Albanian Ministry of Economy announced that it has signed a 100 million euros loan agreement with German Development Bank (KfW) aimed to support reforms in the energy sector.
The statement from the Ministry said that the loan is expected to support an important reform package that contributes to a liberalised, transparent and fair energy market in Albania. The loan has a maturity of 12 years, including a period of three years without principal payment.
German Ambassador to Albania Peter Zingraf said that Germany is pleased that Albania has taken important steps in energy sector reform, which will also have positive effects on other branches of the economy.
According to the International Renewable Energy Agency (IRENA) report published in March, Albania could use solar and wind resources to diversify its energy sources, thus lowering its dependence on rainfall, mitigating its exposure to external factors and building stability. The country’s cost-effective solar and wind potential is estimated at more than 7 GW, which is more than three times its total installed capacity. Albania has one of the highest shares of renewable energy in southeastern Europe, but its dependence on hydropower energy sources makes it vulnerable to weather conditions and poor hydrology.
