French renewables company Voltalia and the Albanian Government signed a contract for the construction, operation and maintenance of 140 MW solar power plant in Karavasta.
Voltalia is the winner of the tender launched in January. 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.
Minister of Energy and Infrastructure Belinda Belluku said earlier that Voltalia is expected to start the construction of the plant in November. The cost of the project is estimated to some 100 million euros.
Albania launched a similar tender for the construction of 100 MW solar power plant in southwestern part of the country in 2018. The Ministry of Energy and Infrastructure selected a consortium led by India Power Corporation as a winner of a tender. Estimated cost of the project is around 70 million euros. The winning bid provides electricity at the price of 59.9 euros/MWh for 50 MW installed capacity for 15 years, as well as additional 50 MW of installed capacity for which no subsidies apply. However, there were no activities related to this project in the past two years.