EBRD And European Union Join Forces To Strengthen Albania’s Energy Security Through Strategic Investment & Support

The European Bank for Reconstruction and Development (EBRD), together with the European Union (EU), is supporting Albania’s efforts to strengthen its energy security and diversify its energy mix through a new solar energy project. A financial package of up to €39.2 million has been approved to support the construction of a 50 MWp solar photovoltaic (PV) plant in the country.

As part of the funding package, the EBRD will provide a sovereign guaranteed loan of up to €30 million to Korporata Elektroenergjitike Shqiptare (KESH), Albania’s state-owned power utility, which currently produces nearly 65% of the country’s electricity. Once completed, the new solar PV plant is expected to generate over 70 GWh of renewable energy each year.

In addition to the EBRD loan, the EU is contributing an investment grant of up to €8 million and technical assistance support of up to €1.2 million. This assistance is being delivered through the Western Balkans Investment Framework, which supports sustainable infrastructure development in the region. Although Albania already has one of the highest shares of renewable energy in its electricity generation mix—approximately 95%—the majority of this capacity is based on hydropower.

This makes the country’s energy supply vulnerable during periods of low rainfall. In particularly dry years, Albania has had to import up to half of its electricity needs from neighbouring countries. By adding solar generation capacity, the new project will help reduce reliance on hydropower and improve overall energy security. The project is also supported by the government of Austria, which provided project preparation funding through the EBRD’s High-Impact Partnership on Climate Action.

The solar plant aligns with the goals outlined in Albania’s Energy Strategy and its National Renewable Energy Action Plan (NREAP). According to the NREAP, Albania aims to increase the share of renewable energy in total electricity output to 54% by 2030, with nearly 640 MW of non-hydro renewable capacity, including 490 MW from solar PV.

Beyond increasing clean energy capacity, the project will also have a social impact. KESH plans to introduce training modules and incentive programs aimed at creating employment opportunities for women in the energy sector. To date, the EBRD has invested over €2.2 billion in Albania through 166 projects, making it a key partner in the country’s sustainable development and energy transition.

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