Albania, EBRD to provide 28 million euros loan for Karavasta solar power plant

, SEE Energy News

The European Bank for Reconstruction and Development (EBRD) said that it is considering extending a loan to French renewables company Voltalia worth 28 million euros for financing the construction of 140 MW Karavasta solar power plant in Albania.

Voltalia has launched the construction of the plan in July. The company will sell half of produced electricity under a 15-year contract to the Albanian electricity distribution company OSHEE, thus meeting the demand of 220,000 Albanian citizens and preventing the emission of 96,500 tons of CO2 per year into atmosphere. The other half will be sold to private operates via PPA agreements.

The construction of the 140 MW solar power plant is expected to be completed in the second half of 2023.

In August 2020, the Albanian Government signed a contract for the construction, operation and maintenance of 140 MW solar power plant in Karavasta with Voltalia, winner of a tender launched in January same year. The company is obliged to sell half the electricity produced at the solar power plant to Albanian electricity distribution company OSHEE at the price of 24.89 euros/MWh for a period of 15 years, less than half the price ceiling of 55 euros, while the remaining half will be sold in the market. The concession agreement is valid for 30 years.

In early 2021, Voltalia also won the concession for the construction of 100 MW solar power plant near Durres.