For years, Albania’s energy system has depended almost entirely on hydropower. Clean and domestic, it served as the backbone of national electricity supply. But as demand increases and climate risks grow, Albania is shifting toward a more balanced and sustainable energy model. The country is now entering a new phase — one that includes solar, wind, and international partnerships aimed at building long-term energy security.
Hydropower built the foundation — but it’s no longer enough
Hydropower has historically covered more than 90 percent of Albania’s electricity generation. The country’s rivers and mountain terrain made it a natural choice. But that strength also became a weakness. During dry years, electricity production drops sharply. Albania must then rely on expensive electricity imports to meet demand.
This vulnerability pushed the country to rethink its energy future. Rather than relying on a single source, Albania is now actively investing in new technologies and diversifying its renewable mix.
Solar power is leading the new wave
Albania receives a high number of sunny days each year, particularly in the south and along the coast. This makes solar energy one of the most promising additions to the national grid. In recent years, both large-scale solar parks and small rooftop systems have been developed across the country.
New solar projects are now being included in urban planning and tourism zones. Developers are also exploring hybrid systems for hotels, resorts, and off-grid properties. For private homes, solar panels are increasingly viewed not just as an upgrade, but as a smart long-term investment.
Wind energy is beginning to gain momentum
Until recently, wind energy remained untapped. But Albania’s coastline, mountain passes, and wide plateaus offer strong wind conditions — especially in the west and north. Early-stage projects are now under review, and some developers are already working on utility-scale wind farms.
Permits, infrastructure, and testing are still in development, but wind power is expected to become a major contributor to the country’s future energy mix. Combined with solar, it will reduce Albania’s seasonal dependence on rainfall and increase year-round production stability.
Key drivers of Albania’s renewable energy transition
Several factors are accelerating the shift toward renewable energy in Albania:
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The need to reduce dependence on imports during drought years
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Strong natural conditions for solar and wind development
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Government policies encouraging foreign investment and private sector participation
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Long-term energy export potential to neighboring countries
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Increasing demand for green infrastructure in tourism and real estate
These drivers are helping both public and private entities align around a shared goal — building a cleaner, more resilient energy system.
Infrastructure and policy challenges remain
Despite the progress, several challenges must be addressed. The national grid requires upgrades to handle the variability of solar and wind. Storage solutions, such as batteries or pumped hydro, are still limited. Regulatory frameworks are improving, but they must become more investor-friendly and predictable to attract large-scale international participation.
Rural permitting, land access, and connection costs are also areas that developers flag as obstacles. However, awareness of these issues is growing, and reforms are already underway.
A long-term opportunity for Albania’s economy
By developing its renewable energy sector, Albania can do more than meet domestic needs. It can create jobs, reduce reliance on fuel imports, and position itself as a green energy hub in the Balkans. With the right infrastructure and strategic partnerships, the country has the potential to become a net energy exporter in the region.
For investors, developers, and residents, this transformation also offers stability. Clean energy projects bring long-term returns, reduce exposure to price volatility, and improve sustainability credentials in both urban and rural development.