The government of Albania said on Wednesday it has approved a request of renewables developer Faethon, an indirect subsidiary of Greece’s energy group Heron, to build a 90 MW photovoltaic (PV) power plant in the southern municipality of Libohove.

Faethon must complete construction and begin energy generation within three years and can operate the plant for up to 49 years, during which it is obligated to donate 2% of its yearly energy output to the Ministry of infrastructure, the government said in a press notice.

Faethon was registered in Albania in 2022, under the full ownership of Heron II Thermoilektrikos Stathmos Viotias, part of the Greek electricity production-to-trade group Heron, according to the business register.

The decision specifies that "the right to build the generating source of photovoltaic electricity and auxiliary works, which is not the subject of a concession and does not benefit from support measures, in the cadastral area 2444, Libohovë Municipality, Gjirokastër District, granted according to these rules, can be transferred to a third party, only with the approval of the Ministry of Infrastructure and Energy.

Also, the company Faethon must submit periodically (every three months) to the Ministry of Infrastructure and Energy and the National Agency of Natural Resources information on the progress of the construction of the photovoltaic plant; To respect the conditions mentioned in the permits, licenses, and prior environmental authorizations, issued by the responsible national institutions; Submit the contract insurance, in the amount of not less than 5% of the investment value, before signing the contract between the company Faethon, sh.p.k., and the ministry.

This contract defines the rights and obligations of the parties for the realization of this project, the penalties, in case of non-realization, as well as other issues related to its implementation. Also, the company must give the amount of electricity to the ministry responsible for energy for free, in the form of royalty, at the rate of 2 (two) % of the annual amount of electricity production or its conversion into monetary value.

In case of conversion to monetary value, the amount must be paid entirely to the state budget; as well as fulfill the request, as the case may be, that a part of the production of the generating source of energy be sold to the public supplier, according to the legislation in force.