Renewables

Albania selects winners of its first wind power auction

Albania selects winners of its first wind power auction

Photo: Belinda Balluku / Facebook

Published

July 26, 2023

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Published:

July 26, 2023

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TotalEnergies’ subsidiary Total Eren and Verbund from Austria are among the companies and consortiums that were declared winners of Albania’s first wind power auction. They have been awarded 222.5 MW in capacity, compared to the initial 100 MW on offer.

Albania’s Ministry of Infrastructure and Energy completed the country’s first auction for 15-year contracts for difference (CfDs) for power purchases from wind farms. Three bidders have been awarded a total of 222.5 MW in capacity, according to the European Bank for Reconstruction and Development, which participated in the preparation of the process. The public call was issued 25 months ago.

The ceiling price was EUR 75 per MWh, for projects of between 10 MW and 75 MW.

Lowest bid came from Total Eren, KMV

The best bid came from Total Eren and KMV, which participated as a consortium, Deputy Prime Minister and Minister of Infrastructure and Energy Belinda Balluku said. They are ready to install and operate wind turbines of 75 MW in total at EUR 44.88 per MWh. Of note, France-based TotalEnergies has just become the sole owner of Total Eren as it acquired the remaining 70.8%. KMV is an Albanian firm.

Turkish companies Güriş and Mogan Energy, which joined forces with a domestic enterprise called BRD Energy, have bid EUR 74 per MWh for a proposed investment of 75 MW.

Verbund from Austria came in third with EUR 74.95 per MWh for 72.6 MW. Actually, the three winners are the only ones that qualified for sending bids. There were 14 participants in the first round.

The initial quota was 100 MW, with a possibility to increase it to 150 MW. But Balluku explained that the government decided in the meantime that it would award even 250 MW or more for quality projects. In particular, the main goal was to make sure the investments would be implemented, she explained and noted that numerous permits have been issued for projects that are stuck.

A new factor was that investors needed to find land themselves, unlike in the two solar power auctions, Balluku stressed. In addition, eligible locations have been mapped.

Next auction is for 300 MW in solar power

“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,” said the EBRD’s Director for Sustainable Business and Infrastructure Gianpiero Nacci.

The Swiss State Secretariat for Economic Affairs (SECO) has provided funding for technical assistance as well as for work on regulations for renewables. It is also financing the upcoming 300 MW solar auction.

Voltalia from France came out on top in the previous two auctions, for utility-scale solar power projects Karavasta and Spitalla. The former is the biggest photovoltaic facility under construction in the Western Balkans. The company completed 50 MW so far of the project with 140 MW in nameplate capacity, Balluku revealed.

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