Albania kicks off qualifications for 300 MW solar power auction

Albania invited investors to qualify their photovoltaic projects for an upcoming tender for 15-year contracts for difference. The available quota is 300 MW.

Deputy Prime Minister and Minister of Infrastructure and Energy Belinda Balluku presented the conditions for Albania’s fifth renewable energy auction since 2018 and the fourth one for solar power. The government guarantees contracts for difference (CfDs) for a 15-year period.

The maximum acceptable price is EUR 59.97 per MWh, so project developers with the lowest bids will be selected until fulfilling a total of 300 MW in capacity.

Albania needs solar, wind power to balance hydroelectric production

Balluku said the tender is aimed at contributing to the country’s aspiration to become a net exporter of electricity by 2030. It requires solar energy, as well as wind power, to balance domestic production. Namely, Albania still relies almost 100% on hydropower.

The difference from the past two successful solar power competitive bidding processes is that the investors need to secure land rights themselves. Both were won by French renewables developer Voltalia, which is about to officially put its Karavasta facility of 140 MW in operation within days, the deputy prime minister revealed. It is the largest photovoltaic facility in the Western Balkans.

Participants can place bids for one or more projects with a total capacity of between 10 MW and 100 MW. The upper limit was adopted to enable at least three winners, Balluku explained.

Don’t count on any delays in deadlines

The next step in the tender is an investor conference, scheduled for March 14. Potential bidders need to send qualification documents by April 5. Technical and financial offers will be received by May 17, Balluku also said and stressed the deadlines wouldn’t be postponed.

The ministry said it would publicly open the offers on July 10, when it should announce the winners, too.

Of note, the project selected in the first solar power auction in Albania never got off the ground. The previous auction was the first one for wind power.