Tackling energy poverty - Increasing investments in building insulation and efficient equipment for vulnerable households
The Economic Reform Program 2026 – 2028 foresees the implementation of policies to address energy poverty and care for vulnerable consumers.
According to the document published in the Official Gazette, several special programs will be applied to address energy poverty, such as building renovation, efficient equipment, and small installations of renewable sources for vulnerable households.
These policies are in line with the requests of the Energy Community Secretariat, which recently called for increased investments in energy efficiency, especially in the housing sector, where losses from lack of insulation and old equipment are among the highest in the region.
According to the Energy Community, Albania currently does not have an official definition and monitoring system for energy poverty, while existing policies are limited only to financial compensation schemes for families in need.
However, this approach is insufficient and does not address the problems related to the dilapidated condition of buildings, the lack of thermal insulation, and inefficient equipment that significantly increase energy bills.
Therefore, it was suggested that the country should create dedicated mechanisms to finance the reconstruction of depreciated housing, which make up the majority of the residential stock and are a main source of high energy bills.
Energy poverty is widely understood as the inability of households to maintain adequate levels of energy services at an affordable cost.
Meanwhile, according to the Energy Regulatory Authority, this concept in Albania is linked to the term client in need, while social assistance is the only means of continuous intervention through the state budget. According to official data, there are about 68 thousand families living on economic assistance and who are most at risk of falling into energy poverty.
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