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Energy policy – Energy Country Profile

Energy Policy

The Ministry of Energy and Industry and the National Agency of Natural Resources (AKBN) are largely responsible for the energy policy in Albania.

A new energy strategy to 2030 was adopted in July 2018, which has three pillars:

  1. fostering market liberalisation
  2. accelerating regional integration (especially with Kosovo)
  3. investing in sustainable development

The renewable energy targets for 2020 have been adopted by the Energy Community Secretariat (ECS): Savings of 38% of gross final energy consumption. Also the carbon footprint should be lowered. Renewable energy policy leads to cumulative reductions of 15.3% in CO2 emissions till 2020. This goal will be accomplished by increasing renewable generation from hydro and wind power of the order of 1500 MW till 2020.

As a member county of the Energy Community, Albania is obligated to transpose the EU acquis, including rules for the internal gas and electricity markets, transmission and interconnections (Third Energy Package).

Electricity market

Albania is in the process of implementing the EU acquis on the electricity market. By transposing the European Directive 2009/72/EC Albania is introducing the gradual liberalisatin of the retail electricity market, the unbundling of the transmission system operation, the national regulatory authority, the supply of electricity and costumer protection.

In July 2016, the government adopted the market model for the regulation of the electricity market and a plan phasing out price regulations and enabling free trade on the market. The law was amended in 2018 to establish a dayahead electricity market and to remove barriers to the creation of a power exchange, and in May 2020 to improve its compliance with the EU acquis and
complete the unbundling of power transmission and distribution companies OST and OShEE.

Gas market

The new legistlation on the Natural Gas Sector, adopted in September 2015 introduced unbundling and certification requirements of transmission, distribution and storage. TAP bacame the certified Transmission System Operator. Albania has no wholesale gas market.

Source: Enerdata

Last update: 03 2021