Albania advances energy sector reform with new law for a competitive market

TIRANA, April 9 – Albania moves closer to a modern, competitive energy market with a new draft law. Minister of Infrastructure and Energy, Enea Karakaçi, presented the proposed changes at a roundtable today. The session included all key stakeholders in the energy sector.

Karakaçi emphasized that the law forms a central element of ongoing energy sector reform. He said it aligns Albania’s legislation with European Union standards and meets obligations under EU Energy Chapter 15. The law updates the current legal framework and establishes foundations for a new market model.

The draft law introduces a more open and flexible electricity market. It reduces centralization and state intervention while promoting competition. Karakaçi highlighted the rise of renewable energy sources, especially solar, which now account for about 10% of domestic electricity production. The law also recognizes active consumers and prosumers, empowering them to participate directly in production and the energy market.

The law strengthens regional and cross-border integration. It sets clear rules for allocating interconnection capacities and coordinating with regional structures. Karakaçi noted that ALPEX now operates in Albania and Kosova, enhancing supply security and market efficiency.

The government advances smart grid projects and modern metering systems. It also reinforces institutional capacities, giving the Energy Regulatory Authority a more central role. These steps support transparent market operation and long-term sustainability.

Karakaçi concluded that the draft law marks a key moment for Albania’s energy sector. It lays the foundation for a modern, competitive, and integrated electricity market. The reforms guide the sector toward EU standards and a more sustainable energy future.

/a.p./

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