Albania is rapidly positioning itself as a crucial player in the Western Balkans energy landscape with a slate of strategic infrastructure projects now being advanced for European Union financing. In 2026, the country’s energy priorities — including the Moglicë pumped storage development, a cross-border interconnection with Kosovo, and a major 220–400 kV grid upgrade — are being pitched for support under EU energy initiatives.
1. Moglicë Pumped Storage: A Game-Changer in Renewable Flexibility
The biggest project on Albania’s PECI (Projects of Energy Community Interest) list is the expansion of the Moglicë pumped storage facility, part of the Devoll hydropower complex managed by Statkraft. Designed with up to 1,620 MW installed capacity and approximately 30 GWh storage, the project is intended to function as a giant “battery” — absorbing surplus electricity and releasing it during peak demand. This capability could transform Albania’s grid flexibility and support greater use of wind and solar across the region.
This type of storage infrastructure is increasingly vital as countries seek to stabilize supply while integrating more intermittent renewable sources into their energy mix — a priority shared by the EU and international financial institutions.
2. Albania-Kosovo Electricity Interconnection: Strengthening Regional Power Links
Another cornerstone initiative is the new 400 kV interconnection between Albania and Kosovo, which will modernize the high-voltage network and help relieve load pressure on the existing 220 kV system. This project expands substation capacities and builds a new line between Fierze and Prizren, boosting cross-border trade and system reliability.
The enhanced link will be critical for regional cooperation and energy resilience. Interconnections of this scale are often supported by blended financing, including contributions from EU funds and international partners such as Germany’s KfW or the EBRD.
3. Transmission Grid Upgrade: Boosting Efficiency & Renewable Integration
Beyond new links, Albania is seeking funding for rehabilitation and upgrades of existing transmission corridors — especially the 220 kV line connecting key substations from Trebinja through Perućica and Podgorica to Vaun e Dejës. This overhaul will reduce losses, improve supply security, and pave the way for increased renewable energy injection into the grid.
Grid modernization remains a central theme in EU-aligned energy strategies, as seen in joint EU-EBRD support for solar projects and network resilience improvements across the Western Balkans.
Why These Projects Matter for Albania & the Region
Albania’s inclusion of these projects in the EU’s PECI list reflects a broader regional strategy that intersects energy security, clean energy transition, and economic cooperation. By securing EU financing, Tirana can accelerate critical infrastructure that not only stabilizes domestic supply but also enhances Albania’s role as a key transit and trading partner in the Western Balkans energy market.
For Albanian businesses, investors, and energy consumers alike, successful funding and implementation of these projects could mean lower energy costs, more renewable energy capacity, and stronger integration with European energy networks. Strategic alignment with EU technical standards and financing mechanisms further supports Albania’s long-term economic goals.