Albania to Launch New Renewable Energy Auction in Q3 2026
Albania is preparing to launch a new renewable energy auction in the third quarter of 2026, as the focus of its energy policy increasingly shifts toward strengthening the transmission grid and international interconnections.
Speaking at an event with foreign investors, the Minister of Energy and Infrastructure, Enea Karakaçi, emphasized that geopolitical developments have rendered the sector one of the most exposed to external shocks. “Dealing with global crises has now become routine; today, once again, due to a war far from our borders, the energy sector is being placed in a stressful and difficult situation,” he stated.
According to the Minister, this situation requires a rapid response and stronger institutional coordination to guarantee energy security. In this regard, the government has undertaken reforms to build a more resilient system and attract investment, moving beyond the standard obligations of European integration. “This is not only a result of the need for EU alignment but also a necessity to attract investments,” the Minister added.
Diversification and Private Investment
One of the primary pillars of this transformation remains the diversification of energy sources. Since 2019, Albania has built a more balanced energy portfolio, where solar energy is steadily gaining ground. “Approximately 10 percent of domestic production now comes from solar energy, reducing our dependence on hydropower plants,” he underlined.
The sector’s development has been increasingly supported by private investments that extend beyond state support schemes. According to the Minister, the market now includes both projects realized through formal auctions and independent private investments.
Strengthening the Transmission Grid
However, recent developments in Europe have highlighted a structural vulnerability: the critical importance of the transmission network. “Energy security is not only about production but also about transmission. If we build generation capacities, we must simultaneously build the corresponding transmission infrastructure,” he said.
In this framework, Albania is accelerating regional interconnection projects, including the link with North Macedonia, the doubling of capacity with Greece, and a strategic project with Italy. These investments aim to increase flexibility and enable more efficient utilization of production resources.
Strategic Goals for 2030
Another strategic objective remains the country’s transformation from a net importer to a net exporter of energy by 2030. “Our goal is for Albania to become a net exporter of energy,” the Minister declared.
In parallel, the government aims to increase energy efficiency through dedicated financial instruments. “We will create a financing fund for energy efficiency,” he said, noting that approximately 400 MW of self-production capacity has already been installed by businesses and households.
Investments will not be limited to infrastructure alone. The Minister emphasized the need for human capital development, announcing the creation of an Energy Academy with international support. Simultaneously, major public projects are being planned, including the development of dams and storage technologies such as “pumped storage,” aimed at increasing overall system flexibility.
The upcoming 2026 renewable energy auction is expected to be a significant step toward market consolidation and capacity growth, reflecting an integrated approach between energy production and transmission.
