Renewables

Albania declares eight winners at 300 MW solar power auction

Albania declares eight winners at 300 MW solar power auction

Photo: Belinda Balluku / Facebook

Published

July 10, 2024

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Published:

July 10, 2024

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The combined bids exceeded the available quota of 300 MW at an auction for CfD market premiums for photovoltaic projects in Albania. Still, the Ministry of Infrastructure and Energy awarded 283.9 MW. The lowest offer came in at EUR 39.7 per MWh, against a starting level of EUR 59.97 per MWh.

Eight consortiums won 15-year power purchase agreements (PPAs) today in Albania for their solar power projects as the Ministry of Infrastructure and Energy opened their bids. The difference from the past two successful competitive bidding processes for photovoltaics, for the sites of Karavasta and Spitalla, this time the investors were obligated to secure land rights themselves.

There were 14 applicants, of which nine sent valid bids. They exceeded the 300 MW quota, reaching 355.9 MW.

However, the ministry decided to set Voltalia’s bid for 70 MW aside as a reserve, awarding just 283.9 MW. The French company, which won the previous two tenders, offered electricity at 59.94 per MWh. Officials said the level was too close to the EUR 59.97 per MWh ceiling and pointed out that the proposed project would exceed the quota.

The lowest offer was just EUR 39.7 per MWh and the average landed at EUR 51.3 per MWh. The support will be in the form of contracts for difference or CfDs.

Solar power project sites are from Shkodra to Korça

Accepted projects are planned throughout the country, from Shkodra to Korça, Albanian media reported.

Solar Park Gjorica and Info-Telecom of the Gjonaj group and Turkey-based Adam Global Enerji won 35.6 MW at 39.7 per MWh. Their project is in Gjorica in Dibër. The second-lowest bid, 49.9 per MWh, came from Aga Solar and Notus Energy, for a 55.7 MW project.

Blessed Investment and Matrix Konstruksion passed with EUR 51 per MWh for 36 MW in capacity. Seman SunPower, General Electric and Agna won 10 MW with the same price.

Smart Gynesh Energy, Smart Energy Group and Erseka Solar were selected for two lots: 40.3 MW at EUR 53.53 per MWh and 20.2 MW at EUR 56.28 per MWh.

JGA consulting, Swiss Approval Albania, Eterna and Gr Albania secured 15.2 MW at a price of EUR 54.7 per MWh. Solar PV, Gr Albania, Enterprise Albania and RAB won 29.13 MW at EUR 54.8 per MWh.

A consortium comprising Kosovo*-based Eco Park Group, Birra Peja Vlorem Energy, Future Energy Trading and Exchange Dynamic is eligible for a 15-year CfD contract for 41.8 MW at a price of EUR 56.11 per MWh.

Network capacity study underway

Minister Belinda Balluku said the country’s strategy is to facilitate the installation of an additional 1 GW of photovoltaics “through clean, transparent and competitive procedures.”

Balluku: Albania is targeting 1 GW more in photovoltaics through its competitive procedures

The transmission network will very soon be stretched in areas with the new facilities, so the ministry will produce a study in the coming months on the available transmission and distribution capacities, she revealed. That way it will determine where other solar and wind power plants can be built, Balluku added.

The Karavasta photovoltaic park was officially commissioned in February and Spitalla is under construction, the minister pointed out.

* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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