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.
Solar Macedonia president: “Quality standards are key to sector growth”
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”
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
Gas wird nach Ansicht von Fachleuten eine zentrale Rolle in der polnischen Energiewende spielen.
Bei einer Debatte unter dem Titel „Polens Energiezukunft und die Rolle von Gas“ am Dienstag dem vierten November im Pressezentrum der Polnischen Nachrichtenagentur PAP betonten Vertreter von Regierung und Energiewirtschaft, dass Gas zum einen Übergangsbrennstoff sei, zum anderen auch Stabilisator des Energiesystems sei.
Gas – Kernkraft – erneuerbare Energien
Vertreter des Energieministeriums erklärten, dass Polen sich in einer Phase der Transformation befinde. Derzeit arbeite man am Nationalen Energie- und Klimaplan, der die Ziele für 2030 und 2050 festlege. Neben dem Ausbau erneuerbarer Energien und der Vorbereitung des ersten polnischen Kernkraftwerks spiele Gas eine wichtige Rolle, um die Versorgung in der Übergangszeit – bis zu 100 % Erneuerbare und Kernkraft – zu sichern und die Abhängigkeit von Importen vor allem aus dem Osten zu verringern. Das Ministerium plant, bis Ende des Jahres ein Strategiepapier fertigzustellen, das die Grundlage für Maßnahmen zur Versorgungssicherheit und Wettbewerbsfähigkeit schaffen soll..
Energieunternehmen mit konkreten Plänen
Der staatlich kontrollierte Energiekonzern PKN ORLEN S.A. (ORLEN) plant, bis 2035 Gaskraftwerke mit einer Gesamtleistung von 4,3 GW zu errichten. Weitere 12,8 GW aus erneuerbaren Quellen sollen bis dahin fertiggestellt sein. TAURON Polska Energia S.A. (TAURON) arbeitet an Wasserstoffprojekten. Dalkia Polska, die polnische Tochtergesellschaft des französischen Energiekonzerns EDF (Électricité de France), ist auf Fernwärme, Energieeffizienz und lokale Energielösungen spezialisiert und setzt für die Zukunft auf eine Kombination aus Gas, Biomasse und Wärmepumpen.
Gas nur als Brücke
Die Experten waren sich einig, dass Gas in den kommenden Jahren eine Brückenfunktion übernehmen wird. Gaskraftwerke gelten als vergleichsweise saubere Energiequelle, die Polen auf dem Weg zu einer klimaneutralen Energieerzeugung eine stabile Stromproduktion in einem zunehmend volatilen Energiemarkt gewährleisten soll. Sollte das polnische Kernkraftwerk gebaut und an das Netz gehen, könnte es die stabile Komponente in der künftigen Energieerzeugung darstellen. (mg)
RWE baut in Gundremmingen einen Batteriespeicher mit 400 Megawatt Leistung und einer Speicherkapazität von 700 Megawattstunden. Der neue Großspeicher nutzt die Netz-Infrastruktur des ehemaligen Kernkraftwerks, was großer Vorteil bei der Umsetzung des Speicherprojektes sein dürfte.
Das Unternehmen investiert rund 230 Millionen Euro in das Projekt. Der Baustart wurde am 29. Oktober 2025 mit einem symbolischen Spatenstich im Beisein des bayerischen Ministerpräsidenten Markus Söder und RWE-Vorstandschefs Markus Krebber offiziell eingeleitet.
RWE plant, die Inbetriebnahme des Batteriespeichers Anfang 2028 abzuschließen. Nach Fertigstellung soll die Anlage dazu beitragen, kurzfristige Schwankungen im Stromnetz auszugleichen. Dafür werden rund 200 Container mit etwa 850.000 Lithium-Eisenphosphat-Batteriezellen installiert. Der Speicher wird Strom für knapp zwei Stunden mit voller Leistung abgeben können.
Integrationspartner ist H&MV Engineering, ein Unternehmen mit über 1450 Angestellten, das nicht nur im Bereich der erneuerbaren Energien, sondern auch als Energieversorgungsunternehmen und mit Datenzentren unterwegs ist. Durch die Übernahme der Skanstec Gruppe Anfang 2024 hat H&MV Engineering ist ein europaweit führender Anbieter von spezialisierten Planungs-, Ingenieur- und Baudienstleistungen mit 400 Mio. € Umsatz mit 22 Standorten im EMEA-Raum entstanden.
Auf dem Gelände in Gundremmingen sind laut RWE weitere Energieprojekte vorgesehen, darunter ein Solarpark und ein neues Gaskraftwerk. Der Solarpark darf als Ergänzung zum Großspeicher verstanden werden. Das Gaskraftwerk wird fossile Brennstoffe nutzen und ist technisch als Backup für erneuerbare Energien gedacht. (mg)
Founded in 2020 in Warsaw, Menlo Electric has maintained a strong international focus from the very start, with 75% of its business taking place outside of Poland. Menlo Electric CEO Bartosz Majewski shares how the Poland-based distributor navigates a turbulent global solar market, tackling falling prices, declining residential demand, and fierce competition while maintaining capacity for future growth.
MUC 21.02.2025
Menlo Electric has grown rapidly in global solar and storage distribution. Can you share more about the company’s history?
Menlo Electric was founded in late 2020, initially as a subsidiary of an installation company. From the very beginning, our goal was to build an international distribution business, operating across multiple markets. This strategy was designed to mitigate the impact of fluctuations in demand within any single market, ensuring long-term stability and growth.
Did the strategy work?
It allowed us to expand rapidly, despite a market slowdown in Poland after net metering was phased out in Q1 2022. In 2021, we sold nearly 200 MW of solar components. The following year, our sales tripled to 600 MW, and in 2023, we reached 900 MW. Last year, we surpassed 1.3 GW of components sold. To put it in financial terms: in 2021, our revenue stood at €50 million, growing to €150 million in 2022. Over the past two years, despite the drop in component prices, our revenues have remained stable as we continued to grow in volumes.
What are Menlo’s main markets?
We are primarily active in Europe, the Middle East, and Southern Africa, with an emerging presence in the United States.
How have you experienced the sharp decline in component prices in recent years?
Module prices did decline at an unprecedented pace, at times falling by 30% per month, as seen in mid-2023 and again towards the end of 2024. Battery and inverter prices also plummeted. According to Bloomberg, battery prices declined in 2023–2024 at the fastest rate since 2017.At the same time, the European residential solar market contracted significantly. According to data from SolarPower Europe, residential installations in Europe shrunk by 30% in volume. When factoring in the impact of falling component prices, the market declined by more than 50% in value.
Can you share a concrete example of the impact of this slowdown?
For example, SolarEdge, a key manufacturer in the inverter and storage market, saw its quarterly sales drop from nearly $1 billion to approximately $200–250 million. As distributors and installers rushed to liquidate their stock in a shrinking market, intense competition drove selling prices significantly below purchase cost.
But the market for commercial PV and solar parks has picked up in Europe. Couldn’t that compensate for the lost share in the residential sector?
For modules, the impact was somewhat mitigated, as many of the same products can be used across both: residential and commercial & industrial (C&I) installations. However, the situation was far more severe for inverters and batteries, which are typically specifically designed for residential use and cannot be economically or technically repurposed for C&I applications.
A perfect storm, it seems?
Market contraction led to a huge oversupply, leaving many distributors struggling to unlock capital from their inventories, which in turn created cash flow challenges. As a result, several distributors faced serious financial difficulties.
Menlo Electric is active internationally. Did your strategy not allow you to compensate for problems in some markets with growth in others?
Interestingly, similar trends emerged simultaneously in different parts of the world, although for different reasons: In the United States changes to net metering regulations in California led to a sharp slowdown in the residential solar sector, putting U.S. distributors in a situation very similar to their European counterparts. In South Africa the residential solar market contracted significantly as ESKOM effectively addressed load shedding issues. By late 2023, power outages were already reduced, and by the first quarter of 2024, they were virtually eliminated. This removed a major driver for residential solar demand.
What’s the solution to this situation?
This intense crisis has actually driven increased cooperation between companies that previously operated purely as competitors. In the current market, distributors are buying and selling components among themselves across different regions, trying to rebalance supply and demand for various solar and storage products.
How have your suppliers, i.e. manufacturers, reacted to the crisis?
According to our experience manufacturer support has fluctuated. Particularly in the second half of 2024, when it became clear that the downturn was more prolonged than many had anticipated, several manufacturers scaled back or put on hold their support mechanisms for distributors. This has added further strain to an already difficult market.
Sounds like tough times and market consolidation
Overall, the industry is undergoing a significant reshuffle. Some distributors are reducing their international footprint, while others have gone out of business entirely. The coming months will likely bring further consolidation, as companies adapt to the new market realities.
How has the crisis hit Menlo Electric and how is it being dealt with?
It should come as no surprise that Menlo Electric has been significantly affected by the current crisis. As one of the youngest and fastest growing companies in this sector before the downturn, we did not have the time to accumulate substantial earnings that could serve as a financial cushion during such turbulent times. As a result, we have had to adjust our strategy, expanding our portfolio, focusing on key markets and increasing sourcing from other distributors across Europe. This approach allows us to remain agile while navigating the current market conditions.
So, what is your outlook for the future?
We remain optimistic about the future. Back in late 2020, Menlo was a company that could fit into a single room. In just three years, we scaled to €150 million in annual sales across four continents. I see absolutely no reason why we won’t rebound and return to our growth trajectory once the market stabilizes. Our priority now is to protect the foundation we have built over the past four years and position ourselves for renewed growth as soon as market conditions allow.
What key challenges did you face when expanding globally?
Running an international business in Poland, especially when expanding beyond the European Union, comes with unique hurdles. One of the challenges we experienced was finding a banking partner that could support our operations not only in Poland and Europe but also in key markets like the Middle East and South Africa. We quickly realized that there were only two banks with the necessary global footprint and presence in Poland. Fortunately, we were able to establish a strong partnership with one of them, HSBC Poland. It has provided us with tremendous support and flexibility over the years. The same applies to our partner KUKE, an insurance company belonging to Polish Development Fund Group. It has allowed us to extend insured credit limits to our clients not only across EU, but also e.g. in Ukraine and Southern Africa. With this kind of support, we will continue to build Menlo’s international presence.
Even though Menlo is internationally oriented, how do you see the future of the Polish PV market?
PV sales will remain stable for large systems. In my opinion, we will see more and more installations of energy storage in the residential market soon. The Polish electricity grid is a problem that needs to be addressed. It was and still is in a bad state and its rapid improvement is necessary for a further and sustainable expansion of photovoltaics.
