Albania is making significant progress in the energy sector, thanks to the steady growth of renewable sources and the implementation of a long-term strategy for the diversification of energy production.

According to the latest report on the electricity balance, during the first quarter of 2026, photovoltaic producers produced 254 GWh of energy, compared to 176 GWh in the same period of 2025, marking an increase of 44%. Currently, 10% of the country's energy comes from photovoltaic sources, compared to the situation four years ago, when Albania depended almost entirely on hydropower.

Over Euro 2 billion have been invested in the energy sector by private initiatives, mainly in renewable projects. Currently, the country has over 700 MW of private photovoltaic capacities in operation, as well as about another 400 MW of self-producers distributed throughout the territory.

Albania has a project portfolio that is expected to bring new renewable generation capacities to over 1,500 MW, using photovoltaic and wind technologies.

In parallel, over 1,600 MW of energy storage capacities are being considered, using pumped storage and battery technologies, which are currently in the study and financial evaluation phase. These capacities aim to increase the flexibility and stability of the energy system.

In solar energy, Albania has moved from pilot projects to large-scale plants.

According to long-term projections, by 2030, photovoltaic capacities are expected to be 1,500 MW higher compared to 2020, while wind power capacities will increase by around 700 MW. Photovoltaic energy production is expected to reach around 2 million MWh, or 25% of current consumption, while wind energy will provide around 1.4 million MWh, representing 17.5% of consumption.

In total, by 2030, around 45% of domestic electricity consumption is expected to be covered by photovoltaic and wind technologies, consolidating the transition towards a sustainable energy system.

In parallel, the government has approved an important change in the way of compensation for households and businesses that produce energy from solar panels. The new decision of the Council of Ministers foresees the transition from the current “net metering” scheme to the “net billing” model, starting from January 1, 2027.

The main change is related to the way of calculating the energy produced and consumed. In the new model, the compensation will no longer be based on kilowatts, but on the financial value of the energy.

This change is considered part of the harmonization of Albanian legislation with European practices and an important step towards Albania’s integration into the European Union.