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Albania advances solar energy amid shifts in national energy production

The Albanian government has approved the development of two new solar power plants in the southwestern part of the country. These projects will have a combined installed capacity of 107 megawatts. Local solar developer Albania Solar Power is set to construct an 82 MW photovoltaic plant, while another company, Power Energy, will develop a separate facility with a capacity of 25 MW. Both projects are expected to be completed within three years and have received operational permits valid for 46 years.

According to preliminary data from the National Statistical Institute for 2024, Albania experienced a 15.7 percent drop in natural gas production compared to the previous year. Despite this decline in domestic production, the overall gas supply in the country rose by 7.4 percent, indicating a likely increase in gas imports or alternative sourcing strategies.

A significant decline was also reported in the extraction of brown coal and lignite, which make up over 96 percent of the country’s solid fuel production. The output of these fuels fell by 28.5 percent, and deliveries decreased by 21.7 percent, pointing to a substantial contraction in this segment of the energy sector.

On the other hand, petroleum refining activities showed improvement. The volume of raw materials processed by Albanian refineries rose by 6.3 percent. Crude oil remained the dominant input, accounting for 91.6 percent of the total feedstock. Correspondingly, the production of petroleum products increased by 6.4 percent, and their distribution across the country rose by 4.9 percent.

Electricity generation experienced a year-on-year decrease of 5.5 percent. Nuclear and coal-fired power plants continued to dominate, providing 64.6 percent of total electricity production in 2024. However, solar power registered notable growth, contributing 13.3 percent to the national electricity mix. Despite the overall decline in production, electricity supply in the country still grew slightly, with a 1.6 percent increase compared to the previous year.

Thermal energy also recorded modest growth. Gross production increased by 1.9 percent, while distribution volumes rose by 1.8 percent, reflecting stable demand in this part of the energy market.

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