A new 50-megawatt (MWp) solar photovoltaic plant will be constructed in Albania with €39.2 million in financing from the European Bank for Reconstruction and Development (EBRD) and the European Union, as part of a broader effort to diversify the country’s energy mix and enhance its resilience to climate-related disruptions.
The funding package includes a sovereign-guaranteed loan of up to €30 million from the EBRD to Korporata Elektroenergjitike Shqiptare (KESH), Albania’s state-owned power utility, which currently generates nearly 65% of the country’s electricity supply.
The EU is providing an €8 million investment grant and up to €1.2 million in technical assistance through the Western Balkans Investment Framework. Additional support for project preparation is being contributed by Austria via the EBRD’s High-Impact Partnership on Climate Action.
Once operational, the facility is expected to produce more than 70 gigawatt-hours (GWh) of renewable electricity per year. The project aims to address the vulnerability of Albania’s hydro-dominated energy system, which is frequently affected by dry weather conditions and has, at times, forced the country to import up to half of its electricity.
“This project marks a significant step forward in our commitment to support Albania’s energy transition and reduce its dependence on hydropower,” said Matteo Colangeli, EBRD Director for the Western Balkans. “It also aligns with our goal of promoting inclusive and sustainable infrastructure.”
As part of its implementation, KESH intends to integrate training programs and incentives to encourage female participation in the energy sector, in line with broader efforts to improve gender balance in traditionally male-dominated industries.
According to Albania’s National Renewable Energy Action Plan, the country targets reaching 640MW of non-hydro renewable capacity by 2030, including 490MW from solar energy.
To date, the EBRD has invested over €2.2 billion in Albania across 166 projects, supporting key sectors including energy, infrastructure, and financial services.
