Electricity generation in Albania is dominated by large hydroelectric facilities, contributing to over 85 percent of total electric capacity. Although Albania has been a net exporter of electricity in the past, over the last 5 or 6 years the country has relied on imports. There is a state-wide effort to reduce electricity shortages and excessive demand by implementing strong penalties against theft and defaults by consumers.
In general, renewable energy data for Albania is limited. At this time there have been no regulatory incentives identified for the development of renewable energy projects. Due to in-country know-how and available resources, hydro appears to be the most promising resource for renewable energy project development. There is however, a concern to increase reliability in dry years when hydro power output is significantly reduced. Privatization seems to be the main driver behind small hydro rehabilitation and development.
Although Albania is in a somewhat favorable climate for solar development, it does not seem likely that there will be an emphasis on solar development in the near future due to its relatively high costs. There are numerous locations of low to medium enthalpy geothermal wells identified in Albania, but there are no known high enthalpy locations identified for electricity production. Sufficient wind data is not available to estimate the technical potential of wind energy, and the low electricity rates seem to hinder the economical development of wind energy. Incentives and interest in biomass renewable energy projects seems low at this point, although a significant technical potential was identified (17.5 TWh/yr thermal), perhaps enough for 600 MW of power generating capacity.
Country Profile and Notes
More information is provided in the country profile and country notes, including specific resource and energy sector information:
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