Albania is entering a new era of energy production with its foray into wind energy. On Tuesday, the Ministry of Infrastructure and Energy successfully completed the first auction phase for the development of wind parks, announcing the selected winners to construct wind power plants in three distinct regions of the country. The winning bidders include the Austrian group Verbund AG, the Franco-Albanian consortium Total Eren SA & KMV, and the Turkish-Albanian consortium Guris Insaat ve Muhendislik AS & Mogan Energy Yatirim Holding SA & BRD Energy.
This significant step towards harnessing wind energy commenced in June 2021, when Albanian authorities, with the backing of the European Bank for Reconstruction and Development (EBRD), initiated the auction process. To aid potential participants, a comprehensive technical study conducted by international experts was provided, revealing optimal locations for wind parks in Albania based on wind speed and elevation. Armed with this analysis, all interested companies began their journey in this transformative process, according to Infrastructure Minister Belinda Balluku.
Initially, fourteen foreign and domestic companies expressed interest in the auction. These proposals were thoroughly assessed by experts from EBRD and the Ministry of Energy to gauge technical expertise, financial viability, and legal readiness to execute such ambitious wind projects, as emphasized by Deputy Prime Minister and Minister of Infrastructure and Energy Belinda Balluku. After a rigorous evaluation, six companies were qualified to proceed. These selected firms were then required to demonstrate their ability to execute their proposed projects within their proposed locations, secure necessary permits and rights to the land, and subsequently present their financial offers.
Finally, the winners were unveiled as companies that met all the stringent criteria. The public disclosure of their financial offers revealed the price at which they will sell the energy they generate, which will be entirely purchased by the Albanian state. Among the winners, the Austrian group offered a price of 74.95 Euro/MWh, the Turkish-Albanian consortium proposed 74 Euro/MWh, while the Franco-Albanian consortium, led by the French multinational Total, impressed with a notably lower bid of 44.88 Euro/MWh. The Ministry expressed satisfaction with the prices, highlighting that the “average price obtained from this procedure is much lower than the average prices obtained from similar auctions for wind energy”. The total capacity of the three proposed parks amounts to an impressive 222 megawatts.
This shift towards wind energy marks a significant advancement for Albania, whose energy production has historically relied heavily on hydropower, rendering it susceptible to weather fluctuations. In recent years, the country has also been promoting the construction of photovoltaic plants. Voltalia, the renowned French group, is on track to commence electricity production from a large park in Karavasta later this year and embark on another park’s construction in Spitallë the following year.
