The successful bidders are Total Eren with a bid of €44.88/MWh for a capacity of 75 MW; Guris with a bid of €74/MWh for 74.88 MW; and Verbund with a bid of €74.95/MWh for 72.6 MW.
With Total Eren’s bid, the result marks another record price for the country and the Western Balkans region.
Albania launched the auction in 2021, with the Ministry of Infrastructure and Energy running the tender. The European Bank for Reconstruction and Development (EBRD) has helped the Albanian authorities introduce competitive procurement processes for renewable energy projects.
Gianpiero Nacci, EBRD Director, Sustainable Business and Infrastructure, said: “Albania has made remarkable progress towards meeting its renewable energy targets and implementing auctions. We are very pleased to have supported the first wind auction in the country with bidder-selected sites and look forward to launching the 300 MW solar auction. This success is a game changer for Albania, a testament to what can be achieved with the right policy framework and a government committed to delivering on their renewable energy targets.”
Ekaterina Solovova, EBRD Head of Albania, added: “We continue to be a strong partner to the Albanian authorities. We are proud to be the anchor financier of the Karavasta project, the first successfully auctioned solar plant in the country, and stand ready to continue leveraging financing for renewable energy, especially when we see solid and mature projects coming through as a result of sector reforms.”
The Swiss State Secretariat for Economic Affairs (SECO) has provided funding for the technical assistance that covers the new tender, as well as for work on energy sector regulation that will enable renewable energy sources to be deployed. SECO is also financing the upcoming 300 MW solar auction.
Albania has led the way in the region by successfully running renewable energy auctions to accelerate the use of renewable energy. Since 2020, Albania has awarded 240 MW of solar energy, with record low prices in the region, and 222.48MW of onshore wind. A further 300 MW of solar power will be awarded in the coming months. This brings the total capacity supported by the EBRD through the Renewable Energy Programme to over 460MW, which reflects about 20 per cent of the country’s current total transmission grid capacity. The EBRD is also working with the government of Albania to assess the country’s offshore wind potential, with the intention of further diversifying the energy mix, and continues to work on key improvements to the regulatory framework.
The EBRD Renewable Energy Programme is an important tool for driving systemic change by creating an enabling environment for the development of renewable energy projects and increasing private sector participation in Albania.
The auctions have attracted new and credible private investors and developers, both international and national, boosting the sector’s competitiveness. Since the first auction, the number of bids has increased significantly, with highly reputable international and national developers expressing interest in the process and the growth of renewable energy in Albania.
The Renewable Energy Programme has created a more supportive and stable regulatory framework and introduced transparent and competitive bidding processes for renewable energy projects.
As a result, Albania is benefiting from low prices of electricity sourced from renewables at a time of global disruptions and high prices.
The Bank has been helping Albania develop a sustainable and diversified energy sector through policy discussions with government, technical legal assistance and investment. It is a leading institutional investor in the country, having invested €2 billion in over 140 projects to date.