Energy Law at Albania
Here's a comprehensive overview of Energy Law in Albania, focusing on the legal framework, regulatory bodies, and investment climate as of 2025:
🇦🇱 Energy Law in Albania: Overview
1. Legal Framework
Albania's energy sector is governed by a series of laws and regulations designed to align with EU energy legislation, particularly as part of Albania’s commitments under the Energy Community Treaty.
Key laws include:
Law No. 43/2015 "On the Power Sector" (amended) – regulates electricity generation, transmission, distribution, and supply.
Law No. 102/2015 "On the Natural Gas Sector" – governs the natural gas market.
Law No. 7/2017 "On the Promotion of the Use of Energy from Renewable Sources".
Law No. 124/2015 "On Energy Efficiency".
Secondary legislation and by-laws issued by regulators implement these laws.
2. Regulatory Authorities
ERE (Enti Rregullator i Energjisë) – Energy Regulatory Authority:
Independent body regulating electricity, gas, and renewables.
Issues licenses, sets tariffs, and ensures market compliance.
Ministry of Infrastructure and Energy (MIE) – oversees energy policy and long-term planning.
National Agency of Natural Resources (AKBN) – manages natural resources and advises on energy development.
Albanian Power Corporation (KESH) – state-owned electricity generator (mainly hydro-based).
3. Electricity Market
Albania has a liberalized electricity market in transition toward full competition.
Market structure includes:
Transmission System Operator (OST) – operates the high-voltage grid.
Distribution System Operator (OSHEE) – manages low and medium-voltage distribution.
Suppliers and Traders – operate in a partially open market.
Large consumers are required to purchase electricity on the free market.
4. Renewable Energy
Albania’s electricity production is over 95% hydro-based.
The country is actively promoting solar, wind, and biomass to diversify its energy mix.
Incentives include:
Feed-in tariffs (limited to small projects),
Auction-based contracts for larger projects (solar/wind),
Power Purchase Agreements (PPAs).
Licenses and environmental permits are required from ERE and the National Environmental Agency.
5. Natural Gas Sector
Still underdeveloped; Albania is working on:
TAP (Trans Adriatic Pipeline) – brings Caspian gas into Europe via Albania.
Development of gas transmission infrastructure and market framework.
Law No. 102/2015 aligns with EU's Third Energy Package for gas.
6. Investment Climate
Foreign investors are welcomed and protected under:
Bilateral investment treaties (BITs),
Albania’s Investment Law (guarantees against expropriation and free transfer of capital).
Licensing requirements vary by project type (e.g., renewable, thermal, grid).
Dispute resolution via domestic courts or international arbitration (ICSID signatory).
7. Energy Transition & EU Alignment
Albania aims for carbon neutrality by 2050, in line with EU goals.
Committed to implementing the EU Clean Energy Package.
Energy efficiency laws require audits and standards in buildings, transport, and industry.
✅ Key Opportunities
Utility-scale solar and wind projects (with government auctions)
Expansion of natural gas infrastructure
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