Professor Lorenc Malka teaches at the Technical University of Tirana and is committed to the expansion of photovoltaic systems and energy storage systems in Albania. ©Malka
With abundant sunlight, Albania has the potential to diversify beyond hydropower. Professor Lorenc Malka explores how solar energy and storage could reshape the nation’s energy future.
Munich, 14. November 2025
Albania’s geographical location offers strong potential for photovoltaic deployment. Prof. PhD Eng. Lorenc Malka from the Energy Department at the Polytechnic University of Tirana provides insights into the current status, future scenarios, opportunities, and barriers for deploying photovoltaic power plants and Battery Energy Storage Systems (BESS) in the country.
Prof. Malka, what is the Energy Situation in Albania?
The electricity system in the Republic of Albania includes electricity generation, transmission, distribution, market operation, and trading. The goal is to provide electricity to both commercial customers and residential end-users. These activities are carried out by entities licensed by the Energy Regulatory Authority (ERE), in accordance with the amended Law no. 43/2015 “On the Electricity Sector.
What is the status on renewable energy?
On the supply side, Albania’s power sector is almost fully decarbonised, relying primarily on hydroelectric power, which accounts for approximately 95 percent of electricity generation. As of 31 December 2024, the country’s total installed electricity generation capacity is approximately 3,213 MW. This includes a 98 MW thermal power plant that never became operational due to a cooling system failure.
What is the grows of photovoltaics in recent years?
Total installed power increased by about 537 MW compared to 2023, mainly due to the addition of photovoltaic renewable energy sources. According to the 2024 ERE Annual Report, total domestic electricity generation reached 7,836,626 MWh. Of this, 4,371,085 MWh (55.7 percent) was produced by KESH sh.a, the Albanian Power Corporation, while 3,465,541 MWh was generated by other power producers.
How much PV capacity is installed in Albania?
In 2024, installed photovoltaic capacity reached 449.09 MW, with actual electricity generation amounting to 489.4 GWh. Of this, PV plants operating under feed-in tariff (FIT) contracts produced 67,700 MWh, while those participating in the liberalised electricity market generated 158,105 MWh. The remainder came from other plants.
Will electricity demand increase in the future?
On the demand side, total energy consumption in Albania has nearly doubled compared to 2005, with current usage around 24 TWh. The transport sector accounts for 38 percent, the residential sector for 25 percent, and industry for 20 percent; the remainder is consumed by other sectors. Fossil fuels dominate, making up more than 60 percent of annual national energy consumption. Annual electricity consumption includes both regulated and deregulated market segments.
Albania is well positioned for decarbonization with hydropower – so why photovoltaics?
Heavy reliance on hydropower makes Albania vulnerable to climate variability. In recent years, there has been a greater focus on diversifying energy sources, with the government actively promoting renewables. Solar is already well developed and feeding electricity into the national transmission and distribution network, while wind energy remains at an early stage. The installation of renewable energy sources—especially photovoltaics—has grown, particularly as support frameworks and policies have become more favourable to PV compared to other renewables.
The interview was conducted by Manfred Gorgus.
More Interviews on Albainia´s energy transition with Prof. Malka
- Prof. Malka: “Albania is advancing the liberalisation of its electricity market“
- Prof. Malka: „Solar energy as a key to balancing Albania’s power profile“