About project
Renewable energies in Albania
Albania is one of the best countries of the Western Balkans for renewable energies. With high irradiation factors, the great hydro and wind potentials and its dense interconnected network with its neighbouring countries, Albania has a key role to play in the generation of clean electricity. Very soon Albania could become a net exporter of renewable electricity.
In 2017, to encourage the power generation from different renewable sources, Albania enacted a new law promoting all renewable energies. Furthermore, in 2018, the Council of Ministers adopted the Decision #179 “On the approval of the National Renewable Energy Action Plan (NREAP) 2018 – 2020.
Since then, the government has put in place several mechanisms to attract investors. There are among others the feed in tariffs for small photovoltaic (PV) plants and small wind power plants, the international tenders for solar and wind sponsored by the European Bank for Reconstruction and Development (“EBRD”). To date, the Ministry of Infrastructure and Energy of the Republic of Albania (“MIE”) have successfully awarded 2 projects in such tender processes: Karavasta Solar and Spitalla Solar, both awarded to Voltalia.
In addition to these solar projects, the MIE with the sponsorship of EBRD has launched a wind tender that is still on-going.
Other sponsors have also been investing in renewable energy projects. Some develop greenfield utility-scale solar, wind and hydropower units, other provide equipment and services for solar rooftops. The sector is expected to grow fast in the coming years with new projects being built and providing cheap electricity to Albania.
Karavasta Solar
Karavasta Solar is a 140 MW solar PV project awarded to Voltalia, further to an international tender process organized by the Ministry of Infrastructure and Energy of the Republic of Albania (“MIE”) and sponsored by the European Bank for Reconstruction and Development (“EBRD”).
The location and size of the land, the installed capacity, the connection point and the terms and conditions of the PPA has been defined and set up by the MIE.
In May 2020, Voltalia was notify as the winning bidder with what happened to be the cheapest power price in the Balkans at 24.89€/MWh during 15 years.
Since then, the MIE has grant to Voltalia the rights on the site lands and Voltalia team has negotiated and signed the main agreements. The Project Development Agreement, the Power Purchase Agreement, the Final Agreement, the Connection Agreement, the Cooperatoin Agreement were executed. In parallel, the main permits were conceded or approved: the environmental permit, the building permit for the PV plant, the archaeological permit and etc. In addition to that, most studies have been completed or are close to be: the ESIA and other 5 studies that verified the site suitability.
This website provides additional information on the environmental and social aspects of the project, these aspects are crucial to guarantee the long-term implementation of the plant.