Domestic electricity and energy production meets over 90% of Albania’s needs, largely from hydropower plants. However, the country remains a net importer of electricity. Upgrading generation, transmission and distribution infrastructure could improve stability and allow Albania to export excess electricity.
With abundant solar, wind and geothermal resources, investments into renewable energy production also show strong potential. However, growth has been constrained by aging infrastructure and limited private investments. An optimized sector would power Albania’s growth across industrial sectors while increasing trade revenues. But realizing this requires overcoming existing limitations.
Upgrading the grid through investments in substations, transmission lines and distribution networks can reduce technical losses and allow remote areas to be connected. Modernizing metering and billing systems can curb commercial losses.
Tapping abundant renewable energy potential through large-scale solar and onshore/offshore wind farms presents opportunities. Auctioning projects to private developers through long-term power purchase agreements can attract capital.
A revolving fund to finance small-scale residential and commercial solar installations via energy service companies (ESCOs) can boost decentralized generation. Geothermal, biomass and waste-to-energy also show promise.
A coordinated plan leveraging Albania’s strategic location between production sources and large consumer markets like Italy and Greece can transform the country into a regional energy trade hub. This will require addressing policy and regulatory barriers currently inhibiting private sector participation.
With the right reforms and investments, Albania’s energy sector is well-positioned to reliably meet domestic needs while generating substantial export revenues to power overall economic growth. This will in turn allow Albania’s economical power to surge like never before.
Strategic energy consulting can facilitate optimizing Albania’s energy mix, including through public-private partnerships for renewable projects. Consulting firms can also provide advisory on upgrading transmission and distribution systems, securing funding, and enabling exports. This would help develop a robust and sustainable sector over the long term.
