The Ministry of Infrastructure and Energy said it has issued for public consultation the new draft law “On the Electricity Sector”, a broad reform initiative that aims to completely re-conceptualize the functioning of the energy market in Albania and bring it closer to European Union standards.

The document envisages the creation of a functional, competitive and integrated market, guaranteeing a stable and secure supply of energy for consumers, more transparent prices and a gradual transition towards a low-carbon system.

At the core of the draft law lies the full alignment with the EU Clean Energy Package, reflecting the four main European acts on electricity.

Through this harmonization, Albania aims to fulfill its obligations under the Stabilization and Association Agreement and advance integration into the regional and European energy markets. This step is considered essential not only for meeting the integration criteria, but also for modernizing the sector and increasing investor confidence.

The draft law brings a significant change to the current model, moving from a more centralized system to a liberalized market, where the role of the state focuses on regulation, supervision and guaranteeing fair competition.

One of the main pillars of the reform is placing the consumer at the center of the energy system. For the first time, consumers are envisaged as active actors who can produce, consume and trade energy, benefiting from new models such as energy communities, dynamic price contracts and energy exchange between users.

At the same time, the draft law creates the basis for the development of modern energy markets, including the day-ahead market, the intraday market and the balancing market, which enable more transparent price formation and more efficient management of production and consumption.

Special attention is paid to the flexibility of the system, especially in the context of the growth of renewable sources, by providing mechanisms for balancing energy and ensuring reserve capacities.

Another important element is the support for decentralized energy production and new technologies, such as storage, digitalization and electromobility. The draft law aims to create conditions for the development of these sectors, by promoting innovation and increasing energy efficiency.

It also provides for the preservation of protection for categories in need, through regulated prices for households and small businesses, in accordance with European standards.

The reform also addresses the cross-border dimension of the market, by establishing rules for energy exchanges and regional cooperation. This integration is expected to increase security of supply and improve market efficiency, positioning Albania as a more active actor in the European energy system.

The adoption of the draft law is foreseen during 2026 and is supported by strategic documents such as the National Energy Strategy and the National Energy and Climate Plan.