The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have jointly announced a financing package of up to €39.2 million to support Albania's energy security strategy. The initiative centers on constructing a 50MWp solar photovoltaic plant in the country, aiming to optimize its energy mix which is overly reliant on hydropower. Under the agreement, the EBRD will provide a sovereign-guaranteed loan of up to €30 million to Albania's state-owned power utility KESH (Korporata Elektroenergjitike Shqiptare), which currently supplies nearly 65% of the nation's electricity. The EU will contribute an investment grant of up to €8 million and €1.2 million in technical assistance through the Western Balkans Investment Framework (WBIF).

Upon completion, the project is expected to generate over 70GWh of electricity annually, directly addressing Albania's energy shortages during dry seasons. Despite sourcing 95% of its electricity from renewables, the country's high dependence on hydropower forces it to import 50% of its electricity during drought years. This solar expansion will significantly enhance grid resilience and advance the objectives of the National Renewable Energy Action Plan (NREAP): achieving 640MW of non-hydro renewable capacity (including 490MW solar PV) and increasing the renewable share of total electricity generation to 54% by 2030. The Austrian Government provided project preparation funding through the EBRD’s High-Impact Partnership on Climate Action.

The project incorporates a social benefits mechanism, with KESH launching specialized training and incentive programs for female employment. As a key development partner in Albania, the EBRD has invested over €2.2 billion in 166 projects nationwide to date, continuously supporting the country's energy transition.
url:https://solarquarter.com/2025/08/06/ebrd-and-european-union-join-forces-to-strengthen-albanias-energy-security-through-strategic-investment-support/