Electricity production saw a significant increase in the first 3 months of this year, driven mainly by favorable hydro conditions. According to a newly published report by the Energy Community, production from hydropower plants in the country increased by about 70% compared to the same period a year ago, reaching 3.27 twh from 1.93 twh. This increase has directly impacted the increase in electricity exports to neighboring countries.

The data show that Albania has significantly expanded exports in all directions, including Greece, Kosova and Montenegro, achieving a net increase of about 1.2 twh compared to 2025.

A factor that has influenced this performance is also the structure of energy production in Albania, based almost entirely on hydro resources, which makes Albanian energy more competitive in regional markets. According to the report, this energy is not subject to the additional costs of the new European Carbon Bond Mechanism (CBAM), giving Albania an advantage compared to countries that produce energy from coal.

The increase in production and exports from Albania has also influenced the change in energy trade routes in the region, where part of Albanian energy is channeled towards European Union markets through Greece and other regional corridors.

However, the report warns that these developments are also accompanied by challenges for grid stability and regional coordination, due to the increase in cross-border flows and changes in energy trade patterns.