Feed-in Tariff

Updated: 02.02.2017

Author: Stefan Ćetković

The public utility is obliged to purchase electricity from renewable energy sources for a tariff set by the Albanian Energy Regulator (Art. 14 Renewable Energy Law).  The tariff is granted for 15 years.

Currently the tariff has so far only been set for small and medium hydro- power plants.

Eligible technologies

In general, all renewable energy sources are eligible. However, the tariff has so far only been set for hydro-power plants.

Hydro-power

Eligible are hydro-power plants up to 15 MW.

Amount

In general, all renewable energy sources are eligible. However, the tariff has so far only been set for hydro-power plants.

Hydro-power

In the period between 1 January 2017 and March 2017 the following tariff applies: Lek 7.448 per kWh (approx. € ct 5 per kWh)

Addressees

All legal and natural persons registered in Albania 

Procedure

Process flow

The construction of new generating capacities of up to 2 MW is approved the Ministry of Energy, whereas the generation capacities of more than 2 MW are approved by the Council of Ministers (Art. 49 Power Sector Law). 

Additionally, renewable energy capacities require the license granted by the Albanian Energy Regulatory Authority. The license is granted based on the technical and economic documentation together with the approvals from the relevant bodies including environmental permissions, water usage permission and permissions from TSO and DSO (Licensing Regulation). 

Producers from hydro power-plants of the installed capacity larger than 2 MW can also invest in the project through public-private partnership based on concession (Art. 5 § 1 (i) Law on Concessions and Public Private Partnerships) 

The renewable energy producers with the obtained license conclude a Power Purchase Agreement with the Electricity Power Distribution System Operator (Oshee sh.a.)

Competent authority

Ministry of Energy, Council of Ministers, Energy Regulatory Authority

Cap

Only hydro-power plants of less than 15 MW of the installed capacity are eligible for the support scheme.

Eligibility period

The power purchase agreements are signed for 15 years (Art. 14 § 2 Renewable Energy Law).

Distribution of costs

Consumers

The costs of the preferential tariff for electricity produced from renewable energy sources are borne by final consumers (Art. 3 § 1 (u) Renewable Energy Law)

Albania

Further information