Albania’s energy sector demonstrates reasonable strength overall, particularly regarding regulatory independence. However, private sector participation and market frameworks remain significant challenges.

Electricity Sector

The country maintains an EU-compliant regulatory framework with partial market opening. The primary vulnerability stems from heavy reliance on hydroelectric generation alongside imports, creating seasonal volatility and year-to-year supply inconsistency. Expanding into biomass, coal, and wind energy could address these supply issues, though green energy development requires substantial further effort.

Gas Sector

Gas infrastructure limitations currently prevent meaningful imports. While primary legislation exists, the regulatory framework remains under development. Key aspects include:

• Tariff methodologies are still being formulated
• Laws mandate that tariffs be non-discriminatory, transparent, and reflect efficiently incurred costs
• Third-party access is regulated with dispute resolution mechanisms
• Secondary legislation and relevant codes await adoption

Regulatory Structure

All consumers within designated geographic territories have legal entitlement to reliable, safe, quality and uninterrupted dispatch and supply of gas. Wholesale traders and transmission operators bear responsibility for supply security, with standards outlined in transmission grid codes.