A 50MWp solar photovoltaic plant will be built in Albania with €39.2m in funding from the European Bank for Reconstruction and Development and the European Union.
The package includes a sovereign guaranteed loan of up to €30m from the EBRD to state-owned utility KESH, which generates nearly 65% of Albania’s electricity.
The EU is contributing an €8m investment grant and up to €1.2m in technical assistance through the Western Balkans Investment Framework.
Once operational, the solar plant is expected to produce over 70GWh of renewable electricity annually.
The project is also receiving preparation funding from Austria via the EBRD’s High-Impact Partnership on Climate Action.
The solar facility will help diversify Albania’s hydro-dominated renewable mix, which is vulnerable to dry periods and can force the country to import up to half its electricity.
According to Albania’s National Renewable Energy Action Plan, the country aims to raise non-hydro capacity to 640MW by 2030, with 490MW from solar.
KESH plans to incorporate training and incentives to promote female employment as part of the project.
To date, the EBRD has invested over €2.2bn in Albania across 166 projects.
