March 17, 2026
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The Green Backbone: Albania and Western Balkan Partners Unveil Strategic Energy Projects for 2026 EU Funding

The Energy Community has officially opened the public consultation for the 2026 list of Projects of Energy Community Interest (PECI), marking a pivotal moment for the Western Balkans’ energy infrastructure. Running from March 16 to April 17, 2026, the consultation evaluates eight critical projects designed to dismantle cross-border bottlenecks and pave the way for a massive influx of renewable energy.

For Albania and its neighbours, Kosovo, North Macedonia, Montenegro, and Bosnia and Herzegovina the selected projects represent a shift from traditional hydroelectric production to a sophisticated, integrated system of large-scale storage and high-voltage transmission corridors. These projects are now positioned to seek diverse financing, including EU grants, Western Balkans Investment Framework (WBIF) funds, and favourable loans from international financial institutions.

Below is a detailed technical and strategic breakdown of the flagship projects currently in the PECI selection pipeline.

1. Project E12: Moglice Pumped-Storage – The Balkans’ “Giant Battery”

At the heart of Albania’s green transition is the Moglice Extension Pumped-Storage Hydropower Plant (PSH). Developed by Devoll Hydropower Sh.A. (part of the Statkraft Group), this project is set to become one of the largest flexibility assets in the region.

  • Technical Parameters:

    • Maximum Power (Pmax): 1,620 MW (with a dynamic operational range of -1,620 MW to +1,620 MW).

    • Storage Capacity: 30,000 MWh (approx. 30 GWh).

    • Voltage: 400 kV.

    • Efficiency: 77% roundtrip efficiency.

  • Strategic Role: The plant will function as a “green battery,” utilizing the existing Moglice reservoir (380 million m³) and a new upper reservoir (25 million m³). It is designed to store surplus energy during periods of high production and release it during peak demand, providing critical balancing services to Albania and neighboring EU markets like Greece and Italy.

  • Timeline: Currently in the economic feasibility stage, with the earliest commissioning targeted for 2033.

2. Project E04: The 220 kV Balkan Triangle Rehabilitation

To ensure the reliability of the “Balkan Triangle” (Albania, Montenegro, and Bosnia & Herzegovina), the rehabilitation of the aging 220 kV Trebinje–Vau i Dejës corridor has been prioritized. This line is a vital artery that has recently struggled with congestion due to new solar and hydro capacities.

  • Technical Parameters:

    • Voltage: 220 kV.

    • Length: 162.92 km.

    • Transmission Power: Upgraded to carry 1,500 A using specialized high-capacity conductors.

    • Promoters: NOS BiH, Elektroprijenos-Elektroprenos BiH, and CGES (Montenegro).

  • Strategic Role: The project addresses severe climatic challenges and infrastructure depreciation. By replacing OPGW, insulation, and conductors on existing poles without increasing mechanical load, the project will increase Net Transfer Capacity (NTC) and resolve long-standing congestions between BA–ME, ME–AL, and AL–BA.

  • Timeline: Currently in the Detail Design Study phase, with an expected commissioning date of 2030.

3. Project E05 & Regional Corridors: Integrating Wind and Strengthening East-West Links

The expansion of the 400 kV network is a two-pronged strategy: strengthening regional East-West ties and unlocking wind potential in Northeast Albania.

A. The East-West Western Section (Project E05)

Connecting Kosovo and North Macedonia, this 103 km interconnector is a key link in the regional transmission “rings.”

  • Technical Parameters: 400 kV; 1330 MW Pmax.

  • Objective: Connecting the upgraded Prizren (XK) substation to a new substation in Tetovo (MK). This project enhances the security of supply and supports the large-scale integration of Renewable Energy Sources (RES) across the corridor.

  • Timeline: Expected commissioning by 2035.

B. The Albania–Kosovo Interconnection (Strategic Link)

As highlighted by recent strategic filings, Albania is pushing for a new 400 kV interconnection between Fierza (AL) and Prizren (XK).

  • Strategic Role: This link is deemed essential to facilitate the integration of over 1 GW of planned wind energy capacity in Northeast Albania. It will alleviate existing 220 kV grid overloads and significantly boost regional energy trading.

Financing the Future

These PECI projects are governed by the revised EU TEN-E Regulation, which streamlines the path toward final approval in December 2026. Because these projects provide cross-border benefits, they are eligible for a “blended” financing model. This includes state budget allocations, private investment from promoters like Statkraft and KOSTT, and significant support from European Union grants and loans.

As the Western Balkans move away from coal and toward a renewable-heavy mix, these projects—Moglice’s storage, the 220 kV rehabilitation, and the 400 kV corridors—form the essential hardware of a modernized, secure, and decarbonized European energy market.

February 12, 2026
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INOVA Launches €25m Green Grants for SMEs in North Macedonia

North Macedonia’s Agency for Innovation, Scientific and Technological Development and Entrepreneurship has launched a grant program to support small and medium-sized businesses investing in environmental protection and sustainability.

The green business support program for 2026–2030 is valued at €25 million, with €22 million earmarked for direct subsidies, according to the agency (INOVA). Eligible companies can receive between €5,000 and €300,000, provided they co-finance 20% to 50% of the investment, depending on the project type.

The European Union is providing €18 million, while the remaining funding will come from the Government of North Macedonia.

At least 300 companies expected to benefit

INOVA said it expects to support at least 300 companies, focusing primarily on micro, small, and medium-sized enterprises, particularly in manufacturing, while remaining open to applicants from other sectors. The program is designed to back projects that reduce CO₂ emissions and waste and increase the use of renewable energy, with a particular emphasis on solar power, the agency noted.

Through public calls, businesses will be able to apply for technical and advisory assistance, standardization support, and financial backing for the purchase of equipment, deployment of new technologies, and development of new products.

INOVA expects the first public call around mid-year.

Previously, the agency said the initiative would be implemented through three instruments: green startups (grants up to €40,000), green modernization (up to €150,000 per beneficiary), and transformation of industrial systems (subsidies of €300,000 per beneficiary).

Officials frame program as competitiveness and climate action measure

INOVA CEO Daniela Dimovska said the initiative offers both financial and expert support to companies investing in sustainable, environmentally friendly, and innovative solutions, describing it as a step toward an economy guided by long-term thinking and responsible action.

Daniela Dimovska, Hristijan Mickoski, and Michalis Rokas (photo: INOVA/Facebook)

Prime Minister Hristijan Mickoski said the program aims to help the country advance toward the climate neutrality goals set out in the Green Agenda for the Western Balkans, by strengthening the private sector and promoting sustainable business practices. He added that green transformation should be viewed not as a cost, but as an investment in economic resilience, environmental quality, and citizens’ well-being.

EU Ambassador to North Macedonia Michalis Rokas said the program is expected to stimulate innovation and the adoption of green technologies among SMEs, supporting a new stage of development that improves competitiveness and strengthens integration into EU value chains.

February 9, 2026
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Himara Opens EU-Funded Plant to Protect Ionian Sea

A year ago, the view from Argjileo hill told an uncomfortable story. Across the bay from Himara’s port, the Ionian Sea was visibly darkened by a plume of untreated wastewater flowing into the water. Today, that stain is gone—and so are the lingering signs of coastal pollution.

Himara has inaugurated a new Wastewater Treatment Plant, a major infrastructure upgrade designed to stop untreated sewage from reaching the Ionian Sea. Local officials and project partners say the facility is a decisive step for environmental protection, public health, and sustainable coastal development in one of Albania’s most visited seaside destinations.

EU and German Funding Drives a “Flagship” Coastal Investment

The plant was built under the Rural Water Supply Programme IV, financed by the European Union and the German Government, and implemented by KfW in close coordination with the Albanian Development Fund.

Ms Mara Drochner, Director of the KfW Office in Albania, said the project shows how targeted investments in water and sanitation can improve quality of life while protecting the environment. She added that the facility supports alignment with EU environmental standards, contributing to Albania’s broader EU accession path.

Capacity for 16,000 Residents—Expandable to 24,000Located outside the city on the site of a former septic tank, the plant currently serves a population equivalent of 16,000 residents. A second phase is planned to expand capacity to 24,000 inhabitants, reflecting Himara’s growth and seasonal influx.

Project Manager Endrit Mullalli from “PWT Wasser und Abwassertechnik” said the plant uses a fully biological treatment process that meets EU standards, removing carbon and nitrogen without relying on chemicals.

How the Treatment Process Works

The system follows several stages, starting with pre-treatment before biological purification begins:

  • Coarse screening: Mechanical screens remove large debris carried through the sewer system, such as bottles, wood pieces, and textiles.

  • Removal of fats and oils: Grease is extracted to prevent disruption to the biological process.

After pre-treatment, wastewater enters two large aeration tanks, where biological purification takes place through aeration and denitrification. In these tanks, bacteria and microorganisms (biomass) feed on organic matter, breaking down carbon compounds and enabling nitrogen removal.

Sludge Handling and Safe Discharge Into the Sea

Following biological treatment, the water moves into sedimentation tanks where sludge settles. The sludge is then thickened and mechanically pressed to reduce water content, creating a soil-like dry mass. It is transported to Pilur, Himara’s waste management site, where solar drying further reduces moisture.

According to Mullalli, the final sludge product can be used safely for fruit trees and flowers, but not for vegetables.

Before discharge, the remaining treated water undergoes a final step: chemical-free ultraviolet (UV) disinfection. The goal is to protect swimmers, marine life, and sensitive coastal ecosystems, including Himara’s Posidonia seagrass. The outflow is released at a depth of 25 metres through roughly 200 metres of underwater piping installed under the project.

Real-Time Monitoring With SCADA

The plant is monitored online via a SCADA system, supported by regular laboratory analyses. Sensors continuously track dissolved oxygen levels, while blowers are automatically adjusted through SCADA to maintain target values.

Sewer Network Upgrades and Pumping Stations Added

The project also rehabilitated and expanded Himara’s sewerage network, including:

  • New pressure and corrugated piping

  • Household connections and manholes

  • Septic tank improvements

  • Six pumping stations to channel wastewater to the plant

  • Electrical works and grid connections

  • Two vacuum trucks—one for septic tank emptying, another for cleaning and flushing

Built for Seasonal Tourism Peaks

Himara’s population surges in summer, and the plant is designed to match that demand. It treats a minimum of 1,800 cubic metres per day in winter and up to 5,000 cubic metres per day in summer.

It operates with two parallel treatment lines—one sufficient for winter operations, with both lines used during the summer peak.

Municipality: Cleaner Sea, Fewer Odours, Stronger Tourism

For the Municipality of Himara, the change is already visible. Thimjo Gjinuci, an administrator in the municipality, said the plant has eliminated sea pollution and unpleasant odours, helping improve the experience for residents and tourists alike. He noted that two nearby campsites now benefit from a cleaner environment.

The municipality plans to connect Livadh’s sewage system to the facility and is also considering smaller plants for Qeparo and possibly Dhërmi.