Solar Energy Output Rises 44% as Albania Changes Compensation Model for Producers

Albania continues to expand its renewable energy sector. The country is increasing solar and wind production while reducing dependence on hydropower.

According to the latest electricity report, photovoltaic producers generated 254 GWh of energy in the first quarter of 2026. In the same period of 2025, they produced 176 GWh. As a result, solar energy output increased by 44%.

Currently, solar sources provide 10% of Albania’s energy. Four years ago, the country relied almost entirely on hydropower.

Meanwhile, private companies have invested more than 2 billion euros in renewable energy projects. Albania now operates more than 700 MW of private solar capacity. In addition, self-producers across the country contribute another 400 MW.

The government also plans major new projects. Officials expect renewable energy projects to add more than 1,500 MW through solar and wind technologies.

At the same time, authorities are reviewing over 1,600 MW of energy storage projects. These projects include pump storage and battery technologies. They aim to improve the stability and flexibility of the energy system.

In solar energy, Albania has moved from pilot projects to large-scale investments. The Karavasta Photovoltaic Park has an installed capacity of 140 MW. It stands among the largest solar parks in the region.

In the wind sector, Albania has started its first major projects. For example, [CWP Global](https://www.cwp.global?utm_source=chatgpt.com) plans a wind park in Tropojë with an expected capacity of 600 MW.

By 2030, Albania expects strong growth in renewable energy. Solar capacity should increase by 1,500 MW compared with 2020 levels. Likewise, wind capacity should rise by around 700 MW.

Experts expect solar plants to generate around 2 million MWh. This amount would cover 25% of current electricity consumption. In addition, wind energy could provide 1.4 million MWh, or 17.5% of consumption.

Overall, solar and wind technologies could cover 45% of Albania’s electricity demand by 2030.

At the same time, the government approved a new compensation model for families and businesses with solar panels.

Starting on January 1, 2027, Albania will replace the current “net metering” system with “net billing.”

Under the new system, authorities will calculate compensation based on the financial value of energy, not kilowatt balances.

As a result, monthly bills will reflect the difference between consumed energy and energy delivered to the grid. If producers generate more energy than they use, they will receive monetary credit for future bills.

The government says the reform aligns Albania’s legislation with European standards and supports the country’s EU integration process.

/a.c/

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