Malka outlines how Albania’s PV sector is still in an early development stage but has gained momentum in recent years, supported by improved policies and growing investor interest in small-scale solar projects – with significant potential ahead. © Malka

Albania’s reliance on hydropower causes supply-demand imbalances. Prof. Malka highlights photovoltaic, storage, and investment incentives as key to diversifying the electricity mix and unlocking new business opportunities.

Munich, 19. November 2025

Albania’s power system relies heavily on hydropower, leading to mismatches between supply and demand. Solar PV is emerging as a promising solution, with storage, incentives, and new policies seen as key to expanding clean energy capacity. In the second part of the interview, Prof. Malka explains how photovoltaics could help improve the situation and what opportunities Albania offers for PV.

What is the energy consumption like in Albania?

In 2024, total electricity consumption in Albania reached 8,170 GWh, up from 7,875 GWh in 2023. Imports ranged from 931 GWh to 3.0 TWh, depending on precipitation and weather, as the power system relies mainly on hydropower. The generation profile does not always match consumption, a situation that could be improved by further diversifying electricity generation with renewables.

How has the PV sector developed over the past five years?

The PV sector in Albania has evolved considerably in the past five years. Compared to hydropower and other conventional sources, it remains at an early stage, but significant potential exists given Albania’s solar resources. Initial integration was slow due to regulatory and, to some extent, financial barriers. Since the introduction of supportive policies and incentives in 2015, the environment has improved, especially for investors in projects up to 2 MW.

Conditions for photovoltaics have improved. What about energy storage?

Albania’s electricity sector lacks sufficient battery energy storage systems (BESS), so large amounts of off-peak and surplus electricity cannot be stored for later use. At the same time, transmission capacity expansion is not keeping pace with peak load growth, leading to bottlenecks. This could create significant uncertainties for PV expansion over the next five years and further increase non-exportable electricity volumes.

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Is energy storage crucial for the success of PV in Albania?

According to our study, “Energy Storage Benefits Assessment Using Multiple-Choice Criteria”, integrating BESS will play a crucial role in stabilising the national grid, delaying investment in power lines, creating arbitrage opportunities, resolving grid congestion, and facilitating PV integration. Battery storage systems are expected to significantly boost PV shares over the next five years, particularly in regions with high installation density, such as Fier.

What role do subsidies play in PV development in Albania?

Subsidies and financial incentives are key drivers for PV deployment, not only in Albania. By making projects more attractive and financially viable, especially in the early stages of market development, subsidies help accelerate PV adoption.

What specific funding opportunities exist in the country?

Previously, the main legal framework for renewable energy in Albania was Law no. 7/2017, “On Promoting the Use of Energy from Renewable Sources”, which partially aligned with EU Directive 2009/28/EC. This has now been replaced by Law no. 24/2023, partially aligned with EU Directive 2018/2001.

What improvements does the new law bring?

The new law cannot yet be considered fully operational, as several key provisions still require further development through secondary legislation to be issued by the Government of Albania, the Ministry of Infrastructure and Energy (MIE), and the Energy Regulatory Authority (ERE).

Interviewer: Manfred Gorgus

More Interviews on Albainia´s energy transition with Prof. Malka

• Prof. Malka: Solar Is the key to reducing Albania’s hydropower vulnerability
• Prof. Malka: “Albania is advancing the liberalisation of its electricity market”