Albania’s energy market is moving beyond its traditional dependence on hydropower, with private renewable generation, battery storage and a new gas-import strategy beginning to reshape the country’s investment pipeline.
Private and concessionary generators produced 2.38 TWh during the first four months of 2026, equivalent to 54% of domestic electricity output and, for the first time, more than state-owned utility KESH, which generated 2.03 TWh. Solar plants contributed more than 230 GWh, or approximately 5.2% of total production, with transmission-connected projects providing most of the new output.
The next group of projects will accelerate that shift. Türkiye-based Fortis Energy has moved its Ersekë development in Kolonjë into construction. The project combines 75 MWdc of solar capacity with a 25 MWh battery energy storage system and is expected to generate around 135 GWh annually. Germany-based Greencells Renewables has meanwhile received approval for a 96 MW photovoltaic plant near Kastriot in Dibër, involving 137,150 modules, 268 inverters and a development area of approximately 426,000 square metres.
The electricity build-out is being accompanied by a more ambitious gas strategy. AKTOR LNG USA and state-owned ALBGAZ have signed a reported 20-year, $6 billion supply arrangement covering approximately 1 billion cubic metres of US LNG annually from 2030. Initial deliveries would reach Albania through Greece’s Revythousa terminal and existing regional infrastructure, while Tirana develops a dedicated LNG and power complex at Vlorë.
The Vlorë plan includes a floating storage and regasification unit, a Fier–Vlorë pipeline and a gas-fired power plant of approximately 380 MW. Albania has also signed a memorandum with Eni covering strategic oil and gas reserves and the potential establishment of a new commercial energy operator.
The central investment question is no longer whether Albania can attract generating capacity. It is whether transmission infrastructure, market rules and balancing capacity can keep pace. The government’s proposed electricity law introduces new self-consumption arrangements and closer alignment with EU market legislation, but grid reinforcement and dispatchable capacity will determine whether the new solar pipeline improves security of supply or merely increases midday surpluses and import requirements after sunset.
