The momentum for renewable energy investments in Albania continues to grow as private sector interest in building photovoltaic power plants remains strong. According to recent reports, the Ministry of Infrastructure and Energy has received three new applications for the construction of solar power plants with a combined installed capacity of 105.6 megawatts (MW).
This new wave of proposals highlights the growing appeal of Albania’s renewable energy market, especially for investors seeking long-term sustainability and alignment with the country’s green transition strategy.
Three New Solar Projects Submitted for Approval
The first application was submitted by the company “GREEN VOLT”, which proposes to build a 70 MW photovoltaic plant located in the Municipality of Memaliaj, in southern Albania. This project represents the largest share among the three and is expected to play a major role in diversifying local energy generation once completed.
The second application comes from “ARMEN SOLAR”, which has proposed the construction of a 30 MW solar plant positioned in Armen, within the Municipality of Selenicë. The project is strategically located in a region with strong solar radiation potential, making it an attractive site for photovoltaic investment.
The third project is smaller in scale but equally important in terms of local impact. The company “GREEN ENERGY GROUP” has applied to build a 5.6 MW solar plant in Pjetroshan, part of the Municipality of Malësi e Madhe, in northern Albania.
If these projects complete the necessary approval procedures, they will not benefit from government support measures such as guaranteed power purchase agreements or simplified licensing. Instead, they will operate under market-based mechanisms, reflecting a maturing renewable energy sector increasingly driven by private initiative.
Rising Private Investment in Renewable Energy
Private interest in solar energy investment in Albania has been rising steadily over the past few years. The government’s open-door policy for independent power producers and the country’s natural advantages—such as high solar irradiation and available land—have made Albania an emerging hotspot for renewable development in the Western Balkans.
While some private project proposals have been approved and others rejected, the overall trend clearly shows increasing investor confidence. The Ministry of Infrastructure and Energy continues to encourage sustainable projects that meet environmental and technical criteria.
According to recent statistics from the Albanian Institute of Statistics (INSTAT), the contribution of solar energy to the national power mix is expanding. In the second quarter of 2025, solar power plants accounted for 16.4% of Albania’s total domestic energy production, up from 6.8% in the same period of the previous year.
This sharp increase demonstrates how rapidly solar energy is gaining ground, supported by both public and private initiatives.
The Role of Large Photovoltaic Plants
In 2024, approximately 6.25% of Albania’s total electricity production came from solar power plants. The Karavasta Photovoltaic Plant, one of the largest in the region, played a crucial role in this achievement by generating 53% of the country’s solar electricity that year.
Located in the Fier region, the Karavasta plant is considered a milestone for Albania’s renewable energy development. It has set a precedent for efficiency, technology, and environmental standards that new investors are now expected to follow.
With new private-sector projects like those from Green Volt, Armen Solar, and Green Energy Group, the country’s installed solar capacity is expected to grow significantly in the next two years. This will help reduce dependence on hydropower, which currently dominates Albania’s energy mix but is vulnerable to seasonal droughts.
No State Subsidies, but a Growing Market
The three proposed projects are notable because they will not rely on government incentives or financial guarantees. Instead, they will compete directly in the open energy market. This shift signifies a new phase in Albania’s energy development, where renewable projects are becoming commercially viable on their own.
Such projects reflect a broader regional trend where renewable energy investments are increasingly driven by private capital, technological innovation, and international climate commitments.
The government, for its part, continues to streamline the regulatory framework, simplifying procedures for investors while ensuring environmental protection and grid stability.
A Step Toward a Sustainable Future
As Albania continues to align its energy policies with EU standards, the surge in private investment in photovoltaic plants sends a strong message: the country’s renewable energy transition is accelerating.
Experts predict that with sustained momentum, Albania could achieve a double-digit share of solar energy in its national production mix within the next few years. This would enhance energy security, reduce greenhouse gas emissions, and create new opportunities for green jobs and regional cooperation.
If successfully implemented, the new projects totaling 105.6 MW will not only expand Albania’s solar capacity but also strengthen the role of the private sector as a key driver of innovation and sustainability.