Albania: 100 million euro loan for energy reforms

The Ministry of Energy and Infrastructure signed a loan agreement with the German Development Bank (KfW) and the French Development Agency (AFD) for assistance in implementing reforms related to the green transition. A 100 million euro loan agreement aims to support Albania in reforming its electricity sector.

Albania generates 100% of its electricity from renewable energy sources, but the country had to import significant quantities last winter and was exposed to extremely high prices in the electricity markets. 

Minister of Energy and Infrastructure Belinda Balluku said that this reform has opened the way for the implementation of new policies and innovative projects in the field of renewable energy, energy efficiency and remodeling of the domestic electricity market.

The loan was made possible thanks to significant progress by Albania in implementing the energy sector reform, thanks to the dedicated efforts by all relevant institutions in the sector, such as the country’s Infrastructure and Energy Ministry, Finance and Economy Ministry and the Albanian Power Exchange (ALPEX). 

The unbundling of the country’s electricity distribution operator was one of the main objectives of the reform. KfW and AFD, alongside other international donors, aided Albania in establishing ALPEX, which was launched in April this year, another milestone in the ongoing energy reform. According to Minister Balluku, the Albanian electricity exchange will be a guarantor of energy development and free, transparent and fair electricity trading in Albania.

ALPEX currently has 9 operators registered as members, while 16 operators are in the evaluation phase and 4 banking institutions have expressed interest in becoming members.