The Parliament approved on Thursday, with only the majority votes, the draft law for the ratification of the loan agreement between the Republic of Albania and the German development bank KfW, for the rehabilitation of the Fierza hydropower plant.

The agreement provides for a loan of Euro 40 million, which will be used for the electromechanical rehabilitation of the Fierza hydropower plant, with the aim of increasing the safety and efficiency of energy production from renewable sources.

The interventions will improve the technology of the equipment, increase the reliability of the operation of the hydropower plant, and extend its service life by at least 30 years.

The new financing is added to previous support for this project and aims to implement additional rehabilitation interventions identified during technical assessments carried out by international experts.

The project for the rehabilitation of the Fierza hydropower plant is expected to be implemented by the Albanian Electric Power Corporation (KESH), and the works are expected to be completed in July 2030.

The Fierza hydropower plant in Albania, run by state-owned electricity producer KESH, is set to be upgraded to boost output by at least 10%.

The second-biggest hydropower plant in Albania is about to extend its life by at least 30 years. The Fierza facility, which was built in 1980 with an installed capacity of 500 MW, will have its turbines 1 and 3 overhauled and all four generators reconstructed, which is envisaged to boost output by at least 10%.

The system’s reservoir has a volume of 2.7 billion cubic meters, of which 2.3 billion is used, according to data on KESH’s website.

United States–based Bechtel earlier won a contract to build a hydropower plant, Skavica, upstream in the country’s northeast, near the border with North Macedonia. It is also one of the green agenda projects for the region. The company is working on feasibility and social and environmental impact studies.

Albania is almost entirely dependent on hydropower for its domestic electricity production, which makes it vulnerable to changes in hydrological conditions. The government has high hopes for the deployment of wind and solar power plants.