Renewable energy

Implementation indicators

  • National Renewable Energy Action Plan

    National Renewable Energy Action Plan

    Albania submitted its NREAP, amendments as well as all three Progress Reports on implementation of the Directive to the Secretariat. With a share of 34,86% of renewable energy in its energy mix in 2018, Albania is in a slight delay compared to the planned trajectory of 35,6% for 2017 - 2018.

  • Quality of the support schemes

    Quality of the support schemes

    The support scheme for renewable energy in Albania is, as prescribed by law, based on administratively set feed-in tariffs and contracts for difference, which are still to be introduced upon the establishment of a dayahead market. So far, two solar PV auctions were conducted for which power purchase agreements are yet to be signed.

  • Integration to the grids

    Integration to the grids

    Renewable energy producers have priority access to the grid. They are balance responsible, with the exemption of existing producers, which are exempted from balancing responsibility until the balancing market is established, but no later than the end of 2022.

  • Administrative procedures and guarantees of origin

    Administrative procedures and guarantees of origin

    The administrative procedures for authorization, permitting and licensing are not streamlined and require simplification, including the designation of a one-stop shop. An electronic system for issuing, transfer and cancellation of guarantees of origin is not yet in place.

  • Renewable energy in transport

    Renewable energy in transport

    Provisions related to the sustainability of biofuels are still not transposed and the legal framework remains completely
    non-compliant with Directive 2009/28/EC.

State of compliance

In the reporting period, Albania held a second and very successful auction for solar PV. Otherwise, there were no improvements in the implementation of the renewable energy acquis. Although the electricity sector is almost completely renewable in Albania, additional efforts are needed in heating and cooling as well as in the transport sector to reach the overall target for renewables in 2020.

In May 2020, amendments to the Decision on approving the methodology for determining the annual purchase price of electricity to be paid to existing renewable power generators were adopted. The amendments envisage a decrease of the coefficient for the calculation of the feed-in tariff for existing hydro power plants based on a financial analysis by the Ministry of Infrastructure and Energy. It is contested by investors.

The energy regulatory authority has still not adopted the methodology for the calculation of the renewable energy surcharge to be paid by the final consumers of electricity. Currently, the surcharge is included in a non-transparent way in the distribution tariff and paid only by the final electricity customers connected to the distribution grid, which discriminates against the final customers connected to the transmission network exempted from the charge, and could amount to State aid.

Although the Renewables Law envisages the appointment or creation of an agency responsible for renewable energy, which, among others, will be in charge of keeping a register of producers and their energy balances, it has not been established yet.

In December 2019, the regulator adopted a secondary act to enact guarantees of origin as required by the Renewables Law. However, an electronic system for the issue, transfer and cancellation of guarantees of origin compatible with the standardized European Energy Certificate System has not been implemented yet.

Increased production and consumption of biofuels in Albania, as indicated in the latest Progress Reports, cannot be counted towards the transport target due to non-transposition of provisions related to the sustainability criteria.

Despite the progress made in conducting the first auctions, Albania should focus on adopting the necessary secondary legislation to assure clarity and predictability of the contract for difference scheme introduced by the Renewables Law. Other priorities are the transposition of provisions related to the sustainability of biofuels and establishment of a functional, electronic system for guarantees of origin.