Energy, tariff reform and new power plants — 2026-2028/ Energy poverty program, 600 MW of new capacities
The energy transition pillar, envisaged in the Economic Reform Program 2026–2028, aims to transform the sector, providing for a series of interventions to balance the needs for market efficiency, energy security, and social protection.
One of the most important interventions is the creation of an intraday market for electricity, which is expected to improve the functioning of the market and strengthen the institutional capacities of the actors participating in it. Currently, this market is operated by ALPEX, but the volumes of traded energy are very small. The connection of the Albanian market with neighboring countries and the EU market is considered as another key dimension of the reform.
Meanwhile, tariff reforms and care for vulnerable consumers occupy a central place in the process. Tariffs will continue to be adjusted towards market-based levels, while maintaining social protection. Specific programs to address energy poverty will include building renovation, energy efficiency equipment and small-scale renewable energy installations for vulnerable households.
The development of renewable sources also plays an important role in this transition. The new strategy aims to create a transparent auction system, which will provide clear signals for investments and ensure cost efficiency. The auction plan for at least 600 MW of new renewable energy capacities is designed to adapt to the development of the grid and the maturity of the market. According to estimates by the International Renewable Energy Agency, this investment represents around 914 million euros, while the economic impact during the first implementation period will be significant. The additional capacities are intended to be deployed between 2026–2027, being considered one of the most important macroeconomic drivers.
Meanwhile, energy efficiency reforms aim to address the sector's biggest challenges, particularly the need to renovate public and private buildings. The National Renovation Plan foresees investments of 117 million euros, while the annual target for building renovation is set at 3%.
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