Minister of Infrastructure and Energy Enea Karakaçi said on Friday that the next photovoltaic auction would be held no later than early 2027. He revealed that the competitive bidding process would include battery storage.

Karakaçi met on Friday with electricity producers, members of the Committee on Natural Resources, and heads of energy sector institutions to discuss new developments and the challenges posed by the rapid expansion of renewable energy capacity.

Solar power has climbed from almost zero to 11% of Albania’s annual electricity production within three years, Minister Karakaçi said.

The new electricity law, adopted in late June, facilitated the inclusion of battery energy storage systems (BESS) into renewable energy projects, the minister noted.

Producers can trade their electricity in the free market, at the Albanian Energy Exchange (ALPEX), Karakaçi pointed out. They can also choose between several energy products, he added.

According to the minister, the government is preparing, in cooperation with the European Bank for Reconstruction and Development, for another solar power auction. He expects it late this year or in early 2027. Karakaçi stressed that the competitive bidding process would, for the first time, include battery storage. It is a way to bridge the period between peak production around noon and the evening demand peak.

The ministry said a third solar park, of 70 MW, is about to be put into operation in the same area. The project was among the winners of Albania’s last PV auction.

The Energy Regulatory Authority (ERE) initiated the procedure in April to alter the licenses for several photovoltaic plants, including the existing two in Erseka, so that they add energy storage facilities.

The government intends to make Albania a net electricity exporter by 2030. Notably, Fortis Energy is building its own Erseka hybrid power plant at the village of Taç-Larta in the municipality of Kolonja. Erseka is the seat of the local authority. The Turkish company’s project is for a peak capacity of 75 MW of solar power and a 40 MWh battery energy storage system.

During the meeting, the minister expressed concern regarding the financing of these investments. “I emphasized that it is not fair for the entire burden to fall on Albanian consumers, especially considering that a portion of the generated energy is intended for export to regional and European markets. For this reason, we are examining models used in European Union countries,” said Karakaçi.