How the sun is changing Albania's energy map - Installed energy production capacities increased by 34% in four years
Albania's energy map has been changing rapidly in recent years. In just over four years, the country has added about 883 MW of generating capacity, but the most important transformation lies not only in the number of new megawatts but also in the change in their source.
From a system historically based almost entirely on hydroelectric power plants, Albania is gradually building a second pillar of energy production: solar.
If we analyze the periodic reports of the Energy Regulatory Authority, the data show that in 2021 Albania had about 2,605 MW of installed capacity. While at the end of 2025, the production capacity had reached about 3,475 MW, while in the first quarter of 2026, the installed capacity of all power plants reached 3,488.47 MW.
Compared to 2021, this represents an increase of approximately 34% in production capacity.
But within this growth, photovoltaics have had much stronger development.
In 2021, Albania had only 23 MW of photovoltaic capacity. In 2023, they reached 188 MW, in 2024, 449 MW, and at the end of 2025, 631 MW. Within just four years, installed solar power has increased about 27 times.
The growth is no longer just a capacity statistic, but is being directly reflected in production, as in just 4 years, solar energy production in total production has multiplied over 20 times.
Even the structure of capacities entering the system shows the new direction of investments.
Official data shows that the size of investments is also changing. In 2021, photovoltaics were mainly seen through small plants, often around 1–2 MW. In 2025, the system already includes parks of 20 MW, 50 MW, 100 MW and 140 MW.
So, the market has moved from small photovoltaic power plants to industrial-scale projects.
This change is also reshaping the country's energy geography. For decades, the production map followed mainly rivers and mountainous areas, where hydroelectric power plants were located. Photovoltaic investments are creating a different map, oriented towards areas with favorable radiation, suitable surface area and access to the electricity grid.
The significance of this change becomes clearer when comparing the years 2021 and 2025.
The year 2021 was extremely favorable from a hydrological point of view. In January alone, precipitation in the Drini basin reached 579 mm, about 3.3 times above the multi-year average.
In 2025 the situation was the opposite with dry conditions, with a lack of rainfall and flows below the multi-year average, which affected domestic production and increased the need for energy from abroad.
This is where the economic importance of expanding photovoltaics lies. Solar is not replacing hydropower, but it is reducing the system's absolute dependence on a single source and on the hydro cycle.
In fact, ERE itself noted in 2021 that the dependence of Albanian production on hydro resources created risk and required diversification of production sources.
Over the next 4 years, diversification is in the process of materializing.
Hydropower plants continue to be the basis of the Albanian electricity system and this is not expected to change in the short term. But the ratio between the two sources is changing rapidly.
In 2021, solar provided less than 0.5% of domestic production. In 2025, it provided about 11%.
This is why the development of recent years cannot be seen only as an increase in the number of photovoltaic panels. The sun has gone from a peripheral source to a component with real weight in the country's energy balance.
Albania does, however, have an important advantage: reservoir hydropower and photovoltaics can complement each other. During hours of high solar production, water can be stored in reservoirs, to be used when the sun is not producing or when demand is higher.
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