Businesses Increase Interest towards Solar Energy

The recent energy crisis has returned the focus of investors toward the solar energy. Businesses, especially those in the free power market, are rapidly installing photovoltaic plants to reduce the burden of the energy bill, with costs between 20-25 lek/kWh. 

Companies operating in the sale and installation of PV plants report an increase of demand between 35-60% in the last months. They urge the government to review the law on renewables, applying no longer the monthly measurement, but the annual one as a form of encouraging investment for self-production. 

The country had to buy Euro 213 million of energy on the free market to meet consumption demands from January to November. 

By all expectations, the crisis will not be transient, with estimates predicting high prices for at least two years. The situation has especially encouraged businesses in the free market to find alternative forms, to reduce the burden of high energy bills.

After a short stop which began with a law passed in 2017 "On renewable energy sources", which was dragged out by the missing bylaws, solar energy seems to be experiencing a new moment, this time driven by the crisis.

Despite the fact that several years have passed since the adoption of the law, the installed capacity of PV plants in the country remains low and production, in modest figures. The reason is that there are still some aspects in the law which, if regulated, would make the investment more profitable especially in terms of self-production.

The two large contracts that have been concluded with Voltalia for a plant in Spitalla and Karavasta, with installed capacities of 100 MW and 140MW, respectively, have not yet started the construction process. The Ministry of Infrastructure and Energy has said that currently, the contracts are in various stages.

Regarding the progress of the 140 MW PV project in Karavasta, the company has finalized the transmission line project of this plant and is identifying the properties affected by the construction of the transmission line. The company has complied with the provisions of the contract and construction of the plant is expected to begin in the spring of 2022.

Regarding the 100 MW photovoltaic project, in Spitalë, the Ministry and Voltalia are cooperating for the transfer of the project properties, as well as for the realization of the conditions for the effective making of the contract. The expected deadline is November 2021, the ministry told local news provider Monitor.