Fostering renewable energy investments in Albania

The EBRD Western Balkans Sustainable Direct Financing Facility (WeBSEDFF) is helping the country to capitalise on its hydropower and wind energy potential.

Albania’s rapid economic expansion brings about concerns for environmental consequences and the need to strengthen reliable power supply.

To better cope with energy demands and at the same time advance the climate change agenda, the country can capitalise on the significant potential presented by two renewable energy resources: hydropower and wind energy.

Investment

The EBRD has concentrated its investments in the rehabilitation of existing hydropower plants aimed at reducing waste and increasing efficiency. Further, under the EBRD Western Balkans Sustainable Direct Financing Facility (WeBSEDFF), small and medium-sized Albanian enterprises can obtain loans and free technical assistance to invest in renewable energy and industrial energy efficient operations.

Institutional framework for renewable energy projects

In order to further the renewable energy plan, the Bank has been working with the Albanian government to support the establishment of an institutional framework for the support and implementation of renewable energy projects. Norway is providing €650,000 grant funding to help the Ministry of Economy, the Ministry of Trade and Energy and the Albanian Power Corporation develop capacity-building for large scale hydropower projects, including bidding, concession agreements control and streamlining of licensing procedures. The project will also provide specialised technical assistance for wind power integration, indicating the amount of wind power the Albanian grid can safely accept and the cost of integrating such power.

The strengthened legislative framework and technical know-how based on international best practice will attract investments in the hydropower and wind energy sector as well as assisting Albania meet its obligations under the Energy Community Treaty for the development of renewable energy.