A new 50MWp solar photovoltaic plant is set to be built in Albania, supported by €39.2m in funding from the European Bank for Reconstruction and Development (EBRD) and the European Union (EU).
The funding package includes a sovereign-guaranteed loan of up to €30m from the EBRD to the state-owned energy utility KESH, which generates nearly 65% of Albania’s electricity.
An additional €8m investment grant and up to €1.2m in technical assistance will be provided by the EU through the Western Balkans Investment Framework.
The plant is expected to generate over 70GWh of renewable electricity annually once operational. It will contribute to diversifying Albania’s energy mix, which is currently dominated by hydropower and vulnerable to dry periods.
In such conditions, the country can be forced to import up to half of its electricity.
Austria is also contributing to project preparation through the EBRD’s High-Impact Partnership on Climate Action.
The development aligns with Albania’s National Renewable Energy Action Plan, which targets 640MW of non-hydro capacity by 2030, including 490MW from solar.
As part of the initiative, KESH plans to include “training and incentives to promote female employment.”
The EBRD has invested more than €2.2bn in Albania to date, across 166 projects.
[Image credit: EBRD]
