Albania’s ERBD-supported 50-100 MW solar auction moves forward

Share

The EBRD and the Albanian Ministry of Energy and Industry (MEI) have launched an invitation for expressions of interest (CSU) for the implementation of the 50 to 100 MW solar auction they are planning in Albania.

Selected consultants will be tasked with the drafting of the secondary legislation and regulatory framework for the competitive procurement of solar PV projects in Albania, and the implementation of a competitive bidding process to procure 50 to 100 MW of solar PV capacity, the EBRD said.

The consultants should ensure that the secondary legislation and regulatory rules will lead to a bankable support framework, and that the bidding rules will reflect other factors such as, among others, the administrative capacity of institutions and the funding that will be available for covering the support provided to projects under the solar PV programme.

Interested consultants will have to submit their bids by January 31, 2018. The assignment, the EBRD specified, is expected to start in Q2 2018, and has an estimated overall duration of 24 months.

Albania’s Minister of Energy and Industry Damian Gjiknuri and EBRD head in Albania Mattteo Colangeli signed a memorandum of understanding for the launch of the auction in May.

This auction is one of several actions that the Albanian government implemented to support solar energy since it introduced a new renewable energy law, named Law on Promotion of the Use of Energy from Renewable Sources. It replaced the FIT scheme for renewable energy projects exceeding 15 MW, with the auction mechanism that the Albanian government is now implementing, and another support scheme providing incentives to PV and renewable energy projects up to 2 MW.

Under this second scheme, around a dozen of solar projects were submitted for approval to the local authorities. In early August, the Albanian energy regulator, ERE established that the regulated tariff for solar under the scheme for 2017 will be €100 ($117.8)/MWh, while for wind power it will be €76/MWh.

Albania’s total installed capacity at the end of 2015 totaled 1,895 MW, out of which 98 MW was from thermoelectric generation and the rest, around 95% of installed power, was from hydropower sources.