Promotion in Albania

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Updated: 05.02.2019

Author: Tim Sternkopf

Summary of support schemes

Feed-in tariff. Renewable power plants not exceeding a certain capacity are supported by a feed-in tariff.

Tender. A competitive bidding process sets a premium tariff, which is set between the energy supplier and the electricity producer, generating from renewable energy sources.

Net-metering. Private households as well as small and medium-sized companies are entitled to net-meter their production from renewable energy sources with their electricity consumption.

Tax exemptions. The machineries and equipment used for construction of new power plants including renewable energy are exempted from the custom duties. The fuels used by electricity producers including renewable energy sources are exempted from the excise tax.

Technologies

In general, all renewable energy sources are eligible. The feed-in tariff has initially been introduced for hydro-power plants and was extended to wind and solar power plants. The maximum capacity for a feed-in tariff is 15 MW for hydro, 3 MW for wind and 2 MW for solar power plants. For larger power capacity from renewable energy sources, a premium tariff is determined through a public bidding procedure.

Statutory provisions

  • Renewable Energy Law (Ligj No. 7/2017 për Nxitjen e Përdorimit të Energjisë nga Burimet e Rinovueshme - Law 7/2017 on Renewable Energy Sources)
  • ERE Tariffs for 2018 (Tarifat e miratuara nga ERE per periudhen 2018 - Energy Regulatory Authority (ERE) Tariffs for 2018) 
  • Power Sector Law (Ligj Nr. 43/2015 për Sektorin Energjisë Elektrike - Law 43/2015 on Power Sector) 
  • Decision on Methodology for Hydro Power Tariffs (Vendim Nr. 1003 pë miratimin e metodologjisj tt pptodologji tt tarifave fikse tt energjiss, q do tdo paguhen prodhuesve tt energjiss elektrike nga hidrocentralet - Decision on the approval of the methodology setting fixed energy tariffs, which will be paid to electricity producers) 
  • NREAP of Albania 2015-2020 (Plani Kombi of i Veprimit ppp Burimet e Energjisj ss Rinovueshme në Shqipëri 2015–2020 from hydro power - National Renewable Energy Action Plan of Albania 2015-2020) 
  • Licensing Regulation (Rregullorja për procedurat dhe afatet për dhënien, modifikimin, transferimin, rinovimin ose heqjen e licencave në sektorin e energjisë elektrike - The Regulation on the Procedures and Terms for Licence Issue, Modification Transferring, Renewal or License Termination in the Power Sector) 
  • Law on Concessions and Public Private Partnerships (Ligji 125/2013 “Për Koncesionet dhe Partneritetin Publik Privat” - Law 125/2013, on Concessions and Public Private Partnerships) 
  • Decision on Excise Tax Law (Vendim nr. 612 Për dispozitat zbatuese të ligjit “Për akcizat” - Decision Nr. 612 on Implementing Provisions of the Law on Excise Taxes) 
  • Power Capacity Construction Law (Ligji nr. 8987 ”Per krijimin e kushteve lehtesuese per ndertimin e burimeve të reja të prodhimit të energijse elektrike” - Law 8987 on Creation of Facilities for Construction of New Power Capacity 
  • Reimbursement Decision (Vendimi nr. 839 "Për përcaktimin e kushteve e të procedurave për rimbursimin akcizës së paguar dhe krijimin e kushteve lehtësuese për ndërtimin e burimeve të prodhimit të energjisë elektrike, me fuqi të instaluar jo mëpak se 5 MW" - Decision Nr. 839 on Defining the Conditions and Procedures for Reimbursement of Excise Tax and the Creation of Facilities for the Construction of New Electricity Capacities of up to 5 MW). 
  • Decision on Tariff Methodology (Vendim Nr. 369, datë 26.04.2017 për Miratimin e Metodologjisë për Përcaktimin e Çmimit të Blerjes së Energjisë elektrike të prodhuar nga Burimet e Vogla të Rinovueshme nga Dielli dhe Era - Decision No. 369 on the approval of methodology for the price of buying electricity produced by small renewable energy sources) 
  • Decision on Universal Service Price (Metodologjia e Përcaktimit të Çmimeve për Shitjen e Energjisë Elektrike me Pakicë tek Klientët Fundorë që Furnizohen nga Furnizuesi i Shërbimit Universal (FSHU) - Decision on Price Methodology for electricity retail sales by the universal service provider) 
  • ERE Prices Q1 2017 (Tarifat e miratuara nga ERE per periudhen 1 Janar 2017 - 31 Mars 2017 - Prices approved by ERE for 1 January- 2017 - 31 March 2017)

Albania

Further information