Last week, French renewables developer Voltalia officially commissioned the Karavasta solar power plant, the largest solar installation in both Albania and the Western Balkans, with a total capacity of 140 MW. The project marks a major step in Albania’s efforts to diversify its energy sources and expand its domestic production capacity.
This milestone is part of a wider transformation in Albania’s energy sector, which has seen a wave of new projects attracting leading European companies. Voltalia is among the key players in this movement, and its involvement is viewed as a strong indicator of growing foreign investment interest in the country.
The solar plant brings a range of benefits. It is the largest photovoltaic facility in the Balkans and has set a benchmark with its record-low energy price, which continues to be highlighted in reports by the European Bank for Reconstruction and Development. Albania has received consistent backing from the EBRD in scaling up its renewable energy capabilities. Voltalia’s project is frequently cited as a model for successful foreign investment in Albania. The company is also developing another major solar installation in Spitalle, reinforcing its long-term commitment to the country.
Currently, solar energy accounts for about 10 percent of Albania’s electricity production. The government has set a goal to raise this share to 30 percent by 2030.
Albania’s energy strategy aims to strengthen energy security, turn the country from a net importer into a net exporter of electricity by 2030, and improve service quality and affordability for citizens.
Alongside diversifying its energy sources, Albania is also focusing on improving electricity interconnection with neighboring countries and the European Union. This strategy supports greater integration into the European energy market and enhances the resilience of the national grid.
The 140 MW Karavasta solar plant began trial operations in December 2023. In 2024, it generated a total of 258 GWh of electricity. Half of this output is supplied to Albania’s electricity distribution operator OSHEE under a 15-year power purchase agreement, while the remainder is sold to private operators through long-term contracts.
