EU and EBRD Strengthen Albania’s Energy Security with Support for New Solar Power Plant
In a ceremony held in Tirana, attended by EU Ambassador to Albania Silvio Gonzato, Deputy Prime Minister Belinda Balluku, Austrian Chargé d’Affaires, EBRD Country Manager Ekaterina Solovova, and other senior officials, agreements were signed for the construction of the Belshi Solar Photovoltaic Power Plant.
- A new 50 MWp solar power plant will be built in Albania
- The EU is contributing up to €8 million in investment grants and €1.2 million in technical assistance
- The EBRD is financing the project with a sovereign loan of up to €30 million
- The total financial package amounts to €39.2 million
This joint investment by the European Union (EU) and the European Bank for Reconstruction and Development (EBRD) will bolster Albania’s energy security and diversify its energy mix. The 50 MWp solar photovoltaic plant will add significant renewable capacity to Albania’s grid, supporting the country’s transition to a more resilient and sustainable energy system.
Through the Western Balkans Investment Framework, the EU is providing an investment grant of up to €8 million, along with €1.2 million for technical assistance to support project implementation.
In his address, EU Ambassador Silvio Gonzato remarked:
"The European Union is a strong partner in Albania's energy transition. This project is part of our broader support to help the country align with the EU Green Agenda and for a greener, sustainable future — not just in energy, but also in transport, the environment and biodiversity,
He reaffirmed the EU’s commitment:
“The EU remains firmly committed to supporting Albania’s energy security and sustainability, while addressing climate change impacts and enhancing resilience.”
The EBRD’ sovereign loan of up to €30 million will be provided to Korporata Elektroenergjitike Shqiptare (KESH), Albania’s main state-owned power utility, which currently produces around 65% of the country’s electricity. Once operational, the new plant is expected to generate over 70 GWh of renewable electricity annually.
Despite Albania’s high share of renewables—around 95% of electricity production—the country relies almost entirely on hydropower. This leaves it vulnerable to drought and climate change, with electricity imports needed during particularly dry years, sometimes covering up to half of total consumption.
The Belshi project helps address this vulnerability by adding solar capacity and supports Albania’s Energy Strategy and National Renewable Energy Action Plan. Under the Action Plan, Albania aims to increase the share of renewables in total output to 54% by 2030, including 490 MW of solar PV capacity as part of a broader 640 MW target for non-hydro renewables.
The project is also backed by Austria, through funding for project preparation provided under the EBRD’s High-Impact Partnership on Climate Action. Additionally, KESH plans to integrate training programs and incentives to promote women’s employment in the renewable energy sector.