Albania is advancing its renewable energy ambitions, with its latest 135 MW solar project auction, launched in February 2025, now in the evaluation phase. The winners are expected to be selected by August 2025, marking another significant step in the nation’s strategy to expand its solar capacity following several successful tenders.
Albania’s 135 MW Solar Auction for Albania solar projects
Albania’s latest solar project auction has garnered targeted interest, attracting three distinct proposals for a total capacity of 135 MW. A key feature of this auction, launched in February 2025, is that each utility-scale solar park is slated to be developed without subsidies, signaling strong investor confidence in the market. The Ministry of Infrastructure and Energy is currently evaluating the proposals, with the winners expected to be announced by August 2025.
This auction is a cornerstone of Albania’s broader strategy to boost its solar energy capacity and diversify its energy portfolio. The country has been actively promoting renewables to lessen its heavy reliance on hydropower, which currently dominates its energy mix. This diversification is crucial for enhancing energy security and contributing to global climate action, making the nation’s impressive 2025 growth essential for its long-term goals.
Successful Previous Auctions of Albania solar projects
This latest initiative builds on the success of previous rounds. In June 2024, Albania awarded a 100 MW solar power contract to the Turkish company Ayen Enerji. This move highlighted the growing Albania-Turkey renewable energy partnership. Ayen Enerji secured the bid with a competitive offer of EUR 0.03895 per kWh, outperforming other contenders.
The 100 MW project will be developed in the Karavasta area near the Adriatic coast. This location is already home to a landmark 140 MW solar project awarded to the French company Voltalia in 2020. Voltalia’s project was the first large-scale solar development in Albania, heralding a new era for the country’s renewable energy journey.
Karavasta and Beyond: Albania solar projects
The Karavasta solar project, developed by Voltalia, stands as a major success story for Albania. The project secured a 15-year power purchase agreement (PPA) with the Albanian government at a highly competitive price of EUR 0.02489 per kWh. This remarkably low tariff set a new benchmark for solar energy in the region and proved the economic viability of large-scale solar in Albania. Understanding the basics of solar panel manufacturing is key to appreciating how technological advancements contribute to such cost reductions.
The success of Karavasta has spurred further investment. The ongoing 135 MW auction is expected to attract more dedicated international and local players, further bolstering the country’s renewable capacity. This momentum is visible in other developments, such as a new 50 MW project that recently began in Fier County. The Albanian government has set an ambitious target of reaching 500 MW of installed solar capacity by 2030, and these transparent, competitive auctions are the primary vehicle for achieving this goal.
Growing Solar Capacity with Albania solar projects
Albania’s strategic pivot to solar is driven by several compelling factors. First, the country is blessed with abundant solar resources, enjoying high levels of sunlight throughout the year, which makes it an ideal location for photovoltaic power generation. The efficiency of converting this sunlight into energy depends heavily on the quality of solar panel raw materials used in production.
Second, expanding solar energy aligns with Albania’s commitment to reducing its carbon footprint. Increasing the share of renewables helps lower greenhouse gas emissions and supports global climate change mitigation efforts. The government’s consistent approval of new capacity, such as the recently greenlit 54 MW of solar projects, demonstrates this commitment.
Finally, solar energy development delivers tangible economic benefits. Large-scale projects create jobs, stimulate local economies, and attract foreign investment. They also contribute to stabilizing energy prices and reducing the country’s dependence on energy imports.
Future Prospects for Albania solar projects
The ongoing 135 MW solar auction is poised to provide a significant boost to Albania’s renewable energy sector. Although only three proposals were submitted, the subsidy-free nature of the projects indicates a mature and competitive market where bidders must offer highly efficient and cost-effective solutions to secure contracts.
The winners will be announced by August 2025, and the selected projects are expected to move into development swiftly. As Albania continues to expand its solar capacity, with several major solar projects awaiting final approval, it is solidifying its position as a regional leader in renewable energy and setting a powerful example for other nations in the Balkans.
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