Investments in solar energy are growing significantly in Albania

Solar panels installed in Vau i Dejës
 Solar panels installed in Vau i Dejës
 Nearly a year after the start of construction of the solar energy park in the Karavasta area, the first rows of solar panels are being installed on the barren and salty land.

The activity is being carried out by the French company "Voltalia," and the Karavasta project is considered the largest foreign investment in Albania this year, with a construction volume of around $150 million, local media reports.

"In Karavasta, near the city of Fier, Voltalia is building a large photovoltaic park on approximately 200 hectares of land secured by the Government. We are installing a capacity of 140 MW according to a long-term concession agreement signed in 2021. Since 2022, we have been constructing this power plant, and it will deliver its first energy before the end of this year (2023). The plant will provide electricity to around 220,000 households," says Dr. Constantin von Alvensleben, the manager of Voltalia in Albania.

Solar panels being installed in the Karavasta
Solar panels being installed in the Karavasta 
Mr. Alvensleben further states that the company is expected to build another solar energy park in Spitallë, Durrës:

"Through a similar competitive tender process, Voltalia was also selected for a solar park in Spitallë, near the city of Durrës. This is also a very large project but still in an early phase. Construction will begin in 2024, and we aim to deliver energy in Spitallë by the end of 2025," says the representative of Voltalia in Albania.

When asked about the challenges and the future of this sector in Albania, Mr. Alvensleeben says:

"We believe that renewable energy will have a great future in Albania! The Government has set a target to cover 54% of Albania's total energy needs from renewable energy sources by 2030. This will require a large number of additional solar and wind energy projects to achieve this objective. However, implementing such projects comes with a series of challenges. Often, the biggest problem for a developer is finding suitable land and reaching an agreement with the landowner. Frequently, land ownership situations are unclear. Moreover, the permit granting processes can be time-consuming, which extends the project implementation timeline. In any case, we believe that Albania offers many opportunities, and with the government's support, further successful projects can be realized."

In an interview with Voice of America, Mr. Alvensleeben also discusses the importance of "green projects" for Albania:

"Our goal is always to minimize environmental impacts and achieve the most positive result possible for biodiversity. Likewise, we aim to minimize social impact. For both these components, the environmental and social aspects, we have our teams working with environmental and social experts who ensure that environmental impacts are limited," he says.

During the past year, the Energy Regulatory Entity licensed 22 new energy production entities. Fifteen of them belong to solar energy, with a production capacity of over 227,000 MW.

The number of photovoltaic plants reached 27 last year, but their production is still low at around 50,000 MWh of energy from a total of 7 million MW, which was the total energy produced in Albania in 2022.

Sadik Llapashtica, the coordinator of the solar panel project in Topojë, which has been in production for several years, says that the solar energy sector has gained priority.

"The solar energy market in Albania is progressing very well, also due to the energy crisis caused by the Russia-Ukraine war. This market is experiencing continuous growth. Many licenses have been granted for photovoltaic energy, and some of them have been operational this year, while others are in the process. This is a very positive trend for Albania, which helps increase renewable energy production capacities, which is the world trend today to preserve the global environment. This trend is very well supported by the Albanian government, the Ministry of Energy has taken steps to help local and foreign investors to invest in the Albanian market, given that Albania is also one of the countries with very good solar radiation," he says. .

Asked about the challenges of the solar energy production sector, Mr. Llapashtica says: "The challenges are now related to the increase in energy transmission capacities. Based on the fact that we are dealing with solar energy, which is limited from morning to evening when the sun goes down, investors should anticipate energy reserves because humanity needs energy not only during the day, but also at night. As is happening in the European and world market, investing at the same time in the development of solar panels and batteries is a path that ensures economic effectiveness in this market"

According to the Energy Regulatory Agency, the regions of Korça and Fier have the highest number of solar energy projects, while the use of panels in households or businesses is also being promoted recently.
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