Albania’s renewables auction results in competitive prices  

Albania has successfully completed the renewable energy support auction launched in January 2020 for 140MW, 70MW of which will be supported via an offtake agreement.

Director Janez Kopač commented: “We welcome the successful renewables support auction in Albania and in particular the price achieved. Renewable energy auctions provide a competitive selection processes for granting support, resulting in lower renewable energy prices. This is a clear gain for energy consumers and sets an important direction for the region.”

The winning bidder is to build the solar power plant in the Karavasta, near the city of Fier. The auctioned volume was 70 MW with support, to be purchased by the Government at 24.89 EUR/MWh for a period of 15 years, which is significantly lower than the average base and peak prices at the Hungarian Power Exchange (HUPX), the reference for the electricity import price in the region. Another 70 MW, without support, is to be sold at the market price.

Over the last couple of years, the Energy Community Secretariat has insisted that all Contracting Parties allocated the support for renewable energy via a competitive mechanism. In March 2018, the Energy Community Secretariat together with the European Bank for Reconstruction and Development and in collaboration with the International Renewable Energy Agency issued Policy Guidelines to help countries design and implement competitive selection processes for supporting renewable energy.