Albania’s economy ministry said it signed a 100 million euro ($121.2 million) loan agreement with Germany's state-owned government development bank (KfW) to support a reform in the energy sector.
The loan is expected to support an important reform package that contributes to a liberalised, transparent and fair energy market in Albania, the ministry said in a press release on Tuesday.
The loan has a maturity of 12 years, including a period of three years without principal payment, the ministry noted.
“We are delighted that Albania has taken important steps in energy sector reform. This will also have positive effects on other branches of the economy as well as the citizens,” German ambassador to Albania Peter Zingraf said in a separate statement on Facebook.
Albania could use solar and wind resources to diversify its energy sources, thus lowering its dependence on rainfall, mitigating its exposure to external factors and building stability, according to a International Renewable Energy Agency (IRENA) report published in March.
The country's cost-effective solar and wind potential is estimated at more than 7 gigawatts (GW), more than three times its total installed electricity capacity, the agency noted, adding that the country has one of the highest shares of renewable energy in Southeast Europe, but its dependence on hydropower energy sources makes it vulnerable to climatic externalities.
(SeeNews, June 16, 2021)
