The European Union has granted 72 million euros to the Government of Albania to cope with the socio-economic consequences of the energy crisis.
These funds are part of the Energy Support Package, announced at the Western Balkans Summit in Tirana in December 2022, signed with the Government in March 2023 within the framework of the IPA Annual Action Plan 2023.
The package supports the Government in implementing measures to protect consumers in Albania from the impact of the energy crisis.
“Last year, the Russian aggression against Ukraine caused huge increases in energy prices around the world. This EU support package will directly benefit all household electricity users, and small and medium-sized enterprises in Albania, thus helping the Albanian Government to keep electricity prices stable and to diversify energy sources. This is a concrete example that shows how the EU supports Albania and the Albanian people,” said the EU Ambassador to Albania Christiane Hohmann through a press release this Thursday.
An additional 8 million euros will be transferred to Albania in 2024, in anticipation of the progress that will be achieved with the implementation of the relevant measures by the Government and the country does not have to return these grants.
An estimated 1 million households and 168,000 small and medium enterprises are set to benefit from these grants, which will also serve to provide financial assistance to some 11,200 people in need.
The package also supports the government’s efforts to diversify energy sources through new investments in win and solar power generation, new renewable energy legislation in line with EU standards and support schemes for consumers to install solar water heaters.
Other EU support for the energy sector in Albania includes the revitalization of the Fierza hydropower plant, the installation of a floating solar grid in Vau Dejës, as well as the support of energy efficiency measures in business through the IPARD program.
The European Union is Albania’s strongest foreign partner, offering over 100 million euros a year in financial aid in the form of grants to support the Albanian people and to help Albania adopt and implement key political, institutional, social and economic reforms to fully respect EU values and to progressively align the country with its regulations.
