Albania: Albania Adopts New Support Schemes For Solar And Wind Power Plants

Last Updated: 23 January 2019
Article by Flavia Xhafo

Albania is almost entirely depending on hydro power as over than 95% of the electricity is generated by hydropower plants. This disbalance underestimated the great potential that Albania has in developing other sources of renewables, such as solar or wind power plants.

In February 2017, the Parliament approved the new law on Incentives for Using of Energy from Renewable Sources (the 2017 RES Law), which is partially aligned with the EU RES Directive No. 2009/28/EC, as part of the Acquis – an obligation Albania has as a potential candidate for accession to EU.

The 2017 RES Law establishes the broad framework for the auction mechanism and Contract for Difference (CfD) in future renewable projects. Currently, the state support in support schemes of RES in energy market in Albania is intended to be restructured for renewable energy sources and aims to replace the existing scheme of the feed-in tariff with a system based on CfD.

The new Albanian market model (approved pursuant to law 43/2015 "On energy sector" as amended), provides for the trading of energy from renewable sources, to the advanced/liberalized market aimed to be opened by means of establishment of the Albanian Power Exchange (intended to start from January 2019).

Auction process

The Albanian government has recently passed a resolution in July ("CMD 349/2018 on RES Support Schemes"), designating the means for promoting the use of energy generated from solar and wind power plants and which stipulates the procedures for electing the eligible projects to benefit from such means.

According to the 2017 RES Law, feed-in-premium tariffs for renewables with over 2 MW of installed capacity should be granted through a competitive auction process, on non-discriminatory, clear and transparent basis. Notably, the CfD will not apply to small RES facilities (i.e. projects with an installed capacity up to 2MW and 3MW in solar and wind energy respectively), as these projects are supported by separate measures.

Specific rules on how the auction process will be organised are broadly introduced in the CMD 349/2018 on RES Supportive Measures. It therefore remains to be seen whether the supportive scheme will help to create a suitable investment environment for RES projects in Albania.

Just recently Albania has opened the call for bids to build the Adriatic country's first solar power station, for a 30 years term, which can be renewed, intended to have an initial installed capacity of 50 MW (that will be subjected to the new designated support schemes), with possibility of extension to up to further 50 MW (that will not be subjected to the new designated support schemes). The financial criterion in this round of bids is designated as the decisive wining factor, as 30 points will be given to the company choosing to sell at a cheaper price to the OSSHE (power distributor system operator), securing a guaranteed buyer for the first half of the renewable 30-year-term.

Contract for Difference (CfD)

Under the 2017 RES Law, the main promotional measure is a specific form of a feed-in tariff termed contract for difference. The CfD can be characterised as a sliding feed-in-premium system, meaning that renewable energy producers will sell the electricity in the market and receive the variable difference between the auction price and the electricity market price (reference price) as a support measure.

The CfD will have a duration of 15 years. Interestingly, if prices in the electricity market go up and are higher than the auction price, the RES producers will be obliged to pay such difference.

The legal criteria of RES generation established by the Albanian Energy Regulatory Entity (ERE) provides that only the generators that fulfils the legal conditions might be supported pursuant to a CfD. The renewable technologies that will be acceptable for support according to CfD scheme include the following: (i) biomass transformation, (ii) wind in terrestrial boundaries, (iii) solar photovoltaics, (iv) hydro energy, (v) energy from the waste through CHP, (vi) gas from landfills and (vii) gas from the waste urban water.

Other supporting measures

The CMD 349/2018 on RES Supportive Measures provides for further support measures, including:

  • making available to the RES producer the immovable properties required for the project implementation;
  • priority access to the transmission and distribution grids; and
  • producers receiving a guarantee of origin for their produced electricity.

However, the RES producers will not receive support in the form of an assumption of imbalances responsibility, as they will be responsible for their own imbalances and will be required to conclude either a contract with the transmission system operator or to transfer the balancing responsibility to another responsible balancing party, thus becoming a member of a balancing group.

Applicability of supporting schemes in practice

The applicable target for RES share in gross final consumption of energy in Albania for year 2020 is 38 %. Given the great potential Albania has for the construction and operation of new solar or wind power plants, the new support scheme under the 2017 RES Law can be a valuable tool.

In practice, none of the schemes has been implemented, thus causing further delays in implementing the new legislation, mainly for the following reasons:

  • Necessary secondary legislation for net metering schemes, access to and connection with grid as well as guaranties of origins are not in place as yet (this and other documentation is to be drafted as part of an ongoing project financed by EBRD);
  • No CfD model has been drafted;
  • Market openness and establishment of Power Exchange is postponed to January 2019.

Finally, the actual implementation of the 2017 RES Law will highly depend on the real willingness of the Albanian government to promote RES.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions