Albania Settles The Lowest Solar Power Price In Balkans

Following the open tender call for bidders on the construction of 140 MW solar power plant in the Karavasta region, the French company Voltalia has been announced as the winner during the renewable energy support auction for utility-scale photovoltaics offering the lowest bid at EUR 24.89 per MWh.

Compared to previous prices set at EUR 55 per MWh, the new record price is considered highly beneficial for the economy of Albania and its citizen. The agreement foresees that the French Company, Voltalia, will sell half of the electricity produced at solar power plant Karavasta at the auctioned price, whereas the rest will be sold in the free market.  Also, the company will receive a privileged price for 15 years for a 30-year contract.

The Albanian Ministry of Infrastructure and Energy had announced the tender in January 2020, calling for eligible bidders to submit offers. With the technical assistance provided by the European Bank for Reconstruction and Development, the selection process was highly competitive given also applications from international companies.

Stretching over 198 hectares and located in the Adriatic coast across the southwest of Albania’s capital Tirana, the Karavasta is to be one of the largest power plants of such kind in South-eastern Europe. The project will cost around 100 million EUR.

Albania, despite its dependence on hydropower energy, has also a great potential for investing in solar power. This will enable Albania to diversify its energy generation pool and create alternative sources for energy production.

 

Photo by American Public Power Association on Unsplash