March 11, 2026

by AEA in News

Greece Fast-tracks Strategic Hydrocarbon Agreements with Chevron and HelleniQ Energy

The Hellenic Parliament is set to ratify a series of landmark energy concessions this week, signaling Greece’s most decisive move in decades to unlock the hydrocarbon potential of the Eastern Mediterranean. The legislation authorizes exploration and exploitation contracts for high-prospect offshore blocks located south of Crete and the Peloponnese.

Designated by government officials as a “national priority” for energy security, the bills cleared their final committee review early this week. A plenary vote is scheduled for Thursday, which would formally greenlight a partnership between the Greek state and a powerful consortium led by global major Chevron and national champion HelleniQ Energy.

A Strategic Buffer Against Volatility

During a briefing before the Production and Trade Committee, Minister of Environment and Energy Stavros Papastavrou framed the development of domestic resources as a critical sovereign endeavor. In an era defined by regional energy instability, Papastavrou characterized the initiative as a “national affair” essential for long-term strategic autonomy.

The contractual framework is structured to insulate the Greek taxpayer from financial exposure:

Zero Public Risk: Private consortiums will bear 100% of the capital expenditure during the high-risk exploration phase.
State Revenue Sharing: If commercially viable deposits are discovered, the state is positioned to retain the vast majority of the economic benefits.
Technical Sovereignty: The projects represent the culmination of a 12-year national effort to map and tender Greece’s maritime wealth.

Technical Optimism Meets Industry Caution

Aristophanes Stefatos, CEO of the Hellenic Hydrocarbons Management Company (HEREMA), underscored that the state incurs no expenditure if exploration fails, while Anastasios Vlassopoulos, representing the Chevron-HelleniQ partnership, assured lawmakers that state-of-the-art seismic evaluations would maximize the chances of a successful find.

However, the ambitious timeline has drawn some scrutiny from industry experts. Konstantinos Stambolis, Executive Director of the Institute of Energy for Southeast Europe (IENE), welcomed the legislation but noted a potential regulatory gap. Stambolis raised concerns regarding the absence of mandatory drilling timelines within the current text, suggesting that stricter windows for physical exploration would better ensure rapid development.

Regional Implications

The ratification comes at a pivotal moment for European energy policy. As the continent continues to diversify away from Russian gas, Greece is positioning itself as a vital energy gateway for the Balkan corridor. Success in these offshore blocks could transform Greece from a transit hub into a significant primary producer, fundamentally altering the energy architecture of South East Europe.

March 11, 2026

by AEA in News

OECD Launches Strategic Initiative to Modernize South East Europe’s Aging Power Grids

The Organisation for Economic Co-operation and Development (OECD), in partnership with the Delphi Economic Forum, has unveiled a high-level initiative aimed at overhauling the energy and digital landscape of South East Europe.

The project, titled “Electricity, Digital and Regional Interconnectivity in South East Europe,” was officially launched in Thessaloniki—a city historically positioned as a strategic bridge between Europe and the Balkans. The initiative arrives at a critical juncture as the region grapples with inefficient infrastructure and the urgent need for energy security amid shifting geopolitical realities.

Addressing the 14% Efficiency Gap

Data presented at the launch highlighted a stark disparity between the Western Balkans and the broader European Union. OECD Secretary-General Mathias Cormann noted that outdated power grids in the region suffer from electricity losses of approximately 14%, nearly triple the EU average.

The infrastructure deficit is compounded by a slow transition to green energy. Despite significant natural resources, the Western Balkans currently harness only 4% of their solar potential and 2% of their wind potential. Furthermore, regulatory alignment remains a hurdle, with only 48% of relevant EU energy standards currently implemented across the region.

Greece and Romania Spearheading Integration

The project is designed and funded by Greece, with additional co-financing from Romania. For Athens, the initiative reinforces its growing status as a regional energy hub and a net electricity exporter.

Nikos Tsafos, Greece’s Deputy Energy Minister, emphasized that modern energy security is built on three pillars: affordability, strategic autonomy, and robust interconnectivity. This regional push is also deeply tied to EU enlargement. Giorgos Pagoulatos, Greek Ambassador to the OECD, noted that Western Balkan EU accession has gained new urgency. He signaled that regional integration will be a cornerstone of Greece’s upcoming presidency of the Council of the EU in 2027.

A Roadmap to 2027

To bridge the gap, Secretary-General Cormann outlined four strategic priorities for the Western Balkans:

Regulatory Convergence: Full alignment with EU energy frameworks.
Corporate Governance: Strengthening competition and oversight within state-owned utilities.
Infrastructure Modernization: Replacing aging coal-fired plants and upgrading transmission lines.
Digital Transformation: Scaling up smart-meter adoption and renewable energy deployment.

The stakes are high: experts at the event warned that European electricity demand could surge by 60% by 2030. To meet this challenge, the OECD plans to conduct a series of technical workshops across the Balkans, culminating in a comprehensive policy roadmap scheduled for release in 2027.

March 11, 2026

by AEA in News

Balkan power play: why the Western Balkans must ditch Russian fuels and fast-track EU market integration

A short, sharp truth: the Western Balkans sits at the crossroads of Europe’s energy security and its green ambitions, but patchy rules, lingering dependence on Russian fuels and slow market reforms mean the region risks being a weak link rather than a bridge. A new working paper from Bruegel lays out what’s at stake and what needs to happen next.

From leverage to liability: Russian ties still matter

Gas pipeline system in the Western Balkans

The report finds that several Western Balkan states remain exposed to Russian energy influence notably Serbia and Bosnia and Herzegovina on oil and gas which leaves them vulnerable to geopolitical pressure and imported price shocks. Negotiations and occasional extensions of Russian contracts in 2024–25 underline that diversification on paper does not always mean real independence. That dependence isn’t just political theatre: it alters investment choices, weakens bargaining power and complicates alignment with EU rules.

Why this matters beyond the region: the Western Balkans is a major transit corridor for electricity between the EU and Southeast Europe. The paper highlights that as much as “up to 70%” of electricity flows tied to the region actually pass between EU countries a signal that grid interdependence already exists and that isolation is neither realistic nor desirable. Faster regulatory alignment and market coupling would therefore strengthen European system resilience as well as the region’s.

Western Balkan electricity imports and exports (TWh), 2020-2024

Market coupling: planned, stalled, urgent

European market coupling the technical and regulatory merging of power markets is the single policy lever that could deliver immediate gains: better price signals, more efficient dispatch across borders, and a buffer against supply shocks. The Bruegel authors point out that integration planned for the mid-2020s (originally aiming around 2027) is running behind because national rulebooks and market institutions in the Western Balkans are not yet aligned with EU standards. That delay has real costs: lost efficiency, higher system operation expenses, and a slower rollout of renewables.

Day-ahead auction average prices (€/MWh), EU, Norway and Western Balkans, 2024

Uneven green progress leaders and laggards

Not all Western Balkan countries are on the same page when it comes to the green transition. The paper singles out Albania as a regional leader largely because of its hydropower legacy and relatively favorable renewables policies and Montenegro as advanced across several indicators. Meanwhile, solar and wind potential across much of the region remains largely untapped and constrained by underdeveloped grids, weak permitting frameworks and scarcity of private investment. Simply put: the natural resource advantage (sun, wind, hydro) is mostly unexploited.

This mix of actors creates both a challenge and an opportunity. Countries with stronger renewables backbones could become exporters and stabilizers for neighbors but only if cross-border trade is enabled and market rules are harmonised.

Domestic electricity prices (€/MWh), EU, Norway and Western Balkans, 2024 and 2014

Coal’s long shadow political economy vs. emissions

Phasing out coal is politically charged across the Western Balkans. Coal still provides baseload power and jobs in several countries, and switching it off without credible compensation or alternative industrial plans risks social backlash. The paper recommends phased, socially sensitive coal retirement plans tied to clear investment pathways for renewables and grid upgrades. In short: decarbonisation must be realistic and sequenced fast where possible, compensated where needed.

Practical steps the paper recommends (and why policymakers should care)

Accelerate regulatory alignment with the EU. Aligning rules is the low-hanging fruit that unlocks market coupling and immediate efficiency gains. Market reforms are technical, but the payoff — lower costs and stronger security — is political and strategic.
Reduce real dependence on Russian fuels. Diversification must go beyond headline contracts. It requires investments in LNG connections, alternative import routes, and faster roll-out of domestic renewables to reduce import vulnerability.
Design a just coal phase-out. Pair plant retirement timetables with retraining, economic revitalisation, and clean-energy investment envelopes so communities are not left behind.
Mobilise private capital for renewables and grids. Improve permitting, de-risk projects with public guarantees, and create transparent auction frameworks to attract the investors the region needs.

Political and financial headwinds plus a window of opportunity

The paper is candid about constraints: weak institutions, fragmented markets, and geopolitical tensions complicate reform. But it also notes a narrow window where EU enlargement dynamics, conditional funding instruments (the EU Growth Plan for the Western Balkans) and post-Ukraine energy policy realignments create momentum and conditional financing that can be leveraged if countries move quickly and coherently.

Electricity generation mix in the Western Balkans, 2014 and 2024

What success looks like

A successful pathway would see the Western Balkans converge with EU market rules, complete market coupling, significantly reduce Russian fuel exposure, and scale renewables deployment while phasing out coal with social protections. Practically, that means lower wholesale price volatility, better utilisation of regional transmission assets, and an energy sector that attracts investment rather than fears it.

Conclusion integration first, transition faster

The Bruegel working paper’s central message is straightforward: the Western Balkans has the geographic and resource advantages to be a strategic partner for Europe’s energy security and green goals but only if the political will to align rules, diversify supplies and invest in renewables is found. Fast-tracking market coupling and decarbonisation in parallel, not in sequence will deliver both security and economic opportunity. For policymakers in Tirana, Sarajevo, Pristina, Podgorica, Skopje and Belgrade, the choice is clear: remain a transit corridor vulnerable to outside influence, or become a resilient, integrated bridge to Europe’s clean-energy future.

March 5, 2026

by AEA in News

The Double Squeeze: Europe’s Energy Sovereignty in the Shadow of Two Fronts

The European energy landscape has reached a critical inflection point as of early March 2026, characterized by the simultaneous escalation of two major geopolitical crises that threaten the continent’s industrial foundation and long-term energy security. The recent outbreak of direct hostilities between the United States, Israel, and Iran has fundamentally altered the global energy calculus, compounding the existing stresses of the prolonged Russia-Ukraine conflict. As an expert observer of these markets, it is evident that Europe is no longer just managing a transition away from Russian fossil fuels; it is now navigating a systemic “supply-chain fragmentation” that challenges its strategic autonomy on every front.

The most immediate and destabilizing factor is the conflict in the Middle East, which has seen the effective closure of the Strait of Hormuz following retaliatory strikes and the reported death of the Iranian Supreme Leader. This maritime blockade has paralyzed nearly 20% of the world’s liquefied natural gas (LNG) and oil supplies, with Qatar—a cornerstone of Europe’s post-2022 diversification strategy—forced to halt its production entirely. The market reaction has been swift and severe, with European gas futures surging by approximately 50% in the final week of February and early March. While the European Commission and industry leaders like Statkraft’s CEO Birgitte Vartdal have noted that Europe has fortunately passed the peak of winter heating demand, the physical security of supply is less of a concern today than the economic reality of the coming months. The real danger lies in the summer injection season; without Qatari and Persian Gulf volumes, analysts warn that European storage levels may only reach 70-75% by next winter, far short of the 90% mandate. This structural deficit ensures that any future cold spell will translate directly into extreme price volatility and potential industrial demand destruction.

Russian President Vladimir Putin has moved quickly to weaponize this Middle Eastern instability, framing the global price surge as a consequence of Western aggression and “erroneous” European energy policies. In a calculated maneuver, Putin has signaled that Russia is considering an early halt to its remaining gas exports to Europe, citing “commercial reasons” and the EU’s own plans to phase out Russian pipeline gas by 2027. By suggesting that it is more profitable to redirect these volumes to emerging Asian markets now, Moscow is attempting to pre-emptively sever the final energy ties with the West on its own terms. Furthermore, the Kremlin has heightened the sense of insecurity by alleging Ukrainian-backed plots to sabotage the TurkStream and Blue Stream pipelines, which remain vital for energy flows into Southern Europe and Türkiye. This rhetoric serves a dual purpose: it pressures European nations to reconsider their support for Ukraine while simultaneously driving up the risk premiums that domestic industries must pay for energy.

The European response has shifted toward a more aggressive form of “strategic autonomy,” as seen in the launch of the European Industrial Maritime Strategy and the EU Ports Strategy on March 4, 2026. These initiatives represent a belated recognition that energy security is inseparable from maritime and industrial sovereignty. By prioritizing the “Made in Europe” provision and focusing on high-tech shipbuilding and offshore wind support, the EU is attempting to build an infrastructure that can withstand the decoupling of global trade routes. However, as trade unions and industrial groups have pointed out, these long-term structural changes do little to mitigate the immediate “price shock.” The reliance on the spot market to replace lost Middle Eastern and Russian volumes has left European utilities competing with Asian buyers at record-high premiums, a situation that Statkraft warns will erode the competitiveness of energy-intensive sectors like chemicals and steel.

Ultimately, the confluence of the Iran crisis and the Russia-Ukraine war has exposed the fragility of Europe’s “bridge” strategy, which relied on replacing Russian pipeline gas with global LNG. The current paralysis of the Strait of Hormuz demonstrates that LNG is not a risk-free alternative but is instead subject to the same geopolitical vulnerabilities as pipelines, albeit across different geographic chokepoints. For Europe, the path forward is increasingly narrow: it must accelerate its demand-side response and the deployment of renewables while simultaneously bracing for a prolonged period of high inflation and supply-chain uncertainty. The coming year will likely be defined by a shift from “just-in-time” energy procurement to a “security-first” model, where the cost of resilience is high, but the cost of continued dependence is now proving to be unsustainable.

March 3, 2026

by AEA in News

Renewable Gas Injections in the EU Rise to 4.3 bcm Over Two Gas Years, ENTSOG Reports

Renewable gas injections into natural gas grids across the European Union have climbed steadily over the past two gas years, reaching 4.3 billion cubic meters (bcm), according to the latest assessment by European Network of Transmission System Operators for Gas (ENTSOG).

The report, covering the period from October 1, 2023, to September 30, 2025, examines annual renewable gas injections into transmission and distribution networks. It encompasses both biomethane and renewable hydrogen.

Steady Growth in Renewable Gas Volumes

According to ENTSOG, renewable gas injections rose from 38.1 TWh to 43.2 TWh over the two most recent gas years—equivalent to approximately 4.3 bcm—representing an annual increase of 12%.

This marks ENTSOG’s second dedicated report on renewable gas injections into European gas networks. The first assessment was included in its 2024 Annual Report, published in April 2025, and covered data for the 2023–2024 gas year.

The latest growth was primarily driven by the commissioning of new biomethane plants and existing facilities reaching their nominal production capacity.

Renewable hydrogen injections remained limited. Germany was the only member state reporting hydrogen injection into its gas system, with volumes declining from 3 GWh to 1 GWh during the reporting period.

It should be noted that the report does not account for biomethane flows occurring outside transmission system operator (TSO) and distribution system operator (DSO) grids.

Biomethane Growth Without Major Infrastructure Investments

Piotr Kuś, ENTSOG’s General Director, emphasized that renewable and low-carbon gases can be readily integrated into existing natural gas infrastructure, supporting the transport of sustainable and secure energy molecules.

He stressed that gas TSOs will continue to provide the necessary infrastructure to facilitate the energy transition.

“In particular, biomethane market growth can be facilitated without the need for significant infrastructure investments. This growth is essential if we are serious about meeting the EU’s REPowerEU target of 35 bcm biomethane by 2030,” Kuś said, referring to the European Union’s REPowerEU objectives.

Five Countries Dominate Renewable Gas Injections

The distribution of biomethane injections varies significantly among EU member states. Five countries—France, Germany, Denmark, Italy, and Netherlands—accounted for 94% of total renewable gas injections, the report reveals.

Several member states reported no injections, in some cases due to on-site consumption of renewable gases that eliminates the need for grid injection.

Among the five leading countries, all recorded significant increases in biomethane injections into TSO and DSO grids during the last gas year.

France posted a 2 TWh rise in injections, reaching 13 TWh—approximately 1.3 bcm—by the end of the reporting period. The increase was attributed to the continued rollout of new injection points and the gradual ramp-up of production sites to full operational capacity, a process that often takes time following initial commissioning, according to the Report on Annual Renewable Gas Injections into Gas Networks.

February 28, 2026

by AEA in News

Albania’s Solar Surge: Capital Inflows, Grid Pressures and a Market in Transition

Photovoltaic energy is attracting capital at an accelerated pace in Albania, emerging as a new investment pillar for both traditional energy players and diversified business groups. With licenses granted for nearly 980 MW of solar capacity and hundreds of megawatts already operational, the market is undergoing a structural transformation—shifting from overwhelming dependence on hydropower toward a more diversified generation mix.

Private investment in the sector is estimated at around €1.5 billion, encompassing solar, wind and hydropower projects. Yet the rapid expansion is placing mounting pressure on existing infrastructure, highlighting the urgent need for parallel grid investments. Without reinforcement of transmission and distribution networks, the growth of photovoltaics risks outpacing the system’s capacity to absorb new output. Once again, the private sector appears to be moving faster than institutions.

When Albania first adopted its legal framework “On Renewable Energy Sources” in 2017, few anticipated the scale of transformation that would unfold less than a decade later.

From Slow Beginnings to Accelerated Growth

The early years of renewable development, particularly solar, were marked by bureaucratic hurdles, limited institutional experience and an energy market still in reform. The turning point came through two key developments.

First, market liberalization opened space for self-producers—an expanding segment entitled to install capacities of up to 500 MWp. Second, and more decisively, the global energy crisis that erupted in October 2021 dramatically reshaped market dynamics.

Post-pandemic raw material inflation, surging energy demand driven by economic recovery, and the war in Ukraine—triggering disruptions in Russian gas supplies—sent shockwaves through global energy markets. In 2022, prices reached record highs. Albania spent nearly €500 million on electricity imports, while on the Hungarian exchange—an important regional benchmark—prices peaked at €1,037 per MWh.

Although prices later retreated, volatility remains a defining feature of the market. This climate of uncertainty has become a major catalyst for new energy projects. Authorities report more than €2 billion invested in Albania’s energy sector in recent years. Currently, over 700 MW of private photovoltaic capacity is operational, alongside approximately 400 MW installed by self-producers.

The development pipeline could lift total photovoltaic and wind capacity to around 1,500 MW, while more than 1,600 MW of storage projects are under study or seeking financial facilitation.

Licensing and Market Structure

Despite numerous projects in various administrative stages, only a portion have secured production licenses. The Energy Regulatory Authority (ERE) has issued 71 production licenses for photovoltaic plants, totaling approximately 980 MW of installed capacity.

Most licensed projects fall within the sub-2 MW category, which benefited from a simplified regulatory framework introduced several years ago. These smaller plants were approved through accelerated procedures and supported by reference tariffs set periodically by the regulator. Electricity is purchased by OSHEE Group under a scheme similar to that applied to priority hydropower producers.

At the same time, a growing number of independent producers operate in the liberalized market. Supply liberalization has pushed thousands of businesses to secure electricity via private contracts, creating a stable demand base for new generators.

Solar projects also benefit from technical flexibility: they can be commissioned in phases, allowing electricity production before full completion of investment works.

Production Growth and Flagship Projects

Photovoltaic output rose sharply in 2025. According to preliminary data from INSTAT for January–September, the category “Other Producers”—which includes solar plants—generated 775 GWh, doubling year-on-year. Even compared to full-year 2024 output of 506 GWh, nine-month 2025 production was 53% higher.

Solar accounted for roughly 15.3% of Albania’s net electricity generation during the same period—more than double its 2024 share. This proportion is expected to rise steadily as new plants enter operation.

Among the largest projects is the 140 MW Karavasta solar park, developed by Voltalia. Additional operational projects include Blue (130 MW combined), Nova Solar System (50 MW) and multiple 20 MW facilities in Ersekë.

Projects under development include GreeNNat Solar Park Ballsh (100 MW), Faethon (78.6 MW), Sunny Side Energy (50 MW, part of the Kastrati Group), and the 100 MW Spitalla Solar park, also owned by Voltalia.

The rapid growth of solar capacity is gradually reshaping Albania’s electricity mix—historically dominated by hydropower—reducing exposure to imports and cushioning the impact of extreme price swings in international markets.

Year	Energy Production (Thousand MWh)
2019	25
2020	35
2021	40
2022	52
2023	88
2024	506
2025 (9-Months)	775

European Bank for Reconstruction and Development: Strong Potential, Grid Constraints

The European Bank for Reconstruction and Development (EBRD) has been instrumental in supporting Albania’s renewable transition, advising the government on early photovoltaic auctions, including Karavasta—the country’s first large-scale solar plant.

Ekaterina Solovova, EBRD Resident Representative in Albania, has emphasized that the country’s solar potential remains considerable due to favorable geography and high solar irradiation. However, large-scale integration requires adequate transmission infrastructure.

Recent EBRD support includes sustainability-linked financing for OSHEE, restructuring short-term liabilities into longer-term financing to free up investment for grid upgrades. The bank is also cooperating with OST on EU grant-funded technical projects: closing the national transmission loop and modernizing the Fier substation—currently among the most congested solar zones—and developing a new cross-border transmission line with Kosovo to enhance regional interconnection.

Through initiatives such as the Renewable Energy Market Acceleration Program (REMA), the EBRD has supported the allocation of roughly 800 MW of new renewable capacity via Contracts for Difference (CfD) schemes.

Albania stands at a critical juncture: rich in renewable potential but constrained by infrastructure that requires substantial upgrading to ensure system stability.

European Investment Bank: Solar Could Reach 1 GW by 2030

Alessandro De Concini, EIB representative in Albania, notes that while Albania’s green credentials are strong, they remain vulnerable due to hydropower dependence and climate variability.

Solar capacity could reach 1 GW and wind 600 MW by 2030, supported by recent reforms easing licensing and auction procedures. However, climate risks—floods, fires and landslides—could cost up to 7% of GDP by mid-century.

Albania’s energy strategy prioritizes supply security, diversification, competition and environmental protection, aligned with EU legislation. The EIB’s forward plans include infrastructure modernization to ensure year-round supply security and price stabilization.

Investor Appetite and Market Diversification

Government-backed auctions—facilitating land access and streamlining procedures—sparked early investment during the pandemic. Yet a growing number of investors have entered the sector without subsidies, relying instead on private land, private power purchase agreements and market-based strategies.

Besnik Leskaj, founder of Blessed Investment Group, explains that detailed analysis of photovoltaic technology costs and regional price trends pointed to a favorable long-term risk-return profile. The group, alongside Matrix Konstruksion, has invested in fully private solar projects, emphasizing financial discipline and direct market exposure.

The Blue Parks, spanning 230 hectares with 263,000 smart panels, aim to build a 1 GW portfolio over the medium term, with 400 MW currently under development. Wind energy (two 25 MW projects) and battery storage systems are also part of the strategy.

Supporting Industries and Vertical Integration

The solar boom has stimulated domestic supply chains, from workforce training to mounting structure manufacturing. Companies such as Emante sh.p.k have expanded into producing Magnelis steel support structures for ground-mounted systems, supplying projects including Nova Solar (74 MW) in Seman and Info-Telecom (101.5 MW) in Ballsh.

Rapid sector growth is encouraging vertical integration, with firms expanding into mounting accessories and specialized structures to enhance added value.

End-of-Life Challenges

As solar installations multiply, long-term waste management is emerging as a strategic issue. Panels have a 25–30 year lifespan, meaning the first wave of mass installations will soon approach end-of-life. The International Energy Agency estimates panel waste could reach tens of millions of tons by 2050.

While recycling is technically feasible, it is often not yet economically competitive. The European Union mandates extended producer responsibility for collection and recycling, while China is scaling industrial recycling plants. The US and Japan are experimenting with high-value material recovery models.

Albania will need to address this issue proactively to ensure sustainability extends beyond generation.

Credit Growth and Corporate Performance

Energy and tourism have been the most dynamic sectors in recent years, reflected in rising bank lending. According to the Bank of Albania, outstanding credit to the energy sector grew 19% to 47 billion lek (€470 million) by December 2025, representing 9% of total business lending.

Karavasta Solar, managed by Voltalia, generated revenues of 3.5 billion lek in 2024 and profits of approximately 2 billion lek, with a 57% margin. The plant produced 258.3 GWh last year—3.2% of domestic net output and more than half of total solar generation, according to ERE. Under its 15-year contract, 70 MW is sold at a regulated tariff (€24.89/MWh) and 70 MW on the free market.

Spitalla Solar (100 MW) follows a similar structure, though progress has been slower.

Blue 1 (50 MW), commissioned in May 2024 at Sheq Marinas, Fier, operates entirely in the free market—one of the first large projects outside support schemes. Owned 51% by Blessed Investment and 49% by Matrix Konstruksion, it generated revenues of 680 million lek and profits of 380 million lek in 2024, producing around 72,000 MWh—roughly 15% of total solar output.

Other players, such as EZ5 Energy and Nova Solar System (50 MW), are reporting rapid revenue and profit growth, underscoring solar’s emergence as one of Albania’s most profitable and strategically significant industries.

Company	Revenue (2023)	Revenue (2024)	Pre-tax Profit (2023)	Pre-tax Profit (2024)
KARAVASTA SOLAR	450	17,000	408	2,000
EZ-5 ENERGY	412	1,422	83	265
SPV BLUE 1	266	679	102	379

Albania’s solar expansion reflects a decisive shift in its energy landscape—driven by private capital, catalyzed by crisis and increasingly supported by multilateral finance. The next phase will depend on grid modernization, storage deployment and responsible lifecycle management. If these elements advance in tandem, Albania could consolidate its position as a regional renewable energy hub.

February 28, 2026

by AEA in News

Electrica and Liberty Galați to Jointly Develop Up to 500 MW of Solar and Storage

Electrica — in which the Romanian Government holds a 49.8% stake — has signed a memorandum of understanding with Liberty Galați to develop up to 500 MW of combined solar generation and energy storage on land owned by the currently inactive steel works. The agreement, disclosed in a stock-exchange filing, sets out an operating model intended to maximise self-consumption, strengthen supply reliability and optimise long-term costs, the company said.

The proposed structure seeks to capitalise on the strategic complementarities between the two firms: Electrica brings experience as an electricity supplier, distributor and renewable investor, while Liberty Galați contributes the site footprint and industrial scale. The memorandum follows Electrica’s recent emergency move to assume the plant’s electricity supply contract — a step taken two weeks earlier to prevent disconnection over unpaid bills.

Electrica noted that cutting power to a blast furnace would effectively shut the facility down permanently. The steel works is the country’s largest, but is currently inactive, insolvent and carrying substantial debt.

Next steps include feasibility studies for the sites, which are located on land beside the Danube in eastern Romania, near the border with Moldova and Ukraine. According to Electrica’s update, the two parties would develop solar and storage assets with combined capacity of up to 500 MW, with detailed terms to be defined after the feasibility work is completed.

Electrica’s chief executive, Alexandru-Aurelian Chiriță, said the partnership is intended to leverage both companies’ technological and financial capabilities as a catalyst for change in Romania’s energy sector. “Final partnership terms are to be defined following feasibility studies and will be implemented once all corporate approvals are secured,” he said, adding that the initiative aims to create “a model of excellence adapted to current sustainability requirements” and to set a new performance benchmark for the national energy industry.

Earlier, Liberty Galați — part of the Liberty Steel Group — outlined a EUR 1 billion plan to reach carbon neutrality by 2030. When Electrica announced it would take over the plant’s power contract, Chiriță emphasised the strategic importance of preserving the works: “Not now, when Europe is rearming. Not now, when the reconstruction of Ukraine will require millions of tons of steel from our border. Not now, when European steel production can be a real competitive advantage for the first time in decades.”

Electrica supplies electricity to about four million end customers across 18 counties in Northern Transylvania, Southern Transylvania and Northern Muntenia. The group recently reported record preliminary results: consolidated net profit jumped 159% in 2025 to RON 1.22 billion (EUR 239 million), while EBITDA rose to RON 2.38 billion — 64.5% higher than the previous year.

On the renewables and storage front, Electrica currently operates 46.5 MW within a 307.5 MW renewables portfolio. The company also plans 19 energy storage facilities totalling 1.17 GWh and three modular, interoperable data centres as part of its broader transition strategy.

February 20, 2026

by AEA in News

KESH partners with France’s EDF and AFD to develop Albania’s Energy Storage Roadmap

Tirana — In a decisive move toward modernizing its national grid, the Albanian state-owned power utility, KESH (Albanian Electric Power Corp), has finalized a strategic partnership with Électricité de France (EDF) and the French Development Agency (AFD). The collaboration focuses on the development of a comprehensive energy storage strategy, underpinned by a €400,000 grant earmarked by the AFD.

This initiative arrives at a critical juncture for Albania. While the country boasts a near-total reliance on renewable hydropower for domestic production, its lack of grid-scale energy storage remains a significant structural vulnerability. As the global energy transition demands higher flexibility, the partnership aims to bridge the gap between Albania’s current hydro-centric model and a diversified, resilient future.

Engineering Flexibility: The Scope of the Partnership

The primary objective of the agreement is to identify and evaluate the most effective storage technologies suited for Albania’s existing infrastructure. The resulting study will serve as a technical blueprint for the nation’s Energy Storage Strategy, focusing on several key pillars:

Renewable Integration: Facilitating the entry of solar and wind energy into a grid historically dominated by water power.
System Modernization: Increasing the security of supply and enhancing operational flexibility.
Climate Resilience: Improving the long-term sustainability and management of Albania’s vital water resources and assets.

The technical expertise for this transition will be provided by the French state-owned giant EDF, a global leader in low-carbon energy, while the AFD continues to expand its financial and developmental footprint across the Western Balkans.

High-Level Diplomatic Support

The signing ceremony was attended by Nicolas Forissier, the French Minister Delegate for Foreign Trade and Economic Attractiveness. Minister Forissier emphasized that this agreement underscores Albania’s status as a priority partner for France, reflecting Paris’s commitment to supporting the country’s integration into the European Union through the mobilization of technical and financial instruments.

Under the leadership of Viola Haxhiademi, who assumed the role of CEO in late December, KESH is positioning itself to manage significant future capacities. Currently, planned projects—including KESH’s pumped storage capacity in the Drin (Drim) cascade and Statkraft’s Moglica project—represent a potential 1.6 GW of storage capacity.

A Continuing Collaboration

This latest deal builds upon an existing relationship between KESH and the AFD. Last year, the two entities signed an agreement focused on the advanced management of the Drin River cascade, the backbone of Albania’s energy sector. By adding a formal storage strategy to this framework, Albania is taking a sophisticated step toward aligning its energy sector with EU standards and the exigencies of the green transition.

February 19, 2026

by AEA in News

Terna Energy Secures Environmental Approval for Major Pumped Storage Project in Northern Greece

Northern Greece is emerging as a critical hub for large-scale energy storage, with several twin pumped storage hydropower (PSH) systems moving through the regulatory pipeline. In the latest development, the Ministry of Environment and Energy has granted environmental clearance—specifically the Approval of Environmental Terms (AEPO)—for the first phase of the Vrohonera project.

The Vrohonera endeavor is being spearheaded by Terna Energy, a subsidiary of Masdar. This milestone follows closely on the heels of similar approvals granted to the Katselis family for their nearby Flampouro and Trani Vrachi twin PSH projects.

Pumped storage hydropower design

Strategic Location and Technical Specifications

Located southeast of Veria in the Imathia region of Central Macedonia, the Vrohonera complex will utilize the Agia Varvara artificial lake as its lower reservoir. This reservoir is situated on the Haliacmon (Aliakmonas) River, Greece’s longest waterway.

The project has seen significant scaling since its initial “producer certificates” were issued in 2021:

Vrohonera 1: The latest AEPO outlines a generation capacity of 450 MW via three turbines and a pumping capacity of 537 MW. This represents a substantial increase from the 2021 proposal of 401 MW and 372 MW, respectively.
Vrohonera 2: Initial proposals for the second phase included 131.5 MW in production and 217.8 MW in pumping capacity.
Storage & Efficiency: Integrated into the European Network of Transmission System Operators for Electricity (ENTSO-E) development plan, the combined Vrohonera complex is designed to provide 8 GWh of storage with an estimated cycle efficiency of 73% and an operational lifespan of 50 years.

The total investment for the Vrohonera complex is valued at €1.1 billion, with commissioning currently targeted for 2031.

Expanding the PSH Portfolio

Terna Energy’s commitment to Greek energy storage extends beyond Vrohonera. The company is currently executing several other high-stakes projects included in the ENTSO-E list:

Amfilochia: This flagship PSH plant is nearing the finish line, with completion expected within the current year.
Ladonas: A joint venture with the Public Power Corp. (PPC Group), this 220 MW generation (231 MW pumping) facility is slated for completion in 2032 and will provide 2 GWh of storage capacity.
Amari: Located on Crete, this project represents a sophisticated hybrid PSH and wind power solution, further diversifying Greece’s largest island’s energy mix.

By advancing these projects, Terna Energy and Masdar are positioning themselves as primary architects of Greece’s energy transition, providing the long-duration storage essential for a renewables-heavy grid.

February 16, 2026

by AEA in News

Albania’s Energy Sector: Key 2025 Insights and Outlook

Albania’s energy sector in 2025 remains dominated by hydro and oil, but undergoing rapid change. Gross available energy (supply) in 2023 was 2,234 ktoe, against primary production of 1,799 ktoe. Imported oil and electricity cover the gap: the country needs roughly 4–5 TWh of net imports annually. In 2023 final energy consumption was 1,942 ktoe (down 2.8% year-on-year), with industry (~27%), residential (~34%), transport (~22%), services (~11%) and other sectors (~6%) each accounting for a share. Albania’s energy intensity remains fairly low – roughly 0.17 ktoe per million EUR of GDP (–4.0% in 2023) – reflecting both efficiency gains and a modest economic base.

Infrastructure investments are focused on grid upgrades and new pipelines. Two major 400 kV transmission projects are planned or underway: closing the internal 400 kV ring and building a 400 kV Albania–Kosovo* interconnector (both under WBIF support). The long-delayed Elbasan–Bitola 400 kV line (a 2018 Energy Community project of common interest) still awaits completion. On gas, Albania currently has no domestic market – it consumes virtually no pipeline gas today – but this will change. A Fier exit point on the Trans-Adriatic Pipeline (TAP) is under construction (targeted commissioning October 2027), and a planned Fier–Vlora feeder line is in planning. Meanwhile a new Korça gasification scheme (Azerbaijani Azeri gas via TAP) was agreed in November 2024, aiming to extend distribution into eastern Albania. These gas projects could underpin future power and industrial expansion.

2023 Albania Primary Energy Production by Fuel (ktoe) – oil and hydro dominate

Electricity Market: Liberalization and Infrastructure

Since 2023 Albania has made notable strides in power market integration, but wholesale trading remains limited. A day-ahead market was launched in April 2023 and coupled with Kosovo* from January 2024 – the first cross-border market coupling in the Energy Community. Complementary regional intraday auctions (CRIDAs) between Albania and Kosovo* began in December 2024. (Plans for a continuous intraday market are pending.) The Albanian Power Exchange (ALPEX) operates these markets: by 2024 it had 26 registered participants, of which 16 trade intraday, and traded roughly 12% of Albania’s final electricity consumption on the day-ahead market.

However, full liberalization is unfinished. The day-ahead and intraday markets run in parallel with a traditional regulated market. The state-owned utility KESH still supplies universal service customers (low-voltage households) under a public service obligation (PSO) at government-set prices. Regulated tariffs and supply obligations extend to most small businesses and residential clients. Only customers on 10–110 kV networks (large industry) face market prices, with lower-voltage consumers still sheltered under universal service tariffs. Indeed, current regulations keep in place a PSO for KESH (originally a temporary crisis measure) and a supplier-of-last-resort (SoLR) regime for others. Retail prices for low-voltage consumers thus remain controlled (free market entry is limited), and new retail deregulation phases (10 kV by 2025, 6 kV by 2026) are planned. (These interventions still fall short of EU requirements.)

Balancing and ancillary services are developing along European lines. A 15-minute imbalance settlement period was introduced in 2025 (after delays). Balancing energy is procured via a merit-order market operated by OST (the national TSO). Cross-border balancing cooperation is currently minimal: Albania only shares frequency-restoration reserves with Kosovo* under a joint “AK block” agreement. Full participation in European balancing platforms will require transposing the EU Electricity Regulation (2019/943) and Network Code on balancing (2017/2195) – work that has only just begun.

On network infrastructure, the transmission system operator OST is certified (ownership unbundled) and a member of ENTSO-E, but key grid upgrades lag. The TEN-E revision (2022/869) – which would designate new energy corridors – has not been transposed. In the meantime, two grid projects of regional interest are under development: closing Albania’s internal 400 kV loop and a new 400 kV tie to Kosovo*, both backed by EU grants. Investment plans for OST and the DSO (OSSH) are now regularly approved by the regulator ERE; ERE also endorsed the 2025–27 capital plan of OST in 2025, which includes these projects. Distribution network upgrades (smart metering, loss reduction) remain on the agenda but face funding constraints.

[Insert chart: Albania Electricity Market Coupling Timeline (Day-ahead April 2023, coupling Jan 2024, CRIDAs Dec 2024)]

Gas Market: Emerging Supply and Infrastructure

Historically, Albania had no natural gas consumption; electricity and heating ran on oil and biomass. This is changing. Although no domestic gas market exists yet, Albania is transposing EU gas rules in anticipation. The regulator has applied REMIT transparency rules (excluding market rules). Certification under the Third Package is in place: TAP AG (cross-border pipeline) is certified as an exempt TSO, and Albgaz (Albania’s gas TSO) was conditionally certified under ownership unbundling. Albgaz’s remaining unbundling issues have been repeatedly extended (new deadline end-2025), and TAP and Albgaz plan separate network codes once pipelines operate.

Two key pipeline projects will shape Albania’s gas landscape. First, the TAP Fier exit point will link Albania to the Trans-Adriatic Pipeline. Construction is slated to start May 2026 and complete by October 2027. This facility (a pressure-reduction station and meter) will allow Azeri gas from TAP to enter Albanian networks. Second, the Korça Gasification Project – a private initiative by Azerbaijan’s SOCAR – will build a local grid from a new Fier (TAP) connection eastward. A 2024 MoU commits Albgaz and SOCAR to design and build the exit and local pipeline, with a TAP capacity nomination already in place. If realized (final investment decision pending), Korça would for the first time supply gas to industries and possibly power plants in southern Albania by the late 2020s.

Domestic gas demand is expected to grow once these are online (power plants and industry will switch from oil), but there is no wholesale gas trade yet. Secondary legislation to allow retail gas supply exists, but without an existing network to serve, these serve mainly as placeholders. In practice, Albania’s future gas wholesale is effectively TAP-dominated; a functioning national hub or trading platform is still years away.

Renewable Energy and Decarbonisation

Albania’s power system is already very green by global standards, but has room to diversify. In 2024 total renewable electricity capacity reached about 3,005 MW – dominated by small hydropower (<10 MW) at some 2,181 MW and utility-scale hydro (≈375 MW), with 449 MW of solar PV. (Wind and biogas are currently negligible: the report notes only 3 MW of wind.) Renewables supplied most of Albania’s generation in 2023 (hydro plus a modest biomass cogeneration), but exact shares are not broken out in the report. What is clear is that Albania’s 2030 renewables target is ambitious: the adopted National Energy and Climate Plan (NECP) aims for 54.4% of final energy consumption from renewables by 2030, above the 52.0% goal set by the Energy Community Decision. The NECP also envisions sectoral sub-targets (e.g. ~178% for electricity, 34.6% transport, 16.6% heating/cooling) that exceed current EU RED II mandates.

Policy reforms are in motion to boost renewables. The 2023 Renewable Energy Law shifted from fixed feed-in tariffs to competitive auctions (contracts-for-difference/premium) for green power. Two auctions were already held with fixed prices, with plans to transition to pure CfDs once Albania’s day-ahead market achieves liquidity. So far no statistical transfers or joint schemes (EU cooperation mechanisms) have been used. Net metering is enabled (rooftop systems up to 500 kW) and Albania plans to move to net billing (full retail credit) as of 2024. The law also incorporated guarantees-of-origin (GOs) for all renewable generation: an electronic GO registry became operational under ERE in May 2023, laying groundwork for tracking clean energy. However, “renewable energy communities” are still theoretical – no community project has been set up yet.

In the heating sector, Albania is rolling out support for solar thermal collectors and heat pumps. A recent scheme reimburses 70% of solar water heater costs for low-income households (vs. 20–30% for other systems). Draft legislation for broader RES heating/cooling incentives is pending. On bioenergy, Albania has transposed most RED II provisions, but needs secondary rules for verifying sustainability (GHG savings and land-use criteria) for bioliquids and solid biomass used in heat and power.

Overall, the renewables pipeline is robust: capacity grew by +279 MW in 2024 (mostly PV additions). Auctions and net-billing should further drive solar rooftop uptake, especially for homes and businesses now escaping fixed feed-in tariffs. Hydropower will remain the backbone of Albania’s system; future small hydro additions and the potential for wind in the flat coastal plains (not yet tapped) could further diversify output.

Energy Efficiency and Buildings

Improving efficiency is a strategic priority. Albania’s buildings are its largest energy sink, consuming 38% of final energy in 2023. Recognizing this, in June 2025 Albania adopted a new Energy Performance of Buildings law, aligning key provisions with EU directives (including upcoming 2024 requirements). An Energy Performance Certificate (EPC) system is now operational, with ongoing training and software development. Crucially, a long-term renovation strategy (in line with the EU’s Renovation Wave) was approved in February 2025. The government is developing a detailed renovation plan to reduce building energy use, tackle energy poverty, and modernize housing and offices across Albania’s regions.

Albania’s energy consumption is already edging down. Primary energy use fell to 2,141 ktoe in 2023 (–1.5% year-on-year), while final consumption was 1,942 ktoe (–2.8%). For comparison, the 2030 NECP targets are much higher: 2,600 ktoe (primary) and 2,400 ktoe (final). The continuing decline reflects efficiency measures and structural changes. Energy intensity (use per GDP) is among the lowest regionally at ~0.17 ktoe/MEUR. Key upcoming measures include a new Energy Efficiency Law (planned in 2025 to transpose the recast EU EED), full implementation of the energy obligation scheme, and mandatory labelling and standards (a product-labeling law was passed in mid-2024). So far Albania lacks a dedicated EE fund; financing for retrofits has come from budgets and donor programs, with early ESCO activity in the housing sector. Improved access to credit and subsidies for vulnerable households are being discussed as next steps.

Policy, Regulation and EU Alignment

Albania’s legislative framework is being steadily updated to meet EU/EnC requirements, but gaps remain. The Electricity Integration Package (EIP) – the core EU rulebook for electricity markets – is not yet fully transposed. A draft law (May 2025) would implement many EIP provisions (market design, unbundling, RES integration, etc.), but it has not been passed. In the interim, ERE has adopted some CACM rules: a national capacity allocation & congestion management regulation (EUR 543/2013) was approved in April 2025. Albania also uses the SEE Regional Auction Office (SEE CAO) for cross-border capacity. Notably, the EU rule requiring at least 70% of interconnector capacity to be offered to the market is not in force yet.

In gas, Albania’s alignment is behind schedule. The EU’s Gas Security of Supply Regulation (2017/1938) is only partly implemented in law (via amendments to the 2021 Gas Law). A national Risk-Preparedness regulation (EU 2019/941) is due by end-2025; a draft Power Sector Law under discussion could designate the ministry as risk authority and mandate a preparedness plan. On emissions, Albania’s 2021 Law on Climate Change set up GHG inventories and MRV (monitoring/reporting) systems, and a new climate law (expected 2025) will refine MRVA obligations. However, Albania has no 2050 neutrality strategy yet – a critical missing piece. The Energy Community Secretariat notes this as an opportunity: the new climate law is a chance to embed a 2050 net-zero goal aligned with regional climate neutrality. Similarly, the EU’s new targets (at least –55% GHG by 2030 vs 1990) should be written into law; Albania’s NECP-included target of –53.2% by 2030 has yet to be codified.

Installed Renewable Energy Capacity by Type (MW, 2024) – large hydro vs small hydro vs solar

On renewables and energy, many EU directives are in place but not fully enforced. The transposition of RED II’s sustainability criteria for bioenergy remains incomplete (secondary rules are pending). The Energy Efficiency Directive’s Article 5/7 energy savings obligations are being revised (a new Energy Efficiency Law is expected in 2025). ERE, the energy regulator, is largely independent and well-funded (through fees), but it needs more capacity in market integration and surveillance. The Competition Authority and audit agencies are updating rules: notably, Albania’s competition law still lacks a ban on anti-competitive decisions by associations, a gap being addressed.

Challenges and Investment Opportunities

Challenges for Albania’s energy sector are many. The system is highly hydro-dependent, making it vulnerable to droughts (although the report does not quantify this risk, it is implicit). Hydropower output can swing year-to-year; in dry seasons Albania may import costly thermal power. The wholesale market is still tightly regulated: KESH’s PSO obligation and the tariff freeze for households suppress price signals. With only ~12% of demand traded on the exchange, liquidity and competition are low. Energy poverty is acute – in 2023, 34.8% of households fell behind on utility bills – and subsidies for low-income consumers cost the state ~€14.2 million per year (for under-300 kWh relief). Distribution losses remain high (the report’s chart shows ~27% of primary energy lost in losses and transformation). Regulatory delays (EIP, RED II, TEN-E) also pose risks: without quick reforms, Albania could be left out of key EU market frameworks. Finally, the lack of domestic fossil fuel resources (all oil is imported) means geopolitics still loom large.

Yet opportunities abound for investors. Albania’s grid needs modernization: the 400 kV ring and new interconnectors will unlock capacity and relieve bottlenecks. The Western Balkans Investment Framework (WBIF) and EU funds stand ready to de-risk these projects. On renewables, Albania has proven technology potential. Small hydropower already leads capacity, but solar PV has room to grow – rooftop solar in particular is financially attractive given high sunshine hours and net-billing rules. The successful launch of auctions means new wind and solar projects can seek investors. Albania also has significant wind potential along its Adriatic coast and offshore (noted by developers, though not yet realized).

In gas, early movers will find unique first-mover advantage. The imminent TAP exit point and new Korça pipeline will create an Albanian gas market where none exists. Gas-fired power plants (modern CCGTs) could then enter the mix to complement variable renewables and stabilize supply – currently discussions are underway for a planned new gas power plant (with a 2023 EIA completed). Domestic industries (steel, chemicals, cement) will benefit from cheaper and cleaner gas fuel.

The drive toward European integration is another driver. Albania’s commitment to join the EU means it can tap structural funds and grants (as the 400 kV and efficiency projects already do) to lower investment risk. The Regional Electricity Market (REM) in Southeast Europe is expanding; full day-ahead coupling with North Macedonia, Greece, and others is slated for the coming years through the IBWT process. Albanian power can thus access wider markets (raising price realization for producers). New balancing and reserve-sharing arrangements in the synchronous continental Europe grid could also enhance system stability.

Outlook (2025–2035)

Looking ahead 5–10 years, Albania’s energy transition will be shaped by how quickly reforms and investments are realized. If the EIP is transposed and markets liberalized, Albania could see a virtuous cycle: more foreign investment, deeper regional trading, and faster renewables rollout. The TAP exit (online ~2027) will mark a milestone – enabling real gasification of the economy and likely powering a switch away from oil in power and transport. The 400 kV grid projects (current timeline by 2030) will significantly improve domestic reliability and export capacity.

However, several risks remain. Climate variability poses growing uncertainty: reduced rainfall could lower hydropower generation, necessitating backup thermal plants or imports during dry spells. Delays in drafting the 2050 climate-neutrality strategy or failing to meet Energy Community targets could hinder access to green financing. Continued energy poverty and fiscal pressure from subsidies could constrain budgets for infrastructure. Geopolitical shocks (e.g. regional supply disruptions or price spikes) remain possible, underscoring the need for energy diversification.

On balance, Albania’s prospects are positive: an increasingly competitive energy mix is emerging. By 2030 Albania could comfortably meet its 54% renewables share and even push beyond with new solar and pumped hydro. Improved interconnections and market coupling will integrate Albania into the European grid both technically and economically. Enhanced efficiency in buildings and industry will moderate demand growth (the country’s 2030 NECP actually foresees higher consumption targets than today). This combination – rising renewables and efficiency gains – will bolster Albania’s sustainability, reduce emissions, and hedge fossil-fuel price risks.

In conclusion, the 2025 Energy Community Country Report highlights a period of transition for Albania: from a historically state-dominated, hydro-driven system towards a more liberalized, diversified, and EU-aligned energy economy. Achieving this vision will require sustained reform and investment. The payoff – in terms of economic competitiveness, cleaner air, and greater energy security – promises to be substantial for Albania and its regional partners.

Sources: Energy Community Secretariat, Albania – Annual Implementation Report, Nov. 2025