Auction Overview
Albania has recently concluded a key solar power auction, awarding 283.9 MW of capacity out of the 300 MW initially offered. This competitive event saw bids significantly exceeding the available quota, highlighting the robust interest and potential in the country's Renewable Energy sector. The Ministry of Infrastructure and Energy reported that a total of 14 entities submitted bids, with nine providing valid offers, showcasing a healthy competitive environment.
Competitive Bidding Results
The auction's results were remarkable, with the lowest bid recorded at EUR 39.7 per MWh, far below the starting level of EUR 59.97 per MWh. This competitive pricing emphasises the increasing efficiency and affordability of solar power in Albania. The average bid settled at EUR 51.3 per MWh, reflecting a strong market response and a promising future for solar Energy investments in the region.
Winning Bids and Power Purchase Agreements
Eight consortiums secured 15-year Power Purchase Agreements (PPAs) through this auction. Notable winners included Solar Park Gjorica, Infotelecom, and Adam Global Energy, which collectively will deliver 35.6 MW at the lowest bid rate of EUR 39.7 per MWh. Other winners, such as Aga Solar and Notus Energy, secured 55.7 MW at EUR 49.9 per MWh, further demonstrating the competitive nature of the auction.
Geographical Distribution and Strategic Goals
The awarded projects are carefully distributed across Albania, from Shkodra to Korça, ensuring a balanced load on the national grid and optimal utilisation of the country’s solar potential. This geographical spread is crucial for enhancing the resilience and efficiency of the Energy infrastructure. The Ministry of Infrastructure and Energy is committed to conducting comprehensive studies on current transmission and distribution capacities to support these new installations.
Future Developments and Sustainability
Albania aims to add 1 GW of photovoltaic capacity through transparent and competitive procedures, aligning with its broader strategy to diversify the Energy mix and achieve sustainability. Ongoing projects like the Karavasta Photovoltaic Park and the under-construction Spitalla Photovoltaic Park are part of this ambitious plan. By focusing on infrastructure enhancements and capacity studies, Albania is paving the way for a sustainable and independent Energy future.
Setting a Renewable Energy Precedent
This successful auction emphasizes Albania's commitment to expanding its Renewable Energy sector through competitive and transparent processes. By awarding nearly 284 MW of new solar capacity at highly competitive prices, Albania is setting a strong precedent for future Renewable Energy projects in the Balkans.
