Albania to issue call for 300 MW solar power auction by June

In the first of the forthcoming three solar power auctions, Albania is offering power purchase agreements and contracts for difference for 300 MW in total capacity. The call is planned to be issued by June.

Albania intends to add 1 GW in solar power capacity through three competitive procedures, the Ministry of Infrastructure and Energy said in a notice and revealed that it plans to issue a call for investors by June for 300 MW in total. French company Voltalia won at the last two auctions and last year it started to build its Karavasta photovoltaic facility of 140 MW in peak capacity.

The tenders for Karavasta and Spitalla were held after the locations were determined. This time the participants will need to propose the sites within areas marked by the ministry as potentially suitable.

Investors must offer proof of viability for locations they propose

Eligible investors were told to prepare documentation proving the viability of the locations they chose and the right of ownership or use. The documentation includes evidence that a site is not in a no-go area and that it is suitable in sustainability terms.

Potential bidders need a transmission grid connection offer alongside an environmental and social impact assessment study – ESIA. The latter is required to be prepared in accordance with the most stringent criteria of the Albanian law, European Union environmental acquis and lenders.

Each developer can bid for up to 100 MW in total capacity

The deadline for the proposals is expected to be in October, the announcement reads. Successful bidders will sign a 15-year support agreement consisting of a power purchase agreement or PPA for period 1 and a contract for difference (CfD) for period 2, the ministry pointed out.

“The trigger to change from trading period 1 to trading period 2 is a positive decision taken by the ERE on the market readiness assessment, as determined based on the pre-defined conditions set out in the Renewable Energy Law,” the notice reads. ERE is the country’s Energy Regulatory Authority.

The ceiling price will be determined at a later date

Participation in the competitive procedure is restricted to a maximum of 100 MW total capacity auctioned per developer. The ceiling price will be determined at a later date, the authorities said. Potential investors will be asked to send the envelopes with their qualifications and the financial bid together inside another envelope.

In a separate competitive procedure, the ministry is set to open the bids next month for wind farms of 100 MW to 150 MW in total capacity. Six firms and consortiums made it to the second and final phase.