Albania, Government has decided to establish a sovereign fund worth 200 million euros in order to support state-owned energy companies

, SEE Energy News

Albanian Prime Minister Edi Rama said that the Government has decided to establish a sovereign fund worth 200 million euros in order to support state-owned energy companies amid rising energy prices.

According to him, the fund will provide loan guarantees to electricity distribution system operator OSHEE, in order to secure sufficient financial resources to buy electricity, guarantee uninterrupted supply, and protect households and small enterprises from rising energy prices.

Rama announced earlier that the Government has declared a state of emergency in the country’s energy sector. He warned that Albania is importing electricity at much higher prices than those at which it exports electricity. Since Albania’s electricity generation is almost 100 % hydro based, it imports electricity in times of drought and exports it during rainy periods, when it is much cheaper.