IFC Supports Albania as it Increases Security of Energy Supplies
IFC, a member of the World Bank Group, and the Albanian Ministry of Energy and Industry have signed a Memorandum of Understanding designed to establish the day-ahead electricity market in Albania, bolster country’s electricity supplies and better connect it to the rest of Europe.
IFC will advise the Albanian government on the creation of the day-ahead electricity market. The market will become the main arena for trading power, allowing Albania to buy electricity from and sell electricity to its neighbours quickly and easily. The day-ahead market is expected to help promote the integration of Albania’s electric grid with the rest of Europe, including neighboring Kosovo. It will also increase price transparency, and improve the investment climate for new power projects, according to IFC.
“Albania is committed to the liberalization of its power market, and we have recently adopted new energy laws,” said Damian Gjiknuri, Albanian Minister of Energy and Industry. “The establishment of the day-ahead electricity market is an important step in that process.”
Albania is a candidate to join the European Union and has recently joined the Energy Community, a multi-national body, with the EU and other Balkan countries.
“IFC is supporting the establishment of the electricity market in Albania through a combination of advisory and investment services,” said Thomas Lubeck, IFC Manager for the Western Balkans. “We are looking forward to working with our partners on the establishment of the day-ahead electricity market, which is going to benefit producers, traders, and customers in Albania.”
This project is implemented by IFC’s public-private partnerships transaction advisory unit, supported by the Ministry of Foreign Affairs of Norway, the Swiss State Secretariat for Economic Affairs (SECO) and the Ministry of Finance of Austria.
Albania became a shareholder and member of IFC in 1991. Since then, IFC has invested $762.3 million in the country, including $279 million mobilized from our partners, in 24 projects across a variety of sectors. In addition, IFC has supported trade flows of $6 million through its trade finance program.
Currently, IFC’s committed investment portfolio in Albania is $187 million. IFC’s advisory services in Albania, some offered in partnership with the World Bank, aim to improve the investment climate, boost the performance of private sector companies, increase access to finance, and help attract private sector participation in development of infrastructure projects.