Albania's state-owned energy corporation, KESH, is on the brink of securing a loan from the European Bank for Reconstruction and Development (EBRD) to advance the development of a 50-megawatt peak (MWp) solar farm in Belsh, located in central Albania.
According to a project summary document published on the EBRD's website, the bank is deliberating a EUR 30 million (USD 32.1 million) sovereign-guaranteed loan to support KESH in its endeavor to realize the EUR 40 million solar project. Additionally, the initiative is slated to benefit from an EUR 8 million investment grant from the Western Balkans Investment Framework (WBIF), an EU-backed initiative aimed at fostering investment and development in the Balkans.
Under the proposed project, KESH will utilize the financial assistance to establish a solar farm and construct an associated substation on a greenfield site situated within the municipality of Belsh. Additionally, the funding will facilitate the construction of a new 9-kilometer-long 110-kilovolt overhead power line.
The initiative marks a strategic move for KESH to diversify its energy generation portfolio, which is predominantly reliant on hydroelectric power. Presently, the company owns and operates three hydropower plants with a combined installed capacity of 1,350 MW, constituting approximately 65% of Albania's total electricity production, as outlined by the EBRD.
The loan approval date has been tentatively scheduled for July 17, 2024, signaling the imminent progression of the project towards implementation. Once realized, the solar farm project is poised to enhance Albania's renewable energy capacity and contribute to the nation's energy transition efforts.
