Albania to establish renewable electricity operator

The government in Tirana approved the creation of a state-owned company that would purchase renewable electricity and sell it in the market. It will also be responsible for the green power support fund.

In line with the Law on the Promotion of Use of Energy from Renewable Sources, the Council of Ministers of Albania gave the green light for the establishment of OER, the renewable energy operator. The government-owned company will be tasked with buying electricity from producers with contracts for difference (CfDs) and paying them premiums.

Until now the responsibility was on the Free Market Operator, part of distribution system operator OSHEE. OER will purchase the electricity from wind and solar power plants that received premiums in renewable energy auctions, and sell it in the market. Of note, there is not a single wind turbine in operation in Albania yet.

In addition, the company will run the country’s renewable electricity support fund for CfDs and premiums for state-owned priority producers. Albania relies almost 100% on hydropower for domestic electricity production.

The renewable energy operator is obligated to propose the operating model for photovoltaics, wind power and hydropower based on the best practices in the European Union.

The initial capital is EUR 510,000, provided from the state budget reserve.

In other news, GreNNat Solar Park Ballsh received approval from the Energy Regulatory Authority of Albania to begin production from the first 25 MW out of 100 MW in total peak capacity. The rest of the facility in Fier county in the country’s south needs to be commissioned by January 11, 2028. The project firm is owned by Info Telecom-Alb Solar 3.