Nine foreign and local companies were announced as winners in the hybrid auction hosted by Deputy Prime Minister – and Minister of Infrastructure and Energy – Belinda Balluku. As envelopes were opened, all eyes and ears were fixed on the commission members reading the quoted price and MW capacity offered by each bidder.
“Today is a very important day for the Albanian electrical energy sector as it is the crowning of a long and challenging work for one of the most important projects in terms of the direction and increase of energy security”, said Deputy Prime Minister and Minister of Infrastructure and Energy, Belinda Balluku.
The last four years have seen Albania kickstart the road to renewable energy. Today marked the third solar energy auction – two previous ones were awarded to the French company Voltalia which has an installed power capacity of 240 MW. To strengthen capacities at the Ministry of Infrastructure and Energy, EBRD and the Swiss State Secretariat for Economic Affairs SECO joined forces to provide technical assistance and introduce auctions as a way to move forward with renewable energy projects. Last year this resulted also in the first ever auction on wind energy projects in the country.
“I am happy that our successful partnership of the Swiss State Secretariat for Economic Affairs SECO with EBRD is contributing to increase Albania’s renewable energy production - both wind and solar - adding a total of 520 megawatt and thus aligning with the EU growth plan for 2024-2027”, said Swiss Ambassador Ruth Huber. “We encourage processes like this that meet the criteria of good governance, that consider the environmental impact, and that ensure diversification through new sources of renewable energy”, added Ambassador Huber.
The quoted energy prices by the bidders ranged from 39.7 Euro per MWh and 59.9 Euro per MWh achieving an average price of 51.3 Euro per MWh. All together the offers by the nine companies will construct and operate photovoltaic plants with a total installed capacity of 283.9 MW.
“Congratulations for the testimony of what a country like Albania can achieve by becoming a model for the region and beyond. This auction again shows how important it is to create a strong regulatory framework, a transparent process, and the long-term commitment of the government”, said the EBRD Director for Climate Strategy Delivery Gianpiero Nacci.
As a result of the new auction procedures, Albania has procured a total of 506 MW in renewable energy – wind and solar – which makes up 10% of the total energy production capacity in the country.
Utilizing auctions as an instrument to boost renewable energy has proven successful in many fronts. It puts to practice policies on sustainability and promotes transparency, fairness and a competitive process. Ultimately it is also cost-efficient and reduces energy costs for the citizen/consumer.
