For the first time in the history of the energy sector, the installed capacity of private producers has surpassed that of public producers. Historically, the Albanian Electric Power Corporation (KESH) has led in terms of capacity, mainly due to the Drin cascade. However, the rapid acceleration of private investment, particularly in photovoltaic projects, made the difference in 2024.

According to official data from the Energy Regulatory Authority (ERE), the total installed electricity generation capacity in the country as of December 31, 2024, reached around 3,213 MW—an increase of 537 MW compared to 2023. This growth mainly stems from the expansion of renewable energy sources, especially solar power.

KESH’s production capacity is estimated at 1,563 MW, accounting for about 48.6% of the total installed capacity, while private producers collectively hold 1,650 MW, or about 51.4%. By comparison, in 2023, KESH had 1,448 MW—or roughly 56% of the total—while private producers had 1,183 MW, or 44%.

Since the introduction of the hydropower concessions policy in 2007, the installed capacity of private companies has steadily increased, largely driven by major investments such as those by Statkraft in Devoll, Ayen Energji of Turkey in the Fani cascade, and Verbund of Austria in the Ashta concession.

In recent years, the adoption of a legal framework for photovoltaic energy and proactive policies promoting resource diversification have reduced the country’s dependence on hydropower. Several large-capacity projects have already begun production, while others remain in the bureaucratic or construction phase.

Despite KESH’s strategy to expand its capacity and diversify its energy sources, private investments are expected to continue strengthening their dominance in the energy sector.