The year 2023 can be characterized as a positive year for Albania's energy sector, with domestic net production reaching around 8.8 million MWh, nearly 11 percent more than energy consumption. Over 58 percent of this production was provided by the Albanian Power Corporation (Known locally as "KESH").
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| The Albanian flag on a roof filled with photovoltaic panels |
Tasked with ensuring energy supply through both production and purchases on the open market, KESH acquired at least 561 thousand MWh during 2023. In total, the production and purchases exceeded 50 percent of the total consumption in the country.
To cover the necessary consumption, the Free Market Supplier (part of the OSHEE Group) secured energy from several sources. Firstly, from Selita, then a portion from priority energy producers connected to the OSSH network, another portion from priority producers in the OST network, a quantity from Ashta, and finally from the open market. In total, the Free Market Supplier purchased 3.17 million MWh of energy, with less than half going to cover losses in the network, Monitor reports.
Throughout the year, there were also several energy exchange or storage procedures with Kosovo, where, according to reported data from companies, KESH provided 1.79 million MWh of energy to KEK.
Independent energy producers, with significant investments in HPPs over 15 MW under concession contracts for energy sales in the open market, produced 1.2 million MWh of energy during the past year, equivalent to 13.7 percent of net domestic production. These include HPPs built by Devoll Hydropower, Ayen Enerji, and HPPs of Kurum, which were once owned by the Albanian government.
Overall, 2023 was a more relaxed year regarding the energy crisis, with significant price reductions compared to 2022. This situation led the government to end the state of emergency imposed at the beginning of the crisis in November 2021.
Energy production in the country continues to focus on hydro, making it vulnerable during unfavorable hydrological years. The crisis that began in 2021 gave impetus to solar energy projects, but achieving a diversification scale that guarantees energy security remains a distant goal.