshi Solar Park – This project received a grant of approximately $10.5 million from the Western Balkans Investment Framework (WBIF) to support its development.

Unused Military Properties – The Albanian Investment Corporation is exploring partnerships to develop solar projects on abandoned military sites, including potential photovoltaic plants with capacities of 27 MW and 7 MW at locations in Shkodër and Saranda, respectively.

Government Support and Subsidies

Competitive Bidding Process – The Albanian government has initiated auctions for solar projects, which have led to significant foreign investments. The competitive tendering system is designed to ensure transparency and attract international players to the market.

Power Purchase Agreements (PPAs) – Successful bidders are awarded long-term PPAs, providing financial security for their investments. For instance, Voltalia secured a PPA for the Karavasta project as part of its auction win.

Self-Consumption Incentives – Households and small businesses can install solar panels up to 500 kW for self-consumption. Any excess electricity generated can be sold back to the grid, providing an additional income stream.

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Current Solar Projects

Karavasta Solar Park

• Capacity: 140 MW
• Developer: Voltalia (French renewable energy company)
• Location: Near Fier, in the Karavasta lagoon area
• Investment: Over $164 million, co-financed by the European Bank for Reconstruction and Development (EBRD).
• Details: It aims to provide energy for approximately 220,000 households and is significant as the largest foreign investment in Albania’s renewable sector.

Project Blue

• Capacity: 67.5 MW
• Developers: Blessed Investment and Matrix Konstruksion (Albanian companies)
• Location: Sheq – Marinas Fier
• Details: This project is notable for being implemented without government subsidies, marking a significant milestone in solar energy development in the Balkan.

Projected Solar Initiatives

Spitallë Solar Park

• Capacity: Not specified yet.
• Developer: Voltalia
• Location: Near Durrës
• Details: Construction start is planned for 2024, with energy delivery anticipated by the end of 2025. This project follows a competitive tender process similar to that of the Karavasta project.

AGA-SOLAR Project

• Capacity: 150 MW
• Developer: AGA-SOLAR
• Location: Darzezë e Re village, near Fier
• Details: This ambitious project aims to enhance Albania’s energy independence and bolster the national grid’s capacity. Specific timelines for construction are not detailed yet.

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Vega Solar

• Headquarters: Tirana, Albania
• Website: https://vegagroup.al/
• Details: Vega Solar is a leading manufacturer of solar panels in Albania, providing a wide range of solar solutions from residential to large-scale projects. The company is noted for its commitment to sustainability and innovation, investing heavily in R&D to ensure high-quality products that meet international standards.

Trina Solar

• Headquarters: Changzhou, China
• Website: https://static.trinasolar.com/eu-en
• Details: Trina Solar has played a pivotal role in Albania’s solar sector, particularly through its involvement in the 140 MW Karavasta Solar project. The company focuses on technological innovation and sustainability, utilizing advanced bifacial modules to enhance energy generation.

Voltalia

• Headquarters: Paris, France
• Website: https://www.voltalia.com/
• Details: Voltalia is instrumental in developing large-scale solar projects in Albania, including the Karavasta Solar Park. With a focus on sustainable energy solutions, Voltalia aims to contribute significantly to Albania’s renewable energy landscape through various upcoming projects.

Blessed Investment

• Headquarters: Tirana, Albania
• Website: https://www.blessedinvestment.com/
• Details: This local company is collaborating on the ambitious Project Blue, which has an installed capacity of 67.5 MW and is set to be the first large-scale solar project implemented without government subsidies in the Balkans.

Matrix Konstruksion

• Headquarters: Tirana, Albania
• Website: https://matrixkonstruksion.com/
• Details: Matrix Konstruksion is involved in the development of Project Blue alongside Blessed Investment. The company focuses on innovative construction solutions and aims to enhance solar energy generation capabilities in Albania.

Ecosun Albania

• Headquarters: Tirana, Albania
• Website: https://ecosun.al/
• Details: Ecosun specializes in solar panel installation and renewable energy solutions across Albania and Kosovo. They are committed to promoting sustainable energy practices through various residential and commercial projects.

Enercom

• Headquarters: Tirana, Albania
• Website: https://www.enercom.al/
• Details: Enercom offers comprehensive solar energy solutions including design, installation, and maintenance services for both residential and commercial applications.

Nova Solar

• Headquarters: Tirana, Albania
• Website: https://novasolar.al/
• Details: Nova Solar focuses on providing high-quality solar installations and services tailored to meet local needs. Their projects span across multiple countries including Germany and Italy, showcasing their regional influence.